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Every individual working in the country is bound to pay income tax as per their earnings and the income tax slab. The Indian government is providing several exemptions on the tax. The senior citizens are the most benefited when compared to the normal taxpayers. The exemption limit for a resident senior citizen is Rs 3 lakhs for the assessment year 2021-22 and for non-senior citizens, it is 2.5 lakhs. For very senior citizens, the exemption limit is said to be Rs 5 lakhs. The exemption limit is something an income up to which a person is not liable to pay taxes. All these will be applicable for the senior citizens who are residing in the country.
A senior citizen should be aged between 60 and 80 years to avail the tax benefits and a very senior citizen should be aged above 80 years for the mentioned tax benefits. All the very senior citizens can file his returns in Form ITR in paper mode and e-filing is not mandatory. All the senior citizens are given relief from advance tax as per Section 207. All the senior citizens who are not into an income or business need not pay any advance tax. The senior citizens will be eligible for deduction for income earned through saving deposits of fixed deposits and the limit is up to Rs 50,000. As per the Income Tax Act 1961, several senior citizens who are aged above 75 years are given more relief.
If the tax is deducted from the income of the senior citizens, he will not be liable to furnish the returns of income for the previous year for the deducted tax.
By Siva Kumar