We discussed about income tax slabs for non senior citizens here, but what are the tax slabs for senior citizens? How much tax exemption senior citizens can get and how to calculate their income tax? All such queries will be solve din this article.
Income Tax Slabs in India are divided into 2 Tax Regimes:
- Old Tax Regime
- New Tax Regime
Old Tax Regime is the one that works in same way from a very long time with high slab rates and deductions available. New Tax Regime was introduced in Budget 2020 with reduced Slab rates and no deductions available.
You have the option to choose between Old and New Tax Regime to calculate income tax. Which is better? Depends on your income and investments used to claim deductions.
For some, New Tax Regime will be better if they don’t use any Tax Saving options to claim deductions, whereas for others, Old Tax Regime is still better.
Let us see Old Tax Regime and New Tax Regime Slab Rates for senior citizens and super senior citizens.
- Income Tax Slabs for Senior Citizens (Age 60 to 79 Years)
- Income Tax Slabs for Super Senior Citizens (Age Above 80 Years)
- Senior Citizen Income Tax Calculation Video
- Which is Better – Old vs New Tax Regime
- How much is tax free over 60 years?
- Is FD interest taxable for senior citizens?
- Is 80C applicable for senior citizens?
- Standard Deduction available for Senior Citizens?
- Conclusion
Income Tax Slabs for Senior Citizens (Age 60 to 79 Years)
First we will see Old Tax Regime Slab Rates.
Old Tax Regime Slab Rates
| Income Tax Slabs | Old Tax Rates for Senior Citizens |
|---|---|
| Rs, 0 – Rs. 3,00,000 | 0% |
| Rs. 3,00,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% |
| More than Rs. 10,00,000 | 30% |
As seen in above table, Old Tax Regime Slab rates for senior citizens gives little relief for senior citizens of India, as their basic exemption limit is Rs. 3 Lakhs in FY 2022-23, on which they don’t have to pay income tax.
And also, tax rebate under Section 87A is applicable to them as well, if their annual income is below Rs. 5 Lakhs in a financial year. This tax rebate under section 87A is also applicable in New Tax Regime.
Let us now see new tax regime slab rates for senior citizens.
New Tax Regime Slab Rates
| Income Tax Slabs | New Tax Rates for Senior Citizens |
|---|---|
| Rs, 0 – Rs. 2,50,000 | 0% |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 7,50,000 | 10% |
| Rs. 7,50,000 – Rs. 10,00,000 | 15% |
| Rs. 10,00,000 – Rs. 12,50,000 | 20% |
| Rs. 12,50,000 – Rs. 15,00,000 | 25% |
| More than Rs. 15,00,000 | 30% |
Important: New Tax Regime slab rates for senior citizens are same as that of non senior citizens as seen above. So, if any senior citizen want to choose new tax regime to calculate income tax, they will have same slab rates as that of non senior citizens and there are no additional benefits as seen in Old Tax Regime.
You can also go through the additional Tax Benefits for Senior citizens, to know more about tax benefits using Old Tax Regime.
While new tax regime benefits can also be taken by senior citizens in India.
Let us now see Income Tax Slabs for super senior citizens.
Income Tax Slabs for Super Senior Citizens (Age Above 80 Years)
First we will see Old Tax Regime slab rates for super senior citizens.
Old Tax Regime Slab Rates
| Income Tax Slabs | Old Tax Rates for Super Senior Citizen |
|---|---|
| Rs, 0 – Rs. 5,00,000 | 0% |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% |
| More than Rs. 10,00,000 | 30% |
As seen above, there is no 5% tax bracket for super senior citizen in India. So they don’t have to pay any income tax on income up to Rs. 5 Lakhs in FY 2022-23. But other tax brackets remain same for them compared to non senior citizens as per old tax regime.
Let us see new tax regime for super senior citizens.
