Friday, March 20, 2015

Senior Citizens and Central budget: Salient points

Senior citizens and Central Budget 2015

·         Beneficiaries:  Nearly 10.5 crore Senior Citizens above 60 years, of which about 1 crore is above 80 years old.
·         Basic Income Tax slabs have not been changed.
·         Unutilized idle money -- 3000 Cr from PPF and 6000 Cr from EPF totaling 9000 Cr – will be pooled to set up a senior citizens welfare fund. This will be used to pay premiums for BPL seniors.
·         A deduction from taxable income up to Rs 60000 for senior citizens (RS 80000 for 80+) towards expenditure on treatment of AIDs Cancer etc; Simple certificate from specialist is enough.
·         Insurance Premium: Deduction under 80D has been increased from Rs 15000 to 30000 to senior citizens. Sons / daughters who pay premium for senior citizen parents can claim deduction up to Rs 30000/-
·         Purchase of Assisted devices (wheel Chair etc) – assistance will be given
·         VPBY -- Varishta Pension Bima Yojana -- introduced last year, available till 14th April 2015, has been exempted from payment of Service Tax. Therefore cheaper by about 12%
·         Super Rich seniors – having an income of one crore and above – will have to pay Rs 64550 extra by way of Income Tax and surcharge.
·          Railway budget provides for:
o   More berths reserved for senior citizens
o   Lower berth preference will be expanded
o   Special ladders in trains.
o   Ticket examiners to be friendly and helpful.

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