Benefits given to the senior citizens in the budgetIn the budget announcement on 1st February, 2018, the Finance Minister has made some announcements which would benefit the senior citizens of the country. I am mentioning these benefits:-
(a) The senior citizens will also enjoy the benefits of standard deduction of Rs. 40,000/-. The standard deduction has been reintroduced in this budget.
(b) The exemptions of interest income on Bank and Post Office deposits has been increased from Rs. 10,000/- to Rs. 50,000/-.
(c) The limit of investment in Pradhan Mantri Vaya Vandana Yojna has been increased from Rs. 7.5 lakh to Rs. 15 lakh. In this scheme, the senior citizens get an assured return of 8% p.a.
(d) The limit of deduction for health insurance premium and medical expenditure has been increased to Rs. 50,000/- from earlier Rs. 30,000/-. This premium is eligible to get tax benefit under Section 80D.
(e) Critical illness tax deduction for senior citizens has been raised to Rs. 1 lakh. This gets tax benefit under Section 80DDB. Earlier the limit was Rs. 60,000/- for senior citizens and Rs. 80,000/- for very senior citizens above 80 years of age.