BANKING AFFAIRS

Detailed explanation-1: -A Super Senior Citizen is an individual resident who is 80 years or above, at any time during the previous year. Note: Section 194P of the Income Tax Act, 1961 provides conditions for exempting Senior Citizens from filing income tax returns aged 75 years and above.

Detailed explanation-2: -Income tax exemption limit is up to Rs. 5, 00, 000 for super senior citizen aged above 80 years. An additional 4% Health & education cess will be applicable on the tax amount calculated as above. 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

Detailed explanation-3: -It provides a deduction to an individual who has paid or deposited an amount in any annuity plan of an insurer for receiving a pension (income) from a fund set up by an insurer. Deduction of premium paid during the year can be claimed as deduction from taxable income.

Detailed explanation-4: -Under Section 80C of the Income Tax Act, bank fixed deposits with a 5-year tenure are eligible for tax benefits. While interest income earned from fixed deposits, interest income earned up to Rs. 50, 000 is tax exempt for only senior citizens.