Home Discover Journals Tax Benefits for Senior Citizens – Budget 2019

Tax Benefits for Senior Citizens – Budget 2019

By Finserv MARKETS - Mar 28,2019
Views Icon269 Views 0 0 Comments

Tax Benefits for Senior Citizens - Budget 2019

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.

“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”

Comments

Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522