Finance Minister Arun Jaitley on Thursday proposed several tax benefits for senior citizens of the country in the Union Budget proposals for 2018-19.
Here is how senior citizens will be affected:
- Exemption of interest income on deposits with banks and post offices is proposed to be increased from Rs. 10,000 to Rs. 50,000.
- TDS shall not be required to be deducted under section 194A. Benefit will also be available for interest from all fixed deposit schemes and recurring deposit schemes.
- Hike in deduction limit for health insurance premium and/or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D.
- Increase in deduction limit for medical expenditure for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB. Concessions will give extra tax benefit of Rs. 4,000 crore to senior citizen.
- It is also proposed to extend the Pradhan Mantri Vaya Vandana Yojana up to March, 2020. The current investment limit is also proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.
- Standard dedcution of Rs 40,000 for pensioners.
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