Super senior citizen as per income tax act

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An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered as Senior Citizen for Income Tax purposes. A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.

Note:

Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above.

Conditions for exemption are:

• Senior Citizen should be of age 75 years or above
• Senior Citizen should be ‘Resident’ in the previous year
• Senior Citizen has pension income and interest income only & interest income accrued / earned from the same specified bank in which he is receiving his pension
• The senior citizen will submit a declaration to the specified bank.
• The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
• Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.

This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh.

Note: ITR-1 cannot be used by a person who:
(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year
(c) has any asset (including financial interest in any entity) located outside India
(d) has signing authority in any account located outside India
(e) has income from any source outside India
(f) is a person in whose case tax has been deducted u/s 194N
(g) is a person in whose case payment or deduction of tax has been deferred on ESOP.

(h)has total income exceeding Rs. 50 lakhs.

This return is applicable for Individual and Hindu Undivided Family (HUF).

This return is applicable for Individual and Hindu Undivided Family (HUF).

This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than not ordinarily resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having Income from Business and Profession which is computed on a presumptive basis and income from any of the following sources:

Note: ITR-4 cannot be used by a person who:

(a) is a Director in a company
(b) has held any unlisted equity shares at any time during the previous year
(c) has any asset (including financial interest in any entity) located outside India
(d) has signing authority in any account located outside India
(e) has income from any source outside India
(f) is a person in whose case payment or deduction of tax has been deferred on ESOP

(g) has total income exceeding Rs. 50 Lakhs

Please note that ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business and Profession on presumptive basis u/s 44AD, 44ADA or 44AE.

Forms Applicable

1. Form 15H - Declaration to be made by an individual (who is 60 years of age or more) claiming certain receipts without deduction of tax

Details provided in the form

Details provided in the form

Income Tax Department (It is available on e-Filing Portal:

• Tax Deducted / Collected at Source

Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS will now be available in AIS mentioned below.

Income Tax Department (It can be accessed after logging on to Income Tax e-Filing portal)

Path to access AIS: Go to e-filing portal>login > AIS

• Tax Deducted / Collected at Source
• SFT Information
• Payment of taxes
• Demand / Refund
• Other information (Like; Pending/Completed proceedings, GST information, Info received from foreign govt. etc

Details provided in the form

Taxpayer who is required to get his accounts audited by an Accountant u/s 44AB.

To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.

Details provided in the form

Taxpayer who is required to obtain a report from an Accountant u/s 92E for entering into an International Transaction or Specified Domestic Transaction.

Tax Slabs for AY 2024-25

The Finance Act 2023 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, you taxpayers have the option to claim various tax deductions and exemptions.

In case of "non-business cases", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).

In case of eligible taxpayers having income from business and profession and wants to opt out of new tax regime, the assessee would be required to furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA.

However, in case of eligible taxpayers having income from business and profession option to switch to old tax regime and withdraw the option in any subsequent AY is available only once in lifetime.

Tax rates for Individuals (resident or non-resident), 60 years or more but less than 80 years of age at anytime during the previous year:

Tax rates for Individuals (resident or non-resident) 80 years or more in age at anytime during the previous year:

Note:

1. The rates of Surcharge under the tax regimes are as under:

Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.

2. Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:

Tax rebate up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs

Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs

3. The rate of Health & Education cess remains same in both the regimes.

Surcharge, Marginal Relief and Health & Education cess

Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates. For rates of surcharge, refer table above.

Does not exceed (Rs.)

Investments / Payments / Incomes on which I can get tax benefit

Section 24(b) – Deduction from Income from house property on interest paid on housing loan and housing improvement loan. In case of self-occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. However, this deduction is not available for person opting for New tax Regime.

Interest on loan u/s 24(b) allowable is tabulated below:

Tax deductions specified under Chapter VI-A of the Income Tax Act

These Deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC, except for deduction u/s 80CCD(2) which will be allowable under New Tax Regime as well.

Deduction towards payments made to

• Life Insurance Premium
• Provident Fund
• Subscription to certain equity shares
• Tuition Fees
• National Savings Certificate
• Housing Loan Principal
• Other various items
  

Annuity plan of LIC or other insurer towards Pension Scheme

Deduction towards contribution made by an employer to the Pension Scheme of Central Government

If Employer is a PSU, State Government or others

Deduction towards payments made to Health Insurance Premium & Preventive Health check up

For Self / Spouse or Dependent Children

Deduction towards medical expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage

Note: If Taxpayer is claiming deduction u/s 80DD then its recommended to file form 10-IA also before filing of return. Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.

Deduction towards Donations made to certain Funds, Charitable Institutions, etc.

Donation are eligible for deduction under the below categories:

Deduction towards rent paid for house & applicable only for whom HRA is not part of Salary.

Least of the following shall be allowed as deduction:

Note: Form 10BA to be filed for claiming this deduction

Deduction towards Donations made for Scientific Research or Rural Development

Donation are eligible for deduction under the below categories:

• Scientific Research
• Social Science or Statistical Research

• Rural Development
• Conservation of Natural Resources or for Afforestation

• Afforestation
• Rural Development

Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes Income from Profit / Gains from Business / Profession

Note: If Taxpayer is claiming deduction u/s 80U then its recommended to file form 10-IA also before filing of return. Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.

In addition to tax benefits applicable regardless of age of taxpayer, there are certain enhanced / additional benefits for Senior / Super Senior Citizen. The additional benefits are listed below:

Paper filing of Income Tax Return

Super Senior Citizens (aged 80 years or more) have the option to submit their ITR using Form 1 or 4 in offline / paper mode. The e-Filing option also remains available to them.

Relief from payment of Advance Tax

As per Section 208, every person whose estimated tax liability for the year is ₹ 10,000 or more, shall pay his tax in advance, in the form of Advance Tax. But, Section 207 gives relief from payment of Advance Tax to a Resident Senior Citizen. Thus, a Resident Senior Citizen, not having any Income from Business or Profession, is not liable to pay Advance Tax.

Income tax deduction on interest on bank deposits

Section 80TTB of the Income Tax Act allows tax benefits on interest earned from deposits with banks, post office or co-operative banks. The deduction is allowed for a maximum interest income of up to ₹ 50,000 earned by the Senior Citizen. Both the interest earned on saving deposits and fixed deposits are eligible for deduction under this provision.

Also, u/s 194A of the Income Tax Act, no Tax is Deducted at Source (TDS) on interest payment of up to ₹ 50,000 by the bank, post office or co-operative bank to a Senior Citizen. This limit is to be computed for every bank individually.

Tax benefits with respect to medical insurance and expenditure

According to Section 80D of the Income Tax Act, Senior Citizens may avail a higher deduction of up to ₹ 50,000 for payment of premium towards medical insurance policy. The limit is ₹ 25,000 in case of Non-Senior Citizens.

Further Section 80DDB of the Income Tax Act allows tax deduction on expenses incurred by an individual on himself or a dependent towards the treatment of specific diseases as stated in the act. The maximum deduction amount in case of a senior citizen is ₹ 1 lakh (₹ 40,000 for Non-Senior Citizen taxpayers).