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Senior vs Super Senior citizens: What are the income tax slabs available?

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Expert 1: Nidhi Manchanda, Certified Financial Planner, Head of Training, Research & Development at Fintoo

As per Income Tax Act, elderly taxpayers are classified as Senior citizens and Super Senior citizens.

Senior citizens are defined as an individual who is 60 years of age or above but less than 80 years of age. Anybody who is 80 years old or above is considered to be a super senior citizen as per Income Tax Act. This bifurcation is done to give additional tax benefits for people reaching 80 years.

One should note that under the old tax regime, senior citizens get a basic exemption of 3,00,000 i.e., an income earned up to 3,00,000 is tax free. On the other hand, for super senior citizens, this basic exemption limit is raised to 5,00,000.

You may check the income tax slabs for senior and super senior citizens under old tax regime in the table below: –

For Senior Citizens (Old Tax Regime)  
Income Tax Slab Income Tax Rate
Up to 3,00,000 NIL
3,00,001 – 5,00,000 5% of income exceeding 3,00,000
5,00,001 – 10,00,000 10,000 + 20% of income exceeding 5,00,000
Above 10,00,000 1,10,000 + 30% of income exceeding 10,00,000
For Super Senior Citizens (Old Tax Regime)  
Income Tax Slab Income Tax Rate
Up to 5,00,000 NIL
5,00,001 – 10,00,000 20% of income exceeding 5,00,000
Above 10,00,000 1,00,000 + 30% of income exceeding 10,00,000

It is important to note that a Rebate of Rs. 10,000 u/s 87A is applicable for senior citizens if their total income is not more than 5 lacs. Therefore, effectively senior citizens will not have to pay any tax if their income is up to 5 lacs. However, if the income crosses the mark of 5 lacs, then they will have to pay tax on the entire income exceeding 3 lacs.

If opting for the new tax regime, no additional exemption is available for senior and super senior citizens. Under the new tax regime, there is only one category of slabs which is applicable for all individuals with no categorization of senior or super senior citizens. Here, the basic exemption limit is lower at 2.5 lacs.

Opting for a new tax regime means lower tax rates but with a disadvantage of not being able to claim most of the deductions and exemptions like 80C, 80D, HRA, 80TTB etc.

In the following table, you will find the income tax slabs for senior and super senior citizens under the new tax regime: –

For Senior and Super Senior Citizens (New Tax Regime)  
Income Tax Slab Income Tax Rate
Up to 2,50,000 Nil
2,50,001 – 5,00,000 5% of income exceeding 2,50,000
5,00,001 – 7,50,000 12,500 + 10% of income exceeding 5,00,000
7,50,001 – 10,00,000 37,500 + 15% of income exceeding 7,50,000
10,00,001 – 12,50,000 75,000 + 20% of income exceeding 10,00,000
12,50,001 – 15,00,000 1,25,000 + 25% of income exceeding 12,50,000
Above 15,00,000 1,87,500 + 30% of income exceeding 15,00,000

Individuals should note that rebate of up to 12,500 u/s 87A is available in the new tax regime if the income is not more than 5 lacs.

Taxpayers should keep in mind that they will be liable to pay surcharge if their taxable income exceeds 50 lacs. Rate of surcharge increases with increase in level of income ranging from 10%-37% of income tax payable.

Additionally, health & education cess at 4% will also be levied on the amount of income tax plus surcharge.

Expert 2: Dr. Suresh Surana, Founder, RSM India

The income tax slab rates for Senior Citizens aged more than 60 years but less than or equal to 80 (as per the old tax regime) are as follows:

