Did you know? Pensioners are entitled to double exemption on Income Tax

There are some specific groups that do not need to declare the income tax amount every year. Overall, the INSS proposes that seniors over 65 have an extra limit available to evade the declaration, which in this case is a double limit. In this case, instead of just the limit of BRL 1,903.98 per month equivalent to taxable income, there is exemption in amounts from BRL 3,807.96. Learn more about the criteria for income tax exemption for retirees.

Read more: Income Tax Exemption: Check the diseases that are provided for in this condition.

Double exemption is not full exemption

Many people confuse the double exemption with the concept of total exemption, but it is important to know how to separate the two cases. In summary, retirees with specific illnesses receive total exemption and therefore receive sickness benefit. In the case of retirees over 65, the exemption is on the amount received, so it is double, but partial.

Therefore, all income remaining after the double allowance must count as taxable income. In fact, the same applies to those who have a private pension, or who are retired by the state or municipality. It also applies to people who have been transferred to a paid reserve, or in case of retirement from the month in which they turn 65.

How to apply for double exemption from Income Tax?

When filling out the Income Tax return, where there is an “Exempt and non-taxable income” form, inform the exempt portion of retirement or pension. This item will be present on line 10. There will be written "Exempt portion of retirement income, remunerated reserve, retirement and pension to declare aged 65 years or more".

So, just fill in the requested data to inform if you are the holder of the declaration or a dependent. All data concerning the income of the holder of the declaration must also be informed. In addition, the amount referring to the 13th salary of the year referring to the declaration must also be informed.