There are sure tax advantages for senior residents that they will avail of. Apart from tax advantages the method of revenue tax e-filing has additionally been particularly made hassle-free for them. Let’s check out the revenue tax advantages accessible to senior residents
Different tax-slab charges
The revenue tax slab charges for senior residents are completely different in comparison with non-senior residents.
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Different tax-slab charges for senior residents
Interest revenue exemption as much as ₹50,000
CA Amit Gupta, MD, SAG Infotech stated that from FY 2018-19, Section 80TTB got here into motion that permits a deduction for the curiosity of ₹ 50,000. The quantity earned over ₹ 50,000 shall be taxed in keeping with the Slab Rates specifically designed for Senior Citizens. However, you will need to be aware that in such circumstances deduction is not going to accrue below part 80TTA of ₹ 10,000 for curiosity on the financial savings account.
Deduction below part 80D for medical insurance coverage premium funds
Section 80D permits non-senior residents a deduction of ₹25,000 on medical insurance coverage premium funds, nevertheless for senior residents, it will get elevated to ₹50,000. “The restrict was ₹ 30,000 earlier however in Budget 2018 it will get elevated to ₹ 50,000. Further, part 80D permits deduction not just for the medical insurance coverage premium fee but in addition for the precise expenditure incurred on remedy by very senior residents,” stated Gaurav Kapoor, director and co-founder, Fincorpit Consulting.
Non-deduction of TDS on curiosity
If the overall revenue of a senior citizen is exempted from revenue tax and nil tax is payable by him/her for that monetary yr, he can submit Form 15H for non-deduction of TDS on curiosity on mounted deposits.
Additionally, with amendments made by way of price range 2018, the restrict for tax deduction below part 194A for senior residents has additionally been elevated from ₹10,000 to ₹50,000, stated Amit Gupta.
Higher deduction below part 80DDB for specified sickness
Section 80DDB supplies tax deduction aid to taxpayers in case of expenditure on medical remedy of specified illnesses. The allowed deductions earlier have been ₹ 60,000 for senior residents, however Budget 2018 elevated it to ₹ 1,00,000.
No fee of the advance tax is required
Senior residents with none enterprise revenue are exempted from advance tax fee and so they solely should pay self-assessment tax on their whole revenue.
No tax on the quantity acquired below the reverse mortgage scheme
With the reverse mortgage scheme, senior residents get common funds by mortgaging their house for all times whereas the possession and possession stay with the senior citizen. With this scheme, on the dying of the borrower, the mortgage will get repaid with earned curiosity by the sale of the property and the steadiness quantity obtained on the sale will get handed on to the authorized heirs. Under this scheme, the quantity paid in instalments to senior residents is totally exempt from revenue tax.
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