Income tax return: Senior citizens cannot claim standard deduction in these circumstances

Income tax return: Senior citizens cannot claim standard deduction in these circumstances

Salary employees get standard deduction of 50 thousand rupees under section 16 (ia) of income tax. Earlier it was limited to 40 thousand but later it was increased to 50 thousand rupees. Businessmen can claim deduction on account of their various expenses, but it is difficult for the people getting salary. People getting salary also find it difficult to claim the amount spent on medical and travel. Therefore, flat standard deduction has been arranged for them. Although these deductions are available on the income of the people receiving salary, there are some conditions under which senior citizens cannot claim standard deduction.

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This is why senior citizens do not get the benefit of standard deduction

Under section 16 (ia), senior citizens who do not have income from salary or pension do not get the benefit of standard deduction. If the senior citizen is getting interest income from the fixed deposit then he will not get the benefit of standard deduction. However, senior citizens earning interest income can claim a rebate of up to 50 thousand rupees under section 80TTB. While for ordinary taxpayers its limit is only ten thousand rupees.

What is standard deduction

Standard deduction is the amount that is deducted directly from your income and set aside. After this, income tax liability is calculated on it. Prior to the 2005 budget, its benefits were available to the employees but in 2005 it was scrapped. The government implemented it again in 2018.