The Income Tax Department has various facilities for senior citizens such as Medical Insurance deduction under Section 80D, the tax benefits available under Section 80TTA, Senior Citizen Saving Scheme, etc. Senior citizens have been granted a higher exemption limit on income taxes under the above-metioned Income Tax sections and schemes.
As per the Income Tax Department, a senior citizen is defined to be someone whose age is between 60 years and 80 years. And Super Senior citizen is someone whose age more than 80 years.
Health Insurance exemption under Section 80D:
In 2017, the exemption limit was Rs 30,000 which was later increased to 50,000 in 2018. This means that a significant amount will be spent on health coverage by a senior citizen. Under this section, every individual or HUF can claim a deduction for their medical insurance.
An individual taxpayer can claim deduction under Section 80D up to Rs1,00,000. Below data table will help to understand the scenario much better:
|cenario||Premium Paid||Deduction under 80D|
|Self, family, children||Parents|
|Individual and parents below 60 years||25,000||25,000||50,000|
|Individual and family below 60 years but parents above 60 years||25,000||50,000||75,000|
|Both individual, family and parents above 60 years||50,000||50,000||1,00,000|
Deduction on Deposits under Section 80TTB:
Under the Section of 80TTB, a senior citizen can claim a deduction of Rs 50,000 with effective from April 2018. The deduction is specified for interest on bank deposits, interest on deposits in a co-operative society and interest on post office deposits
Senior Citizens Saving Scheme:
The Senior Citizens Saving Scheme (SCSS) is a government-backed savings instrument and an Indian citizen aged over 60 years can be a part of it. It matures after five years which can be extended for three more years. The maximum limit of the deposit is Rs 15 lakh with a deposit of 1000 or in the multiples of Rs 1000 have to be deposited. The current interest is 8.7%