Tax implications for senior citizens after budget 2024, know what changed and what continues
Budget 2024 brought about several changes to the capital gains structure, tax deducted at source (TDS), and other related aspects. However, if you are a senior citizen, many of these changes may not have a significant impact on you. It is essential for senior citizens to understand the implications of Budget 2024 and how it will affect their tax planning.
How senior citizens are impacted after Budget 2024
CA Abhishek Soni, co-founder, Tax2Win shares some of the changes in Budget 2024 relevant to senior citizens:
Standard deduction
The standard deduction limit for family pensioners has been increased to Rs 25,000 from Rs 15,000. This enhanced deduction is now available to individual taxpayers receiving family pensions.
«The finance minister proposed to increase the standard deduction for salaried employees from Rs 50,000 to Rs 75,000. Also, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000 under the new tax regime. This will provide relief to about four crore salaried individuals and pensioners,» said the finance ministry in a press release dated July 23, 2024.
Slab rates applicable for senior citizens
The slab rates applicable for senior citizens (aged 60 and above) in FY 2024-25 (AY 2025-26) are shown in the table below:
Source: Income tax department website
The slab rates applicable for super senior citizens (80 and above) for FY 2024-25 (AY 2025-26) are shown below:
Source: Income tax department website
«Senior citizens have higher income exemption limits
