New Delhi: The ITR 2024 filing deadline for financial year 2023-24 ends on July 31, 2024. Senior citizens must also file their taxes using specific ITR forms according to their income slabs. Pensioners who earn less than Rs 50 lakh during the financial year can use Sahaj (ITR-1) for income tax return filing. Those with income from property, other sources, or capital gains should opt for ITR-2. First, let’s explore how tax is calculated on income earned by senior citizens. Individuals aged 60 years or above qualify as senior citizens under the Income Tax Act. Tax rates vary between the old tax regime and the new tax regime. Let’s delve into the tax liabilities under these different regimes.
Old tax regime for senior citizens
ITR slabs for senior citizens under the old tax regime start at Rs 3 lakh. A rebate of Rs 12,500 is applicable under Section 87A of the old tax regime. Therefore, senior citizens are not required to pay any tax up to Rs 5 lakh.
Income Tax Slab
Income Tax Rate
Up to ₹ 3,00,000
Nil
₹ 3,00,001 – ₹ 5,00,000
5% above ₹ 3,00,000
₹ 5,00,001 – ₹ 10,00,000
₹ 10,000 + 20% above ₹ 5,00,000
Above ₹ 10,00,000
₹1,10,000 + 30% above ₹10,00,000
What is the new tax regime for senior citizens?
The new Income Tax regime for senior citizens entails a 5 per cent tax rate for incomes up to Rs 3,00,000. Additionally, resident individuals can avail of a tax rebate of up to Rs 25,000 if their total income does not exceed Rs 7,00,000. Therefore, individuals filing their Income Tax Returns (ITR) with income up to Rs 7,00,000 are exempt from paying any tax.
Income Tax Slab
Income Tax Rate
Up to ₹3,00,000
Nil
₹3,00,001 – ₹6,00,000
5% above ₹ 3,00,000
₹ 6,00,001 – ₹9,00,000
₹15,000 + 10% above ₹6,00,000
₹ 9,00,001 – ₹12,00,000
₹ 45,000 + 15% above ₹9,00,000
₹12,00,001 – ₹15,00,000
₹ 90,000 + 20% above ₹12,00,000
Above ₹ 15,00,000
₹ 1,50,000 + 30% above ₹15,00,000
Income Tax Slab for Super Senior Citizens
Individuals above 80 years of age are considered super senior citizens. Under the Income Tax Act, more relief is given to super senior citizens to reduce their tax liability. Check tax slabs for super senior citizens under old and new tax regimes:
Old tax regime for super senior citizens
Income Range
Tax Rate
Up to ₹5,00,000
Nil
₹5,00,001 to ₹10,00,000
20.00%
Above ₹10,00,000
30.00%
New tax regime for super senior citizens
Income Range
Tax Rate
Up to ₹2,50,000
Nil
₹2,50,000 – ₹3,00,000
Nil
₹3,00,000 – ₹5,00,000
5.00%
₹5,00,000 – ₹6,00,000
5.00%
₹6,00,000 – ₹7,50,000
10.00%
₹7,50,000 – ₹9,00,000
10.00%
₹9,00,000 – ₹10,00,000
15.00%
₹10,00,000 – ₹12,00,000
15.00%
₹12,00,000 – ₹12,50,000
20.00%
₹12,50,000 – ₹15,00,000
20.00%
Above ₹15,00,000
30.00%
How can senior citizens avoid income tax?
Senior citizens aged 75 years and above, whose income comprises pension and interest earned on deposits are not required to file ITRs. However, they must file a clarification under Section 12BB of the Income Tax Act to avail of this provision.
ITR 2024: Income Tax return filing for senior and super senior citizens is required if their annual earnings cross a certain threshold. Check tax slabs under the old and new income tax regimes. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
