Income Tax for Senior Citizens and Super Citizens

Last Updated at: Sep 07, 2020
Income Tax For Senior Citizens And Super Citizens
The new lower income tax rate regime proposed in the budget 2020 does not provide higher tax exemption limit for resident senior and super senior citizens, unlike what is available to them in the existing tax regime. As per current income tax laws, the basic income threshold exempt from tax for senior and super senior citizens is Rs 3 lakh and Rs 5 lakh respectively.


As a part of the Rs 20 lakh Crore economic stimulus package announced on 13th May, the honourable Finance Minister has announced that the existing rates of TDS (Tax Deducted at Source) and TCS ( Tax Collection at Source) will be reduced by 25% for the remaining part of FY 20-21. This will also benefit senior citizens earning rental and interest income.


Who are senior citizens?

Senior citizens are resident individuals between the age group of 60 to 80 years at the latest. This implies according to the current year, an individual born on or after April first, 1935 and before April first, 1955 falls under the category of a senior citizen.

Source of income

The sources of income for senior citizens consist of pension, senior citizen saving scheme, interest on savings, rental income, fixed deposits, reverse mortgage and post office scheme. As per the Central Board of Direct Taxes directive, cases of senior citizens cannot be investigated, except if an appraisal is required dependent on reliable information.

Tax slab for senior citizen (FY 2018-19)

Less than Rs. 3 Lakhs No Tax rate applicable
More than Rs. 3 Lakhs however less than Rs. 5 Lakhs 5%*
More than Rs. 5 Lakhs however less than Rs. 10 Lakhs 20%
More than Rs. 10 Lakhs 30%

Calculation of tax and types of deductions (FY 2018-19)

The tax determined for senior residents depends on their basic pay, house rent allowance, fixed allowances and some other sources of income. In any case, senior citizens in India get higher exception limit contrasted with people who are beneath 60 years of age. All the salary is taken into account alongside the suitable deductions and the annual assessment slab for FY 2018 – 2019, in order to compute the income tax for a senior civilian.

Tax deduction underneath Section 87A is valid if the income is up to Rs. 5 lakh. A discount of Rs. 2,000 will be relevant for those with a yearly salary up to Rs. 5 lakh. Henceforth, the Tax payable will be Rs. 23,000. For those people who have an income higher than Rs. 5 lakh, the duty payable will be Rs. 25,000 + 20% tax. The education cess has been altered to 4%. An additional charge of 15% will be payable for the budgetary year 2018-19 in case the income is more than Rs.1 crore.

File ITR before due date

Senior citizens are entitled to the types of deductions as follows:

  • A senior resident is qualified for a deduction of the medical insurance premium of up to Rs. 50,000. They are additionally excused from the advanced tax payment.
  • Moreover, there are no deductions of TDS on earned premium for senior citizens.
  • Section 80DDB provides a higher deduction for the complaint of specified diseases.

Senior citizens are additionally not obligatory to pay tax for the sum received under Reversed Mortgage Scheme.

Filing of Income-tax forms for senior citizens

It is compulsory for senior natives to file their ITR, in order to claim their tax money back. The accompanying Income Tax Return forms are required to be filled by the senior citizens to do as such:

ITR I – Senior citizen whose total income is inclusive of:

  • Salary or pension
  • Income from house or property (barring episodes where misfortune is carried forward from past financial years)
  • Income from the other sources (barring revenue from horse racing or winning lottery)

ITR 2 – Senior citizen whose total Income is inclusive of:

  • Salary or pension
  • Income from house or property
  • Capital gains
  • Income from the other sources (comprising winning from horse racing and lottery)
  • In the event where the income of an additional individual, for example, a spouse or other member must be merged with the income of the senior citizen.

Who are Super Senior Citizens?

There is another group of people known as super senior citizens. A super senior citizen is a person who is 80 years of age during the earlier year (born before April first, 1935). The fundamental exception limit for super senior natives, who are 80 years or more, is Rs. 5 lakhs.

Tax slab for super senior citizens

The accompanying table portrays the income tax slabs and rates appropriate for super senior natives for the assessment year 2019-20 (income received from April first, 2018 to March 31st, 2019).

Below Rs. 5 Lakhs Not pertinent
From Rs. 5 Lakhs to Rs. 10 Lakhs 20%
Above Rs. 10 Lakhs 30%

Types of deductions

Super senior citizens are entitled to the types of deductions as follows:

  • For uninsured super senior natives, medical expenses drawn about up to Rs 30,000 will be permitted as a deduction under segment 80D (This sum has been escalated to Rs 50000 from A.Y. 2019-20).
  • Section 80DDB gives deduction to an assessee if there should be an occurrence of expenses on medical treatment of specified diseases. By and large, this deduction is taxable up to Rs 40,000. But, in case the patient is a super senior citizen, at that point deduction of Rs 80,000 is permissible (This sum has been escalated Rs 1, 00,000 from to A.Y. 2019-20).

Filing of Income tax forms for super senior citizens

  • Super senior citizens not having income from any occupation or business, are exempted from the advanced tax payment. As an inability to fulfil with the advanced tax provisions draws in punitive interest, this relaxation comes as a blessing to super senior residents.
  • Electronic-filing of the tax form is compulsory from FY 2016-17 onwards for any citizen filing return and who has claimed a return. Moreover, yet for a citizen who has an income of more than Rs 5 lakhs, e-filing is a directive. In any case, this directive is made easy for a super senior citizen who can even now keep on filing his profits physically. But, considering the effortlessness of filing returns on electronically, this arrangement may not be advantageous.


A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.