The Union Budget 2018 was presented on 1st February by the Finance Minister Arun Jaitley and sectors that stand out to have gained large amount of benefits are agriculture, and healthcare. Moving on, this year’s budget has also largely focused on the welfare of the senior citizens, which is quite evident from the number of incentives and new additions made to the budget.
Right from exemption of interest income to raising the deduction limit for health insurance and extension of programs, the budget has given various reasons for the senior citizens to rejoice. Mentioned below are some highlights from the Budget 2018 that have been offered in the best interest of the senior citizens.
Pradhamantri Vaya Vandana Yojana
The Pradhamantri Vaya Vandana Yojana (PMVVY) has been extended up to March 2020. Under this, an assured return of 8% is given by Life Insurance Corporation (LIC). Besides, the existing limit on investment of INR 7.5 Lakhs under the scheme will now be raised to INR 15 Lakhs.
Exemption of interest income for Senior Citizens
A new section 80TTB has been proposed by the government in the budget. This will be introduced for exemption of interest income of senior citizens up to INR 50,000 on bank deposits and post offices. Besides, no TDS will be deducted on such income under Section 194A.
Deductions Under Section 80D
Under Section 80D, the senior citizens will now be allowed to claim deduction up to INR 50,000 for health insurance premium while the same applies to very senior citizens in respect with medical expenditure. Earlier this limit was fixed to INR 30,000 that has been raised to INR 50,000.
Deduction for medical expenditure
Under Section 80DDB, the limit of deduction for medical expenditure in case of critical illness of senior citizens has been raised to INR 1 Lakhs. These concessions will add up to INR 4,000 Crores.
Talking about the senior citizens, Finance Minister Arun Jaitley said that the senior citizens have the right to lead their life with dignity and it’s one of the highest honors for the government to take cater to the needs of this section of the society.