Outlook Money
The Income Tax Act states that seniors above the income of Rs 3 lakh have an exemption under the old tax regime. However, the bar has been raised to Rs 5 lakh if the age is over 80.
For senior citizens less than the age of 80 years, there is a nil tax slab for up to Rs 3 lakh.
For Rs 3 lakh to Rs 5 lakh, the tax slab is 5%. For Rs 5 lakh to Rs 10 lakh, it is 20% and above 10 lakh is 30%.
There is no tax slab for upto Rs 5 lakh. For Rs 5,00,001 to Rs 10 lakh, it is 20% and above Rs 10 lakh is 30%.
Under the new tax regime, the tax slab for up to Rs 2.5 lakh is zero, from Rs 2.5 lakh to Rs 5 lakh, it is 5% and from Rs 5 lakh to Rs 7.5 lakh, 10%.
Similarly, from Rs 7.5 lakh to Rs 10 lakh, the tax slab is 15%, from Rs 10 lakh to Rs 12.5 lakh, it is 20%, Rs 12.5 lakh to Rs 15 lakh, 25% and above Rs 15 lakh, it is 30%.
1) ITR-1 (Sahaj)- This should be used by the seniors who earn a pension, earn interest income and have a total income under Rs 50 lakh.
This form should be filled by those who earn income from capital gains and multiple properties, making it a better fit for retirees with investments or real estate portfolios.
ITR-3 form should be filled by seniors with income from a business or profession. ITR-4 is suitable for those individuals who declare a fixed percentage of their income as taxable.
If the only source of income is pension and interest from savings or fixed deposits, and both are received in the same bank, then one can be exempt from filing an ITR.