Tax benefits available to senior citizens

It is to be noted that from F.Y. 2011-12 qualifying age for Senior Citizens has been reduced from 65 years to 60 years.

Benefits available to senior citizens are listed below

1. Higher Exemption Limit

For assessee not being a senior citizen basic exemption limit is Rs.2,50,000 which is enhanced to Rs.3,00,000 for assessee being senior citizens.From Assessment year 2012-13 onwards a new category of Very Senior Citizens, 80 years and above, has been created who will be eligible for a higher exemption limit of Rs. 5,00,000.

2. Tax benefits on medical insurance

A senior citizen can avail deduction in respect of Medical Insurance Premium paid by him by any mode other than cash during the previous year, which has been enhanced from Rs.20,000 to Rs.30,000 from assessment year 2016-17 onwards.

3. Tax benefit in respect of Expense on medical expenditure in respect of a very senior citizen

With effect from A.Y. 2016-17 Any payment made on account of medical expenditure in respect of a very senior citizen, if no payment has been made to keep in force an insurance on the health of such person, as does not exceed thirty thousand rupees shall be allowed as deduction under section 80D.

4. Higher Deduction u/s 80DDB for Senior Citizens and Super Senior Citizens

Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified diseases & ailments.

Generally this deduction is available upto Rs 40,000 . However , if the patient is a senior citizen, then deduction of Rs 60,000 is allowable.

From A.Y. 2016-17 higher limit of deduction of upto Rs.80,000 is allowable, for the expenditure incurred in respect of the medical treatment of very senior citizen.However the amount of deduction claim shall be reduced with the amount of Insurance claim received.

5. Relaxation on eFiling of Income Tax Return

A very senior citizen filing his return of income in Form ITR 1/2/2A and having total income of more than Rs. 5,00,000 or having a refund claim can file his return of income in paper mode, E filing is not mandatory for him.

A person becomes senior citizen under Income Tax Act on attainment of age of 60 years or more at any time during the previous year and he shall be considered as very senior citizen on attainment of age of 80 years at anytime during the previous year.

6. Exemption from payment of Advance Tax. Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified diseases & ailments. For more information visit:- https://taxzippy.com/

Source : articlesbase.com