Income Tax Slab for Senior Citizens: FY 2023-24 (AY 2024-25)

Introduction

Senior citizens are individuals who are 60 years or above in age but less than 80 years at any time during the previous year. Super senior citizens are individuals who are 80 years or above in age at any time during the previous year.

The income tax slab rates for senior citizens and super senior citizens are different from the general category of taxpayers. They enjoy a higher basic exemption limit, which means they do not have to pay tax on a certain amount of income. They also have some special deductions and benefits under the Income Tax Act, 1961.

Income Tax Slab for Senior Citizen

The income tax slab rates for senior citizens and super senior citizens for FY 2023-24 (AY 2024-25) are as follows:

Income	Tax Rate for Senior Citizens	Tax Rate for Super Senior Citizens
Up to ₹3 lakh	NIL	NIL
₹3 lakh to ₹5 lakh	5%	NIL
₹5 lakh to ₹10 lakh	20%	20%
Above ₹10 lakh	30%	30%

These slab rates are applicable under the old tax regime, which allows the taxpayers to claim various deductions and exemptions. Under the new tax regime, which is optional, the taxpayers have to forego most of the deductions and exemptions, but they can avail lower tax rates. The new tax regime slab rates for FY 2023-24 (AY 2024-25) are as follows:

Income	Tax Rate for All Individuals
Up to ₹3 lakh	NIL
₹3 lakh to ₹6 lakh	5%
₹6 lakh to ₹9 lakh	10%
₹9 lakh to ₹12 lakh	15%
₹12 lakh to ₹15 lakh	20%
Above ₹15 lakh	30%

The taxpayers can choose between the old and the new tax regime based on their income, deductions, and tax liability. They can also switch between the regimes every year, except for those who have business income.

Income Tax Slab Rate As Per New Tax Regime for Senior and Super Senior Citizen

According to the Finance Act, 2020, senior and super senior citizens have the option to choose between the old and the new tax regime, depending on which one is more beneficial for them.

The old tax regime offers various deductions and exemptions, but has higher tax rates. The new tax regime has lower tax rates, but does not allow most of the deductions and exemptions.

Here is a summary of the income tax slab rates for senior and super senior citizens under both the regimes:

Income slab (in Rs.)	Old tax rate for senior citizens (60-80 years)	Old tax rate for super senior citizens (above 80 years)	New tax rate for both senior and super senior citizens
Up to 2,50,000	Nil	Nil	Nil
2,50,001 to 3,00,000	Nil	Nil	5%
3,00,001 to 5,00,000	5%	Nil	5%
5,00,001 to 7,50,000	20%	20%	10%
7,50,001 to 10,00,000	20%	20%	15%
10,00,001 to 12,50,000	30%	30%	20%
12,50,001 to 15,00,000	30%	30%	25%
Above 15,00,000	30%	30%	30%

The above tax rates are exclusive of health and education cess (4%) and surcharge (if applicable).

Benefits to Be Forgone By the Senior And Super Senior Citizen in Case They Avail the Benefit of New Tax Regime

The new tax regime introduced in India for the Financial Year (FY) 2021-22 (Assessment Year (AY) 2022-23) offers lower tax rates but with fewer deductions and exemptions. While this regime may be beneficial for some taxpayers, senior citizens and super senior citizens (above 80 years) need to consider the benefits they will forgo by opting for the new regime.

Here are some of the benefits that senior and super senior citizens may have to forgo by opting for the new tax regime:

1. Lower Deductions: Under the old tax regime, senior citizens above 60 years of age can claim a higher deduction of Rs. 50,000 under Section 80D for medical insurance premiums paid for themselves, spouse, and dependent children. However, under the new tax regime, this deduction is limited to Rs. 25,000.

2. No Deduction for Interest Income: Under the old tax regime, senior citizens can claim a deduction of up to Rs. 50,000 for interest income from savings accounts and fixed deposits. However, under the new tax regime, there is no such deduction available.

3. No Deduction for House Rent Allowance (HRA): Under the old tax regime, employees receiving HRA as part of their salary package can claim a deduction of actual HRA received or 50% of monthly rent paid (whichever is less) plus actual rent paid minus 10% of monthly salary as house rent. However, under the new tax regime, there is no such deduction available.

4. No Deduction for Leave Travel Allowance (LTA): Under the old tax regime, employees can claim a deduction of actual LTA received or actual expenses incurred (whichever is less) for two journeys in a block of four years. However, under the new tax regime, there is no such deduction available.

5. Higher Tax Rates: While the new tax regime offers lower tax rates compared to the old tax regime, senior citizens and super senior citizens may have to pay higher taxes due to the loss of deductions and exemptions mentioned above. This could result in a higher overall tax liability for them.

Benefits Available to the Senior and Super Senior Citizen

As senior citizens and super senior citizens (above 80 years) in India, there are several benefits available to them under the Income Tax Act, 1961. Here are some of the benefits:

1. Higher Deduction for Medical Insurance Premiums: Senior citizens above 60 years of age can claim a higher deduction of Rs. 50,000 under Section 80D for medical insurance premiums paid for themselves, spouse, and dependent children. This deduction is over and above the standard deduction of Rs. 50,000 available to all taxpayers.

2. Standard Deduction: All taxpayers, including senior citizens and super senior citizens, can claim a standard deduction of Rs. 50,000 from their gross total income.

3. Exemption for Interest Income: Senior citizens can claim an exemption of up to Rs. 50,000 for interest income from savings accounts and fixed deposits. This exemption is available under Section 80TTA.

4. Exemption for Capital Gains: Senior citizens can claim an exemption for capital gains arising from the transfer of a residential property if the proceeds are invested in another residential property within two years of sale or within three years of sale and repayment of home loan taken for buying a new residential property. This exemption is available under Section 54.

5. Exemption for Long-Term Capital Gains: Senior citizens can claim an exemption for long-term capital gains arising from the transfer of any asset other than a residential property if the net capital gains are invested in specified bonds within six months of sale. This exemption is available under Section 54EC.

6. Exemption for Donations: Senior citizens can claim an exemption for donations made to certain charitable institutions under Section 80GGC.

7. Lower Tax Rates: Senior citizens and super senior citizens are eligible for lower tax rates compared to other taxpayers under the new tax regime introduced in FY 2021-22 (AY 2022-23). Under this regime, individuals above the age of 60 years but below 80 years are eligible for a lower tax rate of 5% on income up to Rs. 7 lakh, while individuals above the age of 80 years are exempt from income tax on income up to Rs. 5 lakh (subject to certain conditions).