Not relieved of taxes yet?
No worries, the new tax regime of the Indian government has got benefits & exemptions especially for retirees & senior citizens.
Whether you are still earning or surviving with minimal savings, utilize these benefits to save more.
If you are staying in a hustle & bustle city such as Hyderabad, you won’t face taxing issues as there’s no shortage of experts.
Professional tax filing services such as Merakhata will guide you through the whole process, beginning with ITR filing till the submission of taxes.
This article delves into the benefits & exemptions for senior citizens in detail, comparing both the new tax regime with the old regime.
Age Classification of Residents
The Income Tax Department considers individuals falling into the age groups of 60 and 79 years as senior citizens and those above 80 years old as super senior citizens.
Both these groups receive special concessions and a higher exemption limit than ordinary taxpayers.
The Income Tax Department has set different protocols for different age groups. It discriminates between resident individuals based on three age groups:
- Those up to 60 years of age are normal taxpayers with normal tax slabs.
- Senior Citizens (60-80 years) – Possess higher exemption limits and special deductions.
- Super Senior Citizens (80+ years) – Receive liberal tax benefits, including a tax-free income, ceiling of up to Rs 5 lakh.
Who is Eligible for Senior Citizen Tax Relief?
As per the Income Tax Act:
- Senior citizens are resident citizens who are over 60 years of age.
- Super senior citizens are over 80 years of age.
These taxpayers have special relief under the old taxation regime, like exemption limits and lower tax rates.
However, under the new taxation regime, no such concessional rates are provided—either to seniors.
Senior and super senior citizens can pick any regime, depending on which is most suitable for them.
Non-resident senior citizens don’t qualify here. They are taxed under the standard income tax slabs, just like other non-resident individuals.
When Can You Apply For a Senior Citizen Taxation?
A regulation which is often overlooked is that for income tax purposes, a person is required to attain a specific age on the day prior to your birthday.
Why It’s Important?
It identifies whether you are a senior citizen (60 years) or super senior citizen (80 years)—and plays a crucial role in unlocking vital tax savings.
How It Works?
A resident individual falls under the category of a senior citizen if he/she reaches the age of 60 at any point during the financial year.
Take, for instance, your 60th birthday is 1st April 2025. As per the law, you are deemed to have completed 60 years on 31st March 2025.
Therefore, you will be considered as a senior citizen for FY 2024–25. You will be able to claim an increased exemption limit of Rs 3 lakh under the old tax regime.
The same principle goes for super senior citizens (80+ years). When you become 80 during that year, you will be eligible for a further exemption of Rs 5 lakh.
Common Sources of Income for Senior & Super Senior Citizens
During their retirement period, senior and super senior citizens usually derive income from different sources, including:
- Pension – One of the major sources of monthly income after retirement.
- Interest income – From bank schemes of fixed deposits, saving accounts, etc.
- Rental income – Income from leasing out residential or commercial property.
- Capital gains – Profit from the sale of assets like shares, mutual funds, or property.
- Senior Citizen Savings Scheme (SCSS) – A government scheme offering periodic interest.
- Reverse mortgage – A scheme where senior citizens can convert home equity into income.
- Post office schemes – Monthly Income Plans (MIP) or Time Deposits with interest rates.
All these varied income sources not only provide financial stability but also tax implications, most of which have special tax exemptions for seniors.
Key Exemptions & Benefits
1. Greater Deduction Under Section 80D
Senior citizens are allowed a deduction of up to Rs 50,000 on medical insurance premiums under Section 80D.
If you don’t have insurance and incur expenses on treatment, that can also be claimed.
2. Exemption on Interest Income – Section 80TTB
You can claim up to Rs 50,000 on interest income from savings, fixed deposits, or recurring deposits.
It’s only eligible for senior citizens.
3. No Advance Tax
In case you do not have business or professional income, then you do not need to pay advance tax.
Simply pay your self-assessment tax prior to submission of the return.
Benefits of Professional Support
Filing taxes gets easier with the right support.
Whether you are tech-savvy or prefer face-to-face interaction, tax filing services such as Merakhata offer choices:
- In-Person Support
Avail the services of a tax consultant or a tax advsior in Hyderabad who is aware of senior citizen relief.
They will do everything on your behalf—starting from document gathering to return filing.
- Online Convenience
Want to do it on the web? Opt for online ITR filing in Hyderabad.
Get end-to-end service, from filling up forms to e-verification. You don’t even have to step out.
Conclusion
ITR filing is no longer a hassle for elderly citizens. With special exemptions and simple online and offline assistance, it’s never been easier. If you happen to be in Hyderabad, you’re lucky indeed. Be it online ITR Filing in Hyderabad or taking a walk into an office to be served personally, professional help is only a call away.
Save time, claim what belongs to you, and have peace of mind. Take the stress out of tax season with proper assistance from a tax consultant or tax advisor.
Let experts handle the paperwork while you enjoy your retirement.