Income Tax Rules: Age is more than 60 years and less than 80 years, even then you come in tax break on income of more than 3 lakhs annually. For people of this age, the limit of exemption from income tax is up to 3 lakhs. That is, you will have to pay tax on income of more than 3 lakhs. Let’s know about it in detail.
The process of filing ITR is going on continuously. More than one crore people have filed ITR. You can also file ITR for the financial year 2022-23 by 31 July. If you miss the last date for filing ITR for any reason, then you may be fined. This time it is also important to know that some people will also get an additional exemption of Rs 2.5 lakh in filing ITR.
Tax bracket starts from 2.5 lakhs
Generally, under the old tax regime, if someone is 60 years or less, then you have to pay tax as per rules on income above Rs 2.5 lakh annually. That is, you have to pay income tax on income above Rs 2.5 lakh per annum. According to the rules of the Ministry of Finance, 5 percent tax is deducted on the annual income of Rs 2.5 lakh to Rs 5 lakh. This was announced by the Finance Minister during the budget speech.
Extra exemption of 50 thousand rupees
Even if your age is more than 60 years and less than 80 years, you still get tax break on income of more than 3 lakhs per annum. For people of this age, the limit of exemption from income tax is up to 3 lakhs. That is, you will have to pay tax on income of more than 3 lakhs. Under the old tax regime, people of this age are given an additional rebate of Rs 50,000 by the government.
2.5 lakh extra discount to these people
Some people have also been kept in the category of Very Senior Citizen. People above 80 years of age are included in this category. Extra exemption has also been given to people who are 80 years or more in filing tax. People of this age limit come in the tax bracket only on annual income of more than five lakh rupees. This is the reason that these people get an additional exemption of Rs 2.5 lakh as compared to normal taxpayers.
Apart from this, for example, if your annual income is Rs 10 lakh and you claim up to Rs 5 lakh under income tax exemption, then you will have to pay zero tax on the remaining income of Rs 5 lakh. Although your taxable income is 2.5 lakhs, but due to the exemption of Rs 12,500 on this, you have to pay zero tax.
