Budget 2018 has a slew of benefits for senior citizens. Here is a list.
1: The Pradhan Mantri Vaya Vandhana Yojana offering 8% return has been extended up to March 2020. Senior citizens can invest up to 15 lakhs now in this. A good option for those in 0%, 10% tax slabs. or those who do not have enough corpus to fight inflation.
2: Section 80D benefits now increased to 50,000 for senior and very senior citizens.
3: 80DDB: deduction for medical treatment of critical illnesses, the limit is now one lakh for both senior and very senior citizens.
4: A Rs. 50,000 interest income deduction in income for senior citizens holding deposits
(a) a banking company to which the Banking Regulation Act, 1949, applies (including any bank
or banking institution referred to in section 51 of that Act);
(b) a co-operative society engaged in carrying on the business of banking (including a co-operative
land mortgage bank or a co-operative land development bank); or
(c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898,
That is all FDs and RDs. However, those who avail this deduction cannot avail section 80TTA deduction of Rs. 10,000 from SB account interest income.
5: The TDS threshold for deposits will now be Rs. 50,000.
6: Standard deduction of Rs. 40,000 will apply to taxable income of senior citizens also.
Impressions: These are fantastic benefits for senior citizens in the lower income group. I hope the mis-buying from mutual funds will decrease as a result.
Reference: Budget 2018-2019 memorandum
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