Who is considered as a senior citizen?

For income tax purposes, those age 60 years or above and below 80 years are classified as senior citizens, at any time during the previous year.

Who is considered as a super senior citizen?

For income tax purposes, those age 80 years or above are termed as super senior citizens, at any time during the previous year.

What is Section 194P of the Income Tax Act, 1961?

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:

  • 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.

Note:New Section 194P is applicable from 1st April 2021

Income Tax Slabs for Senior Citizen for FY 2022-23

First, it is crucial to fully understand the distinction in tax benefits for senior and super senior citizens. Let us understand this by way of a table:

Old Tax Regime
Income Tax Slabs Income Tax Rate Health and Education Cess
Senior Citizens Super Senior Citizens Senior Citizens Super Senior Citizens

Up to ₹ 3,00,000

No tax

No tax

No tax

No tax

₹ 3,00,000 – ₹ 5,00,000

5%

No tax

4% of Income Tax

No tax

₹ 5,00,000 – ₹ 10,00,000

20%

20%

4% of Income Tax

4% of Income Tax

More than ₹ 10,00,000

30%

30%

4% of Income Tax

4% of Income Tax

New Tax Regime u/s 115BAC
Income Tax Slab Income Tax Rate Health and Education Cess
Senior Citizen Super Senior Citizen Senior Citizen Super Senior Citizen

Up to ₹ 2,50,000

Nil

Nil

            -

         -

₹ 2,50,001 - ₹ 5,00,000

5% above ₹ 2,50,000

5% above ₹ 2,50,000

4% of Income Tax

4% of Income Tax

₹ 5,00,001 - ₹ 7,50,000

₹ 12,500 + 10% above ₹ 5,00,000

₹ 12,500 + 10% above ₹ 5,00,000

4% of Income Tax

4% of Income Tax

₹ 7,50,001 - ₹ 10,00,000

₹ 37,500 + 15% above ₹ 7,50,000

₹ 37,500 + 15% above ₹ 7,50,000

4% of Income Tax

4% of Income Tax

₹ 10,00,001 - ₹ 12,50,000

₹ 75,000 + 20% above ₹ 10,00,000

₹ 75,000 + 20% above ₹ 10,00,000

4% of Income Tax

4% of Income Tax

₹ 12,50,001 - ₹ 15,00,000

₹1,25,000 + 25% above ₹ 12,50,000

₹ 1,25,000 + 25% above ₹ 12,50,000

4% of Income Tax

4% of Income Tax

More than ₹ 15,00,000

₹ 1,87,500 + 30% above ₹ 15,00,000

₹ 1,87,500 + 30% above ₹ 15,00,000

4% of Income Tax

4% of Income Tax

As we can see in the given table, for senior citizens between 60 to 80 years of age, an annual income of up to ₹ 3,00,000 in a financial year would be tax free. Whereas if you are a super senior citizen, that is above the age of 80, the limit has been raised to ₹ 5,00,000. There are different tax slabs for both senior and super senior citizens beyond this exemption limit as well.