Total Income Income tax rates (Senior Citizen) under Old Tax Regime Total Income Income Tax rates (Irrespective of the taxpayer’s age) under New Tax Regime
Upto Rs. 3,00,000* Nil Upto Rs. 2,50,000* Nil
Rs. 3,00,001 – Rs. 5,00,000 5.2% [tax rate 5% plus health and education cess 4% thereon] (Effective Rate is Nil after availing rebate u/s 87A**) of income exceeding Rs. 3,00,000 Rs. 2,50,001 – Rs. 5,00,000 5.2% [tax rate 5% plus health and education cess 4% thereon] (Effective Rate is Nil after availing rebate u/s 87A**) of income exceeding Rs. 2,50,000
Rs. 5,00,001 – Rs. 7,50,000 20.80% [tax rate 20% plus health and education cess 4% thereon] of income exceeding Rs. 5,00,000 Rs. 5,00,001 – Rs. 7,50,000 10.40% [tax rate 10% plus health and education cess 4% thereon] of income exceeding Rs. 5,00,000
Rs. 7,50,001 – Rs. 10,00,000 20.80% [tax rate 20% plus health and education cess 4% thereon] of income exceeding Rs. 5,00,000 Rs. 7,50,001 – Rs. 10,00,000 15.60% [tax rate 15% plus health and education cess 4% thereon] of income exceeding Rs. 7,50,000
Rs. 10,00,001 – Rs. 12,50,000 31.20% [tax rate 30% plus health and education cess 4% thereon] of income exceeding Rs. 10,00,000 Rs. 10,00,001 – Rs. 12,50,000 20.80% [tax rate 20% plus health and education cess 4% thereon] of income exceeding Rs. 10,00,000
Rs. 12,50,001 – Rs. 15,00,000 31.20% [tax rate 30% plus health and education cess 4% thereon] of income exceeding Rs. 12,50,000 Rs. 12,50,001 – Rs. 15,00,000 26.00% [tax rate 25% plus health and education cess 4% thereon] of income exceeding Rs. 12,50,000
Rs. 15,00,001 – Rs. 50,00,000 31.20% [tax rate 30% plus health and education cess 4% thereon] of income exceeding Rs. 15,00,000 Rs. 15,00,001 – Rs. 50,00,000 31.20% [tax rate 30% plus health and education cess 4% thereon] of income exceeding Rs. 15,00,000
Rs. 50,00,001# – Rs. 1,00,00,000 34.32% [(tax rate 30% plus surcharge 10% thereon) plus health and education cess 4% thereon] of income exceeding Rs. 50,00,000 Rs. 50,00,001# – Rs. 1,00,00,000 34.32% [(tax rate 30% plus surcharge 10% thereon) plus health and education cess 4% thereon] of income exceeding Rs. 50,00,000
Rs. 1,00,00,001# – Rs. 2,00,00,000 35.88% [(tax rate 30% plus surcharge 15% thereon) plus health and education cess 4% thereon] of income exceeding Rs. 1,00,00,000 Rs. 1,00,00,001# – Rs. 2,00,00,000 35.88% [(tax rate 30% plus surcharge 15% thereon) plus health and education cess 4% thereon] of income exceeding Rs. 1,00,00,000
Rs. 2,00,00,001# – Rs. 5,00,00,000 39% [(tax rate 30% plus surcharge 25%^ thereon) plus health and education cess 4% thereon] of income exceeding Rs. 2,00,00,000 Rs. 2,00,00,001# – Rs. 5,00,00,000 39% [(tax rate 30% plus surcharge 25%^ thereon) plus health and education cess 4% thereon] of income exceeding Rs. 2,00,00,000
Above 5,00,00,000# 5,00,00,001 and above 42.744% [(tax rate 30% plus surcharge 37%^ thereon) plus health and education cess 4% thereon] of income exceeding Rs. 5,00,00,000 Above 5,00,00,000# 42.744% [(tax rate 30% plus surcharge 37%^ thereon) plus health and education cess 4% thereon] of income exceeding Rs.5,00,00,000

Note(i)*:– Any resident senior citizen whose age is more than 60 years but less than or equal to 80 years has a basic exemption limit of Rs. 3,00,000 as mentioned in the above table. Further, any resident taxpayer who is a super senior citizen whose age is more than 80 years has a basic exemption limit of Rs. 5,00,000 instead of Rs. 3,00,000.

Note(ii)#:– Marginal relief is available to ensure that the additional income tax payable, including surcharge of 10%, 15%, 25% or 37% on the excess of income over Rs. 50,00,000, Rs. 1,00,00,000, Rs. 2,00,00,000 or Rs. 5,00,00,000 as the case may be, is limited to the amount by which the income is more than Rs. 50,00,000, Rs. 1,00,00,000, Rs. 2,00,00,000 or Rs. 5,00,00,000 as the case may be. However, no marginal relief shall be available in respect of the health and education cess.

Note(iii)^:- Maximum rate of surcharge on tax payable on income chargeable to special tax rate under section 111A, 112A, 112, 115AD(1)(b) and dividend income shall be 15%.

Note(iv)**:- Rebate u/s 87A is applicable in case of new tax regime and needs to be availed for the amount of tax payable or Rs. 12,500, whichever is lesser, resulting in NIL tax liability provided the taxpayers total income is upto Rs. 5,00,000.

Note(v):- Special income would be chargeable @ special tax rates mentioned in Section 111A, 112, 112A, etc.

Further, any taxpayer availing the concessional tax regime / new tax regime would not be eligible to claim the following deductions (which can be claimed in old tax regime):

· 10(13A) – House Rent Allowance

· 10(5) – Leave travel Concession

· 10(14) – Special allowance detailed in Rule 2BB (such as children education allowance, hostel allowance, etc. other than transport allowance, travel allowance, daily allowance).

· 10(17) – Allowances received by MP, member of state legislature, etc.

· 10(32) – Clubbing benefit of Rs. 1500 per minor child

· 10AA – Deduction for SEZ unit

· Section 16 – Standard Deduction of Rs. 50000, Entertainment Allowance, Professional Tax

· 24(b) – Interest on borrowed loan for a Self Occupied property or Vacant Property u/s 23(2)

· 32(1)(iia) – Additional Depreciation

· 32AD – Investment Allowance for investment in Andhra Pradesh / Telangana / Bihar / West Bengal

· 33AB – Tea / Coffee / Rubber Development

· 33ABA – Site Restoration Fund

· 35(2AA) – Deduction for Payment to National Laboratory or University or IIT

· 35AD – Deduction in respect of specified business

· 35CCC – Expenditure on agricultural extension project

· 57(iia)- Family pension

· Any provision of chapter VI – A – section 80C, 80D etc. However, Section 80CCD(2) (employer contribution on account of employee in a notified pension scheme) can be claimed.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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