Income Tax Slab for Senior Citizen

  • Author :
  • TATA AIG Team
  • Last Updated On :
  • 30/05/2024

The Indian Government offers a special income tax rate for senior citizens, considering the rising costs of living. These rates can help you save on taxes and utilise the saved funds to manage other expenses.

In early 2023, India surpassed China as the most populous country in the world. According to a UNFPA India report, the population of senior citizens in the country is expected to double from 10.5% in 2022 to around 20.8% by 2050.

Today, we will talk about senior citizen tax brackets and help you understand the tax benefits offered to senior citizens in India.

Who are Senior Citizens as per Income Tax?

According to the Income Tax Act of 1961, senior citizens are Indian residents who are over 60 years of age but less than 80 years. Residents over 80 years of age are super senior citizens. The Income Tax Act categorises resident individuals into three categories:

Regular individuals: Residents who are less than 60 years old

Senior Citizens: Residents who are between the age group of 60 to 80 years

Super Senior Citizens: Residents who are more than 80 years old

There are different tax slabs for senior and super-senior citizens and different sets of exemptions too.

Income Tax Slabs for Senior and Super Senior Citizens for FY 2023-24

In the Union Budget 2023, the Finance Minister announced certain changes to the income tax regime. To begin with, the new tax regime will now be the default case for all taxpayers. However, there is an option of opting for the old regime if the taxpayer wants. Here is a quick look at the current tax slab for senior citizens and super-senior citizens:

Income Tax Slabs for Senior Citizens

We will look at both the old and new tax regimes for senior citizens who are above 60 years old but below 80 years old. Here is the slab rate for senior citizen residents:

Income Tax Rate for Senior Citizens for FY 2023-24 under the New Tax Regime

Income tax slabs Tax Rate
Up to ₹3 lakhs No tax
Between ₹3 lakhs and ₹6 lakhs 5% of your total income that exceeds ₹3 lakhs
Between ₹6 lakhs and ₹9 lakhs ₹15,000 + 10% of your total income that exceeds ₹6 lakhs
Between ₹9 lakhs and ₹12 lakhs ₹45,000 + 15% of your total income that exceeds ₹9 lakhs
Between ₹12 lakhs and ₹15 lakhs ₹90,000 + 20% of your total income that exceeds ₹12 lakhs
More Than ₹15 lakhs ₹1,50,000 + 30% of your total income that exceeds ₹15 lakhs

** Income Tax Slabs for Senior Citizens for FY 2023-24 under the Old Tax Regime **

Income tax slabs Rate of Taxation
Up to ₹3 lakhs No tax
From ₹3 lakhs – ₹5 lakhs 5% of your total income that exceeds ₹3 lakhs
From ₹5 lakhs – ₹10 lakhs ₹10,000 + 20% of your total income that exceeds ₹5 lakhs
Above ₹10 lakhs ₹1,10,000 + 30% of your total income that exceeds ₹10 lakhs

Income Tax Slabs for Super Senior Citizens

We will look at both the old and new tax regimes for super senior citizens who are above 80 years old:

Income Tax Slabs for Super Senior Citizens for FY 2023-24 under the New Tax Regime

Income tax slabs Tax Rate
Up to ₹3 lakhs No tax
Between ₹3 lakhs and ₹6 lakhs 5% of your total income that exceeds ₹3 lakhs
Between ₹6 lakhs and ₹9 lakhs ₹15,000 + 10% of your total income that exceeds ₹6 lakhs
Between ₹9 lakhs and ₹12 lakhs ₹45,000 + 15% of your total income that exceeds ₹9 lakhs
Between ₹12 lakhs and ₹15 lakhs ₹90,000 + 20% of your total income that exceeds ₹12 lakhs
More Than ₹15 lakhs ₹1,50,000 + 30% of your total income that exceeds ₹15 lakhs

Income Tax Slabs for Super Senior Citizens for FY 2023-24 under the Old Tax Regime

Income tax slabs Rate of Taxation
Up to ₹5 lakhs No tax
From ₹5 lakhs – ₹10 lakhs 20% of your total income that exceeds ₹5 lakhs
Above ₹10 lakhs 30% of your total income that exceeds ₹10 lakhs

Health and Education Cess

Both senior and super senior citizens will be required to pay an additional Health and Education Cess of 4% of the tax amount. This is the same as the previous financial year.

