An old man looks up at an electronic screen displaying stock figures at the Bombay Stock Exchange (BSE) in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Union Budget 2018: Exemption On Interest Income For Senior Citizens Hiked To Rs 50,000

Announcing a series of benefits for senior citizens, Finance Minister Arun Jaitley today said the exemption limit on income from interest for them has been raised five times to Rs 50,000 per year.

At the same time, the Finance Minister raised limit of deduction for health insurance premium and medical expenditure to Rs 50,000 from Rs 30,000 under Section 80D of the Income Tax Act.

All senior citizens will now be able to claim benefit of deduction up to Rs 50,000 per annum in respect of any health insurance premium and/or any general medical expenditure incurred.
Arun Jaitley, Finance Minister

Besides, the Union Budget has increased the limit of deduction for medical expenditure in respect of certain critical illness to Rs 1 lakh in respect of all senior citizens, under section 80DDB.

“In addition to tax concessions, I propose to extend the Pradhan Mantri Vaya Vandana Yojana up to March, 2020 under which an assured return of 8 percent is given by Life Insurance Corporation of India,” he said while presenting the Budget for 2018-19.

The existing limit on investment of Rs 7.5 lakh per senior citizen under this scheme is also being doubled to Rs 15 lakh, he added.

Noting that a life with dignity is a right of every individual in general, more so for the senior citizens, he said, “to care of those who cared for us is one of the highest honours...these concessions will give extra tax benefit of Rs 4,000 crore to senior citizens.”