Benjamin Franklin, a founding father of the USA and whose face appears on the One Hundred dollar note once said that, in this world nothing is certain but death and taxes. We all know that taxes can be a pain in the toe. Fortunately, with the recent changes in tax laws, being a senior citizen brings with it the much-needed break from taxes. Forget the high market demand for anti-aging treatment, which seems to convince us that growing old has grown out of style. That may apply to a Fashionista but to a regular taxpayer, being a senior citizen brings a torrent of tax benefits from the government.
Under the tax laws, a senior citizen is defined as a person aged 60 to 80 years during a financial year. This person can save up cash thanks to the new advanced tax exemption laws.
Advance Tax Exemption
If you fall under the senior citizen’s category, and not running any form of income generating business, then the new advanced tax exemption law gives you a reason to smile. The new legislation proposes that, senior citizens without any source of income from business are exempted from paying advance taxes.
Advances taxes are usually paid in a lump sum in case tax is not deducted at source, salary, or from earning that attract a high level of taxation. Advance tax is to be paid on three set dates every financial year. These dates are 15th
September whereby at least 30 % of tax must be paid based on the total income for the financial year, 15th
December where 60% is paid for income generation for the year minus any advance tax you have already paid, and 15th
March when a 100% tax in total income for the year minus any advance tax paid. The amount that remains must be settled by the time you file your taxes.
Fortunately, senior citizens no longer have to put up with the hectic calculation on processes involved in paying advance tax. However, they are required to pay the Self Assessment Tax by the time they file their tax returns for the year.