ITR submitting: Exemptions and deductions that senior residents can declare
India’s earnings tax legislation gives 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. Only residents of the nation can avail of those particular advantages. For these residents, there are earnings tax advantages out there underneath fee of advance tax, normal deduction, deductions underneath medical insurance coverage premiums, deduction for curiosity earned from financial institution and submit workplace, and extra.
In the outdated tax regime, the exemption restrict is ₹3 lakh for a senior residents and ₹5 lakh for tremendous senior residents (80 years and above). But within the new tax regime, there is no such thing as a separate exemption restrict for senior or tremendous senior residents. Both get ₹2.5 lakhs as a primary exemption like a traditional taxpayer.
“Senior residents take pleasure in all of the tax advantages out there to non-senior taxpayers. Additionally, the place senior residents go for the outdated regime, they will get a better primary exemption restrict, ₹3L for these between 60-80 and ₹5L for these above 80 years of age,” said Archit Gupta, Founder, and CEO, Clear.
Besides they can opt for higher medical insurance premium deductions under Section 80D. An exemption under section 80TTB for interest income.
According to Section 80D of the Income Tax Act, one can avail of tax benefits against the cost incurred to purchase health or critical illness insurance. The maximum deduction allowed under this section is ₹25,000 for self, spouse, and dependent children. However, if one or both parents are above 60 years of age or senior citizens, the maximum tax deduction allowed is Rs. 50,000.
“If senior citizen pays a premium for themselves and their family members including parents i.e. all above 60 years of age, they are eligible to claim up to ₹1 lakh Similarly, Section 80D also allows the policyholder to claim tax benefits for preventive health check-ups of ₹5,000 i.e. inclusive in this limit of ₹25,000 or ₹50,000,” mentioned Siddharth Singhal, Business Head – Health Insurance, Policybazaar.com, Mint reported.
Senior residents should take profit from all of those provisions. As per Archit Gupta typically, their earnings will not be inside the taxable restrict, but some TDS could have been deducted, in such a case they have to file an ITR and declare a refund of extra TDS deducted.
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Updated: 29 Jun 2023, 02:58 PM IST
