Senior residents are granted a better exemption restrict as in comparison with non-senior residents
Revenue Tax legal guidelines have particular advantages for senior residents underneath the provisions of its numerous sections. Based on the Revenue Tax (I-T) division, the senior and really senior residents are granted a better exemption restrict as in comparison with the opposite tax payers. The exemption restrict is mainly the quantum of earnings as much as which an individual just isn’t liable to pay the tax. People who find themselves older than 60 years of age are thought-about senior residents. The earnings tax division gives particular advantages to each senior and really senior residents. (Additionally Learn: ITR Filing: Important Due Dates To Keep In Mind For Filing Your Income Tax Return )
Listed here are all the particular earnings tax advantages for senior residents, in response to the earnings tax division:
- Based on part 208, each individual whose estimated tax legal responsibility for the 12 months is Rs. 10,000 or extra, shall pay his tax prematurely, within the type of advance tax. Nonetheless, part 207 supplies aid from cost of advance tax to a resident senior citizen.
- Based on part 207, a resident senior citizen who does not have any earnings from enterprise or a occupation just isn’t liable to pay advance tax.
- Part 80TTB of the earnings tax regulation supplies provisions regarding tax advantages accessible on account of an curiosity earnings from deposits with banks/put up workplace/co-operative banks of an quantity upto Rs. 50,000 earned by the senior citizen. The curiosity earned on saving deposits and stuck deposit, each are eligible for deduction underneath this provision.
- Part 194A of the earnings tax regulation offers corresponding provisions that no tax shall be deducted on the supply from cost of curiosity by financial institution or post-office or a co-operative financial institution to a senior citizen as much as Rs. 50,000. So the restrict is to be computed for each financial institution individually.
- Part 80DDB of the I-T regulation supplies numerous provisions regarding the tax advantages accessible on account of expenditure on medical remedy of specified illnesses, whereas, part 80D supplies provisions regarding tax advantages accessible on account of cost of medical insurance coverage premium and different associated objects.
