Income Tax Slabs

Introduction

Income Tax Slabs for Senior and Super Senior Citizens (FY 2024-25 / AY 2025-26)

The income tax slabs differ for senior and super senior citizens under the old tax regime, offering age-based benefits. However, under the new tax regime, the slabs are uniform for all individuals, regardless of age.

This article outlines the applicable income tax slabs and benefits available to senior citizens (60 to less than 80 years) and super senior citizens (80 years and above) under both regimes, as defined by the Income Tax Act, 1961.

Classification of Taxpayers (Resident Individuals)

As per the Income Tax Act, resident individuals are categorized into three age groups:

Individuals below 60 years
Senior Citizens – Individuals aged 60 years to below 80 years
Super Senior Citizens – Individuals aged 80 years and above

Income Tax Slab for Senior Citizens (Aged 60 Years and Above)

Senior citizens—individuals aged between 60 and 80 years—can choose to pay tax under either the old tax regime or the new tax regime introduced by the Finance Act, 2020. The new regime, governed by Section 115BAC, offers concessional tax rates but with limited exemptions and deductions. In contrast, the old tax regime allows senior citizens to claim various deductions and exemptions without restrictions.

Note: The tax slab benefits outlined below are available only to resident senior citizens. Non-resident individuals, regardless of age, are taxed under general provisions without special age-based exemptions.

Income Tax Slabs for Senior Citizens under the Old Regime (FY 2024-25 & FY 2025-26)

Annual Income (₹)	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

Income Tax Slab for Super Senior Citizens (80 years and above)

Super senior citizens, individuals aged 80 years or older, can choose between the old tax regime and the new tax regime to determine which is more advantageous for them.

Under the old tax regime, the income tax slab rates for super senior citizens for FY 2024-25 and FY 2025-26 (AY 2025-26 and AY 2026-27) are as follows:

Income Range (₹)	Tax Rate
Up to ₹5,00,000	Nil
₹5,00,001 to ₹10,00,000	20%
Above ₹10,00,000	30%

Additionally, the tax calculated for super senior citizens will be increased by Health and Education Cess at the rate of 4% on the total income tax.

Surcharge on Income:

A surcharge is applicable based on the total income, as follows:

Total Income (₹)	Surcharge Rate
Above ₹50 lakh	10%
Above ₹1 crore	15%
Above ₹2 crore	25%
Above ₹5 crore	37%

Income Tax Slab Rates Under the New Tax Regime for Senior and Super Senior Citizens

The Finance Act, 2020 introduced a new tax regime for individual taxpayers, which includes concessional tax rates. This regime, however, does not differentiate between senior and super senior citizens in terms of tax slabs. While it offers lower tax rates, individuals opting for this regime must forgo several deductions and exemptions that are typically available.

Income Tax Slab Rates for FY 2024-25 (AY 2025-26)

As per the Union Budget 2024, the income tax slab rates under the new tax regime for FY 2024-25 (AY 2025-26) are as follows:

Income Slab (₹)	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 to ₹7,00,000	5%
₹7,00,001 to ₹10,00,000	10%
₹10,00,001 to ₹12,00,000	15%
₹12,00,001 to ₹15,00,000	20%
Above ₹15,00,000	30%

Income Tax Slab Rates for FY 2025-26 (AY 2026-27)

In the Union Budget 2025, the revised tax slab rates under the new regime for FY 2025-26 (AY 2026-27) are as follows:

Income Slab (₹)	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 to ₹8,00,000	5%
₹8,00,001 to ₹12,00,000	10%
₹12,00,001 to ₹16,00,000	15%
₹16,00,001 to ₹20,00,000	20%
₹20,00,001 to ₹24,00,000	25%
Above ₹24,00,000	30%

Additional Details

Health and Education Cess: Remains at 4% on the income tax payable.
Surcharge Rates:
- If total income is > ₹50 lakh but ≤ ₹1 crore, a 10% surcharge applies.
- If total income is > ₹1 crore but ≤ ₹2 crore, a 15% surcharge applies.
- If total income is > ₹2 crore, a 25% surcharge applies.

Note on Age Calculation

The CBDT has clarified that an individual born on 1st April will be considered to have attained their particular age on 31st March, the day preceding their birthday anniversary. For example:

A resident individual whose 60th birthday falls on 1st April 2024 will be treated as having attained 60 years of age in FY 2023-24, making them eligible for a higher exemption limit of ₹3 lakh for AY 2024-25 under the old tax regime.
Similarly, a resident individual whose 80th birthday falls on 1st April 2024 will be considered to have attained 80 years of age in FY 2023-24, qualifying for the higher exemption limit of ₹5 lakh under the old tax regime for AY 2024-25.

