As per the Income Tax Act, 1961 qualifying age limit of senior citizen is 65 years means a person who is 65 years or more at any time during the previous year will be treated as senior citizen under income tax act.  But, from the next year, you will be in the list of senior citizens, if your age is 60 years.

In Budget 2011 the qualifying age limit of senior citizen is reduced to 60 years from 65 years. Apart from decrease in qualifying age from 65years to 60years, the exemption limit for senior citizen is increased from Rs.2,40,000/- to Rs. 2,50,000/-. The proposed change is applicable from financial year 2011-2012 (Assessment year 2012-2013).

Moreover, one more benefit from the budget is the introduction of new tax category of people known as “very senior citizen”. People having the age of 80 years or more are covered under this category and the exemption limit for such category is Rs. 5,00,000/-. The proposed change is applicable from financial year 2011-2012 (Assessment year 2012-2013).

These long awaited amendments will be waiting for you in next return filing season. So file your returns for the Financial Year 2010-2011, and move forward to the very category of senior citizen at the age of 60.

Tax Returns for Financial Year 2010 -11 (March 2011) has started. Request you to please visit Taxmantra.com or mail us Form16/ Salary Certificate and details of other income, at info@taxmantra.com . We would take it from there to file your return of income.

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Taxmantra.com- Providing Complete Online Tax Solutions for Individuals, Not Just Returns.