Though the Budget for FY25 has been in the news for a few tax decisions they are not likely to affect the senior citizens. However, those getting family pensions have a small benefit. It has come in the form of standard deduction that was hiked from Rs 15,000 to Rs 25,000. But it comes with a rider – only those in the new tax regime would get this benefit.
Tax slabs for senior citizens
As for the income tax slabs for those over 60 years, little has changed. If the annual income is up to Rs 3 lakh, there is no tax in either tax regime. If income is between Rs 3 and 6 lakh, tax is 5% above Rs 3 lakh in the new regime. In the new regime if income is between Rs 6-9 lakh, tax is 15,000 and 10% above Rs 6 lakh; if income is between Rs 9-12 lakh, the tax is Rs 45,000 plus 15% above Rs 9 lakh; if income is between Rs 12-15 lakh, the tax is Rs 90,000 and 20% above Rs 12 lakh; while for income more than Rs 15 lakh, the tax applicable is Rs 1.5 lakh and 30% above Rs 15 lakh.
Tax slabs for super senior citizens
For super senior citizens – those above 80 years – there is some more relaxation. In the new regime, if you are above 80 years, the following are the tax rates: zero for up to Rs 3 lakh annual income; 5% above Rs 3 lakh if income is Rs 3-6 lakh; Rs 15,000 + 10% above Rs 6 lakh if income is Rs 6-9 lakh; Rs 45,000 + 15% above Rs lakh if income is between Rs 9-12 lakh; Rs 90,000 + 20% above Rs 12 lakh if income is Rs 12-15 lakh; Rs 1.5 lakh + 30% above Rs 15 lakh if annual income is more than Rs 15 lakh.
Who doesn’t need to file ITR
However, if you are above 75 years and a resident Indian for the FY under consideration, you might not file ITR at all. However, he/she must have a pension income and interest income only. This is according to section 194P of the Income Tax Act 1961.
The budget that finance minister Nirmala Sitharaman presented on July 23, 2024 hit the headlines for some new tax proposals. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
