For Super senior citizen, what is impact in the new regime?

Ans: Old Tax Regime - For Senior Citizen

Income Tax Slab Income Tax Rates

Upto Rs. 300,000 Nil
Rs. 300,001 - Rs. 500,000 5% above Rs. 300,000
Rs. 500,001 - Rs. 10,00,000 Rs. 10,000 + 20% above Rs. 500,000
Above Rs. 10,00,000 Rs. 110,000 + 30% above Rs. 10,00,000

Old Tax Regime - Super Senior Citizen

Income Tax Slab Income Tax Rates

Upto Rs. 500,000 Nil
Rs. 500,001 - Rs. 10,00,000 20% above Rs. 500,000
Above Rs. 10,00,000 Rs. 100,000 + 30% above Rs. 10,00,000

New Tax Regime - Senior Citizen & Super Senior Citizen

Income Tax Slab Income Tax Rates

Up to Rs. 3,00,000 Nil
Rs. 3,00,001 - Rs. 6,00,000 5% above Rs. 3,00,000
Rs. 6,00,001 - Rs. 9,00,000 Rs. 15,000 + 10% above Rs. 6,00,000
Rs. 9,00,001 - Rs. 12,00,000 Rs. 45,000 + 15% above Rs. 9,00,000
Rs. 12,00,001 - Rs. 15,00,000 Rs. 90,000 + 20% above Rs. 12,00,000
Above Rs. 15,00,000 Rs. 1,50,000 + 30% above Rs. 15,00,000

Ans: Pls Go to tax calculator on cleartax.com and calculate your tax based on old as well as new regime . You can accordingly decide which regime to file tax under

Ans: Union Budget 2023 has hiked the maximum permissible investment in the senior citizens savings scheme. It is one of the most reputed investment scheme for elderly people. The monthly income scheme by post office has been more attractive now after Budget 2023.

Under the Senior Citizen Savings Scheme (SCSS), the maximum limit ranges from Rs.30 lakh to Rs.15 lakh. The scheme provides 8% interest per annum which will be paid on a quarterly basis.

Under Post Office Monthly Income Scheme (POMIS), the investment limit has been increased by Rs.9 lakh. Earlier, it was Rs.4.5 lakh. In case of joint accounts, the investment limit has been increased to Rs.15 lakh from Rs.9 lakh. The investors can earn interest of 7.1% per annum.

The revised new tax regime has introduced a standard deduction of Rs 50,000 for pensioners as well including family pensioners. Thus, a senior citizen pensioner may benefit under the revised new tax regime if they are unable to claim maximum deductions and exemptions for income tax outgo to remain the same in both tax regimes.

Senior citizen having gross income of Rs 7.5 lakh will have no tax liability in both the tax regime. This will happen if he/she is able to claim the maximum deductions and exemptions (including a standard deduction of Rs 50,000) of Rs 2.5 lakh in the old tax regime. By claiming deductions, the net taxable income will come down to Rs 5 lakh. This will make him/her eligible for a rebate of Rs 12,500 under section 87A in the old tax regime.

On the other hand, if the same pensioner opts for a new tax regime, then he/she can claim the standard deduction of Rs 50,000. This will bring down the net taxable income to Rs 7 lakh. This will make him/her eligible for a rebate under section 87A in the revised new tax regime.

If the pensioner has a gross income of Rs 10 lakh and is able to claim deductions exceeding Rs 3 lakh (such as section 80C, 80D, 80TTB etc., and a standard deduction of Rs 50,000), then the old income tax regime maybe beneficial for them.

In case of gross income of Rs 15 lakh, a pensioner is required to claim deductions of more than Rs 3,50,000 for continuing with the old tax regime in FY 2023-24.

So one can take either old or new tax regime depending on the above factors. I hope this was useful to you.