New Delhi, January 25: A week before Union Budget 2017, senior citizens are a little worried as their investments are earning lower interest due to falling interest rates in our economy. In last three months, demonetisation has come up as one of the aspects to add their worries as health costs to are going up. Due to several changes made in last one, senior citizens look at finance minister for some relief in the budget 2017.
Last month Prime Minister Narendra Modi had announced a senior citizen deposit scheme in which he promised that people above the age of 60 will get 8 per cent rate of interest. Senior citizens are expecting that during Budget 2017, Finance Minister Arun Jaitley may throw some more light on this.
Some report suggests that there is also a need to increase the basic exemption for senior citizens and super citizens to Rs 8 lakh and Rs 10 lakh respectively. Which will leave more money in hands of the senior citizens? Also, there are chances that Finance Minister may call for a ‘National Dialysis Services Programme’.
Finance Minister who is seriously looking to reduce the cost of dialysis equipment had earlier proposed to exempt certain parts of the dialysis equipment from basic customs duty, excise/CVD and SAD.
But these types of initiatives need more funding and similar programs are required for other critical illnesses. In Union Budget 2016, Finance Minister Arun Jaitley offered a top up cover of Rs 3 lakh for senior citizens. In 2015, health insurance premium exemption limit was hiked by the union government by Rs 10,000.
The government do not expect high insurance premium to be paid by senior citizens which are to be reviewed. As a large number of senior citizens buy health insurance, Finance Minister Arun Jaitley has been advised to increase the tax benefit under section 810D for health insurance to Rs 50,000 for elderly people.
According to MoneyControl.com, for senior citizens, a medical reimbursement of Rs 15,000, which was set in 1999 has to be increased. Also, the report further suggests that a service tax of 15 per cent inflates the prices of all services enjoyed by the senior citizens. The senior citizens across India are eagerly waiting to abolish the service tax or reduce it considerably on services such as healthcare, health insurance availed by the senior citizens.