Benefits for Senior Citizens and Super Senior Citizens under Income Tax Act, 1961

In a recent directive issued by the Integrated Headquarters of MoD (Army) and the Standing Army Pay Commission Section, significant tax benefits for Senior and Super Senior Citizens under the Income Tax Act, 1961, have been outlined. This comprehensive update highlights key exemptions and benefits designed to ease the financial burden on elderly individuals.

Senior Citizens, defined as those over 60, and Super Senior Citizens, those over 80, are entitled to a range of tax relief measures. Firstly, the basic income tax exemption limit is elevated for these groups: ₹3 lakhs for Senior Citizens and ₹5 lakhs for Super Senior Citizens. Additionally, Senior Citizens are exempt from paying advance tax if their total income tax liability exceeds ₹10,000.

A standard deduction of ₹50,000 is available on pensions, while the permissible medical insurance premium deduction has been increased to ₹50,000 from ₹25,000. For those with dependents who have disabilities, deductions under Section 80DD range from ₹75,000 to ₹1,00,000 depending on the severity of the disability.

Further, Senior Citizens can claim a higher exemption of ₹1,00,000 for treatment of specified diseases, such as cancer and Parkinson’s, compared to the ₹40,000 available to others. There is also a higher deduction limit for interest income from banks and post offices, set at ₹50,000 per annum, versus ₹10,000 for non-senior citizens.

Other provisions include allowing Senior Citizens to file paper returns instead of e-filing and use Form No 15H to claim no Tax Deducted at Source (TDS) on certain investments. Furthermore, reverse mortgages will not be considered as capital gains and will not affect taxable income. For those whose sole income is pension and interest from deposits, banks will handle tax deductions, and those over 75 are exempt from filing income tax returns.

Hindi Version

आयकर अधिनियम, 1961 के तहत वरिष्ठ नागरिकों और सुपर वरिष्ठ नागरिकों के लिए लाभ

हाल ही में एक निर्देश जारी किया गया है जिसमें रक्षा मंत्रालय (सेना) और स्थायी सेना वेतन आयोग अनुभाग द्वारा आयकर अधिनियम, 1961 के तहत वरिष्ठ और सुपर वरिष्ठ नागरिकों के लिए महत्वपूर्ण कर लाभों का विवरण दिया गया है। इस व्यापक अपडेट में बुजुर्ग व्यक्तियों पर वित्तीय बोझ को कम करने के लिए कई महत्वपूर्ण छूट और लाभों को उजागर किया गया है।

60 वर्ष से अधिक आयु वाले नागरिकों को वरिष्ठ नागरिक माना गया है, जबकि 80 वर्ष से अधिक आयु वाले नागरिकों को सुपर वरिष्ठ नागरिक माना गया है। इन समूहों के लिए कर छूट की सीमा को बढ़ाया गया है: वरिष्ठ नागरिकों के लिए ₹3 लाख और सुपर वरिष्ठ नागरिकों के लिए ₹5 लाख। इसके अतिरिक्त, वरिष्ठ नागरिकों को अग्रिम कर भुगतान से छूट दी गई है यदि उनकी कुल आयकर देयता ₹10,000 से अधिक है।

पेंशन पर ₹50,000 की मानक छूट उपलब्ध है, जबकि चिकित्सा बीमा प्रीमियम की छूट को ₹25,000 से बढ़ाकर ₹50,000 कर दिया गया है। जिनके आश्रितों में विकलांगता है, उनके लिए धारा 80DD के तहत ₹75,000 से ₹1,00,000 तक की छूट अनुमन्य है, विकलांगता की गंभीरता के आधार पर।

इसके अतिरिक्त, वरिष्ठ नागरिकों को विशिष्ट बीमारियों जैसे कैंसर और पार्किंसंस के इलाज पर ₹1,00,000 तक की छूट का दावा करने की अनुमति है, जबकि अन्य नागरिकों के लिए यह सीमा ₹40,000 है। बैंक और पोस्ट ऑफिस से मिलने वाले ब्याज पर छूट की सीमा को ₹50,000 प्रति वर्ष कर दिया गया है, जबकि अन्य नागरिकों के लिए यह ₹10,000 है।

