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.