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Income under the head of Salaries :

Tax relief to senior citizens

  • Tax rebate to senior citizens is allowed u/s 88B of the Income Tax Act.
  • A senior citizen is a person who has attained the age of 65 years at any time during the previous year, is an individual and is a resident of India.
  • A senior citizen is granted a tax rebate of Rs.10,000/- on his total income for any asstt. year. In other words if the tax liability (before claiming deduction/rebate u/s 88) does not exceed Rs.10,000/- then 100% deduction is available.
  • In case the tax liability exceeds Rs.10,000/- then after granting the rebate of this amount, the tax shall be payable as per the normal rates.
  • From the asstt. year 1998-99 onwards this additional rebate of Rs.10,000/- is available to all senior citizens even if the gross total income is above Rs.1,20,000/-.

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