Tax Benefits for Senior Citizens in India

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    Senior Express
    February 22, 2018 at 12:25 pm #26921

    Sharing an informative article on “Income Tax Benefits for Senior Citizens in India”, which is written and shared by our contributor Mr. Govind R. Sharma, who is a Chartered Accountant by profession and has a work experience of more than 10 years. He has mainly worked in Automobile Industry like Ford, GM, Maruti, where he has looked after their overall business and statutory compliance.  Currently he is working on ERP development for various business industries and doing his own consultancy work.

     


     

    income tax benefits

    In every human society, the elders or the senior citizens are given the pride of place. These individuals have spent a lifetime working, creating life and chiseling paths in the roughest terrains for the ease of the generations that are to follow them. And, the collective society hasn’t forgotten these contributions- honoring its elders with many facilities and considerations that are tasked to make the lives of our older generation better.

    In Budget 2018 speech, the Finance Minister Mr. Arun Jaitley recognized the fact that caring for those who have cared for us is one of the “highest honors”. In keeping with this sentiment, the Budget 2018 revealed increased benefits for the senior citizen of the country. It is safe to say that the one section of the country that has the most to cheer for after the Annual Budget is those aged 60 years and above. And why not, the Budget has clearly upheld their right to a life with dignity and stability and given them additional means to achieve the same. The onus is on the government to create relevant policies for this section of society, and it could be argued that the changes made by the recent budget are the first step towards a better, elder-friendly India.

    Various benefits for senior citizens of India from Income Tax (Ministry Of Finance) are:

    • Income of up to Rs 3 lakh is non-taxable for senior citizen above 60 years but less than 80 years.
    • For super senior citizens (over 80 year of age), income of up to Rs 5 lakh is non-taxable.
    • Section 80TTB: Income earned from interest on bank savings deposits, fixed/recurring deposit schemes and deposits in post office will be exempted from income tax up to Rs. 50,000. (w.e.f. 01st April 2018)
    • Section 80D: Health insurance premium payment under this section exempted up to Rs 50000/- (w.e.f. 01st April 2018)
    • Section 80DDB: Exemption limit for medical expenditure (specific critical illnesses) incurred due to critical illnesses like cancer, motor neuron disease, AIDS etc. for all senior citizens, to Rs. 1,00,000/- (w.e.f. 01st April 2018)
    • The FM has also proposed to increase the annuity-cum-insurance plan ‘Vaya Vandana Yojana’ by two years and upped the investment ceiling to Rs. 15 lakhs – double the current limit.
    • Attractive Rate of interest on Senior Citizen Saving Scheme, also higher rate of interest on fixed deposit / term deposit offered by various banks.

    Further there are various schemes & benefits available for Senior Citizens under various other Govt Dept. like Ministry of road transport, Ministry of Railways, Ministry of Aviation etc.


    If you need any further information on this topic, you can contact Mr. Sharma at Cagovin@gmail.com

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