Budget 2024 for senior citizens: FM should exempt all senior citizens from filing ITR in certain cases, increase section 80D limit to Rs 1 lakh
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Senior citizens' budget wishlist
Here is a look at four things that are on the senior citizens' Budget 2024 wishlist, as per Dr. Suresh Surana, a practicing chartered accountant.
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Increasing the threshold for mediclaim premium to Rs 1 lakh
In wake of the global medical concerns arising post covid pandemic, other lifestyle and health issues, it has been observed that senior citizens were the greatest sufferers in this situation. Resultantly, this has led to a steep rise in the medical expenditure as well as health insurance or Mediclaim premiums. The present provisions provide for a deduction of Rs. 50,000 u/s 80D with respect to any Mediclaim premium/ medical expenditure incurred by a senior citizen. Thus, it is expected that the said threshold limit be increased to Rs. 1,00,000.
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ITR exemption: Lower age limit for senior citizens u/s 194P to 60 years
Section 194P of the IT Act provides for exempting Senior Citizens from filing income tax returns aged 75 years and above subject to certain specified conditions:
Senior Citizen should be of age 75 years or above
B) Senior Citizen should be ‘Resident’ in the relevant financial year
C) Senior Citizen has pension income and interest income only & interest income accrued / earned from the same specified bank in which he is receiving his pension
Such benefit may be extended to senior citizens aged 60 years and above in order to avoid such senior citizens to face hardship in filing their returns.
Senior Citizen should be of age 75 years or above
B) Senior Citizen should be ‘Resident’ in the relevant financial year
C) Senior Citizen has pension income and interest income only & interest income accrued / earned from the same specified bank in which he is receiving his pension
Such benefit may be extended to senior citizens aged 60 years and above in order to avoid such senior citizens to face hardship in filing their returns.
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Revision and rationalization of lock-in period specified investments under section 80C
Certain investments such as fixed deposits with banks or post offices, NSC, Equity Linked Savings Scheme (‘ELSS’) are eligible for deduction u/s 80C subject to the specified lock in periods ranging from 3 (for ELSS) to 5 years (for NSC and fixed deposits). Many senior citizens might be in need of liquid cash for their physical wellbeing, medical care or for other exigencies. Thus, it is expected that the said lock-in timelines would be revised and rationalized for senior citizens.
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Increase in threshold limit for 80TTB, applicability of the same to be extended to NSC interest
Section 80TTB of the Income Tax Act allows senior citizens to claim a deduction of up to Rs. 50,000 on interest income earned from deposits held with a specified banking company or a co-operative society engaged in the business of banking or a Post Office. To better support senior citizens significantly relying on investments such as National Savings Certificates (NSCs) for income, it's essential to extend this deduction to NSC interest. Moreover, considering current inflationary pressures, increasing the deduction threshold to Rs. 75,000 would provide seniors with more financial relief.