Income Tax Slab for Senior Citizens: FY 2023-24 (AY 2024-25)

Introduction

According to the Income Tax Act 1961, all Indian citizens need to pay taxes when their annual income is higher than the tax-exempt limit. But the government understands the importance of reducing the financial burden for senior citizens without a regular income. The central government has set a different income tax slab for senior citizens and super senior citizens.

People over the age of 60 years are senior citizens, and those over the age of 80 years are considered super senior citizens. Even in the recent budget, the central government has remembered to create a different IT slab for senior citizens. Dive into this article to learn more about the reduced income tax rates for senior citizens and super senior citizens. 
 

Income Tax Slab for Senior Citizen

The income tax slab for senior citizen is as follows:

Income Tax Slab for Super Senior Citizen

The pre-existing super senior citizen tax slab is as follows:

Income Tax Slab Rate As Per New Tax Regime for Senior and Super Senior Citizen

The new income tax slab for senior citizens and super senior citizens is present alongside the old tax slab rate. 

Benefits to Be Forgone By the Senior And Super Senior Citizen in Case They Avail the Benefit of New Tax Regime

According to the income tax slab for senior citizens for AY 2023 24, the following benefits will be forgone for following the new tax regime:

●    Higher-income exemption limit of Rs 3,00,000 and Rs 5,00,000
●    House Rent Allowance
●    Leave Travel Allowance
●    Children Education Allowance
●    Conveyance Allowance
●    Relocation allowance
●    Daily expenses during the course of employment
●    Helper allowance
●    Professional tax
●    Other special allowances
●    Housing loan interest
●    Standard deduction of Rs 50,000 on salary
●    Deduction included in Chapter VI-A
 

Benefits Available to the Senior and Super Senior Citizen

The benefits available under the income tax slab for senior citizens and super senior citizens are as follows:

1.    Higher Exemption Limit

If the income of senior citizens and super senior citizens falls under the exemption limit, they won’t be required to pay taxes. For normal citizens, the tax exemption limit in India is Rs 2,50,000. But the income tax slab for senior citizens begins at over Rs 3,00,000. Therefore, senior citizens are not required to pay tax, file an ITR, or undergo a TDS deduction unless their income is higher than the exemption limit.  

2.    Interest Income Deduction

Apart from a different senior citizen tax slab, a deduction on interest income is also available to people over the age of 60. A standard deduction of up to Rs 10,000 on bank savings accounts is available for senior citizens as per Section 80TTA. They can also claim a deduction of up to Rs 50,000 on a bank or post office account interest as per Section 80TTB. 

3.    Standard Deduction

 A rebate on income tax for senior citizens pensioners is available. A deduction of up to Rs 40,000 can be claimed against an income source from former employers. 

4.    Medical Insurance Premium Deduction

According to the income tax slab for senior citizens, they can claim a deduction of up to Rs 50,000 on their health insurance premiums. For normal citizens, the deduction is only available at Rs 25,000. 

5.    Medical Expenses Deductions for Certain Diseases or Ailments

The income tax slab for senior citizens lets them claim a deduction of up to Rs 1,00,000 for senior citizens. But individuals can also claim a deduction of up to Rs 40,000 on medical treatment up to the age of 60. 

6.    Advance Tax Exemption

According to Section 208, individuals with an estimated tax liability of more than Rs 10,000 in a particular income year need to pay an advance tax. But the senior citizen tax slab exempts them from paying the advanced tax.