Exemption on Interest income for Senior Citizens Hiked to Rs 50,000

The finance minister Arun Jaitley has announced a slew of benefits for senior citizens in Budget 2018, including increases in the exemption limit on income from interest and deduction for health insurance premium.

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Announcing a series of benefits for senior citizens, finance minister Arun Jaitley, on February 1, 2018, said the exemption limit on income from interest for them has been raised five times, to Rs 50,000 per year. At the same time, the finance minister raised limit of deduction for health insurance premium and medical expenditure to Rs 50,000, from Rs 30,000 under section 80D.

“All senior citizens will now be able to claim benefit of deduction up to Rs 50,000 per annum, in respect of any health insurance premium and/or any general medical expenditure incurred,” he said while presenting the Budget for 2018-19. Besides, the Budget has increased the limit of deduction for medical expenditure in respect of certain critical illness to Rs one lakh in respect of all senior citizens, under section 80DDB. In addition to tax concessions, I propose to extend the Pradhan Mantri Vaya Vandana Yojana up to March, 2020, under which an assured return of eight per cent is given by Life Insurance Corporation of India,” he said.

The existing limit on investment of Rs 7.5 lakhs per senior citizen under this scheme is also being doubled to Rs 15 lakhs, he added. Noting that a life with dignity is a right of every individual in general, more so for the senior citizens, he said, ‘to care of those who cared for us is one of the highest honours. These concessions will give extra tax benefit of Rs 4,000 crores to senior citizens’.

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