of Finance Minister Arun Jaitley has ensured that the golden years become much happier for senior citizens. An increase in deduction limit under section 80D to Rs 30000 should benefit the senior citizen health insurance buyers from extant Rs 20000. This will help them buy adequate health insurance cover, given the rising health insurance premium. The health insurance premiums were on the way up due to enhanced cover and need to buy large sum assured given the rising healthcare costs in the economy.
Deduction available under Section 80DDB for very senior citizen has been hiked up to Rs 80,000 from extant Rs 60000. The deduction now stands at Rs 80,000 or actual which ever is lower. For very senior citizens of the age of 80 years or more, who are not covered by health insurance, deduction of Rs 30,000 towards expenditure incurred on their treatment will be allowed. These should result in some tax saving for the senior citizens.
Finance Minister also announced utiliting unclaimed deposits in PPF and EPF corpus of Rs 3000 crore and Rs 6000 crore respectively to carve out Senior Citizen Welfare Fund. The fund will be utilized to pay the premium on the social security schemes.
A new scheme for providing Physical Aids and Assisted Living Devices for senior
citizens, living below the poverty line is announced by finance minister in 2015.
Though there are so many announcements made that would make life simpler for senior citizen, finance minister chose not to hike the tax exemption limit for senior citizens.