An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered as Senior Citizen for Income Tax purposes.
A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.
The senior citizen is a resident in India and is 75 years old or more during the previous year
He has pension income and no other income. However, in addition to such pension income, he may also have interest income from the same bank in which he is receiving his pension income,
The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.
Senior citizens aged 75 years or more having pension income and interest income from the same bank where such pension income is received, not having any other income other than the mentioned 2 income are exempted from filing income tax returns upon submission of declaration in Form 12BBA to the bank.
Which tax regime will be applied while deducting TDS u/s 194P?
Once the taxpayer has filed the declaration, the bank calculates net taxable income after considering the deductions, tax exemptions, and rebates available to elderly citizens under Section 87A, then applies the beneficial tax regime to the taxpayer to arrive at the TDS to be made u/s 194P.
Investment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc.
Rs 1,50,000
80D
For the policy taken for Self & Family + Parents (above 60 years)
Form 15H are self-declaration form that an individual submits to the payer requesting not to deduct TDS on the income as their income is below the basic exemption limit.
Relaxation from filing the ITR is available to resident senior citizens aged 75 years or older.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered as Senior Citizen for Income Tax purposes.
A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.
The senior citizen is a resident in India and is 75 years old or more during the previous year
He has pension income and no other income. However, in addition to such pension income, he may also have interest income from the same bank in which he is receiving his pension income,
The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.
Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines please refer Income Tax Act, Rules and Notifications
An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered as Senior Citizen for Income Tax purposes. A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.
Note:
Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above.
Senior Citizen should be ‘Resident’ in the previous year
Senior Citizen has pension income and interest income only & interest income accrued / earned from the same specified bank in which he is receiving his pension
The senior citizen will submit a declaration to the specified bank.
The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.
This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh.
Note: ITR-1 cannot be used by a person who: (a) is a Director in a company (b) has held any unlisted equity shares at any time during the previous year (c) has any asset (including financial interest in any entity) located outside India (d) has signing authority in any account located outside India (e) has income from any source outside India (f) is a person in whose case tax has been deducted u/s 194N (g) is a person in whose case payment or deduction of tax has been deferred on ESOP
4. ITR-4 (SUGAM)– Applicable for Individual, HUF and Firm (other than LLP)
This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than not ordinarily resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having Income from Business and Profession which is computed on a presumptive basis and income from any of the following sources:
Salary / Pension
One House Property
Other sources (Interest, Family Pension, Dividend etc.)
Note: 2 ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business and Profession on presumptive basis u/s 44AD, 44ADA or 44AE.
Evidence or particulars of HRA, LTC, Deduction of Interest on Borrowed Capital, Tax Saving Claims / Deductions for the purpose of calculating Tax to be Deducted at Source (TDS).
3. Form 16 – Details of Tax Deducted at Source on salary (Certificate u/s 203 of the Income Tax Act, 1961)
Provided by
Details provided in the form
An Employee to his Employer(s)
Salary paid, Deductions / Exemptions and Tax Deducted at Source for the purpose of computing tax payable / refundable.
4. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for TDS on Income other than Salary
Provided by
Details provided in the form
Deductor to Deductee
Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department.
Provided by:Income Tax Department (It is available on e-Filing Portal:Login > e-File > Income Tax Return > View Form 26AS)Details provided in the form:Tax Deducted / Collected at Source.
Provided by:Income Tax Department (It can be accessed after logging on to Income Tax e-Filing portal) Go to e-filing portal > login > AISDetails provided in the form:Tax Deducted / Collected at SourceSFT InformationPayment of taxesDemand / RefundOther information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc)
Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS are now available in AIS.
7. Form 67- Statement of Income from a country or specified territory outside India and Foreign Tax Credit
Submitted by
Details provided in the form
Taxpayer
Income from a country or specified territory outside India and Foreign Tax Credit claimed
8. Form 3CB-3CD
Submitted by
Details provided in the form
Taxpayer who is required to get his accounts audited by an Accountant u/s 44AB.To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.
Report of audit of Accounts and Statement of Particulars required to be furnished u/s 44AB of the Income Tax Act, 1961.
