As per Indian Census 2011, the total number of Indians aged 60 years and above is 10.38 crore in the country, which is projected to be 17.32 crore for 2026. Going by this data, the next pressing question that arises is the consequent economic, social and more importantly, healthcare challenges.
Taking such liabilities under consideration, the exemption limit on taxation for senior citizens and super senior citizens have been revised since the assessment year 2015-2016. Further, the income tax benefits for senior and super-senior citizens are also significantly higher than that for individuals below 60 years of age.
But who are considered senior and super senior citizens in India? Let us take a look.
According to Income tax, a senior citizen is a resident individual who is 60 years or more at any time of the financial year, but less than 80 years.
A super senior citizen is an individual resident who is 80 years or above of age, at any time during the financial year.
The Union Budget 2023 proposed the same income tax slabs for all individual taxpayers, irrespective of their age, under the new tax regime. This implies that from April 1, 2023, senior citizens who are the ages of 60 or more but less than 80 and super senior citizens who are the age of 80 years or more have to pay the same taxes as those under 60 years of age under the new tax regime.
Under the new tax regime, taxpayers the age of 60 or above will have to follow the given tax rates for FY 2023-24.
|
Income tax slabs |
Rate of Taxation |
|
Up to ₹3,00,000 |
Nil |
|
Between ₹3,00,001 and ₹6,00,000 |
5% of your total income that exceeds ₹3,00,000 |
|
Between ₹6,00,001 and ₹9,00,000 |
₹15,000 + 10% of your total income that exceeds ₹6,00,000 |
|
Between ₹9,00,001 and ₹12,00,000 |
₹45,000 + 15% of your total income that exceed ₹9,00,000 |
|
Between ₹12,00,001 and ₹15,00,000 |
₹90,000 + 20% of your total income that exceeds ₹12,00,000 |
|
More Than ₹15,00,000 |
₹1,50,000 + 30% of your total income that exceeds ₹15,00,000 |
Senior citizens, aged 60 or more but less than 80, opting for the old regime for FY 2023-23 need to follow the given income tax rates.
|
Income tax slabs |
Rate of Taxation |
|
Up to ₹3,00,000 |
Nil |
|
From ₹3,00,001 – ₹5,00,000 |
5% of your total income that exceeds ₹3,00,000 |
|
From ₹5,00,001 – ₹10,00,000 |
₹10,000 + 20% of your total income that exceeds ₹5,00,000 |
|
Above ₹10,00,000 |
₹1,10,000 + 30% of your total income that exceeds ₹10,00,000 |
Additionally, senior citizens will also be levied an additional Health and Education cess @ 4%, applicable to the tax amount calculated.
The rate of taxation under the old tax regime for FY 2023-24 for individuals the age of 80 or more, who fall under the super senior citizen category, is as follows:
|
Income tax slabs |
Rate of Taxation |
|
Up to ₹5,00,000 |
Nil |
|
From ₹5,00,001 – ₹10,00,000 |
20% of your total incomes exceeding ₹5,00,000 |
|
Above ₹10,00,001 |
30% of your total income exceeding ₹10,00,000 |
Super-senior citizens are also liable to pay an extra 4% Health and Education Cess on the calculated tax amount.
Taxpayers 60 years or more of age who need to file returns till 31 July, 2023, for the previous financial year 2022-23 must go through the following income tax slabs. These slabs are applicable only before Budget 2023.
For FY 2022-23, the income tax slabs for senior citizens (i.e., those having age 60 years or more but less than 80 years) and super senior citizens (i.e., those 80 years or more of age), are as follows:
|
Income tax slabs |
Rate of Taxation |
|
Up to ₹2,50,000 |
NIL |
|
From ₹2,50,001 to ₹5,00,000 |
5% above ₹2,50,000 |
|
From ₹5,00,001 to ₹7,50,000 |
₹12,500 + 10% above ₹5,00,000 |
|
From ₹7,50,001 to ₹10,00,00 |
₹37,500 + 15% above ₹7,50,000 |
|
From ₹10,00,001 to ₹12,50,000 |
₹75,000 + 20% above ₹10,00,000 |
|
From ₹12,50,001 to ₹15,00,000 |
₹1,25,000 + 25% above ₹12,50,000 |
|
More than ₹15,00,000 |
₹1,87,500 + 30% above ₹15,00,000 |
Senior citizens having the age of 60 or more and below the age of 80 need to follow the given old tax regime rates FY 2022-23:
|
Income tax slabs |
Rate of Taxation |
|
Up to ₹3,00,000 |
Nil |
|
From ₹3,00,001 – ₹5,00,000 |
5% of your total income that exceeds ₹3,00,000 |
|
From ₹5,00,001 – ₹10,00,000 |
₹10,000 + 20% of your total income that exceeds ₹5,00,000 |
|
Above ₹10,00,000 |
₹1,10,000 + 30% of your total income that exceeds ₹10,00,000 |
An additional 4% Health and Education cess, applicable to the tax amount calculated will also be levied.
