Income Tax Slab for Senior Citizens (2023 Rates)
There are several ways for seniors to earn income. It can take the form of pension, savings interest, rental income, term deposits, reverse mortgages, and more. This income is taxable under the Income Tax Act.
From 2020-21, salaried individual taxpayers and pensioners who don’t have business income can choose between two tax regimes. And these two are namely the new concessional tax regime and the existing old one.
Are you finding for a new income tax slab for senior citizens?
If so, you will surely find the new budget senior income tax statement here and other related facts including the super senior citizen tax statement. This article will help you to understand income tax slab for senior citizens. Read on.
Income Tax Slab for AY 2022-23 for Senior Citizens
Senior and super senior can opt for the existing tax regime or the new rax Regime with a lower rate of taxation (u/s 115 BAC of the Income Tax Act).
If, the taxpayer opts for concessional rates in the new tax regime will not be allowed certain exemptions and deductions (like 80C, 80D,80TTB, and HRA) available in the existing tax regime.
| Income Tax Slab | Existing Tax Regime Income Tax Rate | Income Tax Slab | New Tax Regime u/s 115BAC |
| Up to ₹ 3,00,000 | Nil | Up to ₹ 2,50,000 | Nil |
| ₹ 3,00,001 – ₹ 5,00,000 | 5% | ₹ 2,50,001 – ₹ 5,00,000 | 5% |
| ₹ 5,00,001 – ₹ 10,00,000 | 20% | ₹ 5,00,001 – ₹ 7,50,000 | 10% |
| Above ₹ 10,00,000 | 30% | ₹ 7,50,001 – ₹ 10,00,000 | 15% |
| – | – | ₹ 10,00,001 – ₹ 12,50,000 | 20% |
| – | – | ₹ 12,50,001 – ₹ 15,00,000 | 25% |
| – | – | Above ₹ 15,00,000 | 30% |
How Do I Calculate My Senior Income Tax
After entering all the details according to the Senior Income Tax Chart, you can click Calculate to o know approx. tax liability. The senior tax calculation method is the same as the tax calculation for those under the age of 60.
Senior or pensioners’ income tax is levied on all sources of income, including pensions, rental income, income from interest and savings plans, fixed deposits, post office schemes or reverse mortgages. In addition to the standard deduction for senior citizens, tax deductions under Section 80C, section 80D, and 80DDB are also applicable.
And senior citizen income tax limit has been increased from Rs. 2.5 lakh to Rs. 3 lakh for a deduction.
Retirement benefits and bonuses should be excluded when calculating taxes for seniors. To find out your income tax for seniors, you should also use the IT department’s online calculator.
Enter the following details to calculate your approximate tax amount:
- Tax year for which you want to calculate senior income tax.
- Status of residence, type of taxpayer.
- Income from salary
- If you have income from owning a home.
- Capital Gains and Other Sources of Income.
- Gains or profits or any business or profession.
- Agricultural income, if applicable.
- Standard deductions.
- Education expenses under the Senior Income Tax Schedule.
- If there are additional charges.
- Total tax liability.
- Deadline for submission of ITR (Income Tax Return).
- Completion of assessment for ITR
- TDS/TCS (if applicable).
After entering all the details according to the Senior Income Tax Chart, you can click Calculate to know approx. tax liability.
What Is the 2022 Standard Deduction for Seniors
The deduction for seniors is Rs 1 lakh and Rs 40,000 for non-elderly taxpayers.
Seniors can claim deductions up to Rs. 50,000 per year for section 80D health insurance premiums and medical expenses. A deduction of up to Rs 1 lakh can be claimed for critical illnesses that have been specified previously. This falls under Section 80DDB.
For pensions, there is a standard deduction of Rs.50,000. And this is for pensions in the form of annuity payments which are taxable just like salaried income. It falls under Section 80D.
What Is the Tax Exemption Limit for Senior Citizens
Individual taxpayers who opt for the new tax regime must forego the majority of the tax exemptions available under the old or existing income tax regime.
After the new rules on income tax for senior citizens and the new income tax exemption for super-senior citizens, the upper limit of the basic allowance for these two age groups will not be increased.
This means that each person, regardless of age, would have ₹2.5 lakhs as the basic exemption limit for a given financial year.
