Tax Benefits for Senior Citizens, Pensioners, & Super Senior Citizens


The Indian government offers various tax deductions for Senior Citizens, Pensioners, and Super Senior Citizens. Many of them don’t have the knowledge of their tax benefits. So they lose so much of money in name of tax. Are you living with a senior citizen who is earning tax payable income…? If it is so, this article will help you to know what are the tax benefits available for senior citizens, pensioners, and super senior citizens.

Tax Benefits for Senior Citizens

The people who have reached at the age of 60 and above are considered as Senior Citizens.

  1. Normally, a person who earns Rs 2,50,000 and below Rs 2,50,000 in a financial year doesn’t need to pay income tax. But senior citizens get an exemption from this amount. Senior Citizens are liable to pay income tax when their income exceeds Rs 3,00,000 in a financial year. They will consider as senior citizens until they attain the age of 80.
  2. Senior citizens don’t need to pay Advance tax. Instead of that, they have to pay Self-assessment tax for their overall income in a financial year.
  3. Medical insurance paid up to Rs 20,000 by senior citizens is tax-free.
  4. Senior citizens those do not receive a taxable income are eligible to submit Form 15H on tax Tax Deducted at Source (TDS) on Fixed Deposit. As you all know, Fixed Deposit is a taxable one.
  5. Senior citizens who get money under Mortgage Reverse Scheme don’t need to pay tax.
  6. Spending up to Rs 60,000 for the medical expense of senior citizens get an exemption from income tax.

Income tax for senior citizens

  • Up to Rs 3 lakhs                                –      Nil
  • From Rs 3 lakhs to 5 lakhs              –      10%
  • From Rs 5 lakhs Rs 10 lakhs           –      20%
  • Above Rs 10 lakhs                             –      30%

Tax Benefits for Super Senior Citizens

The people who have attained at the age of 80 are considered as Super Senior  Citizens.

  1. Super senior citizens are qualified to pay income tax when their income exceeds Rs 5,00,000.
  2. Nowadays everything made online. Super Senior Citizens are may not comfortable with modern technology. So E-filing mode is not compulsory for them. So they don’t need to use E-filing mode. Indian income tax department lets them to use paper format for all requests and demands.
  3. Money received in Reverse mortgage loan will not be considered as income. So it is not taxable for super Senior citizens.
  4. They don’t need to fill Aadhar number with Pan to fill taxes.
  5. Super Senior citizens get 0.5% higher interest on their fixed deposit.
  6. Medical expense up to Rs 80,000 gets an exemption from tax.

Income tax for super senior citizens

  • Up to Rs 5 lakhs                               –       Nil
  • From Rs 5 lakhs to 10 lakhs          –       20%
  • Above Rs 10 lakhs                           –       30%

Tax Benefits for Pensioners

In India, Pension is also considered as taxable income. Many of the Indians run their life through pension at the age of 60 and above. Normally, Pensioners are liable to pay income tax when their income excess Rs 2.5 lakhs. Senior citizens and Super senior citizens are getting an exemption from this case.

We have two types of pensions.  Both are taxable.

  1. Commuted Pension,
  2. Uncommitted pension.

What is Commuted Pension?

Commuted pension IA a lump sum amount that is received by the employees at the time of retirement. Receiving up to Rs 10 lakhs gets an exemption from tax.

Tax Benefits on Commuted pension

  1. Commuted pension is not taxable for all government employees.
  2. Non-government employees who received commuted pension without gratuity get a tax exemption up to ⅓ of the total income.
  3. If you are a government employee and receiving commuted pension along with gratuity means, you will get a tax exemption up to ⅓ of the total income.

What is Uncommitted Pension?

Receiving pension periodically (monthly, quarterly, and annually) after the retirement of employees is known as Uncommuted pension.

Tax Benefits on Uncommuted pension

  1. Uncommuted pension is taxable for all employees (Government employees and Non-government employees).
  2. Uncommuted pension received by government employees and Non-government employees from United Nation Organization (UNO) gets an exemption from income tax.
  3. If you are an armed force employee and receiving the pension after your death means, this pension will get an exemption from tax.
  4. If your family receiving Uncommuted pension as family pension after your death is taxable up to ⅓rd of the total amount. Monthly family pension Rs 15,000 and below is not taxable.

Income tax for pensioners (HUFs) below 60 years

  • Up to Rs 2.5 lakhs                               –        Nil
  • From Rs 2.5 lakhs to Rs 5 lakhs       –       10%
  • From Rs 5 lakhs to Rs 10 lakhs        –        20%
  • Above Rs 10 lakhs                               –        30%

Income tax for pensioners (senior citizens) between the age of 60 and 80

  • Up to Rs 3 lakhs                                –       Nil
  • From Rs 3 lakhs to 5 lakhs              –      10%
  • From Rs 5 lakhs Rs 10 lakhs           –      20%
  • Above Rs 10 lakhs                             –      30%

Income tax for pensioners (super senior citizens) at the age of 80 and  above

  • Up to Rs 5 lakhs                                –        Nil
  • From Rs 5 lakhs to 10 lakhs            –       20%
  • Above Rs 10 lakhs                             –       30%

If you know any other details regarding this, let us know via your comments.

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