To file returns until 31st July, 2023, super senior citizens having 80 years of age or more have to follow the given rate of taxation:
|
Income tax slabs |
Rate of Taxation |
|
Up to ₹5,00,000 |
Nil |
|
From ₹5,00,001 – ₹10,00,000 |
20% of your total incomes exceeding ₹5,00,000 |
|
Above ₹10,00,001 |
30% of your total income exceeding ₹10,00,000 |
An extra 4% Health and Education Cess on the tax amount calculated is also applicable.
If senior and super senior citizens have a taxable income exceeding ₹50 lakh, the tax is assessed as per the following surcharge for FY 2023-24, effective from April 1, 2023.
|
Taxable Income |
Surcharge |
|
Above ₹50 Lakh but below ₹1 Crore |
10% |
|
Above ₹1 Crore but below ₹2 Crore |
15% |
|
Above ₹2 Crore |
25% |
Note that for FY 2022-23 (AY 2023-24), the highest surcharge on income over ₹5 Crore was 37% that has been reduced to 25% by Union Budget 2023, effective from April 1, 2023.
After the Union Budget 2023 revised the income tax slabs under the new regime for FY 2023-24, the basic exemption limits for senior citizens became the same for both tax regimes, which is ₹3 lakhs. In FY 2022-23, the basic exemption limit for the new tax regime was ₹2.5 lakhs.
The basic exemption limits are different for super senior citizens in both tax regimes. The Union Budget 2023 proposed a basic income exemption limit of ₹3 lakhs under the new regime, which was ₹2.5 lakhs for FY 2022-23.
While under the old tax regime, they can claim a basic income exemption of up to ₹5 lakhs for both financial years.
In case senior citizens and super senior citizens opt for the new tax regime for FY 2023-24, they would have to forego certain income tax benefits, which are as follows:
One of the vital areas where you can particularly benefit from these exemptions is healthcare. Owing to the rising cost of healthcare in the country, the government has offered tax benefits on health insurance policies that can reduce the financial liability of seeking treatment to quite an extent.
Following are some common tax deductions and benefits individuals aged 60 and above can avail of for financial years 2022-23 and 2023-24.
Standard Deduction
Pensioners above 60 years can claim a standard deduction of ₹50,000 under the head 'Income from salaries’ on their pension only. Family pensioners can also claim a standard deduction of up to ₹15,000.
Deduction Under Section 80DDB
Senior citizens can claim a deduction of up to ₹ 1 lakh for the medical expenditure of specific critical illnesses, as per the amendments made by the Union Budget 2018-19.
Health Insurance
Under Section 80D of the Income Tax Act, senior citizens can claim a deduction of up to ₹ 50,000 for medical insurance premiums, which is ₹ 25,000 for other individuals.
Interest From Savings
Under Section 80TTB, the deduction on interest income generated from deposits with savings bank accounts, bank deposits, post office deposits or cooperative banks post office and bank has been expanded from ₹ 10,000 for people below 60 years of age to ₹ 50,000 for senior citizens. This benefit also applies to interest income from various fixed and recurring deposit schemes.
Reverse Mortgage Scheme
Under this scheme, the regular instalments senior citizens receive upon mortgaging their home for life while the ownership and possession remain with them are entirely exempt from income tax.
Please try one more time!
Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
Continue with {{twoWheelerCtrl.lastVisitedData.lastVisitedUrl.indexOf('DigitPaymentGateway/payments')
!== -1 ? 'payment
completion': 'previous
choice'}}
{{healthCtrl.lastVisitedData.dropOffPolicyHolderData ? 'Complete your purchase': healthCtrl.lastVisitedData.lastVisitedUrl.indexOf('plans-page')
!== -1 ? 'Continue Browsing' : 'Continue with your previous choice'}}
