Tax Liability of Sr Citizens A.Y.2022-23 & A.Y.2023-24: The persons who find it difficult to calculate income tax for their parents or senior citizens themselves must read this article for everything you need to know about the taxation of senior citizens. You will find here the meaning, definition, tax liability, income tax rates, income tax slabs, tax planning, tax saving schemes and more. You can also ask your queries by comment form if you have any doubt regarding find out the tax liability of senior citizens or very senior citizens.
Who is Senior Citizen?
A person who has 60 years of age is called a Senior Citizens according to the Income Tax Act. But according to income tax, we have to keep in mind the assessment year and the previous year. Now, most of you are confused about Senior Citizens and Very Senior Citizens.
Who is Very Senior Citizen?
A person who has completed his 80 years of age is called a senior citizen. We will calculate the age in the previous to calculate the tax for this assessment year. There are lots of tax benefits and tax exemptions available to senior citizens.
Tax Liability of Senior and Very Senior Citizens
- Senior citizens are not liable to pay tax if their income does not exceed Rs. 3,00,000/-
- Very senior citizens are not liable to pay tax if their income does not exceed Rs. 5,00,000/-
Income Tax rates Applicable
Income Tax Slab (Senior Citizens) (60 to 80 Years Age) A.Y. 2022-23 & A.Y.2023-24
Income Tax Slab for Individuals, HUF, AOP/BOI & artificial juridical person (Who is 60 years or more at any time during the previous year but less than 80 years on the last date of the previous year) i.e. born on or after April 1, 1939, but before April 1, 1959.
|Income up to ₹ 3,00,000/-||Nil|
|Income From ₹ 3,00,000/- to ₹ 5,00,000/-||5%|
|Income from ₹5,00,000/- to 10,00,000/-||₹ 10,000/- + 20%|
|Income over ₹ 10,00,000/-||₹ 1,10,000/- + 30%|
Income Tax Slab (Super Senior Citizens) (80 Years or More) A.Y. 2022-23 & A.Y.2023-24
|Income up to ₹ 5,00,000/-||Nil|
|Income From ₹ 5,00,000/- to ₹ 10,00,000/-||20%
|Income over ₹ 10,00,000/-||30%|
Important Notes About Income Tax Slab of Sr Citizens
For A.Ys. 2020-21 to 2022-23 resident individuals having taxable income up to Rs. 5,00,000 shall be entitled to tax rebate equal to the amount of income tax or Rs. 12,500 whichever is less.
The long-term capital gains and short-term capital gains (sec 111A) exclude from the taxable income, which is taxable at specified rates as per section 112 and 112A.
Surcharge (A.Y. 2020-21, A.Y. 2021-22 & A.Y.2022-23)
|Income between 50 Lakh to 1 crore||10%|
|Income between 1 crore to 2 crores||15%|
|Income between 2 crores to 5 crores [excluding dividends (for A.Y. 2021-22) or capital gains from securities referred u/s 111A, 112A or 115AD(1)(b)]||25%|
|Income above 5 crores [excluding dividends (for A.Ys. 2021-22 & 2022-23) or capital gains from securities referred u/s 111A, 112A or 115AD(1)(b)]||37%|
Where total income includes any dividends (for A.Y. 2021-22 and A.Y. 2022-23) or capital gains from securities referred u/s 111A, 112A or 115AD(1)(b), the surcharge on income tax in respect of such income shall not exceed 15%.
Senior Citizen Saving Scheme, 2004
The best scheme for senior citizens, get the benefits of this scheme. You can get more detail in an exclusive article written for senior citizens “Senior Citizens Saving Scheme, 2004“.
Tax Planning for Senior Citizens
There are lots of tax benefits and tax deductions available in the income tax act for senior citizens. You can avail benefits of all those deductions but systematically. We have also an exclusive written article on Tax Planning for Senior citizens.