Benefits for Senior Citizens

India defines Senior Citizens and super Senior Citizens as any one above the age of 60 or above to be stated as a senior whereas anyone who is 80 and beyond.

This definition isn’t just a limitation to the books of accounts for the perpose of tax incentives or just a phrase but a reality for ensuring that not one but all people that fall in this bracket get an equal human treatment in almost all possible spheres in order to make their lives easier during their second innings of life .

Here are some of the useful benefits that can help senior citizens apart from the maintaiance of senior citizens (as provided under the Maintainance of senior citizens act ) save their monthly budgets:

Travel discounts

Air travel: Permanent Indian residents who have attained 60 years of age on or before the date of the journey can attain 50 percent discount on base fares in economy class for travel within India.

Railway: Women over 58 years old can attain 50 percent discount and men over 60 years of age can attain 40 percent discount on fares of all classes of Mail/Express/Rajdhani/Shatabdi/Jan Shatabdi/Duronto trains.

Bus: Some state governments provide concession on travel fare or reserved seats in state-owned buses.

Passport: Police verification which is usually conducted before issuing a passport can be postponed to after issuance in case of senior citizens. The condition for the facility is that they have to submit a copy of their child staying abroad (over 18 years of age) with a page of their name on it with the application form.

Some passport kendras also allow “walk-in” facility to senior citizens, which means they do not need to make an appointment in advance.

Banking

Residents over 60 years of age are given senior citizen interest rates on their deposits. The interest is 0.5 to 1 percent over the normal rates. The 5-year senior citizen savings scheme also allows the account holder to gain 8.3 percent per annum interest on their deposits. However, the interest received is taxable on Fds as well SCSS.

Banks also offer special savings accounts for senior citizens and separate queues for them.

Special schemes

Varishta Mediclaim Policy by National Insurance offers senior citizens between 60 to 80 years a maximum assured sum of Rs 1 lakh on hospitalization and Rs 2 lakh for critical illness.

The Varishtha Pension Bima Yojana 2017 by LIC provides an assured pension (maximum Rs 5,000 per month) with 8 percent guaranteed return for 10 years. A maximum of Rs 7,50,000 can be invested in the scheme to avail pension on a monthly, quarterly, half-yearly or annual basis.

Lower tax

To ease the financial burden, total income (for the year) up to Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens (over 80 years old) is not taxable.

Up to Rs 30,000 can be exempted from tax deduction on contribution towards health insurance premium under section 80D of Income Tax Act 1961.

For expenses towards the treatment of certain illnesses up to Rs 60,000 can be exempt from tax under section 80DDB. The limit for super senior citizens can be increased to Rs 80,000.

Other benefits

Special registration and clinical examination facilities are available for senior citizens in certain hospitals.

Health insurance premium of up to Rs 30,000 gets tax deduction under Section 80D of Income Tax Act 1961.

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 get 0.5% higher interest rate on fixed deposits than the standard rate

LOWER CHARGES
Their telephone bills are subsidised

* BSNL: Senior citizen over 65 are eligible for registration of telephone on priority. Registration charges are also waived for them.

* MTNL: Senior citizen over 65 are eligible for 25% concession on installation charges and monthly service charges for landlines connections.

OTHER BENEFITS
Banks, hospitals, etc. make special allowances for them

* Separate queues for the elderly in hospitals for registration and clinical examination.

*Senior citizens over the age of 60 can write to the court for preferential hearing of their cases.

* Senior citizens can be issued a passport on post police verification basis if they submit a copy of the passport of their child (above 18) staying abroad (with a page having their name) as an additional document along with their application form.

* Bank branches have separate queues for the elderly.

*Most banks have special accounts for senior citizens that offer facilities like issuing senior citizen cards, priority service at branches, etc

* Senior citizens suffering from a critical illness can avail a tax deduction of up to Rs 60,000 under Section 80DDB. The limit is increased to Rs 80,000 for super seniors.

Senior citizens over 60 years can write to the court to seek a preferential hearing of their cases.

Latest Amendments

Section 80 D: Section 80 D is an important tax-saving section as it gives deduction in taxable income, if the tax-payer pays health insurance premium for medical coverage. Senior citizens were already allowed a maximum deduction of Rs. 30,000 under this section which has now been increased to Rs.50,000 in the latest budget 2018. All senior citizens are recommended to invest in a suitable health insurance plan for medical emergencies and also avail the savings in income tax.

Section 80 DDB: Section 80 DDB of income tax act allows exclusive deduction for senior citizens for medical treatment of specified diseases. In the latest budget 2018, deductions under this section has been increased to Rs.100,000 for senior citizens (60-80 years) as well as for super senior citizens. These specified diseases include neurological diseases, AIDS, malignant cancer and hematological disorders. Deduction under this section has been increased keeping in mind rising medical inflation.

Important feature of this Section is that this deduction is available on the expenditure incurred by a senior citizen taxpayer on the treatment of specified diseases for self or spouse, dependent parents, children, brother and sister. It is very important as the costs incurred on healthcare are rising.

Section 80 TTB: In the latest budget 2018, senior citizens have been given special bonanza by introduction of a new section 80TTB. Under this section, all senior citizens will enjoy tax-free interest on saving accounts, banks fixed deposits, recurring deposits, as well as deposit in Post Offices up to a maximum limit of Rs.50,000 per year. Thus, a senior citizen in 30% tax bracket will save additional Rs.15,000 as lower income tax liability.

