Senior citizen benefits that you must know
At 60, one is considered a senior citizen in India. Senior citizens
are entitled to a multitude of financial benefits. While you can avail
some benefits at 60, you also get some added benefits at 65. From time
to time, the government offers senior citizens financial benefits to
make their life easier. Here are a few benefits available to senior
citizens in India.
1. Interest income:
Senior citizens are entitled to a tax exemption of Rs. 50,000 for
income from fixed deposits, post office interest and savings bank
accounts.
2. Health insurance premium:
Senior citizens get a tax exemption of Rs. 50,000 on health insurance
premium under Section 80D. Exemption on medical expenditure for
critical illnesses is Rs. 1 lakh for both senior citizens and super
senior citizens.
3. Pradhan Mantri Vaya Vandana Yojana (PMVVY):
The PMVVY scheme was recently extended from March 2018 to March 2020.
The investment is capped at Rs. 15 lakh and gives a guaranteed 8 %
fixed rate of return for a period of 10 years.
4. Senior Citizens’ Saving Scheme (SCSS):
The SCSS scheme offers an interest rate of 8.3% per annum. Any senior
citizen over the age of 60 can open the senior citizen savings scheme.
If the senior citizen has retired on superannuation or VRS at 55, they
can still opt for the SCSS scheme provided they open an account within
a month of receipt of retirement benefits and the amount shouldn’t be
more than the number of retirement benefits.
5. Professional tax:
In some states, resident senior citizens aged 65 and above are exempt
from professional tax.
6. Income tax:
For senior citizens, an income of up to Rs. 3 lakh is non-taxable. For
senior citizens over the age of 80, an income of up to Rs. 5 lakh is
non-taxable.
7. Travel concessions:
Senior citizens are entitled to discounts on fares. For instance,
senior citizens over the age of 60 can avail a discount of 50% on
economy class for domestic travel. Women aged 58 are eligible for 50 %
discount and men aged 60 and above are eligible for 40 % discount on
rail fare. The concession is on all classes of Mail/Rajdhani/Jan
Shatabdi/Shatabdi/Duranto/
corporations also give discounts on bus fare to senior citizens. There
are seats reserved for senior citizens as well. The passenger
reservation system automatically allots lower berths to senior
citizens subject to availability during ticket booking.
8. Insurance policies:
For seniors aged 60-80, national insurance offers the ‘Varishta
Mediclaim Policy’ where the maximum sum insured is Rs. 1 lakh in case
of hospitalization and Rs. 2 lakh for critical illnesses. LIC offers
the Varishtha Pension Bima Yojana that provides assured pension for
senior citizens.
9. Subsidized phone bills:
Senior citizens over the age of 65 can avail of BSNL connections
without registration charges. They are also eligible for registration
of telephone on priority. Senior citizens over the age of 65 get 25%
concession on monthly service charges and installation charges for
landline connections.
10. Miscellaneous benefits:
Senior citizens get separate queues in hospitals for registration and
clinical examination. They can also avail of preferential hearing for
their cases by writing to the court. Banks have separate queues for
senior citizens and offer them senior citizen cards, priority services
etc.
Conclusion
Senior citizen benefits are afforded to those over the age of 60 to
make sure they aren’t burdened financially during retirement. The
benefits also ensure that they don’t end up being dependent on anyone.
At 60, one is considered a senior citizen in India. Senior citizens
are entitled to a multitude of financial benefits. While you can avail
some benefits at 60, you also get some added benefits at 65. From time
to time, the government offers senior citizens financial benefits to
make their life easier. Here are a few benefits available to senior
citizens in India.
1. Interest income:
Senior citizens are entitled to a tax exemption of Rs. 50,000 for
income from fixed deposits, post office interest and savings bank
accounts.
2. Health insurance premium:
Senior citizens get a tax exemption of Rs. 50,000 on health insurance
premium under Section 80D. Exemption on medical expenditure for
critical illnesses is Rs. 1 lakh for both senior citizens and super
senior citizens.
3. Pradhan Mantri Vaya Vandana Yojana (PMVVY):
The PMVVY scheme was recently extended from March 2018 to March 2020.
The investment is capped at Rs. 15 lakh and gives a guaranteed 8 %
fixed rate of return for a period of 10 years.
4. Senior Citizens’ Saving Scheme (SCSS):
The SCSS scheme offers an interest rate of 8.3% per annum. Any senior
citizen over the age of 60 can open the senior citizen savings scheme.
If the senior citizen has retired on superannuation or VRS at 55, they
can still opt for the SCSS scheme provided they open an account within
a month of receipt of retirement benefits and the amount shouldn’t be
more than the number of retirement benefits.
5. Professional tax:
In some states, resident senior citizens aged 65 and above are exempt
from professional tax.
6. Income tax:
For senior citizens, an income of up to Rs. 3 lakh is non-taxable. For
senior citizens over the age of 80, an income of up to Rs. 5 lakh is
non-taxable.
7. Travel concessions:
Senior citizens are entitled to discounts on fares. For instance,
senior citizens over the age of 60 can avail a discount of 50% on
economy class for domestic travel. Women aged 58 are eligible for 50 %
discount and men aged 60 and above are eligible for 40 % discount on
rail fare. The concession is on all classes of Mail/Rajdhani/Jan
Shatabdi/Shatabdi/Duranto/
corporations also give discounts on bus fare to senior citizens. There
are seats reserved for senior citizens as well. The passenger
reservation system automatically allots lower berths to senior
citizens subject to availability during ticket booking.
8. Insurance policies:
For seniors aged 60-80, national insurance offers the ‘Varishta
Mediclaim Policy’ where the maximum sum insured is Rs. 1 lakh in case
of hospitalization and Rs. 2 lakh for critical illnesses. LIC offers
the Varishtha Pension Bima Yojana that provides assured pension for
senior citizens.
9. Subsidized phone bills:
Senior citizens over the age of 65 can avail of BSNL connections
without registration charges. They are also eligible for registration
of telephone on priority. Senior citizens over the age of 65 get 25%
concession on monthly service charges and installation charges for
landline connections.
10. Miscellaneous benefits:
Senior citizens get separate queues in hospitals for registration and
clinical examination. They can also avail of preferential hearing for
their cases by writing to the court. Banks have separate queues for
senior citizens and offer them senior citizen cards, priority services
etc.
Conclusion
Senior citizen benefits are afforded to those over the age of 60 to
make sure they aren’t burdened financially during retirement. The
benefits also ensure that they don’t end up being dependent on anyone.
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