Under the Indian Income Tax Act, a Senior Citizen gets significant tax benefits that include exemption limit benefits, which can be summarised from the Income Tax Slab applicable to the senior citizen. Here in this post, you will get Income Tax Slab For AY 2020-21 for Senior Citizens.
Before knowing the Income Tax Slab for Senior Citizen it is important to know who is Senior Citizen.
Who is Senior Citizen as per Income Tax Act?
An Individual resident is considered a Senior Citizen between the age group of 60 to 80 years, as on the last day of the previous financial year.
Why Should Senior Citizen enjoy Income Tax Benefits?
As per the rich cultural heritage of the country, elders are always respected. They are taken care of in old age with special care. Likewise, the central government is working to keep the culture and moral values intact by offering special Income Tax Benefits to senior citizens.
Senior Citizen Benefit under Income Tax- Here are some significant tax benefits which senior citizens can enjoy.
- Medical Insurance Limit
- Exemption Limit
- No deduction under Reverse Mortgage Scheme
- No Tax on Interest Income (Up to Rs. 50000)
- No Advance Tax etc.
Out of the above benefits, we here discuss Income Tax Slab For AY 2020-21 for Senior Citizens.
Income Tax Slab For AY 2020-21 for Senior Citizens
Here is the Income Tax Slab for AY 2020-21 for senior citizens-
|Income Tax slab||Income Tax rate for Senior Citizen|
|up to Rs. 300000||NIL- No Tax|
|Rs. 300000 to Rs. 500000||5 % of total income exceeding Rs. 300000|
|Rs. 500001 to Rs. 1000000||Rs. 10000 + 20% of total income exceeding Rs. 500000|
|Above Rs. 1000000||Rs. 110000 + 30% of total income exceeding Rs. 1000000|
Note 1:- An additional 4% health & education cess will apply to the tax amount calculates as above.
Note 2:- A tax rebate under section 87A is allowed to individual taxpayers (Age 60 or 60+ but below 80 years) for a maximum amount of Rs. 10000 if the total income is up to Rs. 500000 for FY 2019-20.
Note 3:- Surcharge is additional on the amount of Income-tax.
Also Read- List of Benefits of Filing Income Tax Return
Surcharge applicable to the Senior Citizen
The surcharge over the tax calculated will be charged as per the below table-
|Income Limit||Surcharge rate on the amount of Income Tax|
|Net income exceeds Rs. 50 Lakhs but does not exceed Rs. 1 Crore||10%|
|Net Income exceeds Rs. 1 Crore but does not exceed Rs. 2 Crore||15%|
|Net Income exceeds Rs. 2 Crore but does not exceed Rs. 5 Crore||25%|
|Net Income exceeds Rs. 5 Crore||37%|
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken based on the above article.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)