Income tax benefits for senior and very senior citizens for AY 2020-21
- Ca Sunil Sakral
- Nov 27, 2020
- 1 min read
Before proceeding to the benefits we would like to inform that a resident Indian who's age is above 60 but below 80 years Is Senior Citizen.
Very Senior Citizen is who's age is above 80 years.
Taxable Income Exemption Limit -
1. For resident senior citizen is ₹3 lakh ( ₹2.50 lakh for non-senior citizens)
2. For very senior citizen is granted a higher exemption limit of ₹5 lakh
3. Exemption to pay advance tax to Senior Citizen & very senior person. (In the normal case where a person below 60 years needs to deposit advance tax if his/her tax liability is more than Rs. 10,000.)
Tax benefit on Medical Insurance and Expenditure-
1. A senior citizen can claim sec 80 D deduction Rs. 50000 ( below 60 years can only 25,000) on payment of medical insurance policy.
2. A Senior citizen can claim deduction u/s 80 DDB for expenditure on specific diseases Rs. 1,00,000 for self or dependent treatment ( whereas below 60 years can claim Rs. 40,000 only )
Tax benefit on interest on bank deposit
Section 80 TTB given tax benefit to senior citizens on interest received on deposits (including saving account interest) from banks or post office or co-operative banks.
TDS u/s 194 A not to be deducted on the interest income up to Rs. 50,000 received to Senior citizens.
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