- Date : 26/01/2023
- Read: 4 mins
Senior residents are indeed anticipating that the finance minister will unveil a variety of tax perks on February 1 because the Union Budget 2023 is expected to serve as the last comprehensive budget well before the nation's 2024 elections. Some of their expectations from this budget include an income tax exemption, premium health insurance limits under Section 80C and 80TTB, and expanding the limit for medical treatment for senior citizens.
What are senior citizens' expectations from the 2023 union budget?
With an estimated 1417 million inhabitants, India is the most populous nation in the world. From this, over 300 million people, are 60 or older, making up a large portion of the Indian population and considerably contributing to the nation ’s growth. Much of this elderly population does make money (indirect income). Moreover, it appears that the existing tax advantages provided to these people are insufficient, given their participation even after they have reached the age of 60 as well as the increasing costs of living. Continue reading as we attempt to aggregate some of their expectations for the impending Union Budget 2023 in this piece.
Also read: Pension schemes offered by the government.
Increase the Senior Citizens' Taxation Basic Concession
One of the major expectations from the Budget 2023 is that the basic income tax exempt status limit for seniors (those over 60) be raised from the existing level of Rs 3 lakhs to match that for a relatively small number of elderly persons.
- Unique fixed-income device for seniors
The government has recently raised interest rates on a range of minor savings programs, along with the senior citizens' savings program (SCSS), whose rate of interest increased from 7.6 percent to 8 percent. The only accessible designated fixed income tools are the Senior Citizens Savings Scheme (SCSS) and the Pradhan Mantri Vaya Vandana Yojana (PMVVY). The ideal special instrument for seniors would be something along the same lines, with a minimal fixed rate of, 7.5 percent and a total investment limit that exceeds Rs 15 lakh.
- Raise the limit on senior citizens' access to medical expenses under Section 80DDB
The money spent on healthcare care for certain disorders is deductible for residents under Section 80DDB of the Income Tax Act. The maximum deduction allowed for elderly people is 1 lakh rupees. Seniors expect that this limitation will be raised further, although, given how rapidly medical costs have escalated over time,
- Extend the Section 80C Limit
For funds invested in a broad range of instruments, such as the Public Provident Fund (PPF), National Savings Certificate, Senior Citizen Savings Scheme, 5-year fixed deposits, etc., Section 80C of the Income Tax Act permits a tax exemption of up to 1.5 lakh rupees. The 1.5 lakh limit has not been changed in the previous eight years. Senior citizens are currently hoping to receive increased relief in the budget for 2023 in contrast to the present cap of Rs. 1.5 lakh.
- Increase in savings and FD interest deduction
Senior citizens may reclaim up to Rs 50,000 in taxes from their investment earnings from bank deposits and post office savings accounts under Section 80TTB. Nevertheless, no adjustments have been made to this criterion in the past five years. Seniors expect that the government will extend the Section 80TTB tax exemption cap in the Union Budget of 2023 to accommodate the current level of inflation.
- Increased Tax Deductions for Seniors on Health Insurance Premiums under Section 80D
The costs of healthcare have dramatically increased. Seniors expected an increase in the limit on tax deductions offered for health insurance premiums in the context of rising inflation and elevated healthcare costs in old age. Elderly people are currently eligible for a reduction of Rs 50,000 under Section 80D for any health care costs or health insurance premiums paid by that time. This restriction is anticipated to be raised.
Senior citizens anticipate that the Union Budget 2023 will address many of their concerns by increasing deductions under Section 80TTB, health insurance premiums, and Section 80C, increasing the limit for senior medical treatment, and increasing their basic income tax exemption.