Please explain how Senior Citizens can take advantage of the deductions and exemptions under both Old and New Income tax rules anounced in the Budget on 01Feb2023. Thanks and regards.

Ans: Changes proposed in new tax regime in Budget 2023 is available for senior citizens also but no separate changes proposed for senior citizens.

Ans: Dear Mr. Mugalur
The slab rate under the old tax regime for super senior citizen has not been changed and remain at 20% for income in the range of Rs. 5 Lakhs above to Rs. 10 Lakhs.

In case you are opting for the old tax regime all deductions that were available earlier are still available to you but that would not be the case if you opt for the new tax regime, where the deductions stated by you will not be available

Ans: Hi Mugalur
In case you are referring to standard deduction for salary then yes for the pension income the standard deduction would be available.

The other deductions stated by you would not be available under the new tax regime

Ans: let me break down your queries about Section 80DDB in a simple and understandable manner:

• Section 80DDB provides deductions for medical expenses incurred by individuals, including senior citizens, for specified diseases.

• For senior citizens (those aged 60 years or above), the deduction allowed under Section 80DDB is up to INR 1 lakh.

• The diseases for which this deduction can be claimed include specified illnesses such as cancer, chronic renal failure, Parkinson's disease, etc.

• The deduction is available for the expenses incurred on the treatment of these diseases for self or dependent family members.

• To avail the deduction, a prescription from a specialist doctor is required, specifying the disease and the treatment.

• The deduction can be claimed for expenses incurred for the treatment of the specified diseases either for the individual or a dependent family member.

• The benefit under Section 80DDB can be availed for each financial year in which the expenses are incurred.

• There is no limit on the number of years this benefit can be availed, as long as the individual continues to incur medical expenses for the specified diseases.

In conclusion, Section 80DDB provides valuable tax benefits for senior citizens facing medical challenges, offering relief from the financial burden of treatment expenses. It's essential to keep records of medical bills and prescriptions to claim the deduction accurately.