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Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
The Indian Government has introduced the New Tax regime for the income taxpayers. However, senior citizens are given the choice to follow either the old or the new tax regime. Wondering what to choose? Read ahead to navigate and choose the one which best suits you.
Updated On: 28th July, 2023
Every year the government of India proposes a budget for the economy. It talks about the government’s income and expenditure along with the tax regime applicable to the general public. This year, the budget was released with minor changes in the tax slabs.
India follows a progressive Tax system which is divided into three categories; Individuals, senior citizens, and super senior citizens. In this blog, we will navigate the tax slab for senior citizens, i.e., people above the age of 60 but below 80 years. You must read ahead to understand the new as well as the old tax regime and the benefits it offers.
The government has given the options to senior citizens to choose any of the tax regimes, old and new, to pay income tax. Hence you must have a look at both options:
Income Tax slabs for senior citizens as per the Old Tax Regime:
Income tax slabs for senior citizens as per the New Tax Regime:
Along with this, a surcharge is applicable on the basis of total income. You must refer to the following table to build a better understanding:
Income Slabs |
Income Tax Rate |
Up to ₹3,00,000 |
NIL |
₹3,00,001 to ₹5,00,000 |
5% above ₹3,00,000 |
₹5,00,001 to ₹10,00,000 |
₹10,000 + 20% above ₹5,00,000 |
Above ₹10,00,000 |
₹1,10,000 + 30% above ₹10,00,000 |
Income Slab |
Income Tax Rate |
Up to ₹2,50,000 |
NIL |
₹2,50,001 to ₹5,00,000 |
5% above ₹2,50,000 |
₹5,00,001 to ₹7,50,000 |
₹12,500 + 10% above ₹5,00,000 |
₹7,50,001 to ₹10,00,000 |
₹37,500 + 15% above ₹7,50,000 |
₹10,00,001 to ₹12,50,000 |
₹75,000 + 20% above ₹10,00,000 |
₹12,50,001 to ₹15,00,000 |
₹1,25,000 + 25% above ₹12,50,000 |
Above ₹15,00,000 |
₹1,87,500 + 30% above ₹15,00,000 |
Total Income |
Surcharge Rate |
> ₹50 lakhs |
10% |
> ₹1 crore |
15% |
> ₹2 crore |
25% |
> ₹5 crore |
37% |
The income taxpayers who are opting for concessional rates under the New Tax Regime are not allowed to avail of certain deductions and exemptions, including 80C, 80D, 80TTB, HRA, available in the Old Tax Regime.
If you are a senior citizen, you can avail of the numerous tax benefits offered by the Indian Government, some of which are mentioned below:
You, as a senior citizen, have the option to pay tax over the total income of ₹3,00,000. However, the benefit is not available for taxpayers below 60 years of age, as the limit is ₹2,50,000. Along with this, super senior citizens who are above the age of 80 have a tax exemption of up to ₹5,00,000 of annual income.
If you are earning a salary or have a regular income through a pension, then you can claim a deduction of ₹50,000 on such income. Thus, it can save a good amount from your taxable income.
You can claim a tax rebate in case your taxable income is ₹5,00,000. This implies you do not require to pay tax after claiming the deduction.
You can also claim a deduction on the premium paid towards medical plans under section 80D up to ₹50,000. However, the maximum deduction available to individuals on health insurance is up to ₹25,000. Thus, it is one of the major benefits you can get as a senior citizen.
Rules for income tax for senior citizens are a bit liberal. Tax benefits and rebates are provided, considering restricted sources of income after the age of 60. It helps them save their annual taxable income. Moreover, with a high percentage of senior citizens living on pensions, the government has made sure they are given a standard deduction on the annual tax for the same.
Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999