The last date to file the income tax returns has now been extended till December 31, 2020. For those cases which require audit, the last date to file is January 30, 2021. There are some legal benefits for senior citizens, who have been categorised under two sections. Anyone above the age of 60 is a 'senior citizen' and those above 80 are 'very senior citizen'.
Here are the list of income tax benefits which are available to senior citizens and very senior citizens:
-- They get quite a few of the tax deduction benefits starting with the one for medical treatment where one can claim a tax deduction of up to Rs 1 lakh. Interest earned on saving deposits in banks and post offices is also eligible for deduction. The limit is Rs 50,000. Medical insurance is a must for senior citizens and an exemption on premium of up to Rs 1 lakh is available.
-- Senior citizens and very senior citizens are allowed a higher exemption limit. The exemption limit for a senior citizen stands at Rs 3 lakh while for a very senior it is Rs 5 lakh.
-- Pension scheme is the main source of income for many senior citizens, certainly the ones who had government jobs. They are eligible for a standard deduction of Rs 50,000 on the pension income.
-- Anyone with a tax liability of over Rs 10,000 have to pay advance tax, according to the country’s income tax rules but senior and very senior citizens are exempt from this.
-- All of us file our Income Tax Returns (ITR) online nowadays. But filing returns online could be a real hassle for the senior citizens. The government has hence made it non-compulsory to file returns online for senior citizens.