Various Government Scheme’s

Integrated Program for Older Persons (IPOP)
This program is run by The Ministry of Social Justice and Empowerment. Under this program, grants are given for running and maintenance Old Age Homes, Day Care Centres, Mobile Medicare Units, Multi Facility Care Centre for Older Widows etc. The main objective of the Scheme is to improve the quality of life of Older Persons by providing basic amenities like shelter, food, medical care and entertainment opportunities etc. Implementing agencies eligible for assistance under the Scheme are Panchayati Raj Institutions/Local Bodies, Non-Governmental Voluntary Organizations, etc. Funds under the Scheme of IPOP are not released to the States, but released to the implementing agencies like NGOs etc.

Action Point: Details of old age homes receiving grants under this are available on the ministry’s website. One can visit these homes and admit old age people who have nobody to take care of.

Rashtriya Vayoshri Yojana (RVY)
This scheme is also run by The Ministry of Social Justice and Empowerment. This is a Central Sector Scheme funded from the Senior Citizens’ Welfare Fund. The fund was notified in the year 2016. All unclaimed amounts from small savings accounts, PPF & EPF are to be transferred to this fund.

Under the RVY scheme, aids and assistive living devices are provided to senior citizens belonging to BPL category who suffer from age related disabilities such as low vision, hearing impairment, loss of teeth and loco-motor disabilities. The aids and assistive devices viz. walking sticks, elbow crutches, walkers/crutches, tripods/quadpods, hearing aids, wheelchairs, artificial dentures and spectacles are provided to eligible beneficiaries. The Scheme is being implemented by Artificial Limbs Manufacturing Corporation of India (ALIMCO) which is a Public Sector Undertaking under the Ministry of Social Justice and Empowerment.

The estimated outlay of the Scheme is Rs. 483.6 crore up to 2019-20. The Scheme will be implemented in 260 districts and benefit 5,20,000 beneficiaries up to 2019-20. The list of selected districts and other features of the scheme are available on the PIB website. The beneficiary identification will be done by a committee at the district level headed by the District Collector and the distribution of kits will be done in a camp mode. Till date, the scheme has benefitted over 38000beneficiaries against the target of 5,20,000 by 2019-20.

Action Point: Get old age people with such ailments in the identified districts to approach the District Collector’s office to know more about the upcoming camps and take advantage of the scheme.

Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
The Ministry of Rural Development runs the National Social Assistance Program (NSAP) that extends social assistance for poor households- for the aged, widows, disabled and in the case of death of the breadwinner. This is in addition to the benefits that the State Governments extend to these people. Under this scheme, financial assistance is provided to person of 60 years and above and belonging to family living below poverty line as per the criteria prescribed by Government of India. Central assistance of Rs. 200/- per month is provided to person in the age group of 60-79 years and Rs. 500/- per month to persons of 80 years and above.

Funds under the schemes of NSAP are released on the basis of reports submitted by States/UTs. A total of Rs 5901 crore was released under the scheme in 2016-17.

Action Point: Find out the details of the relevant state scheme and get eligible old age people around you apply for the pension.

Varishtha Pension Bima Yojana(VPBY)
This scheme is run by the Ministry of Finance. The Varishtha Pension Bima Yojana(VPBY) was first launched in 2003 and then relaunched in 2014. Both are social security schemes for Senior Citizens intended to give an assured minimum pension on a guaranteed minimum return on the subscription amount. These Schemes are implemented through Life Insurance Corporation(LIC) of India, which is paid the difference between the actual yield earned by LIC on the funds invested under the scheme and the assured return of 9% committed by the Government. Both the schemes VPBY 2003 and VPBY 2014 are closed for future subscriptions. However, policies sold during the currency of policy are being serviced as per the commitment of guaranteed 9% return announced by the Government under the schemes. As on 31st March 2017, a total of  2,74,885 beneficiaries and 3,11,981 beneficiaries are being benefited under VPBY 2003 and VPBY 2014 respectively.

The Pradhan Mantri Vaya Vandana Yojana(PNVVY) was launched in May 2017 to provide social security during old age. This is a simplified version of the VPBY and will be implemented by the Life Insurance Corporation(LIC) of India. Under the scheme, on payment of an initial lump sum amount ranging from Rs. 1,50,000  for a minimum pension of Rs. 1000 per month to a maximum of Rs. 7,50,000/- for a maximum pension of Rs. 5,000  per month, subscribers will get an assured pension based on a guaranteed rate of return of 8% per annum payable monthly/quarterly/half-yearly/annually. The duration of the scheme will be for a period of ten years and the scheme is opened for subscription for a period of one year i.e. from 4th May, 2017 to 3rd May, 2018. As on 30th November 2017, a total of number of 1,83,842 persons are being benefited under PMVVY.

Action Point: The PMVVY is open for subscription till May 2018. Get old age people around you who are eligible for this scheme to explore and subscribe.

National Program for the Health Care of Elderly (NPHCE)
The Ministry of Health & Family Welfare had launched the ‘National Programme for the Health Care of Elderly’ (NPHCE) during 2010-11 to address various health related problems of elderly people. The major objectives under district level activities of the NPHCE are to provide dedicated health facilities in District Hospitals, Community Health Centres (CHCs), Primary Health Centres (PHCs) and Sub-Centres (SCs) levels through State Health Society. The health care facilities, being provided under this program, are either free or highly subsidised The Following facilities are being provided under the Program.

Geriatric OPD and 10 bedded Geriatric Ward at District Hospitals.

Bi-weekly Geriatric Clinic at Community Health Centres (CHCs)

Weekly Geriatric Clinic at Primary Health Centre (PHCs).

Provision of Aids and Appliances at Sub-centres.

The Centre will bear 75% of the total budget and the State Government will contribute 25% of the budget, for activities up to district level.