The benefit of claiming general medical expenses were earlier permitted only for very senior citizens (above 80 years), but now, even the senior citizens have been allowed to claim the benefit.
While the Union Budget has little for the salaried individuals, Finance Minister Arun Jaitley tried to woo senior citizens with a slew of measures — some eradicating paperwork, while others offering a little extra in their pocket.
The deduction limit for health insurance premium offered to senior citizens has been raised to Rs 50,000 per annum. What gains significance here is that not just health insurance premium, but general medical expenditure, too, can be claimed under this benefit. The benefit of claiming general medical expenses were earlier permitted only for very senior citizens (above 80 years), but now, even the senior citizens have been allowed to claim the benefit.
"FM's proposal to raise a deduction under health insurance premium for senior citizens with critical illnesses, along with the allocation of additional funds under the Rashtriya Swasthya Bima Yojna will provide a fresh impetus to the adoption of protection solutions in the country," says, Mayank Bathwal, CEO, Aditya Birla Health Insurance Company.
Similarly, deduction of Rs 60,000 to Rs 80,000 available with regard to amount paid for medical treatment of specified diseases has also been proposed to be raised to Rs 1,00,000.
The much-awaited relaxation in bank and fixed deposit interest too was a reason for many senior citizens to cheer about the fact that their FD interest would be exempt upto Rs 50,000.
A new section 80TTB has been proposed to allow a deduction upto Rs 50,000 of interest income from bank deposits or deposits with post office held by senior citizens. "Exemptions on interest from Banks FD of senior citizens may increase the flow of funds to banks," said R Subramaniakumar, MD & CEO, Indian Overseas Bank.
In another positive, the Pradhan Mantri Vaya Vandana Yojana — introduced last Budget and offered by Life Insurance Corporation – offering assured return of 8% has been extended up to March, 2020.
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