Finance Minister, Arun Jaitley in his maiden budget 2014 announced a host of schemes for the senior citizens of India. Let us see how the budget this year has benefitted the senior citizens.
Income tax limit raised to Rs. 3 lakh
Tax benefit limit for senior citizens has been raised by Rs 50,000 to Rs. 3 lakh from previous limit of Rs. 2.5 lakh. So, senior citizens will now pay income tax, if the amount of their income exceeds Rs 3 lakh.
Minimum Pension Scheme announced to benefit the senior citizens.
A minimum pension of Rs. 1000 in EPS 95 scheme under the Employees' Provident fund Organisation (EPFO) was announced. This will benefit 28 lakh pensioner who get less than this amount at present.
LIC's Varishtha Pension Bima Yojana has been revived
The old age pension scheme Varishtha Pension Bima Yojana has been revived till August 14, 2015. The scheme will provide annual interest return of 9 per cent.
Committee for Unclaimed Amounts in PPF and Post office saving schemes.
Finance Minister proposed a committee for "unclaimed amounts" in PPF and Post office saving scheme to be utilised especially for the benefit of the senior citizens.
One-Rank-One Pension for ex-servicemen
It was announced in the budget that funds will be provided for one-rank-one-pension for defence personnel. The government announced to transfer Rs. 500 crore to the defence pension to close the pension gap of all retirees of all ranks.
Set up two National institute of Ageing
Two National Institutes of Ageing was proposed to set up for senior citizens. One is to be set up at AIIMS (Delhi) and the other at Madras Medical College.