Tuesday, February 27, 2018

Income Tax - Year 2018-19 Benefits to Seniors

1.Rs. 40,000 standard deduction introduced
2.More income tax benefits on single premium health insurance policies
3. new Section 80TTB is proposed to be inserted to allow a deduction up to Rs.50,000 in respect of interest income from deposits

held by senior citizens.
4.The government also proposed to increase the investment limit in Pradhan Mantri Vaya Vandana Yojana or PMVVY to Rs. 15 lakh

from Rs. 7.5 lakh. It also proposed to extend the Pradhan Mantri Vaya Vandana (PMVVY) scheme till March 2020. Pradhan Mantri

Vaya Vandana Yojana, a scheme meant for senior citizens, offers a guaranteed interest rate of 8 per cent.
5. Higher TDS or tax deducted limit for senior citizens: The threshold for deduction of tax at source on interest income for senior

citizens is proposed to be hiked from Rs. 10,000 to Rs.50,000.
6.Budget 2018, the government proposes to increase the deduction for senior citizens on payment of health insurance premiums. The

limit is set to go up from Rs. 30,000 Rs. 50,000
7.Higher income tax deduction for senior citizens for medical treatment of specified diseases:  The deduction available payment

towards medical treatment of specified disease is proposed to be hiked to Rs. 1 lakh for very senior citizen (earlier Rs. 80,000) and

senior citizen (earlier Rs. 60,000).

source referance:

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