Super Senior Citizens Can Avail These Tax Benefits
The country needs the money through the taxes to run efficiently, and income tax is a very important part of it. It is our civil duty to pay the income tax, but the government also provides certain relaxations in the taxation liability. There are special relaxations given in the senior citizens and super senior citizen category.
Who are Senior Citizens and the Super Senior Citizens?
People between the age of 60 years to 80 years are termed as senior citizens and the people who have crossed the threshold of 80 years are termed as super senior citizens. Senior citizens are in more need of financial stability because of post-retirement, there are a lot of financial setbacks suffered, and there are a lot of challenges in the life of a senior citizen. When this goes to a super senior citizen, this financial planning needs to be even more to the point because this is the age that cannot afford a financial burden.
It is better to have health insurance during these two phases and especially at the super citizen phase because as the age increases, the probability of falling ill increases manyfold.
Also Read Here: Top Tax Benefits Available for Senior Citizens
Tax Benefits Available For Senior Citizens In India
The senior citizens have the following benefits:
1. Income Tax Benefits: The senior and the super senior citizens have been offered a different limit in terms of taxation amount. Senior citizens have the not taxable income limit up to Rs. 5 lakhs.
2. Deduction Due to Health Insurance Premiums: The premium of the health insurance provided deduction in the Income tax under section 80D of the Income Tax Act. For anyone below the age of 60 years, this deduction amount is limited to Rs. 50,000/-. Senior citizens are also given tax benefits on the actual expenses that are incurred during the medical treatment.
3. No Advance Taxes Required: Any person who has a liability of Rs. 10,000/- or more needs to pay advance taxes, and the senior citizens are exempt from this rule. They do not need to pay the taxes unless they get the money from their job or business. If the senior citizens do not own any business, they only have to pay the tax assessed by them, i.e. the self-assessment tax.
4. Income Tax Return Benefits: The government offers the super senior citizens to file their income tax returns through Sahaj or Sugam and claim tax refund benefits.
5. Deduction on Pension: There is a deduction of maximum Rs. 50,000/- on the annuity payments or the amount of pension (whichever among them is less). The annuity payments are an income source, and thus they are considered taxable.
6. Tax Benefits For Medical Expenses: Senior citizens get the chance to claim a tax deduction of the maximum amount of Rs. 1 lakh on the diagnosis of some critical illness. The government has recently increased this limit from Rs. 60,000/- for senior citizens and Rs. 80,000/- for super senior citizens up to Rs. 1 lakh.
Conclusion
The super senior citizens are no doubt given a lot of tax benefits, but they are also at an age where society needs to support them, and these benefits are needed for them to have financial stability.
Also Read Here: Senior Citizen Health Insurance- All you need to Know
Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
