The upcoming Union Budget 2025 may bring relief and happiness for senior citizens. Union Finance Minister Nirmala Sitharaman will present the budget on February 1, 2025, in which announcements of tax exemption and other financial relief to the elderly are likely to be made.
Experts believe that the tax exemption currently given to senior citizens is inadequate in the face of rising inflation, especially rising food prices.
Two categories of senior citizens
Currently, under income tax, senior citizens are divided into two categories:
- Senior Citizens (60 years and above):
- People who are between 60 and 79 years old.
- Super Senior Citizens (80 years and above):
- People aged 80 years and above fall in this category.
Choice of tax regime:
Senior citizens of both categories Old Tax Regime And New Tax Regime There is freedom to choose any one of them.
Tax slab for senior citizens in the old regime
| annual income | Tax Rate (Senior Citizens) |
|---|---|
| Up to ₹3,00,000 | No tax. |
| ₹3,00,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| More than ₹10,00,000 | 30% |
Tax slab for super senior citizens in the old regime
| annual income | Tax Rate (Super Senior Citizens) |
|---|---|
| Up to ₹5,00,000 | No tax. |
| ₹5,00,001 to ₹10,00,000 | 20% |
| More than ₹10,00,000 | 30% |
Union Budget 2025: What can be the big announcements for senior citizens?
Demand to increase basic exemption limit:
- For Senior Citizens:
The exemption of currently ₹3,00,000 can be increased to ₹5,00,000.
- For Super Senior Citizens:
It has been recommended to increase the existing ₹5,00,000 exemption to ₹10,00,000.
Why is it necessary?
- Income of senior citizens is mainly:
- Pension.
- Interest received from savings.
- In view of inflation and increasing expenditure, it is necessary to reduce the tax burden.
Importance of tax exemption
- Relief to the elderly:
Amid rising inflation, tax exemption for the elderly will make living easier.
- Benefit to pensioners:
The tax exemption will allow the pension and savings to be used for their daily needs and health care.
- financial stability:
Tax exemption will strengthen the financial condition of the elderly.
expert opinion
Tax experts suggest:
- Increasing tax exemption for senior citizens and super senior citizens will not only provide relief to them but will also ensure their financial security.
- This step will help maintain financial stability amid rising inflation.
Expectations from the government:
- Finance Minister Nirmala Sitharaman can implement these suggestions in the upcoming budget.
- The introduction of a new tax policy for senior citizens is possible.
