Senior Citizen & Very Senior Citizen Classification under Income Tax

Senior Citizen

For a citizen to be a Senior Citizen, he must be of 60 years or above but less than 80 years at any time during the respective year.

Very Senior Citizen

For a citizen to be a Very Senior Citizen, he must be of 80 years or above at any time during the respective year.

It is very important to note that the tax benefits are available to only those Senior Citizens or Very Senior Citizens who are a resident of the country. Senior Citizens and Very Senior Citizens are granted a higher exemption limit as compared to normal tax payers. The exemption limit granted to a resident Senior Citizen for the financial year 2019-20 is Rs. 3,00,000 whereas for a non-senior citizen is Rs. 2,50,000. The exemption limit granted to a resident Very senior Citizen for the financial year 2019-20 is Rs. 5,00,000. A special benefit is provided to Very Senior Citizen of filing his return of income in paper mode who have a total income of more than Rs. 5,00,000 or having a refund claim. However, he may go e-filing if he wishes to do so. Section 207, provides a relief to a resident senior citizen not having any income from business or profession, is not liable to pay advance tax. Section 194A of the Income Tax Law states that no tax shall be deducted at source from payment of interest to a senior citizen upto Rs. 50,000. Section 80D of the Income Tax Law allows taxpayers to claim deductions for health insurance premiums paid for insuring self, spouse, kids and parents. If any of the person specified is a senior citizen, the maximum deduction amount is Rs.50,000.

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