Senior citizen tax benefits: Each year during the Budget, taxpayers eagerly await the government’s announcements on tax relief, particularly for senior citizens. With limited sources of income, senior citizens often rely on pensions, which act as a crucial financial safety net for them.
Experts believe that Finance Minister Nirmala Sitharaman may finally adjust the tax slabs under the old tax regime as well in the upcoming Budget, expected to be presented on February 1. The government has not made any significant changes to the Old Tax Regime ever since the New Tax Regime was announced in the Union Budget 2020-21. In the Budget 2023-24, the government, however, increased the basic income tax exemption limit to Rs 3 lakh for senior citizens (60 years and above) and Rs 5 lakh for super senior citizens (80 years and above).
According to tax expert Apoorva Goyal, Partner, Sahni & Co., “The government is expected to maintain its focus on the new tax regime in this Budget, continuing its aim of bringing more taxpayers under its ambit. However, for a change, the old tax regime might see some tweaks, particularly in its initial slab, to provide relief for senior citizens. Raising the basic tax exemption limit to Rs 5 lakh for senior citizens and Rs 7 lakh for super senior citizens is possible.”
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This move could offer significant relief to senior taxpayers, who can benefit from the various deductions available under the old tax regime, she added.
Currently, in the old tax regime, the basic exemption limit for senior citizens is Rs 3 lakh, and for super senior citizens, it is Rs 5 lakh.
Here are the tax slabs for senior citizens (aged 60 years and above) under the Old Tax Regime:
For senior citizens (aged 60 years to 80 years):
Up to Rs 3,00,000: No Tax
Rs 3,00,001 to Rs 5,00,000: 5%
Rs 5,00,001 to Rs 10,00,000: 20%
Above Rs 10,00,000: 30%
For super senior citizens (aged 80 years and above):
Up to Rs 5,00,000: No Tax
Rs 5,00,001 to Rs 10,00,000: 20%
Above Rs 10,00,000: 30%
Tax professional Arun Tyagi,
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