Winning Bizness Desk

MMumbai. Senior citizens have paid income tax of more than one lakh crore rupees in the financial year 2022-23 and this is 35.5% more than last time. In 2021-22, there was an increase of only 5% in the tax collection of senior citizens. Compared to 2019-20 i.e. the year before Corona, this time the contribution of senior citizens in income tax collection is more than 61%. Income tax collection in 2022-23 was 17% more than estimated. Individual taxpayers accounted for 24% of the income tax collection of Rs 16.61 lakh crore. Regarding this, experts say that due to the change in dividend tax after 2020, many investors had to pay tax this year. The returns on FD have been very low in the past years. That's why senior citizens took out money from banks and invested it in the stock market and mutual funds.

Taxpayers increased by 18.6%

This money was invested when the value of shares was very low due to Covid-19. Later there was a huge boom in the stock market. Capital gains tax was deposited by investors who booked profits at higher prices. Its effect was also seen in the tax collection. The number of taxpayer senior citizens also increased by 18.6% from 73.1 lakh to 86.71 lakh during the financial year 2022-23.

What are the reasons?

Retired soldiers got arrears of about 57 thousand crore rupees under One Rank-One Pension. The increase in capital gains and dividend tax and the rise in the stock market were also major reasons. Apart from this, income taxpayers have got a new tax regime. For those opting for the new tax system, the rebate limit has been increased to Rs 7 lakh. Earlier it was Rs 5 lakh. Another relief has been given to the salaried class in the budget. Standard deduction of Rs 50,000 has also been included in the new tax system. That is, there will be no tax on salary up to Rs 7.5 lakh. The tax rates in the old tax regime will remain the same as before.

Who are the senior citizens

Senior citizens are those individuals who belong to the age groups of 60 years and above, but below 80 years. Super senior citizens belong to the age group of 80 years and above. Exemptions and benefits offered to this group of taxpayers, under the existing Income Tax laws, have been designed to provide more relief considering their lower earning capacity and higher medical expenses. The income tax benefits for senior citizens and super senior citizens for the financial year 2023-24 are quite similar, with the main difference being the higher basic exemption limit.