The rising cost of treatment in the hospital has increased the pressure on them. In such a situation, the government needs to make announcements regarding senior citizens in the budget.

No tax on income up to 10 lakhs

Senior citizens are expecting an increase in the tax exemption limit from the budget. Currently, there are two categories of senior citizens in terms of income tax. The first category includes people from 60 to 80 years of age, who are called senior citizens. The second category includes people aged 80 years and above, who are called super senior citizens. If the annual income of a senior citizen is up to Rs 3 lakh, then he does not need to pay tax in the old regime of income tax. If the annual income of a super senior citizen is Rs 5 lakh, then he does not have to pay tax in the old regime. The government should increase the tax exemption limit for both types of senior citizens to Rs 10 lakh. This is what senior citizens are expecting.

Discount on medical tests

Senior citizens need the most care in old age. In old age, most of the money is spent on treatment, medicines and tests. The government needs to allow deduction of Rs 1 lakh per year on medical care. This should include OPD, tests and other expenses related to treatment. This will benefit crores of senior citizens.

Get tax exemption on NPS pension

At present, 60% of the money in NPS is received at the age of 60. The remaining 40% is used as pension in the form of annuity. This pension comes under the purview of tax. There is a need to keep it out of the purview of tax. This will provide great relief to the elderly. By not paying tax, they will get more pension in their hands.

Exemption for filing income tax return

Currently, senior citizens aged 75 years and above are not required to file income tax returns. Those whose source of income is only pension and interest income. Tax experts believe that the government should abolish the age limit of 75 years.

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The government believes that this is a more effective way of providing direct relief to the people instead of schemes. The government is thinking of giving you more money in your hands. It may sound a little strange, but it is true. In the budget coming in July, the government can change the tax rules. Till now, those who earn Rs 3 lakh do not have to pay any tax. However, now the government is considering increasing this limit to Rs 5 lakh.

This means that the government is thinking of increasing the exemption limit. But, this rule will apply only to those who choose the new tax system. In the old tax system, you get many types of exemptions. In the new system, the tax is less and there are no exemptions. The government hopes that this will bring more money in the hands of the people. They will be able to buy more goods. This will strengthen the country’s economy. The final seal will be put on it close to the budget.

Also Read: MCD Property Tax: 10% discount on paying property tax by 30 June. know everything

The exemption limit in income tax is the maximum income amount on which you do not have to pay income tax. This limit depends on many factors including your age, residential status and the claim made on your behalf.

Demand to reduce the highest tax rate

A section of the industry has also requested the government to reduce the highest tax rate in the new tax system from 30% to 25%. But the chances of this happening are very low. A government official said that there is little possibility of any change in the tax for those earning more because the need right now is to provide relief to those who earn less.

The government does not want to make any changes in the old tax system either. This is because the government wants more and more people to adopt the new tax system. In the new tax system, those earning more than Rs 15 lakh have to pay the maximum tax of 30%, whereas in the old system this limit is Rs 10 lakh.

What is the government’s intention?

The government wants to give more money to the people by reducing taxes. Instead of increasing expenditure on subsidies and other schemes. This is because many times the full benefit of these schemes does not reach the needy people.

A government official said that boosting the economy by cutting taxes is better than spending money on welfare schemes. This is because sometimes the money is not used properly in the schemes. The full benefit does not reach the people. There has been a decrease in the purchasing power of the people in the country, which is the lowest in the last 20 years.

This is happening at a time when the Indian economy is growing rapidly. In such a situation, the government wants more money in the hands of the people so that they can buy more goods and the economy gets more momentum.

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Income Tax Slab for Senior Citizens (60 to 80 Years)

Income tax slab for senior citizens above 80 years

Income tax exemption limit for senior citizens

Senior citizens are those people who are 60 years or more or less than 80 years of age till the last financial year. The basic tax exemption limit for retired employees falling between the age of 60 to 80 years is Rs 3 lakh. In the case of very senior citizens (above 80 years), the exemption limit is Rs.5 lakh.

Is pension taxable in India?

Pension received by retired employees is taxable. This is taxable as income under the head ‘Salaries’ after the exemption limit.

Tax on gratuity and provident fund of retired employees?

For government employees, the amount received from EPF is tax free. EPF is tax exempt for non-government employees, but only if the withdrawal is made after 5 years of continuous service. Also, for this, EPF should be from a company which is registered with EPFO.

Gratuity received on retirement is tax free for government employees. Whereas, for non-government employees, gratuity is tax free only in select situations.

Gratuity amount of Rs 10 lakh

Salary for 15 days of service every year

Actual gratuity has been received.

Is family pension taxable?

Family Pension is taxable in India. This is taxed under the head ‘Income from other sources’. Deduction is available on this up to 33.33% or Rs 15000 (whichever is less). Only after that it can be taxed.

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The biggest demand is that the taxable income limit should be increased from 2.5 lakhs to 5 lakhs (taxable income limit). According to media report, the government can give good news on this. Sources told that the government can make changes in the New Tax Regime to make the new tax system attractive. After the presentation of the budget, income up to Rs 5 lakh may become tax free.

