Finance Minister Nirmala Sitharaman is expected to give a big boost to the elderlies of India in their retirement days. From ITR filing, and health insurance to train fares, the Budget 2024 is expected to drive senior citizens investment schemes, cost of living, and increase security. The Budget 2024 is expected to be announced in the third week of July with major bonanzas for senior citizens.
1. Threshold For Mediclaim:
It is expected that FM could double the amount of deduction of Mediclaim premium to Rs 1 lakh. Currently, the deduction benefit is up to Rs 50,000 on Mediclaim premiums by senior citizens.
Suresh Surana, a practising chartered account told Economic Times that senior citizens can expect the threshold limit to be increased to Rs 1 lakh.
2. Bring Back Discounts In Train Fares:
Expectations have circulated that the government could bring back the discounts in train fares for senior citizens which were discontinued in March 2020 by Indian Railways.
Earlier, the Railways scrapped the 50% discount benefit for female senior citizens and a 40% discount for males on train fares. Since March 2020, senior citizens have been paying full fares on their train journeys.
3. Deduction in Rent:
As per the ET report, Neeraj Agarwala, partner at Nangia Andersen India said that senior citizens who do not earn should be provided with a gross deduction for rent. The move is likely to address the rising cost of living issue and help the elderly with a sense of security.
4. Revision in the lock-in period on schemes under section 80C:
Currently, the tax benefit of Rs 1.50 lakh under section 80C of the Income Tax Act is available on various investment schemes including fixed deposits by PSU banks or post offices, NSC, and equity-linked savings schemes (ELSS) among others. However, the tax exemption is subject to specified lock-in periods which are 3 years for ELSS, and 5 years for NSC and FDs.
A reduction in the lock-in period to avail of tax benefits under section 80C is likely to boost liquid cash for senior citizens.
5. Age Limit For Filing ITR:
At present, senior citizens who have obtained 75 years of age, are exempted from filing income tax returns under the section 194P of the Income Tax Act. However, there are expectations of lowering this age limit to 60 years.
6. Tax Benefits In Passive Income:
There are many sources of income apart from being salaried individuals for senior citizens these are passive incomes and are generated from sources like rent, interest from savings accounts, fixed deposits and bonds.
As per reports, expectations of higher tax deductions or lower tax rates on these income from sources are expected for senior citizens.
7. Free Health Insurance:
As per a Mint report, the Union government is likely exploring various models to extend the benefits of the world's largest health insurance scheme to senior citizens.
The report stated that the government is looking to increase in the number of Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) beneficiaries. This health insurance scheme offers Rs 5 lakh per family for secondary and tertiary care.
The upcoming Budget 2024 will be full-fledged after PM Modi's government victory for the third election in a row. Finance Minister Nirmala Sitharaman will present her seventh Budget.
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