Income tax slabs for senior and super senior citizens (new and old tax regimes) for AY 2024-25

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

Tax slabs for senior citizens (60 years to below 80 years)

Senior citizens between the ages of 60 and 79 have certain benefits under the Income Tax Act (required documents). The government has structured the Income tax slabs for senior citizens to provide relief and acknowledge the financial challenges that may come with retirement and old age.

Under old tax regime

Under the old tax regime, senior citizens enjoy a higher exemption limit than regular taxpayers. The tax slabs are as follows:

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%

These tax slabs aim to reduce the tax burden on senior citizens and provide them with financial relief.

Under new tax regime

The new tax regime offers lower tax rates but does away with many deductions and exemptions. The income tax slabs for senior citizens under the new regime are as follows:

Also Read: How to save tax in new tax regime (2024-25)

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%

Senior citizens can choose between the two regimes based on their income structure and financial goals.

Also Read: ITR filing last date for FY 2023-24 (AY 2024-25): Due dates for income tax returns filing, TDS, advance tax payments

Tax slabs for super senior citizens (80 years and above)

Super senior citizens, those who are 80 years old and above, are given special consideration under the Income Tax Act. The government acknowledges the financial constraints that might come with age and has therefore structured the income tax slabs for super senior citizens to provide them with certain benefits. These benefits are designed to ease the financial burden and provide some relief to our elderly population.

Also Read: Income tax slabs in India 2024-25: Old vs new tax regime, deductions and more

Under old tax regime

Under the old tax regime, Indian super senior citizens have a higher exemption limit compared to senior citizens and other taxpayers. The tax slabs are as follows:

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.

Also Read: Income tax returns filing: Know which ITR you should file

Under new tax regime

The new tax regime, introduced in the Union Budget 2020, offers lower tax rates but fewer deductions. The income tax slabs for Indian super senior citizens for the FY 2024-25 are as follows:

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.

Also Read: How to check ITR refund status online

Surcharge on income tax

The surcharge is an additional tax a taxpayer is liable to pay if their income exceeds a certain limit. The surcharge is levied on the amount of income tax. Here are the surcharge rates applicable to senior and super senior citizens:

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.

Also Read: Form 26AS tax credit statement: How to view and download

Benefits for senior and super senior citizens

Senior and super senior citizens are entitled to various benefits under the Income Tax Act. These include higher exemption limits compared to individuals below 60 years, exemption from filing income tax returns if their income is only from interest and pension, and higher deduction limits for things like medical insurance premiums under Section 80D.

Deductions available

The Income Tax Act provides several deductions to senior and super senior citizens. These include deductions under Section 80C for investment in specified instruments, Section 80D for medical insurance premiums, Section 80DDB for expenditure on specified diseases, and Section 80TTB for interest on deposits.

FAQs

1. Are the tax slabs under the new tax regime different for senior and super-senior citizens?

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.