Who are Snior Citizens and Super Senior Citizens?
For income tax purposes, Resident individuals who are aged 60 years and above but below 80 years in the previous year are called senior citizens.
Further, Resident individuals aged 80 years and older in the previous year are called super senior citizens.
What are the Sources of Income for Senior Citizens and Super Senior Citizens?
Senior citizens and Super Senior Citizens usually earn incomes from the following sources –
- Pension
- Interest on savings accounts or fixed deposit schemes
- Rental income from renting out a house property
- Income from Capital Gains
- Senior citizen saving schemes
- Reverse mortgage schemes
- Post office deposit schemes, which also pay an interest
- And many others
Income Tax Calculation for Senior Citizens
The income tax calculation for senior citizens in India follows the same basic principles as for other taxpayers. However, senior citizens are eligible for certain additional tax benefits and exemptions. The income tax calculation for senior citizens is levied on all sources of income like pension, rental income, interest or earnings from savings schemes, fixed deposits, post office schemes, or reverse mortgages.
Here's an overview of the income tax calculation process for senior citizens:
- Categorize Income: Classify your income into different categories such as salary, pension, interest, rental income, capital gains, etc. Ensure you consider all sources of income for accurate tax calculation.
- Apply Basic Exemption Limit: As per the income tax slab rates, senior citizens are eligible for a higher basic exemption limit than non-senior citizens. The basic exemption limit for senior citizens (individuals aged 60 years or above) is currently Rs. 3 lakh for the financial year 2024-25 (old tax regime). From Budget 2025 onwards, the exemption limit has been raised to Rs. 4 lakh for senior citizens in new tax regime.
- Deductions and Exemptions: Consider eligible deductions and exemptions available to senior citizens. Combined deductions apart from standard deductions for senior citizens, tax deductions under Section 80C, 80CCC and 80CCD(1) (up to ₹1.5 lakh), Section 80D (health insurance premiums), and 80DDB are also applicable. Ensure you claim deductions applicable to your specific situation.
- Calculate Taxable Income: Subtract the deductions and exemptions from your total income to arrive at the taxable income. During tax calculation for senior citizens, retirement benefits and gratuities must be excluded
- Apply Applicable Tax Slab: Calculate the income tax liability based on the applicable tax slab rates for the financial year. Calculate Tax Rebates and Surcharge. Senior citizens with lower incomes are eligible for certain rebates or concessions.
- File Income Tax Return: After calculating your income tax liability, file your income tax return (ITR) online or offline. Make sure to accurately report your income, deductions, exemptions, and taxes paid. If you find ITR filing complicated, get in touch with our tax experts and file your ITR with CA assistance.
Income Tax for Senior Citizen Pensioners
Senior Citizen Pensioners are those citizens who are usually between 58 and 60 years old. A citizen becomes pensioner once they retire from a regular job. Benefits that a senior citizen pensioner can claim are:-
Under the old tax regime, the basic exemption limit for senior citizens (Resident individuals aged 60 years or above) is ₹3 lakh. This means that their income up to ₹3 lakh is exempt from income tax. On the other hand, super senior citizens (Resident individuals aged 80 years or above) are eligible for a higher basic exemption limit of ₹5 lakh. However, under the new tax regime, the basic exemption limit for both senior and super citizens is Rs. 4 lakh.
Additionally, the standard deduction for senior citizens is ₹50,000 under the old tax regime and ₹75,000 for the new tax regimes (FY2024-25).
Income Tax Slab Rate For Senior Citizen (FY 2024-25)-Old Tax Regime
Income Tax Slab Rate for Senior Citizens (FY 2024-25) (Old Regime)
| Income level |
Applicable |
| Up to INR 300,000 |
Nil |
| INR 300,001 to INR 500,000 |
5% of the income exceeding INR 300,000 |
| INR 500,001 to INR 10,00,000 |
5% of the income exceeding INR 300,000 + 20% of the income exceeding INR 500,000 |
| INR 10,00,001 and above |
5% of the income exceeding INR 300,000 + 20% of the income exceeding INR 500,000 + 30% of the income exceeding INR 10,00,000 |
Income Tax Slab Rate For Super Senior Citizen (FY 2024-25)-Old Tax Regime
| Income level |
Applicable tax |
| Up to INR 500,000 |
Nil |
| INR 500,001 to INR 10,00,000 |
20% of the income exceeding INR 500,000 |
| INR 10,00,001 and above |
20% of the income exceeding INR 500,000 + 30% of the income exceeding INR 10,00,000 |
The above-calculated tax for senior and super senior citizens shall be increased by Health and Education Cess @ 4% of the income tax.
