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Elderly versus Super Elder: What are the income tax tables available?


Expert 1: Nidhi Manchanda, Certified Financial Planner, Head of Training, Research & Development at Fintoo

Under the Income Tax Act, elderly taxpayers are classified as Senior Citizens and Super Elderly Citizens.

Elderly is defined as an individual who is 60 years of age or older but under 80 years of age. Anyone 80 years of age or older is considered a super senior citizen under the Income Tax Act. This division is made to provide additional tax benefits to those who reach the age of 80.

It should be noted that under the old tax regime, seniors are exempt from basic tax of 3,00,000 i.e. income earned up to 3,00,000 is exempt from tax. On the other hand, for super elderly citizens, this basic exemption limit is raised to 500,000.

You can check the income tax table for the elderly and super elderly under the old tax regime in the table below:-

For the elderly (Old tax regime)
Income tax table Income tax rate
To $3,00,000 won ARE NOT
$3,00,001 – $5,00,000 won 5% of excess income $3,00,000 won
$5,00,001 – $10,00,000 $10,000 + 20% of excess earnings $5,00,000 won
Above $10,00,000 $1,10,000 + 30% of excess earnings $10,00,000
For super senior citizens (Old tax regime)
Income tax table Income tax rate
To $5,00,000 won ARE NOT
$5,00,001 – $10,00,000 20% of excess income $5,00,000 won
Above $10,00,000 $1,00,000 + 30% of excess earnings $10,00,000

It is important to note that the Discount Rs. 10,000 u/s 87A is applied to the elderly if their total income does not exceed 5 lac. Therefore, the elderly people really will not have to pay any tax if their income is up to 5 lac. However, if the income exceeds 5 lac, then they will have to pay tax on the entire income in excess of 3 lac.

If the new tax regime is chosen, there will be no additional exemptions for the elderly and super elderly. Under the new tax regime, only one type of table is applicable to all individuals without the elderly or super senior citizen classification. Here, the base exemption limit is lower at 2.5 lac.

Selecting the new tax regime means lower tax rates but has the disadvantage of not being able to claim most deductions and exemptions like 80C, 80D, HRA, 80TTB, etc.

In the following table you will find the senior and super senior income tax table under the new tax regime:-

For the elderly and super elderly (New tax regime)
Income tax table Income tax rate
To $2,50,000 won No
$2,50.001 – $5,00,000 won 5% of excess income $2,50,000 won
$5,00,001 – $7,50,000 won $12,500 + 10% excess earnings $5,00,000 won
$7.500.01 – $10,00,000 $37,500 + 15% excess earnings $7,50,000 won
$10.00,001 – $12,50,000 won $75,000 + 20% excess earnings $10,00,000
$12,50,001 – $15.000.000 $1,25,000 + 25% excess income $12,50,000 won
Above $15.000.000 $1.87,500 + 30% excess income $15.000.000

Individuals should note that the new tax regime can reduce up to 12,500 u/s 87A if the income is not more than 5 lac.

Taxpayers should keep in mind that they will have to pay a surcharge if their taxable income exceeds 50 lac. The rate of surcharge increases with income growth ranging from 10%-37% of the amount of income tax payable.

In addition, the health & education tax rate of 4% will also be included in the income tax amount plus surcharges.

Expert 2: Dr. Suresh Surana, Founder of RSM India

The income tax rates for the elderly over 60 years old but under or equal to 80 (according to the old tax regime) are as follows:

