Hello, I have retired from State Govt Undertaking during Oct.2022. I am holding good portfolio of shares and have been receiving dividends. Any benefit for Senior citizens from payment of tax on such dividends. Your advice helps

Ans: Hello Ravi,

Congratulations on your retirement! I understand that you are now receiving dividends from your share portfolio and are curious about any tax benefits for senior citizens.

While I won't mention the specific slab rates, I can assure you that senior citizens do enjoy a more favorable tax rate compared to regular taxpayers. The Income Tax Act provides different slab rates for senior citizens, which are designed to reduce the tax burden on them.

It is important to note that dividend income is subject to taxation under the head "Income from Other Sources." However, as a senior citizen, you can take advantage of the higher basic exemption limit and the beneficial slab rates, which ultimately help reduce your tax liability on the dividend income.

To ensure you're making the most of these benefits, I recommend consulting a professional tax advisor or chartered accountant who can guide you through the process and help you optimize your tax planning.

I hope this information helps.

Best regards,