Union Finance Minister Nirmala Sitharaman presented the Union Budget 2021-22 on 1st February 2021. The minister made several key announcements in her speech. Among them were some which will benefit the senior citizens of the country. Let us take a look at these benefits.
Tax Benefits for Senior Citizens in union Budget 2021
Union Finance Minister Nirmala Sitharaman in her budget extended tax benefits to senior citizens above 75 years of age. As per Sitharaman, senior citizens who are above 75 years and depend on only pension and interest income will no longer have to file I-T returns.
Time frame for reopening of income-tax assessment cases reduced
In order to reduce ta harassments, the government has reduced the time frame for reopening of income-tax assessment cases. It has been brought down to 3 years from the existing 6 years. Assessment can be re-opened up to 10 years in serious tax evasion cases only when there is evidence of concealment of income of Rs.50 lakh or more in a year.
Senior Citizens can claim up to Rs.50,000 as deduction under section 80TTB
Interest income received from banks and post offices up to Rs.50,000 can be claimed as deductions by the senior citizens under Section 80TTB.
Tax Slab for Senior Citizens
The Union Finance Minister did not announce any change in the income tax slabs. The tax slab for senior citizens aged between 60 and 80 years of age is listed below:
|Total Income||Tax Rate|
|Up to Rs.3 lakh||Nil|
|Rs.3 lakh to Rs.5 lakh||5% of the total income|
|Rs.5 lakh to Rs.10 lakh||Rs.10,000 + 20% of the total income|
|Above Rs.10 lakh||Rs.1,10,000 + 30% of the total income|
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