**Policy Summary: Tax Relief to Senior Citizens (Lok Sabha Starred Question No. 345)**
On August 18, 2025, the Ministry of Finance addressed Lok Sabha Starred Question No. 345 concerning tax relief for senior citizens aged 70 and above. The question inquired about plans to enhance income tax exemption ceilings to Rs. 25 lakhs for this demographic.
The Finance Minister, Smt. Nirmala Sitharaman, stated that there is no plan under consideration to increase the income tax exemption ceiling to Rs. 25 lakhs for senior citizens aged 70 and above. The government's policy is to reduce tax rates while removing exemptions and deductions. A new tax regime with liberal slabs, lower rates, and higher rebates has been implemented, effective from the previous year starting April 1, 2025. Decisions regarding tax rates and relief are determined during the regular budgetary process and reflected in the respective Finance Act.
The income tax collected from senior citizens above 70 years for the last five assessment years is as follows:
* A.Y. 2020-21: Rs. 25,969.63 Crores
* A.Y. 2021-22: Rs. 28,090.77 Crores
* A.Y. 2022-23: Rs. 39,537.42 Crores
* A.Y. 2023-24: Rs. 48,152.79 Crores
* A.Y. 2024-25: Rs. 61,624.23 Crores
Key Entities Referenced
Ministry of Finance: A ministry of the Government of India responsible for financial matters.
Department of Revenue: A department under the Ministry of Finance responsible for taxation.
Lok Sabha: The lower house of the Parliament of India.
Shri T R Baalu: A member of parliament who raised a question regarding tax relief for senior citizens.
Nirmala Sitharaman: The Finance Minister who provided the answer to the question raised in the Lok Sabha.
Incometax Act, 1961: The primary legislation governing income tax in India.
Finance Act: An act passed annually to give effect to the financial proposals of the Government of India.
2020-21: Assessment Year for income tax collection.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
STARRED QUESTION NO. *345
TO BE ANSWERED ON MONDAY, AUGUST 18, 2025/SRAVANA 27, 1947 (SAKA)
TAX RELIEF TO SENIOR CITIZENS
*345. Shri T R Baalu:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has any plans to grant further tax reliefs to the senior citizens of
age 70 and above by enhancing the income-tax exemptions ceiling to Rs. 25 lakhs;
(b) if so, the details thereof and if not, the reasons therefor; and
(c) the details of income-tax collected from senior citizens above 70 years during the last five
years?
ANSWER
THE FINANCE MINISTER
(SMT. NIRMALA SITHARAMAN)
(a) to (c): A statement is laid on the Table of the House.
*****Statement referred in reply to parts (a) to (c) of Lok Sabha Starred Question No. *345 to
be answered on 18.08.2025 regarding Tax Relief to Senior Citizens by Shri T R Baalu:
(a) No. There is no such plan under consideration at present.
(b) Under the Income-tax Act, 1961, a number of reliefs have already been provided to the
senior citizens. It is the stated policy of the Government to reduce the tax rates while removing
exemptions and deductions. Accordingly, new tax regime with liberal slabs, lower rates and
higher rebates has been put in place effective from previous year starting from 1.4.2025.
Further, any matter relating to tax rates or relief is decided during regular budgetary exercise
and outcome of same is reflected in the respective Finance Act.
(c) The details of income-tax collected from senior citizens above 70 years during the last five
years are as under:
Sl. No. Assessment Year (A.Y.) Tax Collected (in Rs. Crores)
1. 2020-21 25,969.63
2. 2021-22 28,090.77
3. 2022-23 39,537.42
4. 2023-24 48,152.79
5. 2024-25 61,624.23
******