Later this month, when Finance Minister Nirmala Sitharaman rises to present the full budget for FY25, one of the most vulnerable segments of Indians – senior citizens – would certainly expect a few benefits and relaxations from her. Squeezed between rising inflation and increased medical costs, the senior citizens are an unfortunate lot with no regular income other than interest income for a small section of the population.
Here is a list of what the elders in our society could expect from the budget later in the month.
Budget expectations of senior citizens
The insurance sector regulator has said that effective April 1, 2024, there would be no age ceiling on buying health insurance policies. It has come as a relief for many senior citizens. However, all insurance companies have also substantially raised the amount of premiums this year.
The finance minister could offer a higher deduction limit for health policy premiums for elders, especially since the current limit of Rs 50,000 a year has not been raised for a few years.
In fact, the government can easily double it to Rs 1 lakh for those above 60 years.
Exemption on capital gains tax
Returns from their savings are perhaps the only source of income for almost all senior citizens.
To improve the condition of this vulnerable section the government can increase the limit of exemption from long-term capital gains tax (or LTCG) on shares and mutual funds. This limit, applicable to both equity and equity schemes is Rs 1 lakh.
An exception can be made for senior citizens and can be easily set at Rs 2 lakh to put some extra cash in their hands.
Section 80C: Lowering lock-in period
Section 80C of the Income Tax Act 1961 lays down the lock-in periods for tax deduction in FD (Fixed Deposits), NSC (National Savings Certificates) and ELSS (equity-linked savings schemes). The lock-in periods for FD and NSC is 5 years while that for ELSS is 3.
The government could bring down this lock-in period for those above 60 years, because they might need cash on an emergency basis for treatment. Increasing liquidity for these instruments can help them a great deal.
For those living on rent
Those who live on rent would be greatly benefitted if tax benefits are declared on the rent. This benefit could be given to those who do not get a pension from the government.
This would go a long way in ameliorating the stress of a large number of elders in our country.
Budget 2024 expectations: Physically infirm and often with no regular income, the senior citizens are a particularly vulnerable lot. What benefits could the Finance Minister deliver in this year’s budget? Business Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
