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Income Tax Slab for Senior and Super Senior Citizens FY 2023-24 (AY 2024-25)

Updated on: 20 May, 2024 03:45 PM

In India, the income tax slabs used to be structured in a progressive manner, where the tax rates increase as the income level rises. Senior citizens aged 60 years and above but below 80 years and super senior citizens aged 80 years and above are provided with certain tax benefits and concessions. However, in the Union Budget 2023, the government made the new tax regime the default tax regime. The new tax regime has the same tax slab for every taxpayer in India, which makes it the simplest ever tax regime. While seniors can still opt for the Old Tax Regime (OTR) with its progressive slabs, let’s talk about the tax provisions applicable to the resident senior citizen and super senior citizen in the old tax regime in detail.

Who are senior 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 or 1st day of AY are called senior citizens.

Further, Resident individuals aged 80 years and older in the previous year or 1st day of AY 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:

  1. 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.
  2. 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 2023-24 (old tax regime).
  3. Deductions and Exemptions: Consider eligible deductions and exemptions available to senior citizens. Common deductions apart from standard deductions for senior citizens, tax deductions under Section 80C (up to ₹1.5 lakh), Section 80D (health insurance premiums), and 80DDB are also applicable. Ensure you claim deductions applicable to your specific situation.
  4. 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
  5. 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.
  6. 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.

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. 2.5 lakh.

Additionally, the standard deduction for senior citizens is ₹50,000 under both the old and new tax regimes


Income Tax Slab Rate For Senior Citizen (FY 2023-24)-Old Tax Regime

Income Tax Slab Rate for Senior Citizens (FY 2023-24) (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 2023-24)-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 2Crbut upto %Cr 25% of tax, Above 5 Cr 37% of tax. surcharge 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, LTCGu\s 112A, LTCG u\s 112, and Dividend income,


Income Tax Slab Rate For Senior Citizen and Super Senior Citizen - New Tax Regime

Income Tax Slabs Tax Rate
Up to Rs.3,00,000 None
Rs.3,00,001 to Rs.5,00,000 5%
Rs.5,00,001 to Rs.7,50,000 10%
Rs.7,50,001 to Rs.10,00,000 15%
Rs.10,00,001 to Rs.12,50,000 20%
Rs.12,50,001 to Rs.15,00,000 25%
Above Rs.15,00,000 30%

The health and education cess along with surcharge remains the same.


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 –

  • 5 year fixed deposits
  • Investment in Equity Linked Savings Scheme (ELSS)
  • Investment in Public Provident Fund (PPF)
  • Life insurance premiums (LIP)paid
  • Investment in Senior Citizen Saving Scheme (SCSS) or
  • National Saving Certificates etc.

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), and further deduction u/s 80CCD(2) is separately allowed in respect of contributions made by the employer is subject to the limit of 10% of Salary, in the case of government employees, the limit is 14% of salary income.

The tax benefit u/s 80CC(2) is available under the new tax regime proposed in 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.

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

Deduction under Section 80RRB

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 Advisory Service 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 returns filing for senior citizens and super senior citizens

Income tax is required to be filed by senior citizens & super senior citizens if they have any income during the financial year. 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. To file an income tax return, senior citizens & super senior citizens would have to use the following income tax forms, depending on the nature of their income. 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.


Frequently Asked Questions

Q- Are different deductions available for senior citizens and super senior citizens?

No, though the tax slabs are different, the same deductions are available to senior citizens and super senior citizens for the FY 2019-20. For FY 2022-23 if the senior citizens or super senior citizens opt for the new tax regime then no deductions and exemptions will be available except 80CCD(2) and 80JJAA.


Q- Can senior citizens file their taxes online?

Yes, the online tax filing facility is also available for senior citizens.


Q- If the taxable income of senior citizens is below the exemption limit, is tax filing necessary?

Yes, tax filing is necessary if the senior citizen earns an income in a financial year, and if TDS has been deducted from any income of the senior citizen, through tax filing, the taxpayer can avail of a refund of such TDS.


Q- Which income is considered for the rebate, taxable or total income?

For the applicable rebate on tax, taxable income is considered. The deductions are deducted from the gross total income, and if the taxable income is below INR 5 lakhs, a full tax rebate would be allowed, and the senior citizen would have to pay no tax on his income


Q- Is 80c applicable for senior citizens?

Yes. Deduction u/s 80C is applicable to senior citizens as per the existing tax slabs, but the same will not be available under the new tax regime, which has been left to the discretion of the taxpayer.


Q- What are the schemes for saving income tax for senior citizens ?

The following options are available to senior citizens for saving income tax.

  • Investment in senior citizen saving scheme u/s 80C upto Rs. 1,50,000/-
  • Deduction u/s 80TTB for interest income on deposits from bank or from post office upto Rs.50,000/-
  • Deduction u/s 80D of Rs 50000
  • Deduction u/s 80DDB of Rs 100000
  • The benefit of the above schemes cannot be claimed by the taxpayer under the optional tax slabs announced via Budget 2020 under the new tax regime.

Q- Does a super senior citizen of 83 years have to file an income tax return if his income is less than 5 lakh without deducting any rebate?

No, Assesse is not required to file an income tax return because his income is less than the basic exemption limit for the FY 2022-23. No payments in this case would be required for the assessee if he opts for the old scheme, in case a new tax regime is chosen then the benefit of increased basic exemption limit in case of super senior citizens will not be available, but Rebate u/s 87A can still be claimed.


Q- Is a businessman above 60 years of age not counted as a senior citizen in the income tax system? Is it just for people with jobs?

No. He is eligible to count as a senior citizen.


Q- My father is a senior citizen, and my mother is not, what is the maximum amount I can claim for their insurance under parental medical insurance tax exemption?

The maximum deduction the assessee can claim is Rs 50000 u/s 80D. The benefit will be available for FY 2019-20 and will continue for FY 2022-23 if the assessee opts for old taxation slabs. In case a new tax regime as proposed u/s115BAC is chosen then no such benefit of deduction for premium paid on a medical insurance policy can be claimed.


Q- If my parents are dependent on me, can I claim a tax exemption on the expenses incurred for medical treatment?

If parents are senior or super senior citizens, then deduction of medical expenditure on parents can be claimed as deduction u/s 80D upto Rs. 50,000/-


Q- What would be the salary of a senior citizen after deductions like PPF and NPS if he is paying 5 lakhs as tax?

Net taxable salary will be Rs 2235900, on which tax payable will be Rs. 5lakh


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.