All eyes were on the Union Budget ahead of its presentation, with many questioning what it would offer to senior citizens. Union Finance Minister Nirmala Sitharaman unveiled the Union Budget 2019 in the Lok Sabha today, addressing concerns of the elderly population. Senior citizens, who rely heavily on pensions, have been struggling with rising inflation, which has put a strain on household budgets. The increased cost of healthcare also remains a source of stress. In response, the central government has made several announcements in this year’s budget aimed at supporting senior citizens.
In this year’s budget presented by the Modi government, major changes were announced regarding Tax Deducted at Source (TDS). The TDS limit has been increased from Rs 50,000 to Rs 1 lakh, offering relief to taxpayers. Additionally, the annual TDS limit on house rent has been raised from Rs 2.4 lakh to Rs 6 lakh. Senior citizens have also received relief with tax exemptions on the National Savings Certificates (NSC), applicable after withdrawals made from August 2024. As per the income tax rules, senior citizens aged 60 and above, with an annual income exceeding Rs 50,000, were previously subject to a 10% TDS by banks. However, this year’s budget has raised that threshold, providing further relief to the elderly.
Also Read| Budget 2025: What Gets Cheaper, What Gets Expensive? Check the Complete List.
In the 2023-24 budget, the deposit limits for senior citizens' savings schemes were increased. The maximum deposit for individual accounts in the savings scheme was raised from Rs 15 lakh to Rs 30 lakh. Similarly, the deposit limits for the monthly income account scheme were also increased, with individual accounts rising from Rs 4.5 lakh to Rs 9 lakh, and joint accounts from Rs 9 lakh to Rs 15 lakh.