Senior citizens are granted a higher exemption limit as compared to non-senior citizensIncome Tax laws takecare of senior citizens and very senior citizensby offering them several tax benefits.
People who are older than 60 years of age are called senior citizens, while thoseabove the age of 80 years are very senior citizens.
According to the Income Tax (I-T) department, senior citizens andvery senior citizens are granted a higher exemption limit as compared to the normal tax payers.
The exemption limit is the quantum of income up to which a person is not liable to pay the tax.Exemption limit granted for the financial year 2020-21:A senior citizen is granted a higher exemption limit as compared to non-senior citizens.
The exemption limit for the financial year 2020-21 available to a resident senior citizen is Rs.
3,00,000.
The exemption limit for non-senior citizen is Rs.
2,50,000.
Anadditional benefit of Rs.
50,000 in the form of higher exemption limit is available to a resident senior citizen as compared to the normal tax payers.A very senior citizen is granted a higher exemption limit as compared to others.
The exemption limit for the financial year 2020-21 available to a resident very senior citizen is Rs.
5,00,000.
The exemption limit for a non-senior citizen is Rs.
2,50,000.
An additional benefit of Rs.
2,50,000 in the form of a higher exemption limit is available to a resident very senior citizen as compared to the normal tax payers.The I-T department added that from the assessment year 2019-20 onwards, a very senior citizen filing his return of income in Form ITR 1/4 can file his/her return of income in paper.
Simply put, for very senior citizens, the e-filing of ITR 1/4is not mandatory.
However, very senior citizens may go for e-filing if they wish to do so.Senior citizens also enjoyrelief from the payment of advance tax.
As per section 207, a senior citizen, not having any income from business or profession, is not liable to pay any advance tax.
For non-senior citizens, every person whose estimated tax liability for the year is 10,000 or more, shall pay his tax in advance.