The persons who find difficulty to calculate income tax for their parents or senior citizens themselves must read this article for everything you need to know about the taxation of senior citizens. You will find here the meaning, definition, tax liability, income tax rates, income tax slabs, tax planning, tax saving schemes and more. You can also ask your queries by comment form if you have any doubt regarding to find out the tax liability of senior citizens or very senior citizens.
Who is Senior Citizen?
A person who has 60 years of age is called a Senior Citizens according to the Income Tax Act. But according to income tax we have to keep in mind assessment year and previous year. Now most of you are confusing about Senior Citizens and Very Senior Citizens.
Who is Very Senior Citizen?
A person has completed his 80 years of age is called senior citizen. We will calculate the age in previous to calculate the tax for this assessment year. There are lots of tax benefits and tax exemption available to senior citizens.
Tax Liability of Senior and Very Senior Citizens
- Senior citizens are not liable to pay tax if their income does not exceeds Rs. 3,00,000/-
- Very senior citizens are not liable to pay tax if their income does not exceed Rs. 5,00,000/-
Income Tax rates Applicable
if income of senior citizens and very senior citizens exceeds from the taxable limit then they are liable to pay tax according to income tax slab for the applicable assessment year. Check here the income tax slab for individual for A.Y.2015-16 & A.Y. 2016-17 for the income earned during 1-4-2014 to 31-3-2015 & 1-4-2015 to 31-3-2016.
Senior Citizen Saving Scheme, 2004
The best scheme for senior citizens, get the benefits of this scheme. You can get more detail in exclusive article written for senior citizens “Senior Citizens Saving Scheme, 2004“.
Tax Planning for Senior Citizens
There are lots of tax benefit and tax deductions available in income tax act for senior citizens. You can avail benefits of all those deductions but systematically. We have also a exclusive written artcile on Tax Planning for Senior citizens.