Union Budget 2020 did not have any new benefits for senior citizens. However, Finance Minister Nirmala Sitharaman announced an allocation of Rs 9,500 crore for senior citizens and Divyang.
Previously, two major announcements were made that impacted their tax savings and health protection. In Budget 2018, the tax exemption limit on interest income earned from bank fixed deposits and post office schemes were raised to Rs 50,000 per annum. Deduction on health insurance premium was also raised to Rs 50,000 in the same year.
Meanwhile, FM announced changes in the Pension Fund Regulatory and Development Authority (PFRDA) Act in Budget 2020. The New Pension Scheme (NPS) Trust for Government employees would be separated from the PFRDA Pension Trust for others.
"Regulating role of PFRDAI requires strengthening. Necessary amendments would be carried out in Pension Fund Regulatory Development Authority of India Act that will also facilitate separation of NPS trust for government employees from PFRDAI. This would also enable establishment of a Pension Trust by the employees other than Government. I am confident that this will motivate citizens to plan for their old age," Sitharaman said.