Tax Benefits For Senior Citizens

India is a place where senior citizens are respected and worshipped. It’s not only in the sense youngsters offer and place as a matter of their pride, they’re exempted from doing heavy tasks and given privileges in many scenarios. Indian government frees them from specific taxes to help them stabilise in the last phase of their life. To eliminate them from being a victim of the financial crisis, the Indian government has launched many tax privileges to the old citizens. A person qualifies to be called a senior citizen if he crosses the age of 60. The constitution has reduced the previous age qualification of 65 years to 60 years by 2011. One who exceeds the age of 80 years become a participant of the very senior citizen.

• High Wage Exemption: As the age has been reduced by 5 years, senior citizens have been exempted from paying tax up to 3 lakhs of salary. It used to be 2.5 lakhs before, but additional 50k has been implemented in order to secure senior citizens from tax benefits. A new class has been generated for the very senior citizen, and they’re exempted from paying tax up to Rs 5 lakhs.

• Mortgage Reverse: Introduced by the Central government, under reverse mortgage concept, a senior citizen is eligible to avail monthly source of income by mortgaging the property registered in the name of that individual.

• Tax On Health Insurance: Before the assessment year 2016-17, senior citizens were given tax exemption of Rs 20,000 on health insurance. But from the same financial year, the tax exemption limit has add-on benefits of Rs 10,000. The new tax benefit is of Rs 30,000 making old age persons free from heavy taxes.

• Higher Tax Deduction Under Section 80DDB: Under this section, senior citizens are offered a tax deduction on the medical or hospitalisation expenses for some treatment or related charges. For non-senior citizens, the tax exemption is up to Rs 40,000 but same goes up to Rs 60,000 for the class of senior citizens. In case of super senior citizens, the tax exemption goes as high as Rs 80,000.

Youngsters of India purchase health insurance to get exempted from income tax. However, the importance of health insurance keeps increasing as the age goes up. The purchasing of senior citizens health insurance can really prove a beneficial step for you as it saves you from the financial crisis when you don’t have enough in savings to take care of the medical expenses. Religare Health Insurance company has been playing a crucial role in availing senior citizens Mediclaim facility. If you’re looking for the maximum coverage and also that can accompany you to the maximum age of your life, Religare provides every insurance services to take care of your old age.