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Decoding Income tax return for super senior citizens

7/3/2017
Decoding Income tax return for super senior citizens

Every financial year, Indians with taxable income, or even without, are required to pay income tax and even those in their 80s and above are not exception. But for them the rules are little relaxed and they can file ITR online as well as offline. Super senior citizens often require assistance while filing returns. Find out the tax rates and provisions applicable to them here.

Who is a super senior citizen?

According to the Income Tax Act, 1961 a super senior citizen is defined as an individual, who is a resident of India and whose age is greater than 80 years, as of the 1st of April of the financial year.

Tax slabs for super senior citizens

The tax returns that need to be filed by super senior citizens are as follows:

If total income does not exceed Rs.500000:  No tax needs to be paid if total income does not exceed Rs.500000 and if there are

A) No refunds to claim

B) No other sources of income (barring income from fixed deposits, pension and interest on savings)

C) No ownership of foreign assets.

If total income is greater than Rs.500000 but less than Rs.1000000:  Tax rate of 20% is applicable on the amount by which income exceeds Rs.500000.

If total income is greater than Rs.100000: Tax rate of 30% is applicable on the amount by which income exceeds Rs.1000000.

If total income is greater than Rs.5000000 but less than Rs.1 crore: In addition to a 30% tax, a surcharge of 10% is levied.

If total income is greater than Rs.1 crore: In addition to a 30% tax, a surcharge of 15% is levied

Please note that the surcharge levied is subject to marginal relief. This means that when income is greater than Rs.1 crore, the total amount due as surcharge and income tax cannot be greater than the income tax due on the amount by which the tax payer’s income exceeds Rs.1 crore.

Cess applicable to super senior citizens:

A cess of 3% is levied on the total of surcharge and income tax paid. The breakup of this 3% cess is as follows:

A) Education Cess: An education cess of 2% is levied on the total of surcharge and income tax

B) Secondary and Higher Education Cess: A secondary and higher education is levied at the rate of 1% of the total amount paid as surcharge and income tax

Rebate available to super senior citizens:

Under Section 87A of the Indian Tax Act, an individual whose income is less than Rs.5,00,000 , can claim a rebate of Rs.5000 or 100% of income-tax (whichever is less).

Other provisions for super senior citizens:

1) Super senior citizens are exempt from filing e-returns even if their total income is greater than the exemption limit: As of assessment year 2015-16, super senior citizens are not required to file their income tax returns electronically. Prior to assessment year 2015-16 any individual with income exceeding the exemption limit was required to e-file their income tax returns, irrespective of seniority.  However, the procedure has been changed keeping in mind that some super senior citizens may not what the technology/the technical expertise required for e-filing. Thus, super senior citizens filing income tax returns using ITR Forms 1/2/2A can file their returns physically.

2) Super senior citizens can claim deductions for medical expenses: Super senior citizens can claim medical expenses up to Rs.30,000 as deductions from their total income.