Taxpayer who is required to obtain a report from an Accountant u/s 92E for entering into an International Transaction or Specified Domestic Transaction.To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.
Audit report u/s 92E of the Income Tax Act, 1961, relating to International Transaction(s) and Specified Domestic Transaction(s).
The Finance Act 2024 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions.
In “non-business cases“, option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).
In case of eligible taxpayers having income from business and profession, new tax regime is default regime. If assessee wants to opt out of new tax regime, they can furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA. However, option to switch to old tax regime and withdraw the option in any subsequent AY is available only once in lifetime for eligible taxpayers having income from business and profession.
Tax rates for Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year are as under:
2. Tax rates for Individual (resident or non-resident) 80 years of age or more anytime during the previous year are as under:
Old Tax Regime
New Tax Regime u/s 115BAC
Income Tax Slab
Income Tax Rate
*Surcharge
Income Tax Slab
Income Tax Rate
*Surcharge
Up to ₹ 5,00,000
Nil
Nil
Up to ₹ 3,00,000
Nil
Nil
₹ 5,00,001 – ₹ 10,00,000
20% above ₹ 5,00,000
Nil
₹ 3,00,001 – ₹ 7,00,000**
5% above ₹ 3,00,000
Nil
₹ 10,00,001- ₹ 50,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
Nil
₹ 7,00,001 – ₹ 10,00,000
₹ 20,000 + 10% above ₹ 7,00,000
Nil
₹ 50,00,001- ₹ 100,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
10%
₹ 10,00,001 – ₹ 12,00,000
₹ 50,000 + 15% above ₹ 10,00,000
Nil
₹ 100,00,001- ₹ 200,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
15%
₹ 12,00,001 – ₹ 15,00,000
₹ 80,000 + 20% above ₹ 12,00,000
Nil
₹ 200,00,001- ₹ 500,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
25%
Above ₹ 15,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
Nil
Above ₹ 500,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
37%
₹ 15,00,001- ₹ 50,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
Nil
₹ 50,00,001- ₹ 100,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
10%
₹ 100,00,001- ₹ 200,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
15%
Above ₹ ₹ 200,00,001
₹ 1,40,000 + 30% above ₹ 15,00,000
25%
*Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.
**Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:
Tax rebate up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs
Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs
From 5 Lakhs to 7 Lakhs
NIL
***Note : Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.
Marginal relief can be claimed from surcharge if the amount of income earned exceeding ₹ 50 lakhs, ₹ 1 crore, ₹ 2 crore or ₹ 5 crores respectively as under:
Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs
1 Crore
2 Crore
Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore
2 Crore
5 Crore
Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore
5 Crore
–
Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore.
Investments / Payments / Incomes on which I can get tax benefit
Following deductions will be available to a taxpayer opting for the New Tax Regime u/s 115BAC:
Life Insurance PremiumProvident FundSubscription to certain equity sharesTuition FeesNational Savings CertificateHousing Loan PrincipalOther various items
Deduction in respect of contribution to Agnipath Scheme
Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund
Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited
₹ 25,000 (₹50,000 if any person is a Senior Citizen)₹ 5,000 for preventive health check up, included in above limit
Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
For Self/ Spouse or Dependent Children
Deduction limit of ₹ 50,000
For Parents
Deduction limit of ₹ 50,000
Section 80DD
Deduction towards payments made towards maintenance or medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme
Flat deduction of ₹ 75,000 available for a person with Disability, irrespective of expense incurred.The deduction is ₹ 1,25,000 if the person has Severe Disability (80% or more).=
Please note: If Taxpayer is claiming deduction u/s 80DD then its recommended to file form 10-IA also before filing of return.
Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.
Section 80DDB
Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases
Deduction limit of ₹ 40,000 (₹ 1,00,000 if Senior Citizen)
Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017
Deduction limit of ₹ 50,000 on the interest paid on loan taken
Section 80EEA
Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE
Deduction limit of ₹ 1,50,000 on the interest paid on loan taken
Section 80EEB
Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023
Deduction limit of ₹ 1,50,000 on the interest paid on loan taken
25% of Total Income (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 115D)
Note:Form 10BA to be filled for claiming this deduction.
