Budget 2024: Senior citizens call for relaxed tax laws to ease financial burden

Pension_Senior

With the complete Union Budget for 2024-25 scheduled to be tabled on July 22, senior citizens, who make up a significant portion of taxpayers, have their wish list ready for Finance Minister Nirmala Sitharaman.

Let's take a look at the what they want from this year's full budget.

Higher threshold for mediclaim premium to Rs 1 lakh

Current provisions provide for a deduction of Rs 50,000 with respect to any mediclaim premium or medical expenditure incurred by a senior citizen. But, with rising cost related to medical expenses, Suresh Surana, a practising chartered account, told the Economic Times that senior citizens expect the threshold limit to be increased to Rs 1 lakh.

Lower age limit from 75 years to 60 years for ITR exemption  

Section 194P of the Income Tax Act provides for exempting senior citizens from filing income tax returns aged 75 years and above, subject to certain specified conditions. This should be extended to senior citizens aged 60 years and above to avoid causing them hardship in filing their returns.

Rationalisation of lock-in period of investments under Section 80C

Fixed deposits with banks or post offices, NSC, equity-linked savings schemes (ELSS) are eligible for deduction under Section 80C, subject to the specified lock-in periods ranging from 3 years (for ELSS) to 5 years (for NSC and FDs). Senior citizens expect the lock-in period be lowered as they might be in need of liquid cash for their physical wellbeing or medical care.

Deduction in Rent

Neeraj Agarwala, partner at Nangia Andersen India, told ET that senior citizens who do not obtain income should be provided with a gross deduction for rent. This will address the rising cost of living issue and help the elderly with a sense of security.

Exemptions on Passive Income

Passive income sources like rent, interest from savings accounts, fixed deposits and bonds are important for senior citizens. They expect higher exemptions or lower tax rates to be introduced on these income sources.

Incentivising taxpayers

The government should reward the fiscal responsibility of senior citizens by offering benefits such as reduced healthcare costs, subsidised utilities, or exclusive access to senior citizen-related financial products to encourage senior citizen taxpayers.