Union Budget for Senior Citizens in 2025

Many senior citizens affected by unresolved tax issues reported by the Income Tax Department are expected to benefit from the decision to write-off disputed tax claims up to a limit of Rs. 25,000.

Tax Benefits for Senior Citizens in union Budget 2023

Union Budget 2023 has hiked the maximum permissible investment in the senior citizens savings scheme. It is one of the most reputed investment scheme for elderly people. The monthly income scheme by post office has been more attractive. 

Under the Senior Citizen Savings Scheme (SCSS), the maximum limit ranges from Rs.30 lakh to Rs.15 lakh. The scheme provides 8% interest per annum which will be paid on a quarterly basis. 

Under Post Office Monthly Income Scheme (POMIS), the investment limit has been increased by Rs.9 lakh. Earlier, it was Rs.4.5 lakh. In case of joint accounts, the investment limit has been increased to Rs.15 lakh from Rs.9 lakh. The investors can earn interest of 7.1% per annum.

Tax Benefits for Senior Citizens in union Budget 2022

Union Finance Minister Nirmala Sitharaman in her budget extended tax benefits to senior citizens above 75 years of age. As per Sitharaman, senior citizens who are above 75 years and depend on only pension and interest income will no longer have to file I-T returns.

Time frame for reopening of income-tax assessment cases reduced

In order to reduce ta harassments, the government has reduced the time frame for reopening of income-tax assessment cases. It has been brought down to 3 years from the existing 6 years. Assessment can be re-opened up to 10 years in serious tax evasion cases only when there is evidence of concealment of income of Rs.50 lakh or more in a year.

Senior Citizens can claim up to Rs.50,000 as deduction under section 80TTB

Interest income received from banks and post offices up to Rs.50,000 can be claimed as deductions by the senior citizens under Section 80TTB.

Tax Slab for Senior Citizens

The Union Finance Minister did not announce any change in the income tax slabs. The tax slab for senior citizens aged between 60 and 80 years of age is listed below: