Senior Citizens’ Guide To ITR Filing 2024-25: Know All About Important Exemptions And Deductions

New Delhi: Filing source of revenue tax returns may also be complicated, particularly for senior voters. While the ones above 80 years don’t seem to be required to document returns in any respect, other folks between 60 and 80 nonetheless must. However, there’s some reduction for seniors above 75—if their source of revenue is most effective from pension or pastime, they may be able to simply post Form 12BBA at their financial institution as a substitute of going during the complete return-filing procedure.

Here’s a easy take a look at the important thing deductions, exemptions, and tax-saving choices to be had to senior voters beneath the previous tax regime.

Higher Basic Exemption Limit for Senior Citizens

Senior voters beneath the previous tax regime get a better fundamental exemption restrict. For the ones elderly 60 and above, source of revenue as much as Rs 3 lakh is tax-free whilst for the ones over 80, the restrict is going as much as Rs 5 lakh.  Anyone with taxable source of revenue as much as Rs 5 lakh can declare a rebate, making their general tax payable 0.

In comparability, the brand new tax regime provides a flat fundamental exemption restrict of Rs 3 lakh for everybody, without reference to age. However, it supplies a rebate for earning as much as Rs 7 lakh and a better same old deduction of Rs 75,000 for pensioners, in comparison to Rs 50,000 within the previous regime.

Section 80C deductions

Senior voters beneath the previous tax regime can save on taxes via making an investment within the Senior Citizens’ Saving Scheme (SCSS). This scheme is open to these above 60 years of age (or 55 for retired civilian staff and 50 for defence workforce). Investments of as much as Rs 30 lakh in SCSS are eligible for a tax deduction of as much as RS 1.5 lakh beneath Section 80C.//

Tax Deductions on Health Insurance 

Senior voters can declare a tax deduction of as much as Rs 50,000 beneath Section 80D for medical insurance premiums they pay. If their youngsters pay the top class on their behalf, the kids too can declare this deduction.

In such instances, the full deduction can move as much as Rs 75,000—Rs 50,000 for fogeys and Rs 25,000 for self, partner, and youngsters. If a senior citizen will pay the top class for their very own coverage and likewise for his or her oldsters then they may be able to declare as much as Rs 1 lakh in deductions beneath this phase.

Furthermore, if a senior citizen doesn’t have medical insurance they may be able to nonetheless declare a deduction of as much as Rs 50,000 for clinical bills they incur all over the yr.

Tax Break on Interest Income for Senior Citizens

Senior voters can get tax reduction on pastime earned from financial savings and glued deposits in banks and submit workplaces beneath Section 80TTB. They can declare a deduction of as much as Rs 50,000 in a monetary yr. If the pastime earned is going past this restrict, the additional quantity will probably be taxed.