In India, those who are 60 years of age or older must meet special tax filing criteria. Here's what you need to know:
- Basic Exemption Limit: The basic exemption limit for senior citizens is higher than that for individuals below 60 years. Senior citizens are eligible for a basic exemption up to Rs 3 lakh for the fiscal year 2022–2023.
- Filing Requirement: Senior citizens who are beyond the basic exemption level on their income must file an income tax return. This includes income from all sources such as pension, interest, rental income, or capital gains.
- Form for Filing: Senior citizens can use Form ITR-1 (Sahaj) or Form ITR-2 to file their income tax return, depending on the complexity of their income sources.
Tax Filing Requirements for Minors
Minors, individuals below the age of 18, also have tax filing obligations in certain situations. Here's what you need to know:
- Basic Exemption Limit: Minors are eligible for the same basic exemption limit as individuals below 60 years, which is Rs 2.5 lakh for the financial year 2022-23.
- Filing Requirement: If a minor's income exceeds the standard exemption amount and they fall into any of the following criteria, they must file an income tax return:
- Income from manual work or specific professions: If a minor earns income from manual work or is engaged in a profession that requires specialized skills, they are required to file an income tax return, irrespective of the income amount.
- Income from assets: If a minor receives income from assets such as property, investments, or deposits, which exceeds the basic exemption limit, they must file an income tax return.
- Form for Filing: Minors can use Form ITR-1 (Sahaj) or Form ITR-2, depending on the complexity of their income sources.
It's crucial to understand the tax filing requirements for different demographic groups. Senior citizens are required to file income tax returns if their total income exceeds the basic exemption limit of Rs 3 lakh, while minors must file if their income exceeds Rs 2.5 lakh and falls under specific categories.
Look up more articles here for a smooth first time tax-filing process. All the best!
