&w=3840&q=100)
Retired and saving? CBDT's new guide helps you maximise tax benefits
For many Indians, retirement marks the beginning of a quieter life, but it doesn't mean stepping away from financial responsibilities. Fortunately, the Income Tax Department has rolled out a series of benefits that make post-retirement tax planning easier and more rewarding. From higher exemption limits to tax-free retirement payouts, here's a breakdown of the key tax reliefs available exclusively to retired employees, according to the latest official document released by the Central Board of Direct Taxes (CBDT).
Higher exemption limits for senior and super senior citizens
Senior citizens (aged 60–80) get a higher basic exemption limit of Rs 3 lakh, compared to Rs 2.5 lakh for others. For those above 80, or 'super senior citizens', the tax-free slab goes up to Rs 5 lakh. These enhanced limits significantly reduce taxable income in the golden years.
Pension and retirement payouts: What's tax-free?
Several common retirement payouts are exempt from income tax, such as:
· Gratuity: Fully or partially exempt under Section 10 (10), depending on the nature of employment.
· Commuted pension: Tax-free under specified conditions as per Section 10 (10A).
· Leave encashment: Exempt up to specified limits under Section 10 (10AA).
· Provident fund & superannuation: Amounts received from recognised funds are also exempt under Sections 10 (11), 10 (12), and 10 (13).
Standard deduction and no advance tax hassle
Retired employees receiving pension can avail a standard deduction of Rs 50,000. Moreover, senior citizens with no business income are exempt from paying advance tax, easing compliance.
Medical and interest income deductions
Healthcare expenses tend to rise post-retirement, and the tax law acknowledges that:
· Rs 50,000 deduction under Section 80D for health insurance premium or medical expenses.
· Rs 1 lakh deduction under Section 80DDB for treatment of specified diseases.
· Up to Rs 50,000 deduction under Section 80TTB for interest income from banks, post office, or cooperative banks.
No TDS is deducted if interest income is below Rs 50,000 in a year.
Special provisions and filing relaxations
· Under the Reverse Mortgage Scheme, the amount received is not treated as capital gains.
· Very senior citizens (80+) can file returns manually if their income exceeds Rs 5 lakh or refund is due.
· From AY 2022–23, citizens aged 75+ with only pension and interest income (from the same bank) are exempt from filing ITR, banks will compute and deduct the applicable tax.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
an hour ago
- India.com
Mukesh Ambani reveals why he didn't take admission in..., donates Rs 151 crore to....
Mukesh Ambani reveals why he didn't take admission in…, donates Rs 151 crore to… New Delhi: One of the most richest men in the world Mukesh Ambani has recently donated a hopping whopping amount of Rs 151 crore to the prestigious Institute of Chemical Technology (ICT), making it the biggest donation in the history of the institute. Notably, the chairman of the country's most valuable company – Reliance Industries – studied at the institute. Earlier known as the University Department of Chemical Technology (UDCT), the ICT was established in the year 1933 by the University of Bombay. It was given the status of a deemed university in 2008 and subsequently renamed as ICT. Ambani announced the donation at the launch of Anita Patil's book 'The Divine Scientist'. The book is based on the life of Padma Vibhushan Professor Man Mohan Sharma. Many students consider him to be the greatest guru of Indian chemical engineering. While speaking about Guru Dakshina, the Reliance Chairman discussed several topics and announced a donation of Rs 151 crore to the institute at the behest of Sharma. 'When they tell us something, we just listen. They told me, 'Mukesh, you have to do something big for ICT', and I am happy to announce that it is for Professor Sharma,' Ambani said. Why Did You Not Go To IIT-Bombay Responding to the question, why did you not go to IIT-Bombay? Ambani stated, 'Visiting the UDCT campus always feels like visiting a sacred temple. Professor Sharma, I regard you as my most respected Guru, my guide and source of inspiration.' He recalled his fond memories of the institute and also praised Patil, saying, 'It is a very difficult task to write the life of a great man like Sharma.' I chose UDCT over IIT -Bombay.' Ambani stated that Sharma's inaugural lecture solidified his belief in Sharma's exceptional abilities. He described Sharma as a transformative figure, capable of converting curiosity into practical knowledge, then into profitable ventures, and finally into enduring wisdom. Ambani attributed major growth within India's chemical sector to Sharma bestowing upon him the title of 'Rashtra Guru' (national teacher).