अन्य प्रावधानों में वरिष्ठ नागरिकों को ई-फाइलिंग के बजाय कागजी रिटर्न फाइल करने की अनुमति दी गई है और वे फॉर्म नंबर 15H का उपयोग करके कुछ निवेशों पर कर कटौती से छूट प्राप्त कर सकते हैं। इसके अतिरिक्त, रिवर्स मोर्टगेज को पूंजीगत लाभ के रूप में नहीं गिना जाएगा और यह कर योग्य आय में शामिल नहीं होगा। यदि वरिष्ठ नागरिकों की एकमात्र आय पेंशन और जमा ब्याज है, तो बैंक कर कटौती की जिम्मेदारी संभालेंगे और 75 वर्ष से अधिक आयु वाले वरिष्ठ नागरिक आयकर रिटर्न फाइल करने से मुक्त हैं।

Original Text

C/7099/I-Tax/SAPCS/2027

24 May 2024

एकीकृत मुख्‍यालय रक्षा मंत्रालय (सेना) / एजी शाखा
INTEGRATED HQ OF MoD (ARMY) / AG’s BRANCH
कार्मिकसेवाएं निदेशालय / स्‍थायी सेना वेतन आयोगअनुभाग
PS DTE/ STANDING ARMY PAY COMMISSION SECTION

BENEFITS FOR SENIOR CITIZENS AND SUPER SENIOR
CITIZENS UNDER INCOME TAX ACT, 1961

1. Income tax department provides exempilans/ benefits to Senior Citizens and Super Senior Citizens under Income-tax Act, 1961. Citizens above 60 years of age are classified as Senior Citizens and above 80 years are classified as Super Senior Citizens. A summary of exemption/ benefits given to Senior Citizens and Supe. Senior Citizens is given as under:-

(a) The basic Income exemption for citizen is 2.5 Lakhs. The exemption is as under for Senior Citizens:

(i) Senior Citizens – ₹3 Lakhs This much amount is straightway deducted before computing tax liability on income.

(ii) Super Senior – Citizens. ₹5 Lakhs

(b) Senior Super Senior Citizens have been exempted from paying advance tax which is otherwise payable. In case IT/yr is more than ₹10,000/.

(c) Std deduction of [50,0004 avbl on pension.

(d) Enhanced Med Insurance premium of ₹50,000/- for health insurance premium or Medical expenses is permissible as against ₹25,000/- pa for such citizens.

(e) In case of a dependent with disability on Senior Citizens for med treatment under Sec 80DD depending on disability on exemption of ₹75,000/ to ₹1,00,000/- is permitted.

(f) Senior Citizens can claim an exemption of ₹1,00,000/- for Self/ Dependents in case of treatment of specified diseases which is otherwise ₹40,000/- these diseases incl cancer, AIDS, Parkinson, Dementia etc.

(g) Higher deduction of income from interest from Bank Post Office for
₹50,000/- pa is permissible as against ₹10,000/- for other citizens (Sec 80TTA).

(h) Senior Citizens are allowed to file paper IT returns as against e-filing which is mandatory for other citizens.

(j) Senior Citizens can use Form No 15H of IT return to claim No TDS (Tax Deduction at Source) from the Bank for income from RD, FD, Dividends and pension as well as other investments.

(k) Reverse mortgage of property will not be counted on capital gain and will also be exempted to be added in to income.

(l) In case the only source of income of Senior Citizens is pension & Deposits interest etc the bank will be resp for deduction of IT and Senior Citizens above 75 years age are exempted from filing IT return insueh cases.

2. In view of the above, the info may pl be circulated to the envt for education/ awareness of veterans/ dependents.

3. This has approval of the AG.

(सचिन कालिया/Sachin Kalia)
कर्नल/ Col
कर्नल स्‍थायी सेना वेतन आयोग अनुभाग/
Col Standing Army Pay Commission Sec

ORG/ MP-5 (RODRA)
MP-8(I of R)
DIAV

Source: Rodra

Benefits for Senior Citizens and Super Senior Citizens under Income Tax Act, 1961