Tax Benefits For Senior Citizens In India

To put it in an easier term it is like ‘pay-as- you-earn’ scheme. So this form of tax is exempted for senior and super senior citizens. They only need to pay self assessment tax before filing the report for the particular financial year’s return.

Higher tax deduction on Medical insurance: Normally when a medical insurance is purchased, will have a deduction of about Rs.15,000 per annum, but now senior citizens get up to Rs.20,000 exemption per year. This exemption rate can be availed by tax payers who purchase medical insurance policy for their parents as well.

According to section 80D, you are eligible for a Rs. 15000 deduction but when you take policy for senior citizens as well you can claim both, so which means you can avail tax exemption up to Rs. 35,000.

I-T scrutiny relaxed: The biggest relief for any taxpayer is not having surprised visits by I-T officers. Well senior citizens get a relief from the officers of the I-T department as they will not have regular on spot scrutiny visits unless the office has substantial leads on that particular person on the irregularities in taxes. They must have proof for conducting the raid or search.

Also Read:
Who Controls A Sizeable Chunk Of Indian Shares?
New RBI Norms to Help Orderly Development of ARCs: India Ratings