Three new key tax changes for senior citizens
Union Finance Minister Arun Jaitley has brought in a lot of changes in the new Budget, which will be implemented from 1 April 2018.
Two important income tax rules that will be implemented are the Long Term Capital Gains rule (LTCG) on equities and a standard deduction for salaried employees.
Senior citizens will also benefit from the new tax rules. Here is how:
- Interest earned - Earlier, the deduction in interest from deposits in banks, post offices and co-operative societies was Rs. 10,000. Now, senior citizens can get a discount in interest up to Rs 50,000.
- Medical treatment - A deduction will be provided in the treatment of certain diseases, like AIDS and malignant cancers. These can be availed by resident individuals and Hindu Undivided Families (HUF). Earlier the deduction was Rs. 60,000 for senior citizens and Rs. 80,000 for very senior citizens. This is now Rs one lakh..
- Health insurance - A maximum deduction of up to Rs. 50,000 has been announced for health insurance. Senior citizens can also claim for a deduction in medical expenditure.