BENEFITS ENJOYED BY SENIOR CITIZENS UNDER INCOME TAX


LOWER TAX SLAB RATES: A senior citizen is given a higher exemption limit as compared to non senior citizens. The exemption limit granted to senior citizens and very senior citizens is Rs 3 lakhs and 5 lakhs which is higher than the exemption limit of Rs 2.5 lakhs granted to non senior citizens. Therefore, senior citizens and very senior citizens enjoy additional exemption benefit of Rs 50,000 and Rs2, 50,000 respectively.

BENEFITS IN RESPECT OF INTEREST INCOME: Section 80TTB of the Income tax Act 1961 provides tax benefit to senior citizens on account of interest income earned on deposits with bank (both savings and fixed) or post office or co-operative banks of an amount up to Rs 50,000.

BENEFIT IN TERMS OF MEDICAL TREATMENT: Section 80D provides additional deduction for payment of medical insurance premium up to Rs 50,000 as compared to non senior citizens who are given a deduction of up to Rs 25000.

EXEMPTION IN ADVANCE TAX PAYMENT: As per Section 208 of Income Tax Act 1961 every person whose estimated liability towards tax is Rs 10000 or more are required to pay tax in advance. However, Section 207 provides relaxation to a resident senior citizen (citizen of age 60 years or above) not having income from business or profession by removing the requirement of paying advance tax.






Location: Hanumangarh, Rajasthan 335513, India

Comments

Post a Comment

Popular posts from this blog

Angel Tax : Decoding the tax row that's making startups nervous

Image
What is an Angel Tax?    Angel tax  is the income tax payable by a company, not being a company in which public is substantially interested (generally private companies), on the aggregate consideration received from a  resident investor  which is in  excess of the Fair Market Value (FMV)  of the shares so issued via off market transactions (provided the price of the share issued exceeds the face value of shares). The excess consideration received is considered as an income from other sources in pursuance to section 56(2)(viib) of the Income tax Act, 1961 and is chargeable at the rate of 30%. For instance , if your company receives an investment amount of Rs. 1,000 crores against issue of shares and the Fair Market Value of these shares is Rs. 750 crores, then the balance Rs. 250 crores shall be considered as excess amount or we can say the premium amount and shall be taxable.   Which investments fall under the ambit of Angel Tax? Why are s...
Read more

GST Return Due Date for August 2020

Image
Add caption Due Date Form Type Form Details 3/8/2020 GSTR-1 Quarterly return for April 2020 to June 2020 (1st Qtr) for quarterly filers without late fee. 5/8/2020 GSTR-1 Monthly return of Outward Supplies for period June 2020 (Turnover exceeding 1.5 Cr.in previous year) without late fee. 11/8/2020 GSTR-1 Monthly return of Outward Supplies for period   July 2020(Turnover exceeding 1.5 Cr.in previous year) without late fee. 20/08/2020 GSTR-3B Payment of Tax for PeriodJuly 2020 by taxpayers having an aggregate turnover of more than Rs. 5 cr in previous financial year. 31/08/2020 GST RFD-11 Online Application for Letter of Undertaking (LUT) for Exports & Supplies to SEZ without payment of tax For FY 2020-21. 31/08/2020 GSTR-5 & 5A Monthly Return by Non-residen...
Read more

GST Procedure – Steps to be followed in case of Death of Sole Proprietor

In case of death of sole proprietor, if the business is intended to be carried on by the successor or legal heir, the successor cannot do so using the same GST registration since he will have a different PAN .  Below mentioned steps need to be followed by Successor/Legal Heir: New GST Registration by Legal Heir – Legal Heir will have to take new GST Registration within 30 Days of Death, with reason of registration should be “death of the proprietor”. Get himself registered as Authorised Signatory - Legal Heir has to get himself registered as Authorised Signatory on behalf of the deceased proprietor by submitting the death certificate & succession certificate to proper officer. Proper officer after verification will provide new login Id & password to legal Heir to File ITC-02 & form Cancellation of Registration. Transfer of Input Tax Credit & Tax Liability - Section 18(3) of the CGST Act, 2017 allows the transfer of ITC where the business is being transferred as lo...
Read more