In a bid to provide relief to senior citizens, Finance Minister Arun Jaitley on Thursday unveiling Budget 2018 announced that exemption of interest income deposits with banks and post offices raised to Rs 50,000.
Apart from this, all the elderly citizens can claim the benefit of reduction Rs 50,000 year for any general health expenditure and health insurance premium under sections 80D and 80DDB.
Hike in deduction limit for medical expenditure for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB.
This will give extra tax benefit of Rs. 4,000 crores to senior citizens.
In addition to tax concessions, the Finance Minister proposed to extend the Pradhan Mantri Vaya Vandana Yojana up to March 2020 in which an assured return of 8% is given by Life Insurance Corporation of India. Current investment limit proposed to be increased to Rs. 15 lakh from existing Rs. 7.5 lakh per senior citizen.