10 taxation and investment related benefits exclusively available to senior citizen
There are several tax benefits available to senior citizens and in addition there are a few investment options that are either exclusively available to them or come with higher interest rates.
Here are 10 investment and taxation related benefits that are exclusively available to senior citizens.
1. 1. Income tax Exemption Limits
- Under income tax rules, those senior citizens who are aged over 80 years are exempted to pay tax for income up to Rs 5 lakh.
2. ITR Filing offline mode- From Assessment year 2019-20 onwards, a very senior citizen filing his return of income in Form ITR 1/ ITR 4 can file his return of income in paper mode, i.e., for him e filing of ITR 1/ ITR 4 is not mandatory.
3. ITR Filing Exemption-Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above.
4. Advance tax payment
- section 207 gives relief from payment of advance tax to a resident senior citizen.
5. Interest income deductible
- Section 80TTB of the Income Tax law gives provisions relating to tax benefits available on account of interest income
6. Interest income exemption up to Rs 50,000- As a senior citizen if you are earning interest income up to Rs. 50,000 on deposits in bank, post-office or co-operative bank, there will not be any tax deducted at source.
7. Exemption from TDS
- TDS. Remember, if the deposits are for more than a year, one has to submit these forms every year ideally in April.
8. Medical insurance premium - On the premium towards self, spouse, children and parents, the maximum deduction that can be availed is capped at Rs 50,000 a year, provided the individual’s age is above 60.
-
9. Extra on bank FDs
- Bank FDs offered to senior citizens who are 60 and above come with additional interest . Most banks offer 0.5 per cent extra
10. 10. Senior Citizens’ Saving Scheme
- Probably the first choice of most retirees, Senior Citizens’ Saving Scheme (SCSS) is a must-have in most retirees’ investment portfolio
8. Medical insurance premium - On the premium towards self, spouse, children and parents, the maximum deduction that can be availed is capped at Rs 50,000 a year, provided the individual’s age is above 60.
-