Income Tax Slab for Senior Citizen

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.

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

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

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:

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>

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.

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.

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

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