Section 80GGA
Deduction towards Donations made for Scientific Research or Rural Development Donation are eligible for deduction under the below categories:Research Association or University, College or other Institution forScientific ResearchSocial Science or Statistical ResearchAssociation or Institution for Rural DevelopmentConservation of Natural Resources or for AfforestationPSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project Funds notified by Central Government forAfforestationRural DevelopmentNational Urban Poverty Eradication Fund as setup and notified by Central Government Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession
Section 80GGC
Deduction towards Donations made to Political Party or Electoral Trust
Deduction towards Donations made to Political Party or Electoral Trust
Deductions for a resident individual taxpayer with Disability
Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurredFlat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred
Please note: If Taxpayer is claiming deduction u/s 80U then it is recommended to file form 10-IA also before filing of return.
Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.
Super Senior Citizens (aged 80 years or more) have the option to submit their ITR using Form 1 or 4 in offline / paper mode. The e-Filing option also remains available to them.
According to Section 80D of the Income Tax Act, Senior Citizens may avail a higher deduction of up to ₹ 50,000 for payment of premium towards medical insurance policy. The limit is ₹ 25,000 in case of Non-Senior Citizens.
Further Section 80DDB of the Income Tax Act allows tax deduction on expenses incurred by an individual on himself or a dependent towards the treatment of specific diseases as stated in the act. The maximum deduction amount in case of a senior citizen is ₹ 1 lakh (₹ 40,000 for Non-Senior Citizen taxpayers).
Senior citizens aged 75 years or more having pension income and interest income from the same bank where such pension income is received, not having any other income other than the mentioned 2 income are exempted from filing income tax returns upon submission of declaration in Form 12BBA to the bank.
Which tax regime will be applied while deducting TDS u/s 194P?
Once the taxpayer has filed the declaration, the bank calculates net taxable income after considering the deductions, tax exemptions, and rebates available to elderly citizens under Section 87A, then applies the beneficial tax regime to the taxpayer to arrive at the TDS to be made u/s 194P.
Investment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc.
Rs 1,50,000
80D
For the policy taken for Self & Family + Parents (above 60 years)
Form 15H are self-declaration form that an individual submits to the payer requesting not to deduct TDS on the income as their income is below the basic exemption limit.
Relaxation from filing the ITR is available to resident senior citizens aged 75 years or older.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
An individual resident who is 60 years or above in age but less than 80 years at any time during the previous year is considered as Senior Citizen for Income Tax purposes.
A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year.
The senior citizen is a resident in India and is 75 years old or more during the previous year
He has pension income and no other income. However, in addition to such pension income, he may also have interest income from the same bank in which he is receiving his pension income,
The bank is a ‘specified bank’ as notified by the Central Government. Such banks will be responsible for the TDS deduction of senior citizens after considering the deductions under Chapter VI-A and rebate under 87A.
Once the specified bank, as mentioned above, deducts tax for senior citizens above 75 years of age, there will be no requirement to furnish income tax returns by senior citizens.
Senior citizens aged 75 years or more having pension income and interest income from the same bank where such pension income is received, not having any other income other than the mentioned 2 income are exempted from filing income tax returns upon submission of declaration in Form 12BBA to the bank.
Which tax regime will be applied while deducting TDS u/s 194P?
Once the taxpayer has filed the declaration, the bank calculates net taxable income after considering the deductions, tax exemptions, and rebates available to elderly citizens under Section 87A, then applies the beneficial tax regime to the taxpayer to arrive at the TDS to be made u/s 194P.
Investment made in Equity Linked Saving Schemes, PPF/SPF/RPF, payments made towards Life Insurance Premiums, principal sum of a home loan, SSY, NSC, SCSS, etc.
Rs 1,50,000
80D
For the policy taken for Self & Family + Parents (above 60 years)
Form 15H are self-declaration form that an individual submits to the payer requesting not to deduct TDS on the income as their income is below the basic exemption limit.
Relaxation from filing the ITR is available to resident senior citizens aged 75 years or older.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
