Incentives for Senior Citizens (Budget 2018): Enhanced Limits for Health Insurance/ Exempt Interest Income upto Rs. 50,000; PMVVY Extended upto March 2020 with enhanced Investment Limit of Rs. 15 lac
While presenting Budget 2018-19, the Finance Minister Mr Arun Jaitley has proposed relief for Senior/ Very Senior Citizens by way of Enhanced Limits for Health Insurance/ Medical Expenses upto Rs. 50,000 (for deduction u/s 80D), Enhanced Exemption for Interest Income on Deposits, extension of PMVVY Scheme upto March 2020 with enhanced investment limit of Rs. 15 Lac, etc., as under:
a) Exemption of interest income on deposits with banks and post offices to be increased from Rs. 10,000 to Rs. 50,000;
b) TDS not required to be deducted under section 194A. Benefit also available for interest from all fixed deposit schemes and recurring deposit schemes;
c) Hike in deduction limit for health insurance premium and/ or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D;
d) Increase in deduction limit for medical expenditure for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB; and
e) Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020. Current investment limit proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.
FM has proposed to raise the 80D deduction for health insurance premium/ medical expenses to Rs 50,000 for Senior Citizens ( Rs. 100,000 for very Senior Citizens having critical illnesses). Further, Interest on Fixed Deposits with Banks and Recurring deposits with Post Office is proposed to be exempted upto Rs 50,000, including relief from TDS u/s 194A.