• Notification Date: 03.02.2022
  • Notification No: N/A

Income Tax Slab for Senior Citizens in Budget 2022

The Union Budget 2022-23 has been announced by Finance Minister Nirmala Sitharaman on February 1, 2022. The personal income tax rates have remained unchanged in the Budget. The taxpayers will pay their taxes at the same rates and slabs. The tax rates are dependent on the tax regime chosen for FY 2022-23.

The new rules that have been introduced to the Income-tax law are applicable from April 1, 2020. The taxpayers are allowed to pay the taxes at the old tax regime. They can avail the exemptions and deductions as specified under Section 80C, 80D, HRA, LTA provisions. They can opt for the new tax regime by avoiding 70 tax exemptions and deductions. The new tax regime offers lower rates of tax to the taxpayers.

A tax rebate of Rs.12,500 will be provided to the taxpayers under both regimes under Section 87A. Individuals having net taxable income of Rs.5 lakh are exempted from paying income tax under both regimes. The tax exemption limit is based on the age and residential status of the taxpayers. Under the new tax regime, the basic exemption limit in a financial year is Rs.2.5 lakh.

The rates of surcharges and the cess on health and education are kept unchanged under both the tax regimes. A Resident Individual is eligible for a Tax Rebate of a hundred per cent of their income or up to Rs.12,500 if their income is less than Rs.5,00,000. This exemption is eligible under both tax regimes.

Senior citizens above 75 years will be exempted from filing their income tax returns if they only have pensions and interest as their source of income. This provision has been specified in the Union Budget 2021. But they are not exempted from paying the income tax. The exemption would be available if the pension bank account and the account of receiving the interest income are in the same bank.