Income Tax: In the country, senior citizens are given the benefit of many types of facilities. Recently, the Income Department has taken a big decision to give exemption up to ₹ 500000 in income tax.
New Delhi: Salaried and pensioners have to compulsorily file their income tax returns. However, in the budget the government had added a new section to the Income Tax Act, 1961,
In which senior citizens above 75 years of age are not required to fill ITR if they meet certain criteria. We will tell you about the income tax of senior citizens, the rates and exemptions that they get.
Income tax slab for senior citizens above 80 years of age
Income tax exemption limit for senior citizens: Senior citizens are those who are 60 years of age or more or less than 80 years of age as of the last financial year.
The basic tax exemption limit for retired employees falling between the age of 60 to 80 years is Rs 3 lakh. In case of very senior citizens (above 80 years), the exemption limit is Rs 5 lakh.
Is pension taxable in India?
The pension received by retired employees is taxable. This is taxable as ‘salary’ under income after the exemption limit.
For government employees, the amount received from EPF is tax free. For non-government employees, EPF is tax exempt, but only if the withdrawal is made after 5 years of continuous service. Also, for this, EPF should be from a company which is registered with EPFO.
Gratuity received on retirement is tax free for government employees. Whereas, for non-government employees, gratuity is tax free only in selected circumstances.
Family Pension is taxable in India. This is taxed under ‘Income from other sources’. On this, deduction is available up to 33.33% or Rs 15000 (whichever is less). Only after that tax can be imposed on it.