The Budget 2023 made changes to tax slabs in new tax regime. So from 1st April 2023 onwards, i.e. from FY20230-24, what are New Tax Slabs for Senior Citizens in the new tax regime? Or let’s ask what are the new income tax slabs senior citizens and income tax slabs for super senior citizens under the new tax regime for senior citizens?
Unlike the old tax regime, the new tax regime follows uniform tax slabs for everyone. That is, there is just one tax system under the new regime and it is applicable to everyone – individuals, senior citizens, super senior citizens and even HUFs.
There are no differences in tax slab rates for senior citizens or even for pensioners if you were wondering how to calculate income tax for senior citizen pensioners?
So, let’s see what are income tax slabs senior citizens (2023) in India now.
Income Tax Slab for Senior Citizens Above 60 Years
The new income tax slabs and tax rates for senior citizens, under the new income tax regime will be as follows:
- Income between Rs 0 to Rs 3 lakh – 0% tax rate
- Income between Rs 3 to 6 lakh – 5%
- Income between Rs 6 to 9 lakh – 10%
- Income between Rs 9 lakh to Rs 12 lakh – 15%
- Income between Rs 12 lakh to Rs 15 lakh – 20%
- Income above Rs 15 lakh above – 30%
So that is the new tax regime for senior citizens and the slabs for income tax for super senior citizens as well. You can use the above slabs and rates for income tax calculation for senior citizens in India (2023-24) as per the latest income tax slabs senior citizens in India.
Like everyone else, even senior citizens will have to pay zero tax if income below Rs 7 lakh in a financial year. This is due to the Section 87A rebate that is offered to everyone under the old tax regime (for up to Rs 5 lakh income) and the new tax regime (for up to Rs 7 lakh income).
Also, well-earning senior citizens need to pay up to 25% surcharge on income above Rs 50 lakh in a year.
Using all the above points, you can now very well understand How to calculate income tax for senior citizen pensioners also.
So it should be clear by now that for all the senior citizens (age 60 to 80) as well the super senior citizens (aged 80 and above), same income tax rates and tax slabs are applicable for FY2023-24 under the new tax regime.
While the Rs 50,000 standard deduction is available to everyone, there are no special or additional exemption available exclusively for senior and super senior citizens under the new tax regime. The new regime does not categorize the Indian taxpayers based on age, gender, etc. There are very few tax deductions available in new tax regime.
That was about the income tax slabs senior citizens and the revised tax rates for senior citizens under the new tax regime.
But they still have the option to choose to file their Income Tax Returns (ITR) for FY2023-24 under either the Old Tax or New Tax Regime. While we are discussing the new tax regime for senior citizens here, the fact is that as of now, both options are available to all taxpayers when they go for filing ITR but the New Tax Regime will be the default option on the e-filing website.
In case you have confusion about when exactly does a person qualify as a senior citizen or a super senior citizen in India, then here is the answer. A resident Indian is deemed to be a senior citizen if he/she had been 60 or older but under 80 at any point in the previous financial year. Similarly, a resident individual Indian who was 80 years of age or older at any point in the previous financial year will be deemed to be a super senior citizen. So that is the actual difference in Senior vs Super Senior citizens in India (2023-24).
But there is some respite for older citizens, even in the new tax regime for senior citizens and pensioners. The New Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens above the age of 75, from filing income tax returns if the said senior citizen only has pension and interest income only.
So that was about the new income tax rates and the new income tax slabs senior citizens in new tax regime from 1st April 2023 onwards. I am sure you will find it useful for income tax calculation for senior citizens using the new income tax slabs for senior citizens above 60 years in India.