The Centre on November 25, 2024 informed Lok Sabha that there is no proposal under consideration to increase the available relief to senior citizens under the Income-tax Act, 1961.
Minister of State for Finance Pankaj Chaudhary submitted in Lok Sabha that a few proposals are made yearly during the budgetary exercise to make amendments in the Income-tax Act, 1961. However, “no such proposal is under consideration,” regarding increasing the available relief for senior citizens.
He was responding in relation to three questions during a debate on the issue in Lok Sabha.
The questions were:
Have states’ elders’ welfare associations sought an income tax revision for senior citizens from the current fiscal year?
Will the government propose to provide a tax rebate to senior citizens till the annual income of Rs 7.5 lakh, and levy 5 per cent income tax up to annual income of Rs 10 lakh?
Will the tax deduction for the National Savings Certificate investment for senior citizens be revised from Rs 1.5 lakh to Rs 3 lakh from this fiscal year?
After coming to power for the third consecutive time this year, the Modi government has proposed various tax changes in its Union Budget in July 2024. The Budget introduced modifications to the tax rate structure to ensure that employees save Rs 17,500 per year under the new tax regime.
It also increased the standard deduction for salaried personnel by 50 per cent, to Rs 75,000, and increased the deduction limit on family pension for seniors from Rs 15,000 to Rs 25,000—moves that will help about 40 million salaried employees and pensioners.
The last amendment made in income tax for senior citizens provided tax exemption at the limit of Rs. 3 lakh, while for super senior citizens the limit stood at Rs 5 lakh, in the old tax regime. The new tax regime provides tax exemption for both senior and super senior citizens at Rs. 7 lakh.
