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Section

Particular

Provision

80D

Deduction in respect of health insurance premium

In this section, a senior citizen can avail of the following deduction:

Health Insurance Premium

Any amount paid for the medical insurance premium through any mode other than cash for the self, spouse, and their dependent children is allowed as a deduction up to Rs. 50,000.

Further, a deduction of up to Rs. 50,000 is also allowed if a premium is paid for the insurance premium taken for parents.

Preventive Health Check-Up

Any amount paid through cash or other than cash for the preventive health check-up for self, spouse, dependent children, or parents is allowed as a deduction up to Rs. 5,000.

Medical Expenditure

Any amount paid through any mode other than cash for medical expenditure for self, spouse, dependent children, and parents is allowed as a deduction of up to Rs. 50,000 if the following conditions are satisfied:

  •  The person for whom the expenditure is incurred is a senior citizen; and

  •  No medical insurance policy has been taken for such person.

Note: Section 80D allows for a maximum deduction of Rs. 1,00,000 for senior citizens. This deduction is split into Rs. 50,000 for the individual and their family members, and another Rs. 50,000 for their parents.

80DDB

Deduction for Medical treatment of specified disease

A senior citizen can claim deduction under this section if he incurred expenditure on the medical treatment of a prescribed disease or ailment (as specified in Rule 11DD) for himself or any dependent being spouse, children, parents, brother and sister of senior citizen or any of them

The maximum amount of deduction is Rs. 1,00,000 or the actual amount incurred, whichever is lower.

Note: Where any amount has been received by the assessee under an insurance policy or reimbursed by an employer, deduction under this provision shall be reduced by the amount received from such insurer or employer.

80TTB

Deduction in respect of interest on deposits

A senior citizen can claim a deduction of up to Rs. 50,000 for interest earned from any deposits (including fixed deposits) from a banking company, cooperative society engaged in the banking business, or post office.

Section 139 read with Rule 12

Filing of return of income in paper form

A super senior citizen is allowed to file the return of income in paper form provided he furnishes the return in ITR 1 (Sahaj) and ITR 4 (Sugam).

194A

TDS from Interest - Other than Interest on Securities

No TDS is required from interest (other than on interest on securities) paid by a banking company, post office, or cooperative bank on time deposits if interest paid/payable to a senior citizen doesn't exceed Rs. 1,00,000.

194P

TDS from Pension and Interest Income of specified Senior Citizen

A resident individual is not required to file an income tax return where tax has been deducted under section 194P. The tax is required to be deducted under section 194P if the following conditions are satisfied:

  •  Individual age should be 75 years or more at any time during the previous year;

  •  The individual has only pension and interest income;

  •  Interest should be received and receivable from a specified bank account;

  •  Pension income should be received in the same bank;

  •  Such individual furnishes a declaration in Form No. 12BBA to the bank containing particulars related to pension income; and

Such specified bank has to compute total income after giving the effect of the deduction allowed under Chapter VI-A, rebate under Section 87A, and deduct tax therefrom based on slab rates applicable on such person. The rate shall be further increased by Surcharge and Health & Education Cess.

207

Advance tax

A resident senior citizen who does not have any income from a business or profession is not liable to pay advance tax even if his estimated tax liability for the financial year is Rs. 10,000 or more.