While the Indian middle-class is happy with the recent budget, there were no specific tax benefits mentioned for senior citizens. This is rather unfortunate as many senior citizens in India desperately need certain benefits to live comfortably. However, all is not bleak as there were certain introductions that could indirectly benefit senior citizens. One of them is the full tax rebate offered to individuals earning up to Rs.5 Lakh per annum.
This will greatly benefit both senior citizens and super senior citizens who don’t have a fixed income or are living off pension. This was recently announced by Piyush Goyal – the acting finance minister. He pointed out that the deductions on senior citizens’ medical expenses can be used to bring the taxable income below the threshold of Rs. 5 Lakh.
According to Mr. Goyal, two income categories of TDS threshold should be raised so that it could potentially benefit senior citizens. He has proposed increasing the TDS threshold on interest derived from post office and bank deposits from Rs. 10,000 to Rs. 40,000. The finance minister also suggested increasing the TDS threshold for income earned from rent from the current Rs.1.8 Lakh to Rs.2.4 Lakh per annum. He has also proposed the exemption of income tax on notional rent on a second self-occupied house.
This will be beneficial for people who for a number of reasons are compelled to maintain two different houses, especially for the care of their parents. While this may not benefit all senior citizens, it could certainly reduce the tax burden on many Indian citizens over the age of 60 or their family members.
Standard deductions were recently increased from Rs. 40,000 to Rs.50,000. This should also help senior citizens in a number of ways. He also further proposed certain reforms in the pension scheme. There are many Unit Linked Insurance Plans in India which could greatly benefit the senior citizens of our country. Let’s take a look at some of the ULIP benefits for senior citizens:
- There are many unit linked insurance plans designed for senior citizens that will take care of their needs after retirement.
- By applying early, you can avail monetary benefits which will be a huge surplus after you hang up your boots.
- The financial benefits obtained from such plans can provide for medical emergencies.
- ULIPs are very flexible and transparent.
Now that you’re aware of the various benefits, you can buy a ULIP on Finserv MARKETS, which you think suits your goals the best.
Not just tax benefits, high ulip returns is another reason why you should consider investing in such a plan.
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