- Exemption of interest income on deposits with banks, post offices hiked
- It has been increased from Rs. 10,000 to Rs. 50,000
- Budget also increased deduction limit for health insurance premium
Senior Citizens To Receive Following Benefits In Budget 2018
1. The Budget 2018 offers increase in exemption of interest income on deposits with banks and post offices from Rs 10,000 to Rs 50,000.
2. The tax deducted at source (TDS) is not required to be deducted under section 194A. The benefit will also be available for the interest accrued from all fixed deposit (FDs) and recurring deposit (RDs) schemes.
3. The Budget proposed to increase deduction limit for health insurance premium and/ or medical expenditure by Rs 20,000 from the current limit of Rs 30,000 to Rs 50,000 under section 80D of Income Tax Act, 1961.
4. The latest Budget announced by Union Finance Minister Arun Jaitley rose the deduction limit for medical expenditure for certain critical illness from Rs 60,000 (senior citizens) and from Rs 80,000 (very senior citizens) to Rs one lakh for all senior citizens. The provison is enshrined under the section 80DDB of Income Tax Act, 1961.
5. The health protection scheme that will offer Rs 5 lakh worth secondary and tertiary treatment is also likely to rescue most of the ageing population of this country.