Income tax is a crucial source of revenue for the government, utilised for various developmental and welfare activities. The tax slabs are designed progressively to ensure equitable distribution of the tax burden. In India, senior citizens, who are above the age of 60 years, and super senior citizens, who are beyond the age of 80 years, are given certain benefits in terms of income tax. This article will delve into the details of the Income Tax Slabs for Senior Citizens.
The Indian tax system operates under the old and new regimes. The old regime has existed for many years, while the new regime was introduced in the Union Budget 2020. The new regime offers lower tax rates but does away with many deductions and exemptions available under the old regime. Senior citizens can choose between the two regimes based on their income structure and financial goals.
Also Read: Section 80C: Income tax deduction and limits under section 80C, 80CCD in 2024
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,000 - ₹3,00,000 | Nil |
| ₹3,00,000 - ₹5,00,000 | 5% |
| ₹5,00,000 - ₹6,00,000 | 5% |
| ₹6,00,000 - ₹7,50,000 | 10% |
| ₹7,50,000 - ₹9,00,000 | 10% |
| ₹9,00,000 - ₹10,00,000 | 15% |
| ₹10,00,000 - ₹12,00,000 | 15% |
| ₹12,00,000 - ₹12,50,000 | 20% |
| ₹12,50,000 - ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Also Read: Income tax slabs in India 2024-25: Old vs new tax regime, deductions and more
| Income Range | Tax Rate |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
These tax slabs are designed to significantly relieve super senior citizens and reduce their tax liability.
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,000 - ₹3,00,000 | Nil |
| ₹3,00,000 - ₹5,00,000 | 5% |
| ₹5,00,000 - ₹6,00,000 | 5% |
| ₹6,00,000 - ₹7,50,000 | 10% |
| ₹7,50,000 - ₹9,00,000 | 10% |
| ₹9,00,000 - ₹10,00,000 | 15% |
| ₹10,00,000 - ₹12,00,000 | 15% |
| ₹12,00,000 - ₹12,50,000 | 20% |
| ₹12,50,000 - ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Super senior citizens can choose between the old and new regimes based on their income structure and financial goals.
| Income Range | Surcharge Rate |
|---|---|
| Up to ₹50,00,000 | Nil |
| ₹50,00,001 to ₹1 Crore | 10% |
| ₹1 Crore to ₹2 Crore | 15% |
| ₹2 Crore to ₹5 Crore | 25% |
| More than ₹5 Crore | 37% |
It’s worth noting that the highest surcharge rate in the Budget 2023 was reduced to 25 percent under the new tax regime.
Further, the surcharge rates of 25 percent or 37 percent will not be applicable to income taxable under sections 111A (Short Term Capital Gain on Shares), 112A (Long Term Capital Gain on Shares), and 115AD (Tax on income of Foreign Institutional Investors). The highest surcharge to be payable upon tax for these incomes would be 15 percent.
Further, starting from AY 2023-24, the highest surcharge on tax payable upon dividend income or capital gain mentioned in Section 112 will be 15 percent. The surcharge rate for an AOP or Association of Persons comprising various companies is also capped at 15 percent.
Health and Education cess at 4 percent will always be added to an entity’s income tax liability and surcharge.
No, the tax slabs under the new tax regime are the same for all individuals, regardless of their age. This was a significant change introduced with the new tax regime, as it did away with the age-based tax slabs of the old regime. The new regime offers lower tax rates but removes many exemptions and deductions, simplifying the tax calculation process but potentially increasing tax liability for those who previously claimed these benefits.
2. Can I choose between the old and new tax regimes?
Yes, taxpayers can choose between the old and new tax regimes based on their financial situation and tax planning. Each financial year, this choice can be made when the income tax return is filed. It"s important to make this decision carefully, considering all factors such as total income, available deductions and exemptions, and potential tax liability under each regime.