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  • Category: Miscellaneous

    Benefits given to the senior citizens in the budget

    In 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.
  • #625479
    It is nice you have put the benefits given to senior citizens for tax payment in one place like S summary. It is good that standard deduction is reintroduced and other exemption in other savings. It will give some relief to the senio citizens. But on the whole the government has disappointed the people without giving any conscience to the tax payers. He might have considered some revision and he might have introduced tax on agricultural income from the people who are having more than 25 acres land or so. That might have brought some equaliser effect. Anyhow something is better than nothing.
    always confident

  • #625494
    Nice to have these benefits for senior citizens. Most senior citizens have FD like an instrument of investment, here the plans to increase investments with an assured return would be useful. The cost of health care has gone up significantly. Often, these people have an illness-related expense, now if they spend money on their health/ hospitalization, at least they can get more tax benefits. Nice compilation by the author of the benefits of the budget to our elders.

  • #625497
    I want to add some information regarding the Pradhan Mantri Vaya Vandana Yojana. The rate of interest on the deposit depends and the purchase price depends on the pension option that is selected.

    LIC offers 8% interest if the individual opts for monthly pension. If the individual chooses to take the accrued sum as an annual payment then LIC is currently offering 8.3% interest.

    The purchase price varies depending on the mode of pension. An individual who chooses to receive annual pension, pays a lesser purchase price than someone who opts for monthly payment.

    "A love affair with knowledge will never end in heartbreak." -Michael Garrett Marino

  • #625502
    It is nice to know that the Modi government cares for the senior citizens. When the households discard the senior citizens for various objections, here is the government which treats the seniors with pride. Most of the senior citizens who are retired and got some good amount during the retirement are keeping the same in banks and post offices for the future use. And now they are going to get further benefits with more interest and that should be blessing for them. Senior citizens are the silent sufferers in this country and the government has thought about them is the right way to give their rights.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #625514
    A good thread giving information of Tax benefit for the senior citizen. In Modi Government, focuses are given those, who are sufferers, such as senior citizens, farmers, dibyangs and people of unorganised sectors.
    Service to mankind is service to God.

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