Budget 2017: Here's what senior citizens expect

Budget 2017: Here's what senior citizens expect

New Delhi: Be it tax exemption, hiking the transport allowances, increasing the rebate cap on home loans, giving subsidies to farmers or addressing the issue of women's and senior citizens' taxation, the decision of the Finance Minister will be closely watched by one and all.

Below are the expectations of senior citizens from the Union Budget 2017

Tax Exemption Limit

Senior citizens expect that more room should be given for them in tax rebate. An increase in the exemption limit for the senior citizens (above 60 years), which currently stands at Rs 300,000 to at least Rs 500,000 would give a boost to their retirement funds.

Similarly, very senior citizens (above 80 years) who do not come under tax bracket for earnings up to Rs 5 lakh are also expecting a further increase in the exemption limit.

Reimbursement of Medical Expenditure

Any sum paid by the employer in respect of any expenditure incurred by the employee on the medical treatment of self/ family is currently exempt from tax, to the extent of Rs 15,000 per annum. The exemption in respect of expenditure on medical reimbursements/ hospitalization expenditure in approved hospitals should also be extended to retired employees.

Deduction in respect of Interest on Deposits in Savings Account

Section 80TTA was inserted by the Finance Act, 2012 to provide deduction of up to Rs 10,000/- in the hands of individuals and HUFs in respect of interest on savings account with banks, post offices and co-operative societies carrying on business of banking. However, it is unlikely that senior citizens would keep their entire savings in a savings bank account, which earns a much lower rate of interest as compared to term deposits. They are likely to transfer some portion of their savings to several deposits to earn comparatively better returns.

It is suggested that the scope of Section 80TTA of the Act should be widened to incorporate all types of deposits (such as term deposits, recurring deposits etc.) made within the banking channels, thereby inducing savings for the growth of the economy. Further, the limit of deduction under this section may be increased from Rs 10,000 to Rs 20,000.

Deduction in respect of health insurance premium/hiking annual medical insurance cap

Section 80D allows aggregate deduction of up to Rs 30,000 for senior citizens in respect of payment of health insurance premium and payment made on account of preventive health check-up. The Section 80D offers deductions over and above the exemptions derived from the more popular Section 80C. With the steep increase in the cost of medicines and routine medical check-ups, expectations are high for the limit to be increased to Rs 60,000 to further encourage the spread and coverage of health insurance.