Time of India
an hour ago
- Time of India
maruti suzuki: 7-seater models riding high on boost from Indian families
ADVERTISEMENT ADVERTISEMENT Mumbai: Seating capacity matters when Indians choose their sport or multi-utility it's for accommodating visiting grandparents, planning weekend getaways with the extended family, or simply enjoying extra comfort during long commutes, Indians are increasingly looking for space and flexibility in their personal vehicles. And seven-seaters are often the default choice when they are shopping for a large SUV or an the segment for SUVs that are 4.5 meters or longer, seven-seaters now account for 78% of sales, up from 58% in 2022, even as the share of five-seater SUVs shrank to 18% from 43%, show data from auto-motive analytics and intelligence firm Jato Dynamics In MPVS longer than 4.0 meters, seven-seaters command 86% of the market. It's not just the big joint families that are buying these vehicles that can accommodate more people. Even smaller, nuclear families are now choosing seven-seaters for their flexibility, whether it's accommodating guests or embarking on long road journeys, said Nalinikanth Gollagunta, chief executive of the Automotive Division at M&M, the manufacturer of the Scorpio and XUV 700 Banerjee, senior executive officer at Maruti Suzuki , said young buyers are increasingly choosing MPVs for evolving family needs and versatility.'The average age for one of our highest selling MPVs, Ertiga (a seven-seater), has fallen from 40 years to 37 years as per internal data in the last five years,' he seven-seater models make up nearly the entire MPV portfolio for Maruti Suzuki with Ertiga leading the segment. The seven-seater trend reflects a deeper lifestyle evolution, said Ravi Bhatia, president Jato Dynamics. 'This shift in configuration demand is not cyclical, it's structural.'While SUVs continue to dominate sales, consumers, especially families, are also increasingly considering the space and flexibility that MPVs offer. They now account for 11% of the auto industry sales volume compared with 8% in are also becoming more feature-rich, attracting younger buyers Singh Brar, senior vice president and national head of sales and marketing at Kia India, said its MPV Carens offers features typically reserved for SUVs, like connected car technology, ventilated seats and a sunroof. MPVs now account for 25-27% of Kia's sales in India, he said.
Time of India
2 hours ago
- Time of India
Government approves shifting of Gurgaon's Kherki Daula toll plaza on Delhi-Jaipur NH to Pachgaon
NEW DELHI: The government has approved shifting of Gurgaon's Kherki Daula toll plaza on the Delhi-Jaipur National Highway (NH-48) to Pachgaon, a place beyond Manesar, paving the way for easy commute for lakhs of office goers. Tired of too many ads? go ad free now When the plaza is moved to Pachgaon, over 15 kilometres from Gurgaon, commuters travelling between Delhi and Manesar also won't have to pay toll. Locals have been demanding its removal since 2014. TOI has learnt that Union road transport and highways minister has approved the plan, and to ensure the new spot doesn't see any congestion, the National Highways Authority of India (NHAI) will go for Multi Lane Free Flow (MLFF) toll collection system. For the new facility, the Haryana government has provided nearly 28 acres of land to the highway authority, sources said. The process of shifting and starting the MMLF system to collect toll at Pachgaon may take around six months. 'Pachgaon is the ideal location as it falls beyond Gurgaon and Manesar. Since there is an interchange of the Western Peripheral Expressway and the NH-48 at Pachgaon, the new toll collection point couldn't have been beyond the intersection,' a source said. In the MMLF system, vehicles don't need to stop as overhead cameras installed for each lane will read the vehicle registration number and automatically deduct the charge from the FASTag wallet linked to the vehicle. Sources said a decision has also been taken to have an integrated system to ensure that traffic coming from the Dwarka Expressway side and heading towards Jaipur don't end up paying toll at this point once again as user fee. Tired of too many ads? go ad free now 'This is very much possible. Once the annual toll pass for private vehicles is rolled out most of the issues will be resolved automatically,' said a source. The shifting of the toll plaza will end conflicts between operators and people from areas adjoining Kherki Daula, and fulfil the promise the Haryana and central governments have been making for the past seven to eight years. Locals have been demanding that the NHAI shift the toll plaza citing that the govt has recovered more than the investment made in constructing the Delhi-Gurgaon Expressway by private players and the highway authority. In a written reply to a question in Lok Sabha in March, the road transport ministry said against Rs 2,489 crore incurred as cost for the NH-48's Delhi-Gurgaon stretch, the toll collection has been around Rs 2,775 crore, around 11% more than the investment. After completion of this 27-km Delhi-Gurgaon Expressway, commuters were paying user fees at Sirhaul (Delhi-Gurgaon border) and Kherki Daula toll plazas. Tolling was stopped at the Delhi-Gurgaon border in 2014, bringing relief to commuters travelling between Dhaula Kuan in Delhi and Kherki Daula. However, those going beyond this point paid toll for the entire stretch. At present, NHAI collects toll through its agency. Meanwhile, sources said the decision to shift the Kherki Daula toll plaza by the road transport ministry will create more pressure on the Delhi government and the Municipal Corporation of Delhi (MCD) to do away with physical entry fee collection booths on the capital's borders to prevent congestion. Traffic jams at these places defeat the purpose of huge investment in building highways and expressways for faster connectivity to Delhi.
