Some of the Income Tax Benefits Possible to Senior Citizens in India. A person becomes a senior citizen under the Income Tax Act in any year after accomplishing the age of 60 still for one day. Once he reaches 60 years, his status as a senior citizen in that financial year provides him some maintenance. There are number of taxation services in Hyderabad to visit. There are not many income tax privileges available for senior citizens. These are listed here:
Higher Exemption Deadline for Senior Citizens:
From F.Y. 2011-12 Qualifying period for Senior Citizens has been overcome from 65 years to 60 years, also from A.Y. 2015-16 exemption deadline for Senior Citizens has been improved from Rs. 2,50,000 to Rs. 3,00,000. A new kind of Very Senior Citizens, 80 years and above, has been produced who will be fit for a higher exemption limit of Rs. 5,00,000. Senior citizen over the age of 80 years are entitled to higher exemption Termination of Rs. 5,00,000.
Senior citizens and a true senior citizen are given a higher exemption limit as compared to regular taxpayers. Exemption limit is the quantum of interest up to which a person is not liable to pay tax.
Tax benefits on medical support hiked for Senior Citizens:
A senior citizen can avail of higher discount of Rs 20,000 u/s Section 80D and the same destination is further enhanced to Rs. 30,000/- from A.Y. 2016-17.
Tax benefit in honor of Expense on medical expenditure in respect of a very senior citizen.
With effect from A.Y. 2016-17 Any amount presented on account of medical expenditure in honor of a very senior citizen, if no payment has been done to keep in force an insurance on the health of such person, as does not pass thirty thousand rupees shall be allowed as a deduction under section 80D. Section 80D- Hike in Reduction Limit for Mediclaim.
Higher Reduction u/s 80DDB for Senior Citizens and Super Senior Citizens:
Section 80DDB gives deduction to an assessee in case of expense on the medical operation of specified ailments. Usually, this deduction is free up to Rs 40,000. However, if the sufferer is a senior citizen, the deduction of Rs 60,000 is allowable.
From A.Y. 2016-17 above the limit of deduction of up to eighty thousand rupees is proper, for the expense incurred in respect of the medical treatment of a “very senior citizen.” A “very senior citizen” is intended to be interpreted as an individual resident in India who is of the age of eighty years or longer at any time when the relevant previous year. Section 80DDB– Limit raised & abandoned condition of the certificate.
No Regular Income Tax Scrutiny of Senior Citizens for FY 2011-12 -Appreciating the attention of these taxpayers and intending to mitigate their hardships, Central Board of Direct Taxes has examined its scrutiny selection system. To rectify the grievance, it has been determined that during the financial year 2011-12, cases of senior citizens and small taxpayers, recording income-tax returns in ITR-1 and ITR-2 will be controlled to scrutiny only where the Income Tax authority is in possession of credible information. Senior citizens for this plan would be personal taxpayers who are 60 years of age or higher. If you have any doubt in these services, you can visit tax services in Hyderabad.