Benefits for Senior Citizens in Union Budget 2017

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Union budget 2017, our Finance Minister announces various new schemes and benefits for senior citizens as well as for women and children welfare. Some of them are mentioned below-
 

New schemes / Benefits for senior citizens

  • Government will work with Life Insurance Corporation to implement a scheme for senior citizens with 8 percent return on annuity (per annum for 10 years).
  • By considering the dangers for senior citizens, particularly for those who are living alone, falling victim to a health issues/conditions and being unattended, Aadhar based smart cards containing their health details will be introduced.This will give you more confidence to be out alone or stay home alone. 
  • New slab rates as announced in Budget for FY 2017-18 
 
Income Tax Slabs
Senior citizens
(above 60-80)
Super-senior citizens
(above 80 years)
Income up to Rs. 3,00,000
NIL
NIL
Income between
Rs. 300,001 – Rs. 500,000
5% of Income exceeding Rs. 3,00,000
NIL
Income between
Rs. 500,001 – Rs10,00,000
20% of Income exceeding Rs. 5,00,000
20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000
30% of Income exceeding Rs. 10,00,000
30% of Income exceeding Rs. 10,00,000
  • The rebate under Section 87A (currently given to people with income up to Rs 5 lakh) is proposed to be reduced to Rs. 2,500 from Rs.5,000 and eligibility criteria for rebate will now available to resident individuals whose total income does not exceed Rs 3,50,000.

Conclusion:

By introducing these changes in tax rates for an individual, you will result in saving tax of an amount up to INR. 10,000 as compared to earlier Tax slab rates. In today’s time when interest rates on bank fixed deposits and public provident fund are coming down, this will give relief to senior citizens for the investment purpose with fixed and secured returns.These were the announcement presented by Finance Minister which will be implemented by our government in financial year 2017-18. 

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