4 Income tax benefits for senior citizens

Up to 50,000 is exempt from interest payments

A deduction of 50,000 for interest is permitted starting in FY 2018–19 under Section 80TTB. The Slab Rates specifically created for Senior Citizens will be applied on any earnings over 50,000. It is crucial to remember that in these circumstances, the 10,000 deduction allowed by section 80TTA for interest on savings account will not apply.

Medical insurance premium payments are deductible under section 80D

The ceiling was 30,000 earlier but in Budget 2018, it gets increased to 50,000. Section 80D permits non-senior people a deduction of 25,000 on medical insurance premium payments, but for senior citizens, it gets enhanced to 50,000. Additionally, section 80D permits deductions for both the actual costs of treatment incurred by extremely senior individuals as well as the payment of medical insurance premiums.

TDS on interest is not deducted

A senior citizen may submit Form 15H for non-deduction of TDS on interest on fixed deposits if his or her entire income is free from income tax and there is no tax due by him or her for that fiscal year.

The upper ceiling for elderly citizens' tax deductions under section 194A has also been raised through budget 2018 revisions, from 10,000 to 50,000.

Increased section 80DDB deduction for certain illnesses

Taxpayers are given tax relief under Section 80DDB while paying for the medical care of certain disorders. Prior to Budget 2018, seniors were permitted to deduct 60,000 but now can deduct 120,000.