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How Tax Planning can be Beneficial for Senior Citizens in India?

Online Legal India LogoBy Online Legal India Published On 16 Mar 2021 Updated On 18 Jan 2023 Category Income Tax

India is known for its unique culture and tradition where the elderly members of our family are always treated with a distinctive form of respect and gratitude. As they have already served the nation a lot in their younger days, they deserve a stress-free living in this phase of life.

Following the country’s tradition and giving the senior citizens beneficial economic stability, the taxation authority of India provides a few helpful policies for them. Thus, tax planning for senior citizens has become an essential way of effectively and legally saving taxes and hard-earned money.

Who are Senior Citizens?

According to the Income Tax Act, 1961 of the Indian Govt. there are two types of senior citizens in terms of age as on the last day of the previous financial year. The types of senior citizens also relish different tax slabs and taxation provisions.

  • Senior citizen: Indian citizens between the age of 60-80

  • Super senior citizen: Indian citizens above the age of 80

What is tax planning?

Tax planning is the systematic financial formation with the help of taxation experts and consultants to effectively saving taxes while following all the legal provisions. Here, the financial records, activities are securitized and synced in a proper manner.

Through properly managed tax planning, the senior citizens would get the tax benefits with ease. It also helps in filing the calculated taxes within the scheduled time to avoid penalties and legal complications. 

Why tax planning is important for Senior Citizens?

Tax planning for senior citizens has become essential due to several reasons. Be it the global impact instigated by the Covid-19 pandemic, or the updated taxation regulations as stated in the Union Budget of India, the senior citizens are facing a lot of complications while preparing for post-retirement financial plans.

As there are different taxation slabs and regulations enacted for them, professional guidance on calculating and filing the taxes and tax planning for senior citizens would be a favorable choice at any time.

How Tax Planning can help Senior Citizens?

An effectively designed tax planning procedure can help the senior citizens not only on taxation-related matters but on further economic aspects as well. Strategies like purchasing medical insurance, non-deduction of TDS on Interest, beneficial taxation slabs can be highlighted by the tax planners for the senior citizens.

Before beginning with the tax planning, the senior citizens around should be aware of the Income Tax provisions and the updated taxation slabs as regulated by the authority.
 

Tax Rates

General Citizen

Senior Citizen

Super Senior Citizen

Tax-Free

Upto Rs. 2.5 Lakhs per year

Upto Rs. 3 Lakhs per year

Upto Rs. 5 Lakhs per year

5% Tax

Rs. 2.5 Lakhs to 5 Lakhs

Rs. 3 Lakhs to 5 Lakhs

NA

 

How Online Legal India can help you out?

 

Here the financial experts and tax consultant panel provides complete tax planning guidance and pieces of advice to save the taxes. Besides the Tax Planning, the senior citizens would get professional backing in terms of Online Bookkeeping, Income Tax Filing, Annual Compliance Filing, and any tax-related matter. 


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