Kolkata: As in all other years, there is intense speculation about whether finance minister Nirmala Sitharaman will announce a change in the income tax slabs, deductions and rates on February 1, 2025, when she rises to present the Union budget, her eighth budget on the trot. While the salaried middle-class has always nurtured hopes of income tax reliefs before the budget every year, this year the pressure has been a lot more intense. Perhaps for the first time, industry associations have urged the FM to provide more disposable income in the hands of the common man — and income tax reliefs are low-hanging fruit to this end — to stoke the growth of aggregate consumption in the country.
Many taxpayers are also hoping for voluntary NPS contribution deduction in the new regime. They are also hoping that the FM will raise deductions that are applicable to premia paid on health and life insurance policies. The New Tax regime was introduced in Union Budget 2020. It has allowed taxpayers to choose whether to switch to the new system, or stay in the old one. The new tax system is now the default system. The new tax regime has endeavoured to simplify tax compliance. It also features lower tax rates though it does not offer most deductions such as Section 80C of the Income Tax Act 1961.
In the budget for 2024-25 Nirmala Sitharaman raised the standard deduction for salaried employees from Rs 50,000 to Rs 75,000 but only in the new tax system. She also announced that the deduction on family pension for pensioners to be increased from Rs 15,000 to Rs 25,000 under the new tax regime. While it remains to be seen, whether the FM obliges those waiting for tinkering with income tax slabs and rates, and one has to wait till the FM gets to the very end of her Budget presentation, since direct tax proposals are mentioned at the end, let’s take a look at the existing slabs and rates as applicable to the senior most citizens of India — those who are aged above 80 and are commonly referred to as super senior citizens.
Tax rates for Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year are as under:
Old Tax Regime
| Income Tax Slab | Income Tax Rate | *Surcharge |
| Up to Rs 5,00,000 | Nil | Nil |
| Rs 5,00,001-Rs 10,00,000 | 20% above Rs 5,00,000 | Nil |
| Rs 10,00,001-Rs 50,00,000 | Rs 1,12,500 + 30% above Rs 10,00,000 | Nil |
| Rs 50,00,001-Rs 100,00,000 | Rs 1,12,500 + 30% above Rs 10,00,000 | 10% |
| Rs 100,00,001-Rs 200,00,000 | Rs 1,12,500 + 30% above Rs 10,00,000 | 15% |
| Rs 200,00,0001- Rs 500,00,000 | Rs 1,12,500 + 30% above Rs 10,00,000 | 25% |
| Above Rs 500,00,000 | Rs 1,12,500 + 30% above Rs 10,00,000 | 37% |
Under New Tax Regime
| Income Tax Slab | Income Tax Rate | *Surcharge |
| Up to Rs 3,00,000 | Nil | Nil |
| Rs 3,00,001 – Rs 7,00,000 | 5% above Rs 3,00,000 | Nil |
| Rs 7,00,001 – Rs 10,00,000 | Rs 20,000 + 10% above Rs 7,00,000 | Nil |
| Rs 10,00,001 – Rs 12,00,000 | Rs 50,000 + 15% above Rs 10,00,000 | Nil |
| Rs 12,00,001 – Rs 15,00,000 | Rs 80,000 + 20% above Rs 12,00,000 | Nil |
| Above Rs 15,00,000 | Rs 1,40,000 + 30% above Rs 15,00,000 | Nil |
| Rs 50,00,001- Rs 100,00,000 | Rs 1,40,000 + 30% above Rs 15,00,000 | 10% |
| Rs 100,00,001- Rs 200,00,000 | Rs 1,40,000 + 30% above Rs 15,00,000 | 15% |
| Above Rs 200,00,001 | Rs 1,40,000 + 30% above Rs 15,00,000 | 25.00% |
The super senior citizens are the most vulnerable sections of the society. They will be immensely benefitted if FM Nirmala Sitharaman offers them some respite from the income tax burden. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
