Benefits available to senior citizens

Lower tax

Tax laws are relaxed for senior citizens to ease their financial burden. For senior citizens, Income of up to Rs.3 lakh is non-taxable. For super senior citizens (over 80 year of age), income of up to Rs.5 lakh is non-taxable. They get deduction under Section 80D of income-tax act for health insurance premium paid up to Rs 30,000 a year.

Travel discounts

Senior citizens can avail of various discounts on fares. In Air-India senior citizens with Indian citizenship, who are over 60, are eligible for 50% discount on economy fare for domestic travel. For rail travel, men over the age of 60, and women over the age of 58 are eligible for 40% and 50% discount respectively.

Higher interest

Senior citizens get higher interest on investments. The Senior Citizen’s Saving Scheme is available to all seniors over the age of 60. It offers interest of 8.4% per annum. Senior citizens also get 0.5% higher interest rate on fixed deposits than the standard rate.

Special schemes

National Insurance offers ‘Varishta Mediclaim Policy’, for seniors aged 60–80. Maximum sum insured offered is Rs 1 lakh for hospitalisation and Rs 2 lakh for critical illness. LIC’s Varishtha Pension Bima Yojana 2017 will provide an assured pension to senior citizens based on a guaranteed rate of return of 8% for 10 years. Maximum of Rs 7.5 lakh can be invested in this scheme.