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The upcoming Union Budget is expected to include new measures to boost financial security for senior citizens read more
 "Are financial relief measures for senior citizens expected?")
Will Union Budget measures to improve financial security for senior citizens? AP
Finance Minister Nirmala Sitharaman is set to unveil the Union Budget for 2024-25 on July 23, with particular attention anticipated for measures benefitting senior citizens. As these individuals await the budget announcements, several key changes are speculated that could significantly impact their financial well-being.
Increase in long-term capital aainst tax exemption
Reports suggest a possible raise in the long-term capital gains tax exemption limit for senior citizens from Rs 1 lakh to Rs 2 lakh. This potential increase aims to offer better tax relief and financial flexibility encouraging sustained investment in financial markets.
Tax deduction for house rent
There is also an expectation for new provisions allowing tax deductions on house rent for elderly individuals who do not receive regular pensions. Such a measure could help ease the financial pressures faced by seniors residing in rented properties.
Enhanced health insurance premium deductions
Speculation points to a possible increase in the deduction limit for health insurance premiums for senior citizens, potentially raising it from Rs 50,000 to Rs 1 lakh. This change is intended to address rising healthcare costs and improve access to necessary medical care.
Exemption on stamp duty for home purchases
Currently, senior citizens face significant costs when purchasing a home due to stamp duty and registration charges, which can range from 4 per cent to 8 per cent of the property value. For a Rs 1 crore home, this amounts to an additional Rs 4 lakh to Rs 8 lakh. Advocates suggest that the government should negotiate with state governments to waive these charges for seniors, making homeownership more accessible.
Removal of GST on health insurance policies
Presently, health insurance premiums are subject to an 18 % GST, which adds to the already high costs for seniors. Eliminating this GST could make health insurance more affordable, enabling more elderly individuals to secure necessary coverage.
Extended loan repayment tenure
Typically, loan products impose an upper age limit for final EMI payments, often capping it between 60 and 70 years. Increasing the permissible repayment tenure to 75 years would provide senior citizens with greater flexibility in managing their loan repayments making loans more accessible.
Raising the tax-free income slab
The current tax-free income limit for senior citizens stands at Rs 3 lakh with a higher limit of Rs 5 lakh for super senior citizens. Increasing these limits would provide seniors with more disposable income helping them better manage rising expenses and other financial commitments.
Increasing mediclaim premium threshold
Senior citizens are advocating for an increase in the mediclaim premium threshold to Rs 1 lakh to better address escalating medical expenses.
Lowering income tax return filing exemption age
There is also a push to lower the age limit for income tax return filing exemptions from 75 to 60 years, which could simplify tax-related processes for a larger number of seniors.
Revising lock-in period for Section 80C investments
Adjusting the lock-in period for specified investments under Section 80C to offer more liquidity would provide seniors with better access to their funds when needed.
As the Union Budget for 2024-25 approaches, senior citizens remain hopeful that these anticipated measures and reforms will be addressed to enhance their financial security and well-being.
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