Taxation
Income Tax Rebate (Section 88B of Finance Act, 1992)
This provision provides for rebate of Income Tax to senior citizens. The rebate is available in the case of a resident individual (he may be an ordinary resident or a non-ordinary resident; he may be an Indian citizen or a foreign citizen) who has attained the age of 65 years at any time during the relevant previous year. From the assessment year 1998-99, tax rebate under section 88B shall be:
- the amount of income-tax before giving any rebate under sections 88, 88B and 89(1); or
- Rs 10,000 or 40 per cent, whichever is less.
The rebate will be available from the assessment year 1998-99, even if gross total income is above Rs 120,000.
(Ministry of Finance, Income Tax Act, 1961)
Deduction in respect of medical insurance premia (Sec. 80D)
An assessee is entitled to a deduction up to Rs. 15,000 with effect from the assessment year 2000-01 where the assessee or his/her spouse, or dependent parents or any member of the family is a senior citizen, (i.e. one who is at least 65 years of age at any time during the previous year), and the medical insurance premium is paid to effect or keep in force an insurance in relation to him or her.
(Ministry of Finance, Finance Bill, 1999)
Deduction in respect of medical treatment (Sec. 80DDB)
Section 80DDB has been inserted to provide for a separate deduction to a resident assessee being an individual or a Hindu undivided family member for expenditure incurred for medical treatment for the individual himself or his dependent relative in respect of disease or ailments which may be specified in the rules. The deduction shall be limited to Rs 40,000. However, where the expenditure incurred is in respect of the assessee or his dependent relative or any member of a Hindu undivided family of the assessee and who is a senior citizen (one who is at least 65 years of age at any time during the previous year), a fixed deduction of Rs 60,000 will be available.
(Ministry of Finance, Finance Bill, 1999)