Breaking India State Business Entertainment Biography Lifestyle

The tax burden on seniors will be reduced, these 4 reliefs can be found in the budget

Sagar Patel

By Sagar Patel

Published on:

Will seniors get budget relief?

After the elections, the full budget for 2024-25 will come by the end of next month. In such a situation, it is expected that this time Finance Minister Nirmala Sitharaman may include many such provisions in the budget, which will help in increasing demand in the economy. This includes reducing the tax burden. In such a situation, what can be the four ways to reduce the tax burden on the senior population of the country?

A significant number of senior citizens are also among the total taxpayers in India. The reason for this is that they earn income from different sources. However, as the cost of living increases, there is also advocacy for reducing income tax for seniors.

The tax burden can be reduced in these 4 ways

Experts believe that the Indian government can reduce the tax burden on senior citizens in many ways. 4 of these are explained below…

  1. The government may provide additional benefits to senior citizens at the medical claim level. Keeping in mind the circumstances post Covid challenges, the government may make health insurance premium up to Rs 1 lakh tax-free under Section 80(D). According to an ET news report, currently this limit is Rs 50,000. If this limit is increased, senior citizens will also be able to apply for higher amount of health insurance.
  2. Another thing the government can do is reduce the exemption currently available for people over 75 from filing tax returns to age 60 or age 65. However, you can do this on the condition that even at this age, older people do not work anywhere and only pensions or interest are their main income.
  3. Under 80(C), the government grants many types of tax exemptions. In this case, ELSS or FD has a lock-in period of 5 years. If the government wants, it can make the system of this lockdown period for the elderly a little rational.
  4. Neeraj Aggarwal of Nangia Anderson India believes that the government can exempt senior citizens from capital gains tax to provide tax relief. Because after retirement, their income mainly depends on the returns from investments in accounts, fixed deposits, bonds and dividends.
Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

Related Post

Leave a comment

x