This budget 2018 gave cheers to the senior citizen who is in the higher bracket and earns major of their return from the Fixed deposit and savings account interest returns. This was necessary as the returns from the banks are minimal and if this is also taxed with TDS deduction then in hand will be very less to sustain everyday expense. And with ever-increasing medical cost along with medical premium was being unsustainable or unreachable to get the health benefit.Some of the major benefits are highlighted below for Senior Citizens and Super-Senior Citizens.
80TTB
A new section is proposed, section 80TTB where any interest income from banks, Credit Co-Operative, co-operative society engaged in the business of banking or Post Office as defined in clause (k) of section 2 of the Indian Post Office Act 1898 a deduction of Rs 50000/- shall be allowed.But anyone taking benefit from this section will not be allowed to take benefit in 80TTA. It is also proposed that section 194A so as to raise the threshold for deduction of interest to Rs 50000/- from Rs 10000/-.So Senior Citizen should avail Section 80TTB instead of Section 80TTA from FY 18-19.s
80D
Hike in deduction limit for health insurance premium and/ or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D. This will help to afford the costly medical premium for senior citizens and better medical facility.
80 DDB
This section which deals in deduction for expenditure on specified diseases like Parkinson, Chorea, Aphasia, Malignant Cancers etc can claim deduction up to 1lakh rupees then earlier Rs 60000/- in case of senior citizen (age 60-80 years) and Rs 80000/- in case of very senior citizen ( age above 80). The main thing over here is both the age group gets the flat benefit of Rs 1 lakh
Additionally, Pradhan Mantri Vaya Vandana Yojana a pension scheme for 60 years and above being implemented by LIC of India with a guaranteed interest of 8% for 10 years has been extended till 2020 and the maximum amount has been also increased from Rs 7.5 lakh to Rs 15 lakh. The additional amount will give higher pension amount, but beware pension is taxable. From FY 18-19 Senior Citizens getting Pension Income can also claim Standard Deduction of Rs 40,000/- from their Taxable Pension Income.
