The tax law is genuinely kinder after 60, and kinder still after 80. If you are filing for yourself or helping your parents file, make sure every one of these reliefs is claimed.
Higher exemption in the old regime
Senior citizens (60 plus) get a basic exemption of Rs 3 lakh and super seniors (80 plus) get Rs 5 lakh in the old regime, against Rs 2.5 lakh for everyone else. The new regime's Rs 4 lakh exemption and generous rebate apply to all ages, so compare both, especially for pension incomes.
Section 80TTB: the interest shield
Where younger filers get only Rs 10,000 on savings interest, seniors can deduct up to Rs 50,000 a year across savings accounts, fixed deposits and post office deposits. For retirees living on FD interest, this is the single most valuable line in the return.
The rest of the package
- ✓80D health insurance limit rises to Rs 50,000, and uninsured seniors can claim actual medical expenses instead
- ✓No advance tax if there is no business income: pay everything at filing time
- ✓Higher TDS threshold on bank interest, and Form 15H to stop TDS when income is below taxable limits
- ✓After 75, with only pension and interest in the same bank, Section 194P can remove the need to file at all
Saathi.Tax applies age based limits automatically from your date of birth. Better yet, sit with your parents and file together: the interview in Hindi plus a cup of tea turns a dreaded chore into a nice afternoon.