Income up to 5 lakh can be exempted (Tax Exemption Limit)

It is reported quoting sources that the government’s focus is on making the new tax system attractive. Under this, it is being considered to give tax exemption on income up to 5 lakhs. At present, no tax has to be paid on income up to Rs 2.5 lakh. At the same time, there is a provision of 5% tax on income between 2.5 lakh to 5 lakh. At the same time, there is no tax on income of 5 lakhs in the old tax system. In such a situation, the government is considering making these changes to make the new tax system more popular.

It is known that the inclusion of exemption on home loan interest in the new tax system is under consideration. Along with this, preparations are being made to include standard deduction exemption in the new tax system. In the new tax system, 30% tax can also be reduced. Even in the old tax system, the tax rate of 5-15 lakhs can be reduced.

The government had optionally introduced a new tax regime in the 2020 budget, in which six new slabs were introduced – 5%, 10%, 15%, 20%, 25%, and 30%. There are three slabs of 5%, 20% and 30% in the old slab, with which all the benefits of tax deduction are available, which are not available in the new tax regime.

At the same time, in the new regime, there is no tax on annual income of 2.5 lakhs. Income up to 2.5-5 lakhs is taxed at 5%. 10% tax on annual income of 5-7.5 lakhs, 15% on income between 7.5 lakhs and 10 lakhs, 20% tax on income between 10 and 12 lakhs, 25% between 12.5 lakhs and 15 lakhs and 15 lakhs Income above 30% is taxed annually.

Government can take big decisions in the last full budget

Modi government is going to present its last full budget this year in Modi 2.0 tenure. In such a situation, it is being speculated that the government can bring a populist budget this time. Lok Sabha elections are going to be held next year, in such a situation only the interim budget has to come next year, so the government can take big decisions only this year. Tax exemption can be a big announcement, so it is expected that this time there can be relief in tax.

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Reuters has given this report citing two government sources. However, the Finance Ministry did not respond to an email sent by Reuters in this matter. It has been told in the report that this time the limit of income tax exemption can be increased from 2.5 lakh to 5 lakh.

At the same time, many people are also saying that the income tax rates and slabs which were applicable in the assessment year 2022-23, can remain applicable in the new assessment year (AY 2023-24) as well. Let us tell you that Finance Minister Nirmala Sitharaman will present the budget on 1 February 2023.

Income up to 2.5 lakh is tax free.

If the income tax limit is increased by changing the income tax slab, then the maximum benefit will be to the employed people and small businessmen. Currently, no tax is payable on income up to Rs 2.5 lakh. Income up to Rs 3 lakh for persons in the age group of 60-80 years and Rs 5 lakh for senior citizens above 80 years of age is tax free.

Tax exemption limit may be 5 lakhs

According to media reports, this time the limit of 2.5 lakhs can be increased to 5 lakhs. If this happens, then you will not have to pay any income tax if your annual income is up to 5 lakhs. Apart from this, it is necessary to file ITR for those earning more than 2.50 lakhs. After this this limit will be 5 lakhs.

There has been no change in the income tax slab for the last 9 years. The last time in the year 2014, the government increased the income tax exemption limit. This change was the first general budget of the first term of the Narendra Modi government. Now in the year 2023, Finance Minister Nirmala Sitharaman will present the last full budget of the second term of the Modi government. The Finance Minister can present the Union Budget on February 1, 2023.

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Before the budget, the Finance Minister said that the central government will continue to work for the middle class. She said that she herself is from the middle class, so she understands the problems and pressures of this class. He also said that the BJP-led NDA government (NDA Govt.) has not imposed any new tax on the middle class in any budget.

Let us tell you that most of the tax payers are from the middle class only. The Finance Minister said that no new tax has been imposed on the middle class family by the Modi government. He said that those earning up to Rs 5 lakh have been kept out of the purview of income tax by the government.

In the upcoming budget also, the government will continue to work for the middle class. Sitharaman said that middle class families use public transport the most. Keeping this in mind, Metro was brought to more than 27 places. India’s largest population from the middle class, the Finance Minister said that many middle class people are going towards the cities in search of jobs. We are continuously focusing on Smart City.

The largest section of India’s population is associated with the middle class. In such a situation, a lot of expectations are being made from the budget on 1st February. This is the last full budget of the current government before the 2024 Lok Sabha elections. In such a situation, it is expected that new announcements can be made by the government regarding income tax, health and jobs.

On behalf of the employed people, there has already been a demand from the Finance Minister to increase the income tax exemption limit and increase the investment limit under section 80C. In this budget, the standard deduction limit can be increased from 50 thousand to 75 thousand by the government.

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The budget day is slowly coming closer. Along with this, activities related to Income Tax have also started. Investment proof is being sought from those working in offices. It will be decided on the basis of investment proof whether your salary will come in full or less in the next month. If you have not submitted the proof of tax saving, then the salary will be sent to your account after deducting income tax. For investment proof, you have to submit proof of where you have invested. First the employee has to inform his office where he is investing. After this, its proof is sought in January.

