Benefits for senior citizens
The finance minister has also proposed to bring down the qualifying age from 65 to 60 years for being eligible for various benefits available to senior citizens. This is really a very well meaning amendment and will benefit a lot of persons who have really reached the ebb of their earning career or have even stopped earning.
Presently a senior citizen is entitled to various benefits. The first and foremost is that he enjoys a higher basic exemption limit as compared to the ordinary taxpayer. Lowering this age limit will help lots of senior citizens. Moreover, in respect of Mediclaim for senior citizens, the available claim limit is Rs 20,000 against Rs 15,000 available for those below 60 years of age. The benefit can be claimed either by their children who are paying the Mediclaim premium for health insurance of the parents or the senior citizen if they themselves are paying the premium.
One more concession offered to senior citizens is in respect of payment of advance tax. Presently, you have to pay advance tax if your tax liability after reducing the TDS is Rs 10,000 or more for a year. This applies to senior citizens as well. However, the finance minister intends to grant some relief to senior citizens from the requirements of having to pay advance tax. According to the provision proposed by the minister, a senior citizen, i.e., a person aged 60 years or more during the assessment year, will not have to pay advance tax if he has not engaged in any business or profession. This will help all the retired people from the hassle to see their tax consultants for paying periodic advance tax even if their net tax liability may be higher than Rs 10,000.
This way we can see that this year's budget has to offer something or the other for ordinary citizens.
The author is chief financial officer at Apnapaisa.com, a price and features comparison engine for loans & investments. The views expressed are his own
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http://www.tribuneindia.com/2012/20120319/biz.htm
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