ITR submitting: Exemptions and deductions that senior residents can declare

India’s earnings tax legislation offers a number of tax advantages for senior residents. A resident Indian who’s 60 years of age or older is taken into account a senior citizen. Solely residents of the nation can avail of those particular advantages. For these residents, there are earnings tax advantages out there underneath cost of advance tax, commonplace deduction, deductions underneath medical insurance coverage premiums, deduction for curiosity earned from financial institution and submit workplace, and extra. 

Within the previous tax regime, the exemption restrict is 3 lakh for a senior residents and 5 lakh for tremendous senior residents (80 years and above). However within the new tax regime, there isn’t any separate exemption restrict for senior or tremendous senior residents. Each get 2.5 lakhs as a fundamental exemption like a traditional taxpayer.

“Senior residents get pleasure from all of the tax advantages out there to non-senior taxpayers. Moreover, the place senior residents go for the previous regime, they will get the next fundamental exemption restrict, 3L for these between 60-80 and 5L for these above 80 years of age,” mentioned Archit Gupta, Founder, and CEO, Clear.

Moreover they will go for larger medical insurance coverage premium deductions underneath Part 80D. An exemption underneath part 80TTB for curiosity earnings.

In line with Part 80D of the Earnings Tax Act, one can avail of tax advantages towards the fee incurred to buy well being or essential sickness insurance coverage. The utmost deduction allowed underneath this part is 25,000 for self, partner, and dependent youngsters. Nonetheless, if one or each dad and mom are above 60 years of age or senior residents, the utmost tax deduction allowed is Rs. 50,000.

“If senior citizen pays a premium for themselves and their relations together with dad and mom i.e. all above 60 years of age, they’re eligible to say as much as 1 lakh Equally, Part 80D additionally permits the policyholder to say tax advantages for preventive well being check-ups of 5,000 i.e. inclusive on this restrict of 25,000 or 50,000,” mentioned Siddharth Singhal, Enterprise Head – Well being Insurance coverage,, Mint reported.

Senior residents should take profit from all of those provisions. As per Archit Gupta typically, their earnings might not be inside the taxable restrict, but some TDS might have been deducted, in such a case they need to file an ITR and declare a refund of extra TDS deducted.





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Up to date: 29 Jun 2023, 02:58 PM IST