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The burden of a lifetime of extended working hours spent at the office is undertaken so that our families can reap the benefits of our hard work. The smiles on their faces is the reward we are given, which motivates us to continue providing for them. However, as we age and the strain of 30 plus years of hard work is felt, any small relief sent our way is greatly appreciated. The recently announced 2018 Budget held good news for senior citizens, providing the expected extra relief.
Amended Deductions for Senior Citizens
- During a person’s golden years, most of the income earned is in the form of the interest from the various savings established, such as post office schemes, FD’s etc. Therefore, the increase in the exemption limit for interest income limit from Rs 10,000 to Rs 50, 000 is well received.
- The health insurance premium and/or medical expenditures deductible was also increased from Rs 30,000 to Rs 50,000 u/s 80D. Additionally, the deductions available under section 80DDB for critical illnesses was increased to Rs 1, 00,000. Both these deductions is available to all senior citizens, whereas before there was distinction in the allowance between senior citizens and super senior citizens (above 80yrs)
- The investment limit for Pradhan Mantri Vaya Vandana Yojana, which provides a return of 8%, by LIC of India (PMVVY) has been increased from Rs 7,50,000 to Rs 15,00,000.
Additionally, the various health schemes the government has introduced, also benefits senior citizens, as they are among the populace that it covers, such as:
- Rashtriya Swasthya Bima Yojana (RSBY) – which at present provides an annual coverage of only Rs. 30,000, which is proposed to be increased to Rs 5,00,000
- National Health Protection Scheme – This scheme provides coverage upto Rs 5,00.000 covers 10 crore poor families, which is approximately 50 crore recipients with primary and secondary care.
The improvements to the schemes/deductions available for senior citizens in the recently announced 2018 Budget, allows senior citizens to rest more peacefully in their golden years. Whether you are currently a senior citizen or want to make wise financial decisions so that your golden years are truly golden, the tax experts at H&R Block India can help you achieve your goals/dreams so that your retirement years make you feel young again with a renewed thirst for life and adventure.