At the same time, the Finance Minister raised limit of deduction for health insurance premium and medical expenditure to Rs 50,000 from Rs 30,000 under section 80D.
"All senior citizens will now be able to claim benefit of deduction up to Rs 50,000 per annum in respect of any health insurance premium and/or any general medical expenditure incurred," he said while presenting the Budget for 2018-19.
Besides, the Budget has increased the limit of deduction for medical expenditure of certain critical illnesses to Rs 1 lakh with respect to all senior citizens, under section 80DDB.
The existing limit on investment of Rs 7.5 lakh per senior citizen under this scheme is also being doubled to Rs 15 lakh, he added.
Noting that a life with dignity is a right of every individual in general, more so for senior citizens, he said, "to care of those who cared for us is one of the highest honours...these concessions will give extra tax benefit of Rs 4,000 crore to senior citizens."
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