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  • Category: Miscellaneous

    Know the income tax limit for senior and super senior citizens in 2019-20

    Senior citizens who are 60 years or above but less than 80 years with an income of up to Rs 3 lakh are exempted from paying tax. However, income between Rs 3,00,001 to Rs 5 lakh will be taxed at the rate of 5%, income from Rs 5,00,001 to Rs 10 lakh will be taxed at 20% and those with income above Rs 10 lakh will be taxed at 30%, respectively.

    Super senior citizens who are 80 years and above, with an income of up to Rs 5 lakh, will be exempted from paying tax. While income between Rs 5,00,001 to Rs 10 lakh will be taxed at 20% and those above Rs 10 lakh will be taxed at 30%. Same taxation rates are applicable for super senior citizens. The tax exemption threshold for super senior citizens is Rs 5,00,000.

    In addition to the usual deduction under Section 80C of the IT Act, a senior citizen can also claim additional tax benefits under Section 80D, Section 80E, Section 80EE and Section 80CCD.
  • #658054
    This is the same as what is existing now. There is no change. The tax from Rs. 3 lakhs to Rs. 5 lakhs will be exempted to those people whose income is maximum Rs. 5 lakhs in a year. If the income is more than Rs. 5 lakhs the tax limits will be as mentioned by the author. It is a good relief for the people whose income is Rs.5 Lakhs or less.
    always confident

  • #658056
    The only change from earlier years in respect of seniors is for them who have taxable income up to Rs 5 lakh only. So they can be benefited by a maximum of Rs 10000 ( 5% of Rs 200000) on tax savings.

    In fact if a senior is having gross income around Rs 6.5 lakhs, by investing Rs 1.5 lakhs in common investment avenues like NSc or PPF or tax saving FD etc, he can bring the taxable income to Rs 5 lakhs and get the above advantage.

    Thoughts exchanged is knowledge gained.

  • #658065
    You are right. The tax eligibility for the senior and super senior citizen for 2019 -2020 remains the same as for 2018-2019. The interim budget announcement will be effective from the year 2020-2021 only

    @We can expect a change in the tax slabs after the New or old government assumes power.

    BJP government will not bear the burden if they lose in the election. They have burdened the new government coming to power.

    No life without Sun

  • #658077
    The budget proposals in the interim budget are meant for the financial year 2019-20 and onwards and these will be applicable for the income earned during 2019-20.

    Once these proposals get approved in the parliament and become the final regulations then income tax will be deducted at source as per these regulations by the employer and deposited in income tax department and self employed people will deposit tax directly.

    Tax paying people will also submit their Income Tax return for the financial year 2019-20. Returns are to filed in the next year called assessment year that is 2020-21 and are to be submitted by July 2021. Any shortfall in tax compliance can be deposited at this time. If excess tax is paid a refund can also be claimed in the return.

    So sufficient time is there for tax compliances once the new interim announcements are confirmed.

    Knowledge is power.

  • #658149
    What if all our super senior citizens (above 80 years) are fully exempted from paying income tax?
    What is the total number of super senior citizens drawing salary or pension and paying income tax in our country?
    What would be the loss to our government if they are exempted from paying tax?
    Can't our government bear the loss which tries to give a populist budget?

    This is the best way for our government to honour and respect our super senior citizens.

    No life without Sun

  • #658150
    Post your responses here.

    Partha, please do not post multiple threads when a thread on the topic has been raised with specific instructions.

    'Real knowledge is to know the extent of one's ignorance' - Confucious.

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