1. Banking BenefitsThe Government has rolled out a host of banking benefits for its senior citizen population to make the Indian banking system inclusive and affordable. Various nationalised, as well as private banks, offer the service of a specialised savings accounts for their senior citizen customers.
Such exclusive accounts facilitate customers with priority service, higher interest rates, senior citizen cards, dedicated senior citizen desk for front-end service, discounts on other ancillary services like issuance of a debit card, etc.
2. Subsidised Telephone RatesSenior citizens are eligible to apply for reduced telephone charges. BSNL offers priority registration and that too free of cost to its senior customers who have attained the age of 65. MTNL customers aged 65 years and above can claim a flat 25% discount on their monthly rental bill amount along with a 25% waiver on installation charges.
3. Travel ConcessionsSenior citizens holding Indian citizenship and permanently residing in India are eligible for a whopping 50% discount on the basic fare of economy class tickets booked for domestic flights operated by Air India. To avail of this concession, the passenger shall have to be at least 60 years old on the date of commencement of the journey.
Train journeys have not only been made affordable but also comfortable for senior citizens. Indian Railways offers a flat 30 percent rebate to senior citizens aged 60 years on all fares covering every class of every train coach. Exclusive coaches have been designed to accommodate wheelchairs, handrails and special washrooms. Indian Railways has also constructed special booking counters dedicated to senior citizens to ensure shorter queues.
4. Tax ReliefThe Income Tax Act also offers tax benefits to senior citizen (individuals aged 60 and above) and super-senior citizen (individuals aged 80 and above) assessees. The basic exemption limit for tax is higher in case of senior citizens and super-senior citizens, thus bringing down their effective rate of tax.
Additionally, for such assesses, interest earned on deposits held with banks is exempt from tax, up to a maximum of fifty thousand rupees as per section 80TTB of Act. Additionally, senior citizens suffering from critical illness are eligible to receive a tax deduction of up to fifty thousand rupees as per section 80D of the Act.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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