Sources of Income for Senior and Super Senior Citizens

Senior and super senior citizens often generate income from several sources, including:

Pension: Regular payments received after retirement from either the government or a private employer.
Interest from Savings Accounts or Fixed Deposits: Earnings from interest on savings accounts or fixed deposit schemes.
Rental Income: Income derived from renting out residential or commercial properties.
Capital Gains: Income from the sale of assets such as stocks, bonds, or real estate that have appreciated in value.
Senior Citizen Saving Schemes: Government-backed savings programs offering attractive interest rates and benefits tailored for senior citizens.
Reverse Mortgage Schemes: Financial products that allow seniors to convert home equity into regular income while continuing to live in their property.
Post Office Deposit Schemes: Safe, government-supported savings plans that offer interest income.
Other Investments: Income from various other investment options like mutual funds, bonds, and stocks.

Benefits to be Forgone by Senior and Super Senior Citizens Under the New Tax Regime

When senior and super senior citizens opt for the new tax regime, they must forgo several tax benefits and exemptions available under the old tax regime. These include:

Higher Income Exemption Limit
Senior citizens enjoy an exemption limit of Rs. 3,00,000, while super senior citizens have a limit of Rs. 5,00,000. Under the new regime, this benefit is not available, as the tax slab is the same for all age groups.
Leave Travel Allowance (LTA)
Senior and super senior citizens cannot claim the LTA exemption under the new tax regime.
House Rent Allowance (HRA)
They will not be able to claim the HRA exemption under the new regime.
Conveyance Allowance
Exemption on conveyance allowance is not available under the new tax regime.
Children Education Allowance
The deduction for children’s education allowance cannot be claimed under the new tax regime.
Daily Expenses in the Course of Employment
Senior citizens will not be able to claim deductions for daily expenses incurred in the course of employment under the new tax regime.
Relocation Allowance
The exemption for relocation allowance is not available under the new tax regime.
Helper Allowance
Senior citizens cannot claim the helper allowance exemption under the new tax regime.
Other Special Allowances
Any other special allowances that were exempt under the old regime will not be applicable under the new tax regime.
Professional Tax and Entertainment Allowance
These allowances will no longer be exempt under the new tax regime.
Interest on Housing Loan (Section 24)
The deduction on housing loan interest for self-occupied property is unavailable under the new tax regime.
Deductions Under Chapter VI-A
Senior citizens will forgo deductions under Section 80C, 80D, 80E, 80TTB, etc. under the new regime. However, deductions under Section 80CCD(2) for employer contributions to NPS, Section 80CCH for Agniveer fund contributions, and Section 80JJAA for new employee employment will still apply.

Tax Benefits Available to Senior and Super Senior Citizens

Despite the benefits that must be forgone under the new tax regime, senior and super senior citizens are still eligible for several significant tax benefits under the Income Tax Act, 1961:

Higher Income Exemption Limit
Under the old tax regime, senior citizens can avail of an exemption limit of Rs. 3,00,000, while super senior citizens can enjoy a higher exemption limit of Rs. 5,00,000, as opposed to Rs. 2,50,000 for regular individuals.
Standard Deduction
Senior and super senior citizens can claim a standard deduction of Rs. 50,000 on salary or pension income under the old regime. The standard deduction increases to Rs. 75,000 for the financial year 2024-25 under the new tax regime.
Tax Rebate Under Section 87A
If the taxable income of a senior citizen is up to Rs. 5,00,000, they can claim a rebate under Section 87A under the old tax regime, resulting in zero tax liability. Under the new regime, the rebate applies for incomes up to Rs. 7,00,000 and is limited to Rs. 25,000.
Higher Deduction for Medical Insurance Premium
Senior citizens can claim a deduction of up to Rs. 50,000 for medical insurance premiums under Section 80D. This is double the deduction available to others, which is limited to Rs. 25,000. However, this deduction is not available under the new tax regime.
Higher Deduction for Treatment of Specified Diseases
Senior and super senior citizens can claim a deduction of up to Rs. 1,00,000 for medical expenses incurred for the treatment of specified diseases under Section 80DDB. This benefit is available under the old tax regime only.
Higher Deduction for Interest on Bank and Post Office Deposits
Senior citizens can claim a deduction of up to Rs. 50,000 on interest income from savings accounts, fixed deposits, post office deposits, and cooperative banks under Section 80TTB. This is a higher limit compared to the Rs. 10,000 allowed for individuals below 60 years of age. This benefit is unavailable under the new tax regime.
Exemption from Advance Tax
Senior citizens are not required to pay advance tax if they do not earn income from business or profession, which means no interest is levied for late payment of advance tax.
Benefit of Reverse Mortgage Scheme
If a senior citizen opts for a reverse mortgage, where they receive monthly installments from the bank in exchange for transferring their home, no capital gains tax is applicable on the transfer of the property.
Deduction on Investment in Senior Citizens Savings Scheme
Senior citizens over 60 years of age can invest in the Senior Citizens Savings Scheme and claim a tax deduction of up to Rs. 1,50,000 under Section 80C under the old tax regime. This benefit is not available under the new tax regime

When Senior Citizens Are Not Required to File Income Tax Returns

Senior citizens are not required to file an income tax return if the following conditions are met:

Age: They are 75 years or older.
Income Sources: Their total income consists only of pension and interest income, with interest earned from the same bank where they receive their pension.
Declaration: They have submitted a declaration to the bank.
Tax Deducted at Source (TDS): The bank deducts tax at source (TDS) under Section 194P.

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