India’s revenue tax framework relies on a progressive taxation system, which signifies that people with greater revenue ranges pay the next proportion of their revenue as taxes. The coverage additionally makes provision for sure exemptions to senior residents and tremendous senior residents who’ve retired from their energetic skilled lives.
Senior residents are these people who belong to the age teams of 60 years and above, however under 80 years. Tremendous senior residents belong to the age group of 80 years and above. Exemptions and advantages provided to this group of taxpayers, beneath the present Revenue Tax legal guidelines, have been designed to supply extra aid contemplating their decrease incomes capability and better medical bills.
The revenue tax advantages for senior residents and tremendous senior residents for the monetary yr 2023-24 are fairly comparable, with the primary distinction being the upper primary exemption restrict.
Additionally Learn: Ought to Senior Residents File Revenue Tax Return?
Right here’s a comparability of tax advantages obtainable to each teams.
Fundamental Exemption Restrict: For senior residents, the fundamental exemption restrict is Rs 3,00,000, that means that if the revenue of a senior citizen is Rs 3,00,000, or much less, they won’t must pay any revenue tax. For tremendous senior residents, the fundamental exemption restrict is Rs 5,00,000. This greater exemption restrict is supplied to tremendous senior residents to make sure that they’ve the next disposable revenue to satisfy their medical and different bills. Nonetheless, beneath the New Tax Regime the exemption restrict is Rs 2,50,000 for each the classes of taxpayers.
For senior residents, the tax slab charges are as follows:
– As much as Rs. 3,00,000: No tax
– Rs. 3,00,001 to Rs. 5,00,000: 5 per cent
– Rs. 5,00,001 to Rs. 10,00,000: Rs 10,000 + 20 per cent above Rs. 5 Lakh
– Above Rs. 10,00,000: Rs 1,10,000+ 30 per cent above Rs. 10 lakh
Tax Slabs for tremendous senior residents:
– As much as Rs. 5,00,000: No tax
– Rs. 5,00,001 to Rs. 10,00,000: 20 %
– Above Rs. 10,00,000: 1,00,000+ 30 per cent above Rs. 10 lakh
Each senior residents and tremendous senior residents are eligible for the next deduction of Rs 1 lakh beneath Part 80D for medical insurance coverage premiums. Moreover, they’re additionally eligible for a deduction of Rs 50,000 beneath Part 80TTB for curiosity revenue from financial savings accounts and deposits.
Senior residents are eligible for a tax rebate of Rs 12,500 if their complete revenue is lower than Rs 5,00,000. Tremendous senior residents are eligible for a tax rebate of Rs 50,000 if their complete revenue is lower than Rs 5,00,000.
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