Who is a senior citizen in India?
A senior citizen in India is a person who is above 60 years and below 80 years during the financial year. Pension, fixed deposits, rental income, post office scheme and interest in savings accounts are some of the many ways a senior citizen earns money. However, like all income, these are also taxable under the Income Tax (IT) Act.
See also: How section 80TTB of the IT Act is useful for senior citizens?
Income tax for senior citizens: Calculations
While income tax for senior citizens is calculated on all sources of income like the rest of the people, the senior citizen exemption limit on income tax is greater than for people who are less than 60 years of age. To calculate income tax for senior citizens, take into account all the income that has been earned in the financial year with the deductions that have been allotted.
Income tax for senior citizens: New regime or old regime
According to the government’s directive, senior citizens and super senior citizens can file Income Tax returns (ITR) for FY 2022-23 in both the old and new regime. However, the ITR portal will show the new regime as default and it has to be changed to the old regime if benefits of the old regime have to be leveraged.
Income tax for senior citizens and super senior citizens: New regime for ITR filing in FY 2022-23
| Income tax slab | Tax rate |
| 0 to Rs 2.5 lakh | Not applicable |
| Rs 2.5 to Rs 5 lakh | 5% |
| Rs 5 lakh to Rs 7.5 lakh | 10% |
| Rs 7.5 lakh to Rs 10 lakh | 15% |
| Rs 10 lakh to Rs 12.5 lakh | 20% |
| Rs 12.5 lakh to Rs 15 lakh | 25% |
| Above Rs 15 lakh | 30% |
Additionally, educational and health cess at 4% of Income Tax will be added and a surcharge will be applicable on the total income.
Income tax for senior citizens: Old regime for FY 2022-23
| Income tax slab | Tax rate |
| Upto Rs 3 lakh | Not applicable |
| Rs 3 to Rs 5 lakh | 5% above Rs 3 lakh |
| Rs 5 lakh to Rs 10 lakh | Rs 10,000 + 20% above Rs 5 lakh |
| Above Rs 10 lakh | Rs 1,10,000 + 30% above Rs 10 lakh |
Income tax for super senior citizens: Old regime for FY 2022-23
| Income tax slab | Tax rate |
| Upto Rs 5 lakh | Not applicable |
| Rs 5 to Rs 10 lakh | 20% above Rs 5 lakh |
| Above Rs 10 lakh | Rs 1,00,000 + 30% above Rs 10 lakh |
Additionally, educational and health cess at 4% of Income Tax will be added and a surcharge on the total income. So, for income less than Rs 50 lakh, surcharge rate will be 10%, less than Rs 1 crore, surcharge rate will be 15%, less than Rs 2 crore, surcharge rate will be 25% and less than Rs 5 crore, the surcharge rate will be 37%.
Income tax for senior citizens: ITR filing
To claim tax refund, senior citizens and super senior citizens have to file ITR.
ITR 1 has to be filed by senior citizens whose income includes salary or pension, income from property and income from various other sources.
ITR2 has to be filed by senior citizens whose income includes salary or pension, income from property, income from various other sources, capital gains, and income of another family member combined.
Income tax for senior citizens: ITR filing exemption
Under Section 194P of the IT Act which is effective from April 1, 2021, people above 75 years are exempted from filing their income tax if their source of income is from pension and interest income only.
Income tax for senior citizens: Tax exemptions
Pension: Deduction of Rs 50,000 per year under 80D
Deposits interest income: Maximum Rs 50,000 deducted every year under section 80TTB.
FAQs
Can all cases of senior citizens with respect to taxes be scrutinised?
As per the Central Board of Direct Taxes directive, senior citizen cases related to income tax cannot be checked until there is enough proof that calls for an assessment.
What is the amount that a senior citizen and a super-senior citizen can earn tax-free?
While a senior citizen can earn an income of up to Rs 3 lakh tax-free, super senior citizens can earn an income of Rs 5 lakh tax-free.
