Changes in the Union Budget 2014-15 and their effects on senior citizens

Income tax slabs for the financial year 2013-14 for a senior citizen between 60-80 years of age

Let us consider Mr Gaurav a 62 year old gentleman earns INR 9 Lakhs working in the quality control department of a garment firm. He makes use of the Section 80 C deductions of INR 1 Lakh and invests INR 1.5 Lakh per annum in the senior citizens saving scheme. This amount is tax deductible only up to INR 1 Lakh and he has to pay taxes on the amount exceeding this when calculating his income taxes under Section 80 C of the income tax act.

Mr Gaurav takes up a health insurance policy for himself and gets a deduction of INR 20000 on the premium paid for this policy under Section 80 D of the income tax act as he is a senior citizen. Mr Gaurav has a dependent brother and he claims a deduction of INR 60000 for his treatment under Section 80 DDB of the income tax act by virtue of being a senior citizen.

Learn more about income tax deductions from http://indianmoney.com/getTaxPlannereBook.php ( A free handbook on tax)

 

Mr Gaurav’s income tax liability is calculated as per the income tax slab he falls under.

 

Mr Gaurav pays an income tax of INR 71070 on his salary after availing deductions under Section 80 C , Section 80 D and Section 80 DDB of the income tax act.

Income tax slabs changed under the Union Budget 2014-15

Income tax slabs for the financial year 2014-15 for an Indian citizen between 60-80 years of age:
(A free guide on how to calculate your income tax under the changed tax structure)

 

 

Section 80 C exemption limits have been raised to INR 1.5 Lakhs in the Union Budget 2014-15

 

Mr Gaurav avails deductions under Section 80 C , Section 80 D and Section 80 DDB of the income tax act just as in the previous year

 

Conclusion