New Tax Regime Slab Rates
| Income Tax Slabs | New Tax Rates for Super Senior Citizen |
|---|---|
| Rs, 0 – Rs. 2,50,000 | 0% |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 7,50,000 | 10% |
| Rs. 7,50,000 – Rs. 10,00,000 | 15% |
| Rs. 10,00,000 – Rs. 12,50,000 | 20% |
| Rs. 12,50,000 – Rs. 15,00,000 | 25% |
| More than Rs. 15,00,000 | 30% |
Important: New Tax Regime slab rates for super senior citizens are same as that of non senior citizens as seen above. So, if any super senior citizen want to choose new tax regime to calculate income tax, they will have same slab rates as that of non senior citizens and there are no additional benefits as seen in Old Tax Regime.
You can also go through the additional Tax Benefits for Super Senior citizens, to know more about tax benefits using Old Tax Regime.
So these were the Income Tax Slabs for Senior Citizens in FY 2022-23.
Let us now see how income tax is calculated using examples in video.
Senior Citizen Income Tax Calculation Video
As seen in above video, you can easily use the online income tax calculator to calculate income tax for senior citizens. Below is the link of income tax calculator:
Which is Better – Old vs New Tax Regime
We observed that Rs. 15 Lakhs is the income level on which you’ll pay almost same income tax in both tax regime, given that you make Rs. 2.5 Lakhs investments for deduction with Old Tax Regime.
Since New Tax Regime has reduced Tax Slab Rates, the income tax will be less on Rs. 15 Lakhs income, without any deductions benefits used.
So it depends on your income and investments you make, to choose between Old or New Tax Regime and which is better for you.
Thumb rule over here is if your income is above Rs. 15 Lakhs, you should go for New Tax Regime without making any investments, but if your income is below Rs. 15 Lakhs, you can take benefit of deduction options available and choose Old Tax Regime to save more income tax.
Old vs New Tax Regime Calculator Video
How much is tax free over 60 years?
Basic Exemption limit for Senior Citizens (Age 60 to 79 Years) is Rs. 3 Lakhs in FY and for Super Senior Citizens (Age above 80 Years) is Rs. 5 Lakhs. These are the limits for respective age groups on which no income tax will have to be paid.
Below is the Basic Exemption limit table for all age groups:
| Age Groups | Basic Exemption Limit in Old Tax Regime |
|---|---|
| Below 60 Years | Rs. 2,50,000 |
| Senior Citizen (Age 60 to 79 Years) | Rs. 3,00,000 |
| Super Senior Citizen (Age above 80 Years) | Rs. 5,00,000 |
Using New Tax Regime, the basic exemption limit will be Rs. 2.5 Lakhs for all age groups.
Is FD interest taxable for senior citizens?
FD interest is a part of Section 80TTB which has a limit of Rs. 50,000 in FY 2022-23, that be claimed while filing ITR. So FD interest, Savings bank account interest, Recurring Deposit interest can all be claimed under Section 80TTB up to a limit of Rs. 50,000 in FY.
Is 80C applicable for senior citizens?
Yes, list of all investment options under Section 80C are available for senior citizens and super senior citizens as well.
Standard Deduction available for Senior Citizens?
Yes standard deduction is available for senior citizens only if you are getting pension. In case you have business income, standard deduction will not be available on your business income.
Conclusion
As seen above income tax slab rates for senior citizens, senior citizens get some relief with Old Tax Regime slab rates. But with new tax regime, individuals in all age groups or gender are treated equally as far as income tax calculation is concerned in FY 2022-23.
Above mentioned income tax slabs for senior citizens are for FY 2022-23, which may be changed in upcoming years, so we have to stay updated accordingly. You can Subscribe to my YouTube Channel where I post about personal finances for you to be updated about latest news.
Some more reading:
- Income Tax Calculator FY 2022-23 Excel Download
- All Deductions in Section 80
- 6 Tax Saving Options to save income tax
- New Tax Regime Benefits
- Section 80C Deductions List
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Income Tax Calculator App – FinCalC
For Income Tax Calculation on your mobile device, you can Download my Android App “FinCalC” which I have developed for you to make your income tax calculation easy.
What you can do with this mobile App?
- Calculate Income Tax for new FY 2024-25 and previous FY 2023-24
- Enter estimated Investments to check income tax with Old and New Tax Regime
- Save income tax details and track regularly
- Know how much to invest more to save income tax
- More calculators including PPF, SIP returns, Savings account interest and lot more
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