total income Income tax rate (Elderly) according to The old tax regime total income Income tax rate (Regardless of taxpayer’s age) according to New tax regime
Up to Rs. 3,00,000* No Up to Rs. 2,50,000* No
Rs. 3,00,001 – Rs. 5,00,000 won 5.2% [tax rate 5% plus health and education cess 4% thereon] (Effective rate is None after using discount u/s 87A**) of income in excess of Rs. 3,00,000 won Rs. 2,50.001 – Rs. 5,00,000 won 5.2% [tax rate 5% plus health and education cess 4% thereon] (Effective rate is None after using discount u/s 87A**) of income in excess of Rs. 2,50,000 won
Rs. 5,00,001 – Rs. 7,50,000 won 20.80% [tax rate 20% plus health and education cess 4% thereon] income in excess of Rs. 5,00,000 won Rs. 5,00,001 – Rs. 7,50,000 won 10.40% [tax rate 10% plus health and education cess 4% thereon] income in excess of Rs. 5,00,000 won
Rs. 7,50,001 – Rs. 10,00,000 20.80% [tax rate 20% plus health and education cess 4% thereon] income in excess of Rs. 5,00,000 won Rs. 7,50,001 – Rs. 10,00,000 15.60% [tax rate 15% plus health and education cess 4% thereon] income in excess of Rs. 7,50,000 won
Rs. 10.00,001 – Rs. 12,50,000 won 31.20% [tax rate 30% plus health and education cess 4% thereon] income in excess of Rs. 10,00,000 Rs. 10.00,001 – Rs. 12,50,000 won 20.80% [tax rate 20% plus health and education cess 4% thereon] income in excess of Rs. 10,00,000
Rs. 12,50,001 – Rs. 15.000.000 31.20% [tax rate 30% plus health and education cess 4% thereon] income in excess of Rs. 12,50,000 won Rs. 12,50,001 – Rs. 15.000.000 26.00% [tax rate 25% plus health and education cess 4% thereon] income in excess of Rs. 12,50,000 won
Rs. 15,00,001 – Rs. 50,00,000 won 31.20% [tax rate 30% plus health and education cess 4% thereon] income in excess of Rs. 15.000.000 Rs. 15,00,001 – Rs. 50,00,000 won 31.20% [tax rate 30% plus health and education cess 4% thereon] income in excess of Rs. 15.000.000
Rs. 50.00,001# – Rs. 1,00,00,000 34.32% [(tax rate 30% plus surcharge 10% thereon) plus health and education cess 4% thereon] income in excess of Rs. 50,00,000 won Rs. 50.00,001# – Rs. 1,00,00,000 34.32% [(tax rate 30% plus surcharge 10% thereon) plus health and education cess 4% thereon] income in excess of Rs. 50,00,000 won
Rs. 1,00.00,001# – Rs. 2,00,00,000 35.88% [(tax rate 30% plus surcharge 15% thereon) plus health and education cess 4% thereon] income in excess of Rs. 1,00,00,000 Rs. 1,00.00,001# – Rs. 2,00,00,000 35.88% [(tax rate 30% plus surcharge 15% thereon) plus health and education cess 4% thereon] income in excess of Rs. 1,00,00,000
Rs. 2,00.00,001# – Rs. 5,00,00,000 39% [(tax rate 30% plus surcharge 25%^ thereon) plus health and education cess 4% thereon] income in excess of Rs. 2,00,00,000 Rs. 2,00.00,001# – Rs. 5,00,00,000 39% [(tax rate 30% plus surcharge 25%^ thereon) plus health and education cess 4% thereon] income in excess of Rs. 2,00,00,000
Over 5,00,00,000# 5,00.00,001 or more 42.744% [(tax rate 30% plus surcharge 37%^ thereon) plus health and education cess 4% thereon] income in excess of Rs. 5,00,00,000 Over 5,00,00,000# 42.744% [(tax rate 30% plus surcharge 37%^ thereon) plus health and education cess 4% thereon] income in excess of Rs.5,00,00,000

Note(i)*:– Any resident elderly person aged over 60 but under or equal to 80 has a basic exemption limit of Rs. 3,00,000 as mentioned in the table above. Furthermore, any resident taxpayer who is a super senior citizen aged over 80 has a basic exemption limit of Rs. 5,00,000 instead of Rs. 3,00,000.

Note(ii)#:– A relief is available to ensure that additional income tax is payable, including a surcharge of 10%, 15%, 25% or 37% on the portion of income in excess of Rs. 50,00,000, Rs. 1,00,00,000, Rs. 2,00,00,000 or Rs. 5,00,00,000 on a case by case basis, limited to an amount that earns more than Rs. 50,00,000, Rs. 1,00,00,000, Rs. 2,00,00,000 or Rs. 5,00,00,000 on a case by case basis. However, there will be no marginal relief to the health and education shutdown.

Note (iii)^:- The maximum rate of tax surcharge payable on income subject to special tax rates under sections 111A, 112A, 112, 115AD(1)(b) and dividend income is 15%.

Note (iv)**:- Discount u/s 87A is applicable in case of new tax regime and should be used for the amount of tax payable or Rs. 12,500, whichever is lower, results in a NIL tax liability provided the taxpayer’s gross income is at most Rs. 5,00,000.

Note (v):- Special income will be charged @ the special tax rate mentioned in Sections 111A, 112, 112A, etc.

Furthermore, any taxpayer using the new preferential tax regime/tax regime will not be eligible to claim the following deductions (which may have been claimed under the old tax regime):

10(13A) – Rent allowance

· 10(5) – Permission to travel

10(14) – Special allowances detailed in Rule 2BB (such as child education allowance, dormitory allowance, etc. in addition to commuting allowance, commuting allowance, commodity allowance, etc.) day).

· 10(17) – Grants received by congressman, member of state legislature, etc.

· 10(32) – Club membership benefits worth Rs. 1500 per minor

10AA – Deduct for SEZ . unit

Section 16 – Standard Deduction of Rs. 50000, Recreational Allowance, Occupation Tax

24(b) – Loan interest on Self-Used Property or Vacant Property u/s 23(2)

· 32(1)(iia) – Additional depreciation

32AD – Investment allows investment in Andhra Pradesh / Telangana / Bihar / West Bengal

· 33AB – Tea/Coffee/Rubber Development

33ABA – Site Restoration Fund

35(2AA) – National Laboratory or University Payment Deduction or IIT

35AD – Deduction for specific business activity

· 35CCC – Expenses for agricultural extension projects

57(iia)- Family allowance

· Any provision of chapter VI – A – section 80C, 80D, etc. However, Section 80CCD(2) (employee’s contribution to a notified pension scheme) may requested.

The views and recommendations expressed above are those of individual analysts or brokerage firms, not those of Mint..

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