Under Section 80C of Income Tax, tax exemption can be taken on investment up to Rs 1,50,000. That is, under this section 80C, you can reduce your total taxable income by Rs 1,50,000 by making different investments. Proof of investment: Life Insurance Policy premium receipt, ULIP premium proof, Equity Linked Savings Scheme (ELSS) investment proof, PPF, Sukanya Samriddhi Yojana and NSC investment receipts made on home loan principal Can collect rebate on repair and health insurance premium.

Tax exemption limit

In the year 2014, the then Finance Minister Arun Jaitley increased the tax exemption limit from Rs 2 lakh to Rs 2.5 lakh and also increased the tax exemption limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh. Tax exemption is given on different types of investments under Section 80C of the Income Tax Act. If you have forgotten to claim tax exemption on different types of investments in any year, then later you can claim tax exemption by filing income tax return.

To save tax, under Section 80C, you can invest in Mutual Fund Tax Funds (ELSS), Bank’s Tax Savings Fixed Deposit Scheme, NPS, PPF, Life Insurance Policy, National Savings Certificate and Post Office Senior Citizen Savings Scheme. Tax exemption is also available on the tuition fees of two children. For this, you have to give the fee certificate issued by the school. This is the only expense under section 80C that does not come under the purview of investment.

How to get benefit

If you want to avail tax exemption under section 80C, you have to invest before the end of the financial year. In the year in which you invest in this period, you will be able to get the benefit of tax exemption for the same year. It is up to you to decide how much to invest in which instrument. The total limit with you is Rs 1.5 lakh. Now whether you want to invest the entire money in a single instrument or invest some money in various mediums.

The amount you claim under this section is reduced from your gross total income. It is easy to calculate this income tax. Suppose your gross total income is Rs 10 lakh and you have claimed a deduction of Rs 1.5 lakh under section 80C. So your taxable income will be Rs 8.5 lakh.

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Farmers and employed people have the highest expectations from this budget. At present, the limit of exemption from income tax is Rs 2.5 lakh. That is, a person earning up to two and a half lakh rupees annually does not have to pay any kind of tax. Like the last budget, the demand for increasing it is being made on behalf of crores of employed people this time also.

Income up to Rs 5 lakh is tax free!

However, tax rebate is available on taxable income ranging from Rs 2.5 lakh to Rs 5 lakh due to the exemption given under Section 87A. As per the rules, there is a provision to pay income tax on income above Rs 2.5 lakh. But the amount of tax made on income from Rs 2.5 to Rs 5 lakh is exempted under section 87A by the Ministry of Finance. In this way income up to 5 lakhs becomes tax free. But if your income is more than 5 lakhs, then you have to pay tax on the entire income above 2.5 lakhs.

Proposal to increase the income tax exemption limit to five lakhs

This is the reason why, like earlier, there is a demand to increase the income tax exemption limit from Rs.2.5 lakh to Rs.5 lakh. On behalf of the Associate Chambers of Commerce and Industry of India (ASSOCHAM), a proposal has been given to the government to increase the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh. If this demand is accepted by the Finance Minister, then more money will come in your hands than before.

The announcement will be made on February 1, 2023.

In the recommendation sent to the Finance Ministry, Assocham has said that the limit of income tax exemption should be increased to at least Rs 5 lakh. This will save more money to spend in the hands of the common man. This will increase the buying capacity of the common man and the market will accelerate. If any kind of decision on income tax is taken by the Finance Ministry, then the Finance Minister will announce it only during the presentation of the budget on February 1, 2023.

Is it possible to increase income tax exemption

Assocham President Sumant Sinha had said during a conversation with the media in the past that a boom in both direct and indirect taxes would help in increasing the income tax exemption limit. Assocham Secretary General Deepak Sood said that leaving more money in the hands of customers will encourage consumption.

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In fact, industry body Assocham has demanded the government to double the income tax exemption limit in the next budget. Assocham has said that if the tax exemption limit is increased from the current Rs 2.5 lakh to Rs 5 lakh, then the demand will increase. This will boost consumption in the economy. At present, income up to Rs 2.5 lakh is not taxed for common citizens. This limit is Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens (80 years).

Now companies are insisting on increasing capacity

Assocham President Sumant Sinha said that companies in sectors like steel and cement are now planning to increase capacity. Talking about the risks, he said that there could be a global recession and this would affect foreign trade. In such a situation, India’s GDP can also be affected.

In its pre-budget recommendations, Assocham said the government should raise the income tax exemption limit to at least Rs 5 lakh to leave more disposable income in the hands of the consumer . . The industry body said that this should boost consumption in the economy.

Consumption will get a boost

Sinha said that due to the boom in both direct and indirect taxes, the government has enough scope to increase the income tax exemption limit. Assocham Secretary General Deepak Sood said that leaving more money in the hands of the consumer would encourage consumption, which would have a positive impact on economic growth.

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