Additionally, the surcharge is applicable on the basis of total income as follows: up to 50 lakh, the surcharge rate is nil. Above Rs 50 lakh but upto 1cr 10% of Tax, above 1 Cr but upto Rs.2Cr 15% of tax, above Rs 2Cr but upto %Cr 25% of tax, above 5 Cr 37% of tax. rates have been reduced to 25% under the new tax regime for taxpayers earning more than Rs 5 crore. Surcharge rates of 25% and 37% are not applicable in the case of STCG u\s 111A, LTCG u\s 112A, LTCG u\s 112, and Dividend income.
Income Tax Slab Rate For Senior Citizen and Super Senior Citizen - New Tax Regime
Budget 2025 has proposed new income tax slabs under the new tax regime. The new income tax slabs proposed under the new tax regime have raised the basic exemption limit to Rs 4 lakh from Rs 3 lakh.
| Income Slab (Rs) |
New Tax Regime Rate FY 2025-26 |
Income Slab (Rs) |
New Tax Regime Rate FY 2024-25 |
| Up to 4 lacs |
Nil |
Up to 3 lacs |
Nil |
| 4 lacs - 8 lacs |
5% |
3 lacs - 7 lacs |
5% |
| 8 lacs - 12 lacs |
10% |
7 lacs - 10 lacs |
10% |
| 12 lacs - 16 lacs |
15% |
10 lacs - 12 lacs |
15% |
| 16 lacs - 20 lacs |
20% |
12 lacs - 15 lacs |
20% |
| 20 lacs - 24 lacs |
25% |
Above 15 lacs |
30% |
| Above 24 lacs |
30% |
|
|
The new income tax laws will be effective from the new FY 2025-26, starting from April 1, 2025. This means you will be able to benefit from the increased limit for the FY 2025-26 filing.
What Benefits are Available to the Senior and Super Senior Citizens?
Following are a few of the benefits that are offered by the Income tax department to senior and super senior citizens:-
Deduction under Section 80C
This section allows senior citizens or super senior citizens deductions of up to INR 1.5 lakhs from their gross total income for eligible investments and expenses. The list of popular investments that are covered under Section 80C includes the following –
Deduction under Section 80CCC
If you pay premiums towards a specified pension plan, such premiums paid would be allowed as a deduction under this section. The maximum limit is INR 1.5 lakhs, together with section 80C.
Further, 50,000 is allowed u/s 80CCD(1B). This means the maximum deduction available under section 80CCD(1B) is Rs.2 lakhs. Further, the deduction u/s 80CCD(2) is separately allowed in respect of contributions made by the employer is subject to the limit of 14% of salary income for all categories of employers.
The tax benefit u/s 80CC(2) is available under the new tax regime proposed in the Budget 2020.
Deduction under Section 80CCD(1B)
Under this section, investments done towards the National Pension Scheme are allowed as a deduction up to a maximum of INR 50,000. This deduction is over and above the total deduction available under Section 80C and Section 80CCC.
NPS accounts can be opened at the age of less than 65 years.
Deduction under Section 80D
Health insurance premiums paid for availing health insurance coverage for senior citizens or super senior citizens is allowed as a deduction under this section up to a maximum of INR 50,000. Also, tax benefits in respect of expenses incurred for preventive health checkups amounting maximum of up to Rs 5000 can be availed under the same section.
In case no medical policies have been taken for senior citizens, then the medical expenditures incurred for them (in payment mode other than cash) can be claimed as a deduction under section 80D.
Deduction under Section 80DD
If the resident senior citizen or super senior citizen incurs expenses for the treatment or maintenance of a disabled dependent as may be prescribed, deduction can be claimed under this section for such expenses. The limit of deduction allowed is fixed and depends on the disability suffered. If the disability suffered is 40% or more but below 80%, a fixed deduction of INR 75,000 is allowed. For severe disabilities(80% or more), the deduction limit increases to INR 1,25,000 lakhs
Deduction under Section 80DDB
Expenses incurred for treating specific illnesses are covered under section 80DDB. If resident senior citizens, super senior citizens, or their dependents suffer from pre-specified diseases, they can claim a deduction of expenses incurred on treating such diseases. From FY 2018-19, the limit of the deduction would be the actual costs incurred up to a maximum of INR 1 lakh, which can be deducted from tax for the medical treatment of a dependent who is aged 60 or more or is a super senior citizen over the age of 80 years or more.
Deduction under Section 80G
If senior citizens or super senior citizens donate to specified charitable causes and institutions, they can claim a deduction for the donation made. The deduction is allowed either at 50% of the donated amount or 100% of the donated amount, depending on the charity chosen. Click here to find out the eligible charities for deduction u/s 80G.
