The Income Tax Slab rates are different for Senior Citizens. So, let’s find out what the slab rates for Senior Citizen are.
|Particulars||Senior Citizens||Super Senior Citizens|
|Tax Free||Up to 3Lakh||Up to 5lakh|
|10% Tax||3lakh to 5Lakh||5Lakh and above|
As the slab rates are beneficial to Senior Citizens and turn to be Rs. 5000 for senior Citizen and Rs. 30,000 for Super Senior Citizens. In order to know more about Tax Slabs, click here.
According to the Union Budget for the Financial Year 2018-19, under section 80TTB a Senior Citizen can claim a deduction for the interest of Rs. 50,000. The amount that is earned above Rs. 50,000 will be taxed according to the slab mentioned for the Senior Citizen.
Tax Benefits for Senior Citizens: Deductions
Senior Citizens are also allowed deductions under section 80D, they can claim a deduction of Rs. 50,000 from 1st April 2018 as per Union Budget 2018, on their payment of medical insurance premium. If you are planning to claim deductions before 1st April 2018, you can claim up to Rs. 30,000 as per Union Budget 2017. In case of the very super senior citizen, that is for the people above 80 years, there are not only deductions on the payment of medical insurance premium, but also for the expenses of the treatment.
Another tax benefit for Senior Citizen is, the Senior Citizens who don’t have any business they are totally free from paying any Advance Tax, they will only have to pay self-assessment tax for their total income.
According to the amendment after the Union Budget 2018, the threshold hold for deductions under section 194A has increased from 10,000 to 50,000. If the total income of a senior citizen is exempted by the levy of Income Tax, then he/she will have to fill form 15H to avoid TDS deduction on interest on Fixed Deposits.
Senior Citizens and Super Senior Citizen can claim a deduction of up to Rs. 1lakh, under section 80DDB from 1st April 2018 for their Medical expenditure. Earlier, Senior Citizens could claim Rs. 60,000 and Super Senior Citizens could claim Rs. 80,000 under this section.
Well, there are some reliefs for Senior Citizen, when it comes to Reverse Mortgage Scheme. The instalments paid to the Senior Citizens under Reverse Mortgage Scheme is fully exempt from the levy of Income Tax.
So, those were some Tax Benefits which are available for Senior and Super Senior Citizen in 2018.