Budget 2025: Finance Minister Nirmala Sitharaman will present the Union Budget on 1 February 2025. Like all sections of the society, senior citizens also have many expectations from this budget. Inflation and health related expenses have made the lives of senior citizens difficult. In such a situation, it is expected that the Finance Minister can take some big decisions that will provide relief to them.
Tax deduction for renters
There are a large number of senior citizens who do not have their own homes and live in rented houses. He says that every month the rent expense weighs heavily on his budget. The government should provide the facility of tax deduction on house rent to these senior citizens, especially those who do not receive regular pension. This will provide them financial relief and make their life a little easier.
Demand to increase tax exemption on health policy
The cost of treatment has increased significantly after the Covid pandemic. Getting treatment in private hospitals is not possible without health insurance. However, senior citizens currently get a tax rebate of Rs 50,000 on health policy premium. Experts believe that this limit should be increased to at least Rs 1 lakh, because health policy premiums are continuously increasing.
The lock-in period of investment should be reduced
The government should consider reducing the lock-in period in tax-saving instruments for senior citizens. At present, the lock-in period of tax-saving FD of a bank or post office is 5 years, while that of tax-saving scheme (ELSS) of mutual fund is 3 years. For senior citizens, reducing the lock-in period of these instruments can reduce their financial problems.
Demand to increase the limit of section 80TTB
At present, the benefit of tax deduction is available on interest income up to Rs 50,000 on deposits of banks or cooperative societies. Experts suggest that along with increasing this limit, the government should also bring the interest on National Savings Certificates (NSC) under its ambit. This will directly benefit senior citizens investing in NSC.
Hope of relief for senior citizens
Senior citizens have to face a lot of difficulties due to inflation and increasing health expenses. It is expected that in Budget 2025, the Finance Minister will understand their needs and take steps to provide economic relief.