Deduction under Section 80GGC
If senior citizens or super senior citizens contribute money to a political party or an electoral trust, the contribution would be a deduction under Section 80GGC. Donation in cash is not allowed as a deduction. The deduction is allowed for 100% of the donation
If a resident senior citizen or super senior citizen has a registered patent and earns royalty income on such patents, the royalty received is allowed as a deduction from taxable income. The maximum amount of royalty allowed as a deduction would be limited to INR 3 lakhs. Moreover, to claim the deduction, the following conditions should be fulfilled by the senior citizen or super senior citizen –
- He or she should be an Indian resident
- He or she should have registered the patent on or after 1st April 2003 under the Patents Act 1970
- To claim the deduction, the senior citizen or super senior citizen would have to submit a certificate(Form-10CCE) to the tax authorities, and the certificate should be signed by the prescribed authorities
- The senior citizen or super senior citizen should be the patentee
Deduction under Section 80TTB
If the resident senior citizen or super senior citizen has made deposits in a bank or post office, the interest earned on such deposits, including interest from savings accounts, fixed deposit schemes, and post office deposit schemes, would be allowed as a deduction in the hands of the senior citizen. Deduction on interest income earned would be limited to INR 50,000 from FY 2018-19.
Deduction under Section 80U
The Deduction under Section 80U is available to resident senior citizens or super senior citizens who suffer from a disability or mental retardation. This deduction amount is fixed at INR 75,000 for normal disability, which increases to INR 1.25 lakhs if the senior citizen or super senior citizen has severe disabilities.
Besides the various deductions available under Chapter VI A of the Income Tax Act, the amount received as a loan by senior citizens or super senior citizens on a reverse mortgage scheme is not taxable. Under the scheme of a reverse mortgage, the senior citizen or super senior citizen can avail EMIs for the value of a property belonging to him/her by mortgaging the property. The EMI payments continue throughout the lifetime of the senior citizen or super senior citizen and provide a source of regular inflow. When the senior citizen or super senior citizen dies, the house property is sold to realize the loan.
Moreover, resident senior citizens and super senior citizens are also not required to pay any advance tax on their incomes if they do not have income from businesses or professions. They file their returns through self-assessment tax after the completion of the financial year.
After the income is aggregated and the eligible deductions are deducted from the income, the taxable income of the individual is ascertained. This taxable income is, then, subject to tax as per the applicable tax slab.
Note:
If the senior or super senior citizens opt for the new tax regime specified under option 2, then they have to:
Forego specified deductions and exemptions
Forego benefits under section 80TTB
Forego additional basic exemption limit available for senior or super senior citizens
The benefit u/s 87A will still be available
Don’t let tax deductions stress you out. You deserve to relax and enjoy your retirement without worrying about complex calculations. Let our tax experts handle your taxes for you. We will help you claim the best deductions for your situation and save you time and money. Contact us today and see how we can simplify your taxes.
Income Tax Return Forms for Senior Citizens and Super Senior Citizens
As the tax filing season approaches, it is essential for senior citizens and super senior citizens to select the correct Income Tax Return (ITR) form, ensuring compliance and maximising benefits. Even if the income is not taxable, a tax return should be filed to claim a tax refund or for evidence of income earned during a financial year.
For pensioners with earnings below Rs 50 lakh from sources such as salary, pension, rental income, and interest, ITR-1, also known as Sahaj, is the recommended form. If income is derived from property, capital gains, or other sources beyond salary and pension, ITR-2 becomes relevant. Meanwhile, ITR-3 and ITR-4 are designed for those earning from business or professional income, with ITR-4 specifically catering to presumptive taxation under sections 44AD and 44ADA. Each form addresses distinct income scenarios, tailored to simplify the filing process for seniors.
Senior citizens should ensure comprehensive reporting of all income sources, including interest, commissions, and dividends, to avoid under-reporting and potential penalties. Many seniors mistakenly believe they need not file returns if tax is deducted at source (TDS) on income received. This is not right.
Additionally, senior citizens can take advantage of increased deductions such as health insurance premiums under Section 80D and interest income from deposits under Section 80TTB, alongside a standard deduction of up to Rs 50,000 against salary and pension income under Section 16(ia).
There is also a section in TDS 194P that is applicable to specified senior citizens whose age is 75 years or more and who have only pension income and no other income except interest from the same specified bank in which pension income is received. Then, in that case, the specified bank will deduct the TDS, and the specified senior citizen is not required to file the return
| ITR Form |
Nature of income |
| ITR 1 |
Total income upto Rs 50 lakhs from salary, one house property, other sources or agriculture income upto Rs 5,000 |
| ITR 2 |
Total Income more than 50 lakhs, or from two house property, capital gains, or agriculture income exceeding Rs 5,000 |
| ITR 3 |
Income from Business or Profession |
| ITR 4 |
For presumptive income |
You have learned about tax slabs, benefits, and how to calculate taxes for seniors and super seniors. Don’t wait any longer; efile your Income Tax Return today to avoid the stress of deadline. If you need assistance with efiling your Income Tax Return, you can simply book eCA and get expert guidance and support.
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