Surcharge

If a senior or super senior citizen has a taxable income of more than ₹50 lakhs, then he/she will have to pay a surcharge. This is an additional charge calculated as a percentage of the tax amount and not the total income. The surcharge rates for FY 2023-24 are as follows:

Taxable Income Surcharge
Above ₹50 Lakhs but below ₹1 Crore 0.1
Above ₹1 Crore but below ₹2 Crores 0.15
Above ₹2 Crores 0.25

Income Tax Exemptions & Deductions for Senior and Super Senior Citizens for FY 2023-24

Here is the senior citizen exemption limit under both tax regimes:

<th colspan=2>Exemption Limits</th>
<td colspan=2>Old Tax Regime</td>
<td>New Tax Regime</td>
Senior Citizens ₹3 Lakhs ₹3 Lakhs
Super Senior Citizens ₹5 Lakhs ₹3 Lakhs

Additionally, if you have opted for the old regime, then you can avail of deductions of up to ₹1.5 Lakhs from your taxable income for eligible expenses and investments. Sections 80C, 80CCC, 80CCD(1B), 80D, 80DD, 80DDB, 80G, 80GGC, 80RRB, 80TTB, and 80U of the Income Tax Act, 1961 offer an exhaustive list of how you can save tax.

Section Description Maximum Deduction Limit (₹)
80C Deductions for eligible investments and expenses, including 5-year fixed deposits, Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF), life insurance premiums (LIP), and more. 1.5 lakhs
80CCC Deductions for premiums paid towards specified pension plans. 1.5 lakhs
80CCD(1B) Additional deduction for investments in the National Pension Scheme (NPS). 50000
80D Deductions for health insurance premiums for senior citizens and expenses for preventive health checkups.  50,000 for premiums, up to 5,000 for checkups
80DD Deductions for expenses related to the treatment or maintenance of a disabled dependent. INR 75,000 for 40%-80% disability, INR 1,25,000 for 80% or more disability

Tax Benefits Available to Senior and Super Senior Citizens

There are numerous tax benefits that senior and super senior citizens can avail of. Here is a quick list of benefits in FY 2023/24:

If you are a pensioner, then you can claim a standard deduction of up to ₹50,000 under the “Income from Salary” category. Family pensioners can also claim a deduction of up to ₹15,000.

While there are numerous benefits of health insurance for senior citizens, the premium paid can help reduce the tax liability too.

In an attempt to provide tax relief for seniors, the government has allowed them to avail of an additional deduction of up to ₹1 Lakh for expenses incurred on the treatment of specified critical illnesses. This is over and above the deduction benefits of a health insurance plan under Section 80D.

Senior and Super Senior citizens can enjoy tax-free income generated from bank deposits and post office deposits up to a limit of ₹50,000 per year.

People above the age of 60 years are not required to pay advance tax if they are not earning income through a business or profession.

Conclusion

This was all about the income tax slab for senior and super senior citizens in India and the various exemptions and deductions available to reduce their tax liability.

Additionally, you can opt for a medical insurance plan to further extend your income tax deductions as a senior citizen. Old age is characterised by numerous challenges. With Tata AIG, you can opt for a senior citizen health insurance policy to avail of

FAQS

Q1. What is the tax slab for Senior Citizen 22 23?

For senior citizens aged 60 years or above but less than 80 years, no tax is applicable on income up to ₹3 lakhs. For income between ₹3 lakhs and ₹5 lakhs, the tax rate is 5%. For income between ₹5 lakhs and ₹10 lakhs, the tax rate is 20%

Q2. What is the tax exemption for senior citizens in 2023 24?

If you want to know how much income is tax-free for senior citizens in India, then here is the answer.

In terms of exemption limits, for both the old tax regime and the new tax regime in India, senior citizens have an exemption limit of ₹3 lakhs. However, there is a difference for super senior citizens. In the old tax regime, they have an exemption limit of ₹5 lakhs, while in the new tax regime, it is ₹3 lakhs.

Q3. Do senior citizens have to mandatorily file ITR?

Yes, senior citizens must file ITR. However, those over the age of 75 years with only pension and interest income, have the option to get exempted from filing returns provided they submit a declaration and meet the required conditions.

Q4. What is the tax slab for non-resident (NRI) senior citizens?

The benefits offered to resident senior citizens are not offered to NRI senior citizens. Hence, the tax slabs for NRIs over the age of 60 years are the same as those for regular resident individuals (under the age of 60 years).

Q5. What if I have multiple health insurance policies? Can I claim deductions for premiums paid on all of them?

Yes, you can claim a tax deduction on multiple health insurance policies. However, it is important to remember that the maximum deduction limit is ₹50,000 for senior citizens. You will not be able to claim a deduction of more than this limit.

Q6. Is there a different Income Tax Slab for senior citizen men and women?

No, currently, the tax rates are the same for men and women.

Q7. What benefits do I have to forgo under the new tax regime?

Senior citizens and super senior citizens opting for the new tax regime have to forgo the following tax benefits:

Leave Travel Allowance (LTA) for salaried employees

House Rent Allowance (HRA)

Children education allowance

Interest on housing loan (Section 24)

Other special allowances [Section 10(14)]

Professional tax

Donation to Political party/trust, etc

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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