Senior Citizens and Union
Budget 2017-18
This year’s budget was majorly a disappointment as far as
senior citizens are concerned. None of the appeals made through several
channels to the Finance Minister have been heard. We had expectations regarding
increase in minimum income that would be tax free, increase in FD interest
rates, medical / health facilities through innovative insurance schemes,
furth
er concessions in train travel etc—all these with special reference to the
elderly population. None of them have been heeded to.
However a few benefits that have a consoling effect, have
been indicated as follows:
1. Senior
citizens will be provided with Aadhaar based smart cards containing health
information. It will be useful in enjoying financial benefits like collecting
old age pension via digital payment system using biometric options – finger
print recognition. To begin with this will be tested in 15 districts in 2017-18.
2. A
new version of Varishta Pension Bima Yojana will be introduced which will be
administered through LIC. This scheme will ensure a guaranteed return of 8%
interest for 10 years, thus protecting you from market fluctuations (reduction)
of FD interest rates. A maximum of Rs 7.5 Lakhs would be accepted.
3. Service
charge on E-tickets bought through IRCTC has been withdrawn. Presently it is Rs
20 for e-ticket for second or sleeper class and rs 40 for all other upper
classes.
4. A
great thrust has been made on digital (cashless) transactions. If seniors can
take to using smart phones, lot of physical work like going to bank etc can be
reduced.
5. On
basic income tax slabs, tax rate for 2.5 Lakhs-5 Lakhs, tax has been reduced to
5% from 10%. Rebate under 87A is reduced to rs 2500 and it is available for
income up to 3.5 Lakhs only. If you take into account a deduction of 1.5 Lakhs
under 80C then inome upto 4.5 lakhs is exempted from any tax.
6. Following
table gives details of tax slabs for 2017-18
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