Tax Liability of Senior Citizens A.Y.2018-19

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The persons who find difficulty 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 to 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 assessment year and previous year. Now most of you are confusing about Senior Citizens and Very Senior Citizens.

Who is Very Senior Citizen?

A person has completed his 80 years of age is called senior citizen. We will calculate the age in previous to calculate the tax for this assessment year. There are lots of tax benefits and tax exemption 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 exceeds 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. 2018-19

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 2, 1938 but before 2, 1958.

 IncomeTax Rates
i)Income up to 3 lakhNIL
ii)Income From 3 Lakh to 5 Lakh5% on income over Rs. 3 Lakh
iii)Income from 5 Lakh to 10 LakhRs. 10,000/- +20% on above income 5 lakh
iv)Income above 10 lakhRs. 1,10,000 + 30% on income above 10 lakh
v)Surcharge will be applicable @ 10% when total taxable income is over 50 lacs but less than 1 crore.
@ 15% if income is over 1 core
vi)3% Education Cess, Secondary & Higher Education Cess will be applicable on income tax & surcharge
Rebate u/s 87A: A resident individual (whose net income does not exceed Rs.3,50,000) can avail rebate under section 87A. It is deductible from income-tax before calculating seduction cess. The amount of rebate is 100% of income tax or Rs.2,500 whichever is less.

Income Tax Slab (Super Senior Citizens) (Above 80 Years Age) A.Y. 2018-19

Income Tax Slab for Individuals, HUF, AOP/BOI & artificial juridical person above 80 years or age i.e. born before April 2, 1938.

 IncomeTax Rates
i)Income up to 5 lakhNIL
iii)Income from 5 Lakh to 10 Lakh20% on above income 5 lakh
iv)Income above 10 lakhRs. 1,00,000 + 30% on income above 10 lakh
v)Surcharge will be applicable @ 10% when total taxable income is over 50 lacs but less than 1 crore.
@ 15% if income is over 1 core
vi)3% Education Cess, Secondary & Higher Education Cess will be applicable on income tax & surcharge
Rebate u/s 87A: A resident individual (whose net income does not exceed Rs.3,50,000) can avail rebate under section 87A. It is deductible from income-tax before calculating seduction cess. The amount of rebate is 100% of income tax or Rs.2,500 whichever is less.

Senior Citizen Saving Scheme, 2004

The best scheme for senior citizens, get the benefits of this scheme. You can get more detail in exclusive article written for senior citizens “Senior Citizens Saving Scheme, 2004“.

Tax Planning for Senior Citizens

There are lots of tax benefit and tax deductions available in income tax act for senior citizens. You can avail benefits of all those deductions but systematically. We have also a exclusive written artcile on Tax Planning for Senior citizens.

 

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6 thoughts on “Tax Liability of Senior Citizens A.Y.2018-19

  1. I am a Pensioner,with additional income from rented property & interests from banks.dividends from shares,etc.Details are straight forward.I feel my CA is over-charging for preparation and submission of my ITRs.As a guide what should I be paying the CA?

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