How to calculate the age of senior citizens for income tax?
Senior citizen age is determined as of April 1st of that financial year for income tax purposes. According to this, a man or woman born before April 1, 1957, but after April 1, 1937, would be regarded as a senior citizen in India. Seniors have different salary structures, income tax calculations, and pension payments. Senior citizens receive certain additional benefits, such as Cost structures with senior discounts or subsidies.
Income tax slab for FY 2023 -24
Old Tax Slab Rate For the FY. 2023 – 2024
Individuals – Upto the age of 60 Years
| INCOME | RATE % |
| Upto 2.5 Lakh | NIL |
| 2.5Lakh – 05 Lakh | 5% (tax rebate u/s 87A is available) |
| 05 Lakh – 10 Lakh | 20% |
| More Than 10 Lakh | 30% |
Individual – Up to the age of 60 to 80 Years (Senior Citizens)
| INCOME | RATE% |
| Upto 03 Lakh | NIL |
| 03 Lakh to 05 Lakh | 5% (tax rebate u/s 87A is available) |
| 05 Lakh to 10 Lakh | 20% |
| More Than 10 Lakh | 30% |
Individuals – More Than 80 years old (Super Senior Citizens)
| INCOME | RATE% |
| Upto 05 Lakh | NIL |
| 05 Lakh to 10 Lakh | 20% |
| More Than 10 Lakh | 30% |
New Tax Slab Rate For the FY 2023 – 2024
Individuals – Upto the age of 60 Years
| INCOME | RATE% |
| Upto 03 Lakh | NIL |
| 03 Lakh to 06 Lakh | 5% (tax rebate u/s 87A is available) |
| 06 Lakh to 09 Lakh | 10% |
| 09 Lakh to 15 Lakh | 15% |
| More Than 15 Lakh | 30% |
Individual – Up to the age of 60 to 80 Years ( Senior Citizens)
| INCOME | RATE% |
| Upto 03 Lakh | NIL |
| 03 Lakh to 05 Lakh | 5% ( (tax rebate u/s 87A is available) |
| 05 Lakh to 7.5 lakh | 10% |
| 7.5 lakh to 10 Lakh | 15% |
| 10 Lakh to 12.5 Lakh | 20% |
| 12.5 Lakh to 15 Lakh | 25% |
| More Than 15 Lakh | 30% |
Individual – More than 80 Years old ( Super Senior Citizens)
| INCOME | RATE% |
| Upto 2.5 Lakh | NIL |
| 2.5 Lakh to 05 Lakh | 5% |
| 05 Lakh to 7.5 Lakh | 10% |
| 7.5 Lakh to 10 Lakh | 15% |
| 10 Lakh to 12.5 Lakh | 20% |
| 12.5 Lakh to 15 Lakh | 25% |
| More Than 15 Lakh | 30% |
Super senior citizens ( above 80 years ) are not eligible to avail income tax deductions under section 87A.
Frequently Asked Questions (FAQs):-
Do pensioners need to pay income tax in india?
Seniors can earn up to ₹3 lakh tax-free income and super seniors over 80 can earn up to ₹5 lakh tax-free income.
What is the 80C limit for senior citizens?
If you pay premiums for certain pension plans, the premiums you pay are allowed as deductions under this section. The maximum limit is INR 1.5 rough with section 80C.
How much can a 70 year old earn without paying taxes?
In the union’s 2021 budget, Finance Minister Nirmala Sitharaman announced that retired over the age of 75 will be exempt from filing income tax returns for the 2021-2022 financial year. This rule applies to seniors above the age of 75 who only have pensions as their source of income.
Are pensions taxable?
No, all seniors can earn up to ₹3 lakh tax-free income and super seniors over 80 can earn up to ₹5 lakh tax-free income.
Are senior citizens exempted from income tax?
Yes, senior citizens are exempted from income tax. This means that it has ₹2.5 lakhs as the basic exemption limit for a given financial year.
Conclusion
Now as you know Income Tax Slab for Senior Citizens. There are several ways for seniors to earn income. It can take the form of pension, savings interest, rental income, term deposits, reverse mortgages, and more. This income is taxable under the Income Tax Act.
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