Budget 2025: Everyone’s eyes are already on the budget to be presented in February 2025. Meanwhile, there is a focus on whether senior citizens will get some relief in income tax in Union Budget 2025? As the budget is getting close to 2025-26, questions and speculation about possible tax relief measures for senior citizens have started.
Recently, Lok Sabha MP Etala Rajendra questioned the Finance Ministry whether the government is making any such plan to change tax, which should offer tax rebate to senior cities with annual income up to Rs 7.5 lakh. Also, implement 5% income tax on senior cities with income between Rs 7.5 lakh and Rs 10 lakh? In the question, it was not clarified whether the tax relief that is being asked is associated with the old tax system or the new tax system.
Apart from the tax rebate, Querry was also to increase the existing deduction limit from Rs 1.5 lakh to Rs 3 lakh for investment in National Savings Certificate (NSC) for senior citizens.
What was the government’s answer on questions
Responding to these questions, Union Minister of State for Finance Pankaj Chaudhary said that every year the Finance Ministry gets several proposals to amend the Income Tax Act, 1961 as part of the budget process. The Ministry discusses such proposals. The minister clarified the questions asked about the tax release to the senior citizens that no such proposal is being considered in the present.
Senior citizens i.e. people over 60 years of age have zero tax on annual taxable income of up to Rs 3 lakh under the old income tax system. The income tax rate is 5 percent when the taxable income is between 3,00,001-5,00,000. In the new income tax system, there is tax on taxable income of up to Rs 3 lakh for senior citizens. If taxable income is between Rs 3,00,001-6,00,000, 5 percent tax will have to be paid.