Home BUSINESS Special earnings tax advantages for senior residents — Here's the checklist |...

Special earnings tax advantages for senior residents — Here’s the checklist | Personal Finance News

New Delhi: The senior residents and really senior residents get particular earnings tax advantages from the Income-tax Department and are additionally granted the next exemption restrict as in comparison with the traditional taxpayer. 

This is to be famous that an exemption restrict is a quantum of earnings as much as which an individual will not be liable to pay tax and that the tax advantages supplied beneath the Income-tax Law to a senior citizen and a really senior citizen can be found solely to resident senior citizen and resident very senior residents. These advantages are usually not obtainable to a non-resident though he could also be of upper age. 

Criteria for senior citizen: Must be of the age of 60 years or above however lower than 80 years at any time in the course of the respective 12 months and have to be a resident.

Criteria for very senior citizen: Must be of the age of 80 years or above at any time in the course of the respective 12 months and have to be a resident.

The following are the advantages that senior residents and really senior residents take pleasure in:

Benefits obtainable to a senior citizen and really senior citizen in respect of tax charges

Senior citizen: A senior citizen is granted the next exemption restrict in comparison with non-senior residents. The exemption restrict for the monetary 12 months 2020-21 obtainable to a resident senior citizen is Rs 3,00,000, while the exemption restrict for a non-senior citizen is Rs 2,50,000. Thus, it may be noticed that a further good thing about Rs 50,000 within the type of increased exemption restrict is accessible to a resident senior citizen as in comparison with regular taxpayers.

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Very senior citizen: A really senior citizen is granted the next exemption restrict in comparison with others because the exemption restrict for the monetary 12 months 2020-21 obtainable to a resident very senior citizen is Rs 5,00,000, whereas, the exemption restrict for a non-senior citizen is Rs 2,50,000. This means that there may be a further good thing about Rs 2,50,000 within the type of increased exemption restrict for a resident very senior citizen as in comparison with regular taxpayers.
 

Also learn | ITR submitting 2019-2020: File your earnings tax on-line in simply few easy steps

 

Very senior citizen is granted exemption from e-filing of earnings tax return: From Assessment 12 months 2019-20 onwards, a really senior citizen submitting his return of earnings in Form ITR 1/4 can file his return of earnings in paper mode. For him, e submitting of ITR 1/4 (because the case could also be) will not be necessary and he may additionally go for e-filing as per his want.

Resident senior citizen is granted exemption from fee of advance tax: The part 208 says that each particular person whose estimated tax legal responsibility for the 12 months is Rs 10,000 or extra, will pay his tax prematurely, within the type of “advance tax”. However, part 207 provides reduction from fee of advance tax to a resident senior citizen. As per part 207​, a resident senior citizen not having any earnings from enterprise or occupation will not be liable to pay advance tax.

Benefits obtainable in respect of curiosity on deposits in case of senior residents: According to the Section 80 TTB ​of the Income Tax legislation, provisions referring to tax advantages can be found on account of curiosity earnings from deposits with banks or put up office or co-operative banks of an quantity as much as Rs 50,000 earned by the senior citizen. The curiosity earned on saving deposits and glued deposit, each shall be eligible for deduction beneath this provision. Notably, the ​Section 194A of the Income Tax legislation provides corresponding provisions that no tax shall be deducted at supply from fee of curiosity by financial institution or post-office or a co-operative financial institution to a senior citizen as much as Rs 50,000. Therefore, the restrict is to be computed for each financial institution individually.
 

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Also learn | Income Tax refunds value Rs 1.18 lakh cr issued to 33.54 lakh taxpayers until September 29

 
Benefits obtainable in respect of expenditure incurred on account of medical therapy of specified illnesses on therapy of a senior citizen: The Section 80D​DB of the Income-tax Law provides varied provisions referring to tax advantages obtainable on account of expenditure on medical therapy of specified illnesses. 

Benefits obtainable in respect of expenditure incurred on account of medical insurance coverage premium or medical expenditure to a senior citizen: ​The Section 80D of the Income-tax Law provides varied provisions referring to tax advantages obtainable on account of fee of medical insurance coverage premium and other associated gadgets.
 

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