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Senior citizens in India have higher tax exemptions for FY 2024-25. Ages 60-79 have Rs. 3,00,000, and 80+ have Rs. 5,00,000. These benefits apply to Indian residents only.
Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in which she introduced some major tax reforms.
Senior citizens and very senior citizens in India enjoy higher tax exemption limits compared to regular taxpayers. This means they can earn a certain amount of income before becoming liable to pay income tax. However, these benefits are only available to Indian residents, not non-residents.
Understanding Exemption Limits
Senior Citizens: Individuals aged 60 years or above but less than 80 years at any point during the financial year 2024-25 qualify for a higher exemption limit of Rs. 3,00,000. This is Rs. 50,000 higher than the exemption limit for non-senior citizens, which is Rs. 2,50,000.
Very Senior Citizens: Those aged 80 years or above at any point during the financial year 2024-25 benefit from an even higher exemption limit of Rs. 5,00,000. This translates to an additional benefit of Rs. 2,50,000 compared to non-senior citizens.
Age Criteria And Residency
To avail of these benefits, individuals must meet the age criteria mentioned above and be residents of India.
Additional Benefits Under Section 80D
Besides higher exemption limits, senior citizens can also benefit from tax deductions on medical insurance premiums and related expenses under Section 80D of the Income-tax Law. For detailed information on these benefits, refer to the section “Deduction in respect of medical insurance premium [Section 80D]” on page 5 of the relevant document.
