Watch sustainability champions reveal key solutions, innovations accelerating India's SDGs at ‘The Sustainability 100+ Dialogues 2021’-Haryana Roundtable on March 5 at 12pm

Budget 2021: What Budget 2020 offered in Income Tax for senior citizens

Finance Minister Nirmala Sitharaman in her union budget 2020 speech had enhanced allocation of about Rs 9,500 crore for 2020-21. She said that the government is mindful of the concerns of senior citizens and Divyang.

January 29, 2021 / 09:08 AM IST
An elderly voter being helped to the voting booth. (Image: Twitter/@SpokespersonECI)

An elderly voter being helped to the voting booth. (Image: Twitter/@SpokespersonECI)

Finance Minister  Nirmala Sitharaman in her union budget 2020 speech had enhanced allocation of about Rs 9,500 crore for 2020-21. She said that the government is mindful of the concerns of senior citizens and Divyang.

Healthcare measures

The government in the budget proposed to expand the Jan Aushadhi Kendra Scheme to all districts offering 2000 medicines and 300 surgical by 2024. The health sector was allocated Rs 69,000 crore, including Rs 6,400 for Ayushman Bharat Yojana. These medical/healthcare facilities will be beneficial to all, including senior citizens for whom the rising cost of healthcare inflation is one of the biggest concerns.

Deposit insurance coverage hiked

In the budget 2020, the deposit insurance coverage for depositors has been increased to Rs 5 lakh from Rs 1 lakh especially for senior citizens.

Close

New tax regime

As per the new tax regime announced in budget 2020, the basic income tax exemption limit for senior and super senior citizens will be equal to that of non-senior citizens, i.e. Rs 2.5 lakh instead of the earlier Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens. Individuals aged over 60 years would therefore get more tax relief in the old tax regime if their income is up to Rs 5 lakh.

Senior citizens earning more than Rs 5 lakh will need to calculate tax outgo under new and old tax regime to determine which will be more beneficial to them.

As per the Budget speech, the new tax regime shall be optional for the taxpayers. An individual who is currently availing more deductions & exemptions under the Income Tax Act may choose to avail them and continue to pay tax to vide the old regime.
Moneycontrol News
first published: Jan 29, 2021 09:08 am

stay updated

Get Daily News on your Browser
Sections