After the elections, the full budget for 2024-25 will come by the end of next month. In such a situation, it is expected that Finance Minister Nirmala Sitharaman can make many such provisions in the budget this time, which will work to increase the demand in the economy. This includes reducing the tax burden. In such a situation, what can be the 4 ways that can reduce the tax burden on the population of senior citizens of the country.
Senior citizens also constitute a significant number of the total taxpayers in India. The reason for this is that they earn from different sources. However, as the cost of living is increasing, there is a demand for reducing the income tax for senior citizens.
Tax burden can be reduced in these 4 ways
Experts believe that the Government of India can reduce the income tax burden of senior citizens in many ways. Four of these are mentioned below…
- The government can provide extra benefits to senior citizens at the level of mediclaim. Looking at the situation after the challenges of Covid, the government can make premiums up to Rs 1 lakh of mediclaim tax free under 80 (D). According to a report by ET, this limit is currently Rs 50,000. If this limit increases, senior citizens can also take mediclaim of a higher amount.
- Another thing the government can do is to reduce the exemption from filing income tax returns for senior citizens above 75 years of age to 60 or 65 years. However, it can be done on the condition that the senior citizens should not be working at this age and their main income should be pension or interest.
- Under 80(C), the government provides many tax exemptions. ELSS or FD have a lock-in period of 5 years. If the government wants, it can make this lock-in period a little more logical for senior citizens.
- Neeraj Aggarwal of Nangia Andersen India believes that the government can exempt senior citizens from capital gains tax to provide tax relief. Because after retirement their income mainly depends on returns on investments in accounts, fixed deposits, bonds and dividends.
