Finance Minister Nirmala Sitharaman is set to present the Union Budget this month, with industries, taxpayers, investors, and businesses all eagerly awaiting its announcements. While the interim budget presented on February 1, 2024, did not feature major changes, significant announcements are anticipated in the upcoming July budget. Senior citizens, in particular, have high expectations, given the recent rise in inflation and the accompanying financial challenges. Here are five potential benefits that senior citizens might look forward to in the Budget 2024 :
1. Increased Capital Gains Tax Exemption Limit
Senior citizens, often reliant on savings and investment returns, face challenges without a pension. To support them, the government could increase the exemption limit for long-term capital gains tax on shares and mutual funds. Currently, gains up to Rs 1 lakh are exempt from tax. Raising this limit to Rs 2 lakh would provide substantial relief to retired individuals.
2. Tax Deduction on Rent
Many elderly people live in rented homes, spending a significant portion of their income on rent. For those without regular pension income, a tax deduction on house rent would offer considerable relief. This measure could greatly benefit the numerous senior citizens who lack pension income and reside in rented accommodations.
3. Higher Tax Exemption on Health Policy Premiums
Private hospital treatments have become prohibitively expensive, especially post-Covid. Health insurance is crucial, yet premiums have risen significantly while deduction limits remain unchanged. Currently, senior citizens can deduct up to Rs 50,000 for health policy premiums. Increasing this limit to Rs 1 lakh would help mitigate healthcare costs for the elderly.
4. Expanded Benefits for Non-Pensioned Seniors
Given that many senior citizens do not receive pensions, expanding benefits and tax exemptions tailored to their needs could provide essential financial support. This could include increased allowances and rebates on various expenses, helping to ease the financial strain on elderly individuals.
5. Support for Healthcare and Living Expenses
Beyond insurance premiums, broader support for healthcare and daily living expenses could be introduced. This might involve subsidies for essential medications, grants for home modifications to aid mobility, and enhanced support for home healthcare services.
As the Union Budget 2024 approaches, senior citizens are hopeful for these and other supportive measures that could significantly improve their financial well-being in an era of rising costs and economic challenges.
1. Increased Capital Gains Tax Exemption Limit
Senior citizens, often reliant on savings and investment returns, face challenges without a pension. To support them, the government could increase the exemption limit for long-term capital gains tax on shares and mutual funds. Currently, gains up to Rs 1 lakh are exempt from tax. Raising this limit to Rs 2 lakh would provide substantial relief to retired individuals.
2. Tax Deduction on Rent
Many elderly people live in rented homes, spending a significant portion of their income on rent. For those without regular pension income, a tax deduction on house rent would offer considerable relief. This measure could greatly benefit the numerous senior citizens who lack pension income and reside in rented accommodations.
3. Higher Tax Exemption on Health Policy Premiums
Private hospital treatments have become prohibitively expensive, especially post-Covid. Health insurance is crucial, yet premiums have risen significantly while deduction limits remain unchanged. Currently, senior citizens can deduct up to Rs 50,000 for health policy premiums. Increasing this limit to Rs 1 lakh would help mitigate healthcare costs for the elderly.
4. Expanded Benefits for Non-Pensioned Seniors
Given that many senior citizens do not receive pensions, expanding benefits and tax exemptions tailored to their needs could provide essential financial support. This could include increased allowances and rebates on various expenses, helping to ease the financial strain on elderly individuals.
5. Support for Healthcare and Living Expenses
Beyond insurance premiums, broader support for healthcare and daily living expenses could be introduced. This might involve subsidies for essential medications, grants for home modifications to aid mobility, and enhanced support for home healthcare services.
As the Union Budget 2024 approaches, senior citizens are hopeful for these and other supportive measures that could significantly improve their financial well-being in an era of rising costs and economic challenges.
