Industry body Assocham has advocated tax measures to benefit senior citizens in the Union Budget, to be presented on July 5 by Finance Minister Nirmala Sitharaman.Also Read - Good Time For Buyers as Home Loan Interest Rates to Remain at All-Time Low | Details Here
The Associated Chambers of Commerce and Industry of India (Assocham) in its budget memorandum has suggested an increase in minimum tax exemption limit for senior citizens (above 60 years) to Rs 7.5 lakh from Rs 3 lakh and no tax for super senior citizens (80 years plus) on income up to Rs 12.5 lakh. Also Read - Agricultural Reforms Have Started Benefiting Farmers: PM Modi at ASSOCHAM Foundation Week 2020
It said many senior citizens couldn’t get benefit of any robust social security or pension fund investments as they did not exist during their working life and were largely dependent on interest income from fixed deposits. Also Read - Around 75% Employees Across 8 Indian Cities Willing to Continue Work From Home: ASSOCHAM Survey
Drastic decline in the rate of interest in past one year had left senior citizens in financial difficulty, it said and added, the actual inflation that was much higher than headline inflation had added to their misery.
Also, medical expenses shoot up heavily in old age as persons covered by medi-claim insurance policies had to cough up high insurance premia after one or two claims, it said.
It also suggested against tax deduction at source (TDS) from payment of interest to senior citizens.