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Mahesh

Mahesh Padmanabhan  |120 Answers  |Ask -

Tax Expert - Answered on Feb 22, 2023

Mahesh Padmanabhan has specialised in payroll, personal and corporate taxation for more than two and a half decades, enabling him to provide practical, realistic and correct advice to his clients.
He is a member of The Institute of Chartered Accountants of India and has a degree in cost accounting from the Institute of Cost Accountants of India.
He is also a qualified information systems auditor. ... more
Shobhit Question by Shobhit on Feb 01, 2023Translate
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what are the benefits to Sr. Citizen under new tax regime?

Ans: Hi
There are no specific benefits specified for Senior Citizen under the new tax regime as that is the slab rate available to all without any distinction as regards age.

You would need to compare the tax between the two regimes to validate the best option
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Vivek

Vivek Shah  |55 Answers  |Ask -

Financial Planner - Answered on Feb 06, 2023

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How new tax regime annouced in budget will benefit sr. Citizen?
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.
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Sunil

Sunil Lala  |150 Answers  |Ask -

Financial Planner - Answered on Feb 26, 2024

Asked by Anonymous - Feb 26, 2024Translate
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Dear sir, I am currently 45 and just off from my dependents i.e., my 3 sisters out of which 2 were expecting my help to settle on their life - both my sisters off from their burden to an extent as their son started working and daughters were married to a decent families. I helped them by helping on their studies, marriage of my niece and assisted my nephew to buy a property (provided the advance or initial payment of 4 lacs). I haven't saved anything for my kids yet except a house , some jewellery about 50 sovereign and 1/2 ground land. My sisters and mother doesn't feel complete but I have informed it is not happening because I need to looks at my 2 kids 11 and 6. Besides, my wife is super supportive and never disputes or raised concerns. The ask is I have been working since childhood like 16 so feeling tired at times so I am planning to start my own businesses but still I am feeling jittery as I didn't save much for their studies etc. I am working in ites services so I feel like that I have 5 years max ahead. No politics in the office but I am stuck with no major opportunities. Please guide me on how to put a perspective and lead a clear way ahead as I am totally confused to be honest. Thanks in advance and please write back as this is my second time asking for suggestions.
Ans: It would really be good to answer you but I am confused as what to tell you because you have not mentioned any of your financial goals as such, I may not be of any help to you for your social obligations
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Sunil

Sunil Lala  |150 Answers  |Ask -

Financial Planner - Answered on Feb 26, 2024

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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