Budget 2018-2019 Major Benefits to Senior Citizens!

Published: February 1, 2018 at 2:22 pm

Last Updated on

Budget 2018 has a slew of benefits for senior citizens. Here is a list.

Also see: Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10% – Implications

New: Long Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019)

UPDATE: Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1

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,

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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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5 Comments

  1. Dear Sir, Your article says

    “6: Standard deduction of Rs. 40,000 will apply to taxable income of senior citizens also.”

    I am a Senior Citizen but I am not pensioner. My income is entirely from my FDs, Mutual Funds, Equities.and rental income from property. Will this standard deduction of Rs.40,000/- be applicable to me also?

    Many thanks in advance.
    Regards.

  2. Dear Sir,
    May I request you and some other reader to just help me by answering my above question?
    I have repeated the same below. Thanks so much in advance.Regards.

    Your article says

    “6: Standard deduction of Rs. 40,000 will apply to taxable income of senior citizens also.”

    I am a Senior Citizen but I am not pensioner. My income is entirely from my FDs, Mutual Funds, Equities.and rental income from property. Will this standard deduction of Rs.40,000/- be applicable to me also?

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