Senior citizens are now being provided a status at par with other class and in a recent monetary policy review meet of the RBI, the bank even weighed on the premise of providing them with doorstep banking services to lessen their trouble.
And from this year's budget which Prime Minister Narendra Modi declined to come as a populist budget in his recent meet on Sunday, senior citizen class has also expectations of some sops. However, the indication from the Modi govt cannot be ignored and it remains a wait and watch move until the final Union Budget 2018 is announced on February 1, 2018.
Expectations of likely sops and freebies are making noise from all around and senior citizens are no exception who invest in advance to get a steady income in their sunset years mostly in safe financial instruments such as the likes of bank FDs, Post office schemes.
Here are some of the major expectations of the Senior citizen class
1. Extension of 80TTA deduction which provides interest amount exemption upto Rs. 10000 on bank savings account interest to Bank term deposits
Currently deduction on interest amount of upto Rs. 10000 is allowed for all taxpayers irresepective of whether they fall in the senior citizens category or not. But the elderly class who primarily invest in conventional instruments have been hit hard by the recent fall in interest on these safe bets and to counter it the govt in the upcoming Union Budget 2018 is being sought to provide tax exemption on interest earned on Bank FDs as well at par with savings account.
2. Scope of Section 80 C be enhanced: The 80C limit which provides for deduction upto Rs. 1.5 lakh on certain investment like insurance and other expenses such as tuition etc we further increased in scope to include less riskier mutual fund schemes.
3. Limit of deduction u/s 80D and 80DDB be revised higher: Also, given the current inflation numbers, section 80D and section 80DDB offering relief upto Rs. 30000 and Rs. 60000 or actual expense per senior citizen on an annual basis for medical insurance and medical expenses be increased further.
4. TDS deduction on SCSS in respect of interest income be increased upwards of Rs. 10000: Instead of the current practise where the SCSS also attract deduction of TDS on interest income over Rs.10000, the limit is expected to be further increased and the provision of interest payment from quarterly payment be changed to monthly payment stream to provide more liquidity to senior citizens.