Benefits available to senior citizens
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.
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.
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.
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.