Income Tax Faqs for Senior Citizens

Tax-related FAQs for senior citizens

Calling From	Phone Number
Calling us from INDIA
Rest of the World

What is the difference between a senior citizen and a super senior citizen?

As per income tax rules, a senior citizen is one who is aged between 60 and 80 years. On the other hand, a super senior citizen is one who is aged 80 years and above.

What are the tax slabs for senior and super senior citizens?

Under the old tax regime of the act, there are different tax slab for senior and super senior citizens. However, under the new tax regime, there is a uniform tax slab irrespective of the age group. The tax slabs will be as follows –

Under the Old Tax Regime, for senior citizens

Taxable income
Up to Rs.3,00,000	Nil
Rs.3,00,000 to Rs.5,00,000	5%(tax rebate u/s 87A is available)
Rs.5,00,000 to Rs.10,00,000	20%
Rs.10,00,000 and above	30%

Under the Old Tax Regime, for super senior citizens

Taxable income	Rate of tax
Up to Rs.5,00,000	Nil
Rs.5,00,000 to Rs.10,00,000	20%
Rs.10,00,000 and above	30%

Under the New Tax Regime for FY 2022-23:

The tax slabs are as follows for both senior and super senior citizens are same as follows–

Taxable income	Rate of tax
Up to Rs.2,50,000	Nil
Rs.2,50,000 to Rs.5,00,000	5%
Rs.5,00,000 to Rs.7,50,000	10%
Rs.7,50,000 to Rs.10,00,000	15%
Rs.10,00,000 to Rs.12,50,000	20%
Rs.12,50,000 to Rs.15,00,000	25%
Rs.15,00,000 and above	30%

However, the new tax regime was modified in the Union Budget 2023. The modifications are as follows –

The minimum threshold limit for tax has been increased to Rs.3 lakhs from the existing Rs.2.5 lakhs.

What are the tax-saving insurance cum investment avenues for senior citizens?

Senior citizens may invest in the different types of life insurance plans available in the market. Some of the plans that they can choose are as follows:

Endowment plans

Endowment plans allow senior citizens to create a secured corpus which is not exposed to the volatility risks of the market. Some plans might also offer bonus or loyalty additions, subject to policy terms & conditions and product features, that can boost the corpus.

Are there other reliefs that senior citizens can claim under income tax?

Yes, there are other tax-related reliefs offered to senior citizens. Some of them are as follows:

Senior citizens that do not earn income from business or profession are exempted from paying advance tax under Section 207.

What are the rules for senior citizens filling an income tax return?

Senior citizens must file an ITR if their taxable income exceeds the applicable basic exemption limit. However, resident senior citizens aged 75 years or above are exempt from filing an ITR under Section 194P, only if all of the following conditions are met:

Their income consists only of pension and interest income

Do senior citizens have to pay capital gains tax in India?

Yes. Senior citizens are liable to pay capital gains tax in India, as there is no general age-based exemption under the Income Tax Act.

For long-term capital gains covered under Section 112A—such as gains from listed equity shares and equity-oriented mutual funds—profits exceeding ₹1 lakh are taxed at 10%. The higher basic exemption limit available to senior citizens does not automatically eliminate this tax.

Is ₹7 lakh of income tax-free for senior citizens?

This depends on the tax regime chosen, under the new tax regime from FY 2025-26, resident individuals (including senior citizens) with taxable income up to ₹12 lakh are eligible for a rebate under Section 87A, reducing their tax liability to zero while under the old tax regime, the rebate limit remains ₹5 lakh. Considering this, ₹7 is not tax-free if the individual has opted for the old tax regime. Whereas, as per the new tax regime, it will become a non-taxable amount.

For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. The terms and conditions of product/plan as contained in the Policy Document issued by the Company is available on the Web Site. The names of the Company, Products/Plans/funds do not indicate the quality and its future prospects or returns. IN ULIPs, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. Unlike traditional products, Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. Tax benefits are as per the prevailing Income Tax Laws including the Income Tax Act, 1961 and are subject to change from time to time. Goods and Services Tax will have to be borne by the Policyholder as per applicable rates. All other charges shall be levied in accordance with the terms and conditions of the policy.

This calculation and results displayed are based on information provided and certain assumptions about the rates of return. It is for assistance only and does not constitute an offer or solicitation. It is not intended to be and must not alone be taken as the basis for an investment decision. Kindly note that the returns are only illustrative and they are not guaranteed. The returns do not indicate the upper or lower limits of the return that you may get with your policy and the value is dependent on a number of factors including future performance. Bajaj Life Insurance Limited shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information reported by the calculator.

¹©2021 Morningstar. All Rights Reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. The information, data, analyses and opinions ("Information") contained herein: (1) include the proprietary information of Morningstar and its content providers; (2) may not be copied or redistributed except as specifically authorized; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates and procured from various sources. Morningstar, its affiliates, and its officers, directors and employees shall not be liable for any trading decision, damage or any other loss arising from using the Information. Please verify all of the Information before using it and do not make any investment decision, except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up

Term Insurance Plans

Insurance Coverage Plans

Affordable Term Plans

Policy Term Plans

Insurance for All

Insurance Made Easy

ULIP Plans

Savings Plan

Endowment Plans

Child Insurance Plan

Retirement Plans

NRI Plans

Term Insurance Plans

ULIP Plans

Savings Plan

Retirement Plans

Endowment Plans

Life Insurance Calculators

Group Plans

Rider Plans

Know About SISO

Fund Performance

ULIP Plans

Tools & Calculators

Fund performance

Life Insurance Guide

Tools & Calculators

Tax FAQs For Senior Citizens

Tax-related FAQs for senior citizens

Tax Saving Guide