Will senior citizens get some relief in income tax in the Union Budget next year? As the Budget 2025-26 approaches, questions about potential tax relief measures for senior citizens are in focus.
Recently, a parliamentarian raised a query in the Lok Sabha about potential relief in tax for senior citizens going ahead.
Eatala Rajender, a Member of Parliament, asked the Finance Ministry whether the government plans to introduce tax revisions that would provide: A tax rebate for senior citizens on annual incomes up to Rs 7.5 lakh, and a 5% income tax levy on incomes between Rs 7.5 lakh and Rs 10 lakh.
The question, however, did not specify whether it pertained to the Old Tax Regime or the New Tax Regime. It can be assumed that the relief being sought was under the Old Tax Regime, as the New Regime already makes annual income up to Rs 7.5 lakh tax-free.
Also read: Annual income Rs 10 lakh: Which tax regime is better for you – new or old?
In addition to the proposed tax rebate, the query also suggested revising the current deduction limit for investments in National Savings Certificates (NSC) from Rs 1.5 lakh to Rs 3 lakh for senior citizens.
Government’s response on the queries in Lok Sabha
Replying to queries, Minister of State Pankaj Choudhary said that the finance ministry every year, as part of the budget process, receives various proposals for amendments in the Income Tax Act, 1961, and the ministry deliberates upon such proposals. However, “no such proposal is presently under consideration,” the minister clarified.
What this means for senior citizens
While the proposals are not being considered this year, the discussion has brought attention to the pressing need for reforms in the future.
Senior citizens and stakeholders will now closely watch the upcoming Budget 2024 to see if any surprises emerge to address their concerns.
Let’s understand from this calculation how much a senior citizen with an annual income of Rs 10 lakh will pay in income tax under the old tax regime.
How much income tax an average senior citizen pays currently in 2024
Assuming the following:
Standard Deduction: Rs 50,000
Section 80C Deduction (Investments in PPF, LIC,
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