Income Tax Slabs for Senior Citizen for FY 2021-22

INCOME SLAB TAX RATE

Up to ₹ 3,00,000

NIL

₹ 3,00,000 - ₹ 5,00,000

5% of the amount exceeding ₹ 3,00,000

₹ 5,00,000 - ₹ 10,00,000

20% of amount exceeding ₹ 5,00,000 + ₹ 10,000

₹ 1,000,000 and above

30% of amount exceeding ₹ 1,000,000 + ₹ 1,10,000

Income Tax Slabs for Senior Citizen for FY 2020-21

INCOME SLAB TAX RATE

Up to ₹ 3,00,000

NIL

₹3,00,000 - ₹5,00,000

5% of the amount exceeding ₹ 3,00,000

₹5,00,000 - ₹10,00,000

20% of amount exceeding ₹ 5,00,000 + ₹ 10,000

₹ 1,000,000 and above

30% of amount exceeding ₹ 1,000,000 + ₹ 1,10,000

Income Tax Slabs for Senior Citizen for FY 2019-20

INCOME SLAB TAX RATE

Up to ₹ 3,00,000

NIL

₹ 3,00,000 - ₹ 5,00,000

5% of the amount exceeding ₹ 3,00,000

₹ 5,00,000 - ₹ 10,00,000

20% of amount exceeding ₹ 5,00,000 + ₹ 10,000

₹ 1,000,000 and above

30% of amount exceeding ₹ 1,000,000 + ₹ 1,10,000

Income Tax Slabs for Senior Citizen for FY 2018-19

INCOME SLAB TAX RATE

Up to ₹ 3,00,000

NIL

₹ 3,00,000 - ₹ 5,00,000

5% of the amount exceeding ₹ 3,00,000

₹ 5,00,000 - ₹ 10,00,000

20% of amount exceeding ₹ 5,00,000 + ₹ 10,000

₹10,00,000 and above

30% of amount exceeding ₹ 1,000,000 + ₹ 1,10,000

How is New Income Tax Calculated for Senior and Super Senior Citizens (for FY 2022-23)?

INCOME SLAB TAX RATE

Up to ₹ 2,50,000

NIL

₹ 2,50,001 - ₹ 5,00,000

5%

₹ 5,00,001 - ₹ 7,50,000

₹ 12500 + 10% above ₹ 5,00,000

₹ 7,50,001 - ₹ 10,00,000

₹ 37,500 + 15% above ₹ 7,50,000

₹ 10,00,001 - ₹ 12,50,000

₹ 75,000 + 20% above ₹ 10,00,000

₹ 12,50,001 - ₹ 15,00,000

₹ 1,25,000 + 25% above ₹ 12,50,000

More than ₹ 15,00,000

₹ 1,87,500 + 30% above ₹ 15,00,000

What are the senior citizen tax exemption?

According to the Union Budget 2022-23, the following deductions are available to senior citizens:

  1. Pensions

    Pensions are eligible to a standard deduction of ₹ 50,000 per year. This is true for pensions in the form of annuity payments, which are taxed in the same way as salary.

  2. Health Insurance

    Spiraling costs of treatment in Indian hospitals can eat into your retirement corpus. Don’t worry. You can save tax as a senior citizen or super senior citizen can deduct up to ₹ 50,000 for medical expenses and/or health insurance premiums each year under Section 80D. Furthermore, as previously indicated, dependent seniors can claim a deduction for treatment of specified critical illnesses up to ₹ 1,00,000. This is covered by Section 80DDB.

  3. Interest Income from Deposits

    Income earned as interest from a fixed deposit in a bank or post office deposit, up to a maximum of ₹ 50,000 qualifies for deduction from your annual income under Section 80TTB. This is one of the tax benefits that come as a huge relief - since most of them rely on such income.

  4. Increased TDS limit

    TDS on interest was raised to ₹ 40,000 which means that even if you invested in a FD of up to ₹ 6,00,000 at an interest rate of about 7% per annum, you save tax as a senior or super senior citizen since no TDS will be deducted.

  5. Fill form 15H for senior citizens

    This will help if you have a high interest income from a bank deposit. All you need to do is submit a form termed 15H to the banker. This form is nothing but a declaration that can help you claim certain receipts without deduction of tax.

  6. Advance Tax - a resident senior citizen (an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax.
  7. Reverse Mortgage - A senior citizen must be aged 60 years and above to avail reverse mortgage facility. A senior citizen can avail reverse mortgage only against a fully-owned and self-acquired home – it can’t be a gift or inheritance. The property must be at least 20 years old and a permanent residence of the senior citizen.

Thus, the government has attempted to minimise the tax burden on senior and super senior individuals in the country through such income tax benefits. So before paying taxes, remember to avail these tax benefits for yourself if you are a super senior or a senior citizen or even if you are filing it for your parents.