Senior Citizens Tax Exemption: The process of filing income tax returns in the financial year 2024–25 is going on rapidly. At such a time, the discussion of measures to save tax is also gaining momentum. Today we are going to give tips to the elderly to save tax.
How to save Tax: Lakhs of people have filed ITR for the financial year 2024–25 , but some people are wondering how to reduce tax, especially those who are 60 years of age or above. For such people, there is a special section 80TTB in the Income Tax Rules, which gives tax exemption. But this exemption is available only in the old tax system. Let’s know how to get exemption
What is section 80TTB
Section 80TTB is a provision of the Income Tax Act that provides tax exemption on interest income to senior citizens (aged 60 years or above). If you have a savings account, fixed or recurring deposit in a bank, post office or cooperative institution, then up to Rs 50,000 can be claimed as deduction on the interest earned on it, but this benefit is available only in the old tax system. If you choose the new tax system, then the exemption under this section will not be available. Therefore, it is important to choose the right tax system while filing returns, especially if your income is related to interest.
Experts’ advice Tax experts say that senior citizens should remain in the old tax system so that they can avail the benefits of 80TTB. These exemptions are not available if you choose the new tax system. No relief in the new tax system If you choose the new tax system, then you will not get the exemption of 80TTA and 80TTB. Therefore, before filing the return, you should think about which tax system is good for you.
In how many days does the refund come
If you file your income tax return correctly and on time, and also e-verify it, then usually you get your refund within 5 to 10 days. Some people even get their refund in a single day! But if there is any mistake in the return, or documents have to be verified, then it can take 4 to 5 weeks for the refund to arrive. That is why filing quickly and correctly is of utmost importance.
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