ITR 2025: As earnings tax (I-T) return submitting season is again, taxpayers are busy arranging paperwork to have the ability to file their earnings tax (I-T) return. There are a variety of concessions and deductions provided for various class of taxpayers based mostly on completely different standards embody the age of taxpayers.
As an example, there’s a increased exemption restrict for senior citizens on the time of submitting tax return and better deduction in direction of medical bills for specified ailments.
“There are a number of advantages given to senior residents. These embody the next: Part 194P gives conditional exemption to Senior Residents above 75 from ITR submitting. Then they’ve increased tax exemption slab in Outdated Tax Regime. ( ₹3 lakh for senior residents and ₹5 lakh for tremendous senior residents). Moreover, senior residents who would not have a enterprise or skilled Earnings are exempt from cost of advance tax. Senior Residents are additionally entitled to get deduction as much as 50,000 below part 80D for Medical coverage or medical expenditure,” says CA Pratibha Goyal, companion of PD Gupta and Firm, a Delhi-based agency.
Earnings tax advantages provided to senior residents
I. Deduction on medical insurance coverage premium: Whereas common residents are provided a most of ₹25,000 deduction in type of medical insurance premium, senior citizen are entitled to assert most of ₹50,000 for senior residents.
II. Medical bills for specified ailments: Senior residents are additionally entitled to assert as much as ₹1 lakh below 80DDB for treatment of specified diseases as in comparison with ₹40,000 for these aged under 60.
III. Curiosity earnings on financial savings and stuck deposits: Senior residents and tremendous senior residents are additionally allowed a deduction of as much as ₹50,000 on curiosity earnings they earn from financial savings accounts, fixed deposits and recurring deposits (RDs) in banks and put up places of work.
IV. Exempt from submitting ITR: Moreover, the fundamental exemption restrict for taxpayers is ₹2.5 lakh, whereas it’s increased for the senior residents i.e., ₹3 lakh and ₹5 lakh for tremendous senior residents. This implies residents above the age of 60 don’t have to pay any earnings tax for annual earnings upto ₹3 lakh.
Moreover, part 194P of I-T Act, 1961 launched in 2021 gives conditional reduction to taxpayers above the age of 75 from submitting tax returns.
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