Monday, March 8, 2010

Budget has same benefits for senior citizens

Mumbai: For senior citizens, the finance minister has continued to allow deduction of up to Rs20,000 against their taxable income for the premium paid. Senior citizens or retired people with an income of Rs1.60 lakh-5 lakh stand to gain as they save Rs20,600 a year, compared to the same slab last year. Those earning Rs5 lakh-Rs8 lakh stand to save around Rs41,000, and for Rs8 lakh and above they will save Rs51,500.

Dinshaw Irani, 66 years, said, “The budget benefits the middle-income group in some ways. A senior citizen will have a little more money in hand to spend, as compared to last year. We were expecting total exemption on income tax, but that is not possible as many senior citizens are rich.”

Ashok Ravat, 70, said, “Because of inflation the prices of medicine and domestic help are going up. Senior citizens earning less than Rs 5 lakh per annum have got more relief.”

Nagesh Kini, 66, said, “They are giving a premium limit of up to Rs 20,000 for mediclaim. There should not be any limit for senior citizens’ medical premium.”


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