The Budget-making process is underway, so are the discussions over expectations from the government this time around. Finance minister Nirmala Sitharaman will present the Union Budget – final full Budget of the Narendra Modi government before the 2024 general elections – on February 1.
Among the expectations that senior citizens have from the government are increase in basic exemption limit and Section 80C limit of ₹1.5 lakh, easier capital gains tax structure, and deductions for OPD expenses.
Here's a quick look at everything that senior citizens are seeking from the government this time:
- Senior citizens expect the government to raise the basic exemption limit from ₹3 lakh to ₹5 lakh.
- The government is expected to increase the deduction against medical expenses. Currently, senior citizens are entitled to a deduction of up to ₹50,000 on medical expenses during a year.
-Those who have health insurance can claim tax deduction up to ₹50,000 under Section 80D on premiums paid. This limit should be raised to ₹1 lakh.
- The FM should also allow OPD expenses like pharmacy bills, doctor consultation fees and diagnostic tests for deduction even if they are not covered in insurance policies.
- Under Section 80TTB, senior citizens are entitled to tax deduction of up to ₹50,000 on interest earned on bank and Post Office savings fixed deposits (FDs). This could be increased to ₹1 lakh.
- Senior citizens expect the government to make pension income, at least the principal of it, tax-free.
- A new dedicated fixed income instrument, rationalisation of lock-in period of holding specified investments u/s 80C and ease in tax return and refund process are other demands from senior citizens.
