Budget 2018 is out and senior citizens have some reasons to rejoice. Let us take a look at few changes introduced during Budget 2018 that will reduce the tax outgo from the hands of senior citizens in the country:
1. Interest on Savings Account
Senior Citizens in India generally save their money in Bank Savings Accounts. In Budget 2018, Income tax exemption on interest earned by senior citizens from savings accounts has been hiked to Rs 50,000 from FY2018-19.
2. Interest on FDs
Interest earned on Fixed Deposits is exempted from Income Tax for senior citizens. It is by far the safest option to save money and earn interest and reap benefits of compounding. With tax-free interest on FDs, senior citizens have a good reason to invest in this instrument.
3. Medical Treatment
With Health being the prime focus of Budget 2018, you can claim tax exemption up to Rs 1 Lakh (from existing Rs 60,000) for treatment of critical illnesses and certain diseases like chronic renal failure, malignant cancers, AIDS, etc.
4. Medical Insurance
Lastly, if you or your children buy a medical insurance cover for you, they can claim tax exemption up to Rs 50,000 now (from existing Rs 30,000). If the insurance cover is bought for more than a year, it will be divided proportionately for each year covered subject to the above limit.
Find out how 1% Increase in Education Cess will Impact your Income Tax Post Budget 2018:
http://www.news18.com/news/business/calculate-your-income-tax-post-budget-2018-1649329.html
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