One of the vital areas where you can particularly benefit from these exemptions is healthcare. Owing to the rising cost of healthcare in the country, the government has offered tax benefits on health insurance policies that can reduce the financial liability of seeking treatment to quite an extent.
Following are some common tax deductions and benefits individuals aged 60 and above can avail of for financial years 2022-23 and 2023-24.
Pensioners above 60 years can claim a standard deduction of ₹50,000 under the head 'Income from salaries’ on their pension only. Family pensioners can also claim a standard deduction of up to ₹15,000.
Senior citizens can claim a deduction of up to ₹ 1 lakh for the medical expenditure of specific critical illnesses, as per the amendments made by the Union Budget 2018-19.
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Under Section 80D of the Income Tax Act, senior citizens can claim a deduction of up to ₹ 50,000 for medical insurance premiums, which is ₹ 25,000 for other individuals.
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Under Section 80TTB, the deduction on interest income generated from deposits with savings bank accounts, bank deposits, post office deposits or cooperative banks post office and bank has been expanded from ₹ 10,000 for people below 60 years of age to ₹ 50,000 for senior citizens. This benefit also applies to interest income from various fixed and recurring deposit schemes.
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Under this scheme, the regular instalments senior citizens receive upon mortgaging their home for life while the ownership and possession remain with them are entirely exempt from income tax.