Relief to Senior Citizens in Budget
Exemption of interest income on deposits with banks and post offices to be increased from Rs. 10,000 to Rs. 50,000.
TDS not required to be deducted under section 194A. Benefit also 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.
Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020. Current investment limit proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.
The increase in tax exemption limit for interest income for senior citizens will be a big relief as this category derives most of its income from bank FDs and post office schemes.
The increase in tax breaks for insurance and medical expenditure is also beneficial.
Currently, the interest earned on a savings account, whether held with a bank (nationalised or co-operative) or post office, is allowed as deduction for a maximum of up to Rs 10,000 a year under section 80TTA. Section 80TTA of the Income-tax Act was introduced for the first time in the financial year 2013-14.
There had been expectations that the budget would increase the deduction limit under section 80TTA or expand the scope to include interest from bank fixed deposits under its ambit. more
TDS not required to be deducted under section 194A. Benefit also 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.
Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020. Current investment limit proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.
The increase in tax exemption limit for interest income for senior citizens will be a big relief as this category derives most of its income from bank FDs and post office schemes.
The increase in tax breaks for insurance and medical expenditure is also beneficial.
Currently, the interest earned on a savings account, whether held with a bank (nationalised or co-operative) or post office, is allowed as deduction for a maximum of up to Rs 10,000 a year under section 80TTA. Section 80TTA of the Income-tax Act was introduced for the first time in the financial year 2013-14.
There had been expectations that the budget would increase the deduction limit under section 80TTA or expand the scope to include interest from bank fixed deposits under its ambit. more
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The tax on Fixed deposits with other prominent finance companies remain unchanged and fixed deposits in Post offices and banks are only increased from 10000/-Rs. to 50000/-Rs. Either we need to give 15 h or it will be taxed. How many persons will have only Bank accounts as the maximum interest in Banks is 8% whereas the private Finance companies offer cumulative 9% . There is no exemption for interest from Finance companies. Is it justified please? more
Feb 02
There is no relief from finance companies. Bank FDRs ; recurring deposits are included. POst offices are also covered.
Please note section 80TTA is no more applicable and we need to use new section 80TTB to claim upto Rs 50000. more
Please note section 80TTA is no more applicable and we need to use new section 80TTB to claim upto Rs 50000. more
Feb 03
Sr. Citizen who has his Pensionary Income and has to run his life i.e. minimum expenses of both wife n himself in the age of Higher standard Staying with huge expenses of Doctor, Pathalogical Lab and Medicine followed by higher Transportaion Charges (Taxi) This expenses thinks that one should not Leave. Neighther Govt. nor Near Bye Relatives has time to take care of Sr. Citizen. In this Budget we are expecting some betterment but all the Govt. people wont think of us. more
Feb 02
Basically we Indian has no proper social policies and hence non of the Government will bother to provide better benefit to a common man. In this budget or any budget before Government is minting money from Retired persons's money too. There should be some limit. If Government like BJP is really honest, check the short term earned wealth of their finance minister or ask another BJP member Mr. Kirti Azad about Finance minster's wealth. Are their income taxed ( Not only BJP but all other parties too.) Everyone is eating the butter from dead bodies head of common man. IT limit should be Rs. 350000/- and for women it should be 400000/- under exemption plus saving upto 2 lacs the tax should be exempted. Another amendment is must immediately. The amendment is required in the case of Housing loan borrowed by consumer and still he is waiting for possession, but not getting tax saving benefit. What is common man's fault? Why Government is not making any strong law to prevent such culprits who are harassing consumers in various areas. There are lacs of people who are crying for possession and they are paying EMI against loan, but no benefit at all. This is India, no one's land but land of corrupt people including polyticians. more
Feb 02
For Senior Citizens no TDS under section 194A but what about the Tax on the income on which TDS has been exemption. How that income would be taxed? Would the Standard deduction applicable on Pension? more
Feb 02
I think yes. That is what he said during the speech. What exactly is written in the fine print someone may confirm. more
Feb 02
Interest on Senior Citizen Savings Scheme should have increased and kept at 9.3%. We have to live with a small pension and interest earned on our old investments, when cost of living is increasing at very high rate, more
Feb 02
