Growth at the Cost of Seniors
A letter written by Mr. Manoj Das of Bangaluru published in The Economic Times (Mumbai) of May 02 2016 is reproduced below as it is very relevant to plight of Senior Citizens. I agree with the issues raised.
"When senior citizens constitute about 12% of Indian population, the government's frenzy to drive growth by lowering bank interest level drastically will see a major portion of seniors finding living to be the biggest challenge. The majority of seniors live life based on interest income from small savings and banks. The interest level has fallen 20% in the last year and it is feared that it may go down another 10-15% in the next one year, making seniors' lives more miserable.
Don't miss the contradiction: more than one crore seniors as ex-government employees continue to get pension that goes up and up every year, and the rest of the seniors suffer erosion of their income year after year to menacing levels.One wonders how growth of a nation can be heralded at the cost of lives of such huge a number of citizens. How much has the government to forego to prevent such erosion in income? I urge our Prime Minister to seriously consider ways and means to bring smiles to the faces of senior citizens." more
"When senior citizens constitute about 12% of Indian population, the government's frenzy to drive growth by lowering bank interest level drastically will see a major portion of seniors finding living to be the biggest challenge. The majority of seniors live life based on interest income from small savings and banks. The interest level has fallen 20% in the last year and it is feared that it may go down another 10-15% in the next one year, making seniors' lives more miserable.
Don't miss the contradiction: more than one crore seniors as ex-government employees continue to get pension that goes up and up every year, and the rest of the seniors suffer erosion of their income year after year to menacing levels.One wonders how growth of a nation can be heralded at the cost of lives of such huge a number of citizens. How much has the government to forego to prevent such erosion in income? I urge our Prime Minister to seriously consider ways and means to bring smiles to the faces of senior citizens." more
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Doner Should Deduduct at the Source and pay to Income Tax Department, and Produce Individual Statement not latter than Tree Months of Accesment Year ( March End - September End ) more
Jul 08
To Safeguard the Interests of senior Citizens , the Pension may be made Tax Free & Interest on their Investment may be Taxed at higher limits to prevent Erosion of the Livelihood of Senior Citizens depending Solely on Pension &/or Interest Income. more
May 05
The average age of an Indian Male is 65 and retirement age is 60. Presently, the infrastructure organizations issue tax free or taxable bonds for 10 and 15 years duration, which are listed on stock exchanges. If one subscribe to such bonds one can lock the investment at given interest rate for 10 to 15 years. Similarly, one can invest in Government of India 10 or 15 years bond at fixed interest rate and lock his investment. Any reduction in interest rates gives appreciation of bond value and one can take advantage of reducing interest rate environment. If one is taking the risk of investing in short term deposits to get opportunities for higher interest rates in future, one must be prepared for declining interest rate environment. The Government cannot be giving subsidies in the form of higher interest rates. Interest rates have to be driven by the demand and supply of money and senior citizen has to maintain a balance portfolio to optimize his returns. more
May 05
