Income Tax Calculation For Senior Citizens FY 2019-20

Income tax calculation for senior citizens

Income Tax Calculation For Senior Citizens

Income tax calculation for senior citizens is very simple.Just have a quick look, 0-3,00,000 = nil tax. 3,00,001-5,00,000 = @5% & 5,00,001- 10,00,000 = @ 20% and above 10,00,000 = @30%.

Standard Deduction

Senior citizens are also alligible for standard deduction of ₹ 50,000 for FY 2019-20.

So while calculation of their tax for FY 2019-20 they can deduct ₹ 50,000 from their gross pension.

Total Income

It is Worth mentioning here that if your total income is less than or equal to ₹ 5,00,000,then your tax liability will be zero.

Also read: How to calculate income tax for NPS Employees FY 2019-20

What is Total Income

Your gross income -your all savings from 80C- 80U.

Suppose your gross pension for FY 2019-20 is ₹ 8,00,000.And you saving from 80C to 80U is ₹ 2 lakhs.

Tip : under section 80C,you can only take maximum of ₹ 150,000.But you can take extra benefit of deduction under 80D,80DD,80DDB,80E,80EE,80U,80G etc.

Thus 8,00,000 – 50,000(Standard Deduction) – 2,00,000 = 5,50,000  is your total income.

How to calculate Income Tax For Senior Citizens Age >= 60 & <80 years.

We have already calculated Total income in above steps.Which is an arbitrary example.

So as per budget 2019 income tax slab rates for senior citizens are not changed.

Have a Tabular view below 👇:

Serial numberTotal Income (in rs.)Slab rates
10-3,00,000Nil
23,00,001-5,00,000@5%
35,00,001-10,00,000@10%
4Above 10,00,000@30%
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Income Tax Rebate up to ₹ 12,500 U/S 87A

As per budget 2019,if total income of the tax payer is less than or equal to ₹ 5 lakhs,t

Now in this case  total income is greater than ₹ 5,00,000.So there will be no income tax rebate under section 87A of income tax.

Hence as per income tax slab rates for FY 2019-20 as shown in the above table let us calculate your tax liability.

Income tax calculations For seniors

Now we have total income ₹ 550,000.

So we bifurcate this as per tax slab rates.

Hence 0-3,00,000 =Nil tax

3,00,001-5,00,000 = @ 5%= ₹ 10,000

And 5,00,001- 5,50,000 = @ 20%= ₹ 10,000.

So, by adding 10,000+10,000=20,000

Hence total tax is ₹ 20,000.

Finally 4% health education cess of ₹ 20,000=₹ 800.

So your total tax liability is 20,000 + 800=₹ 20,800.

Conclusion

Lastly,we can say that in order to make income tax calculation for senior citizens FY 2019-20,you can take the help of this article.And similarly,you can calculate your tax as per your annual pension.

And in order to  make your tax liability zero, you should increase your saving to get your total income <= 5 lakhs.

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

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