Senior citizens make up 9% of India’s total population. Budget 2018, through its various revisions, has brought in benefits across several segments specifically for you, and the well thought out changes are sure to help you save more. So, to ensure that you make the most of these changes, take a look at 4 revisions that you should be aware of.

Enjoy exemption on interest income

Now onwards, the interest you earn from fixed deposits, bank savings, post office schemes and recurring deposits will not be subject to TDS under Section 194A of Indian Income Tax Act. This will give you access to a greater portion of the interest income.

Besides, until now, interest income up to Rs. 10,000 was tax-free. With this budget, this amount has been increased to Rs.50,000. Another revision ensures that now, if your income falls under the tax bracket, you won’t have to furnish form 15H, unlike earlier.

So, you can invest and enjoy higher returns and therefore build a larger corpus for yourself in the same time frame. If you’re looking at parking a portion of your investment amount in fixed deposits, consider the Bajaj Finance FD (Fixed Deposit). On Fixed Deposit for Senior Citizen you can enjoy a higher interest rate, and benefit from the excellent stability that the fixed deposit offers.

Benefit from better deductions on health insurance premium

Until this year’s budget was tabled, you could claim Rs.30,000 as exemption towards the health insurance premium that you pay under Section 80D. This year, keeping in mind increasing hospitalisation charges and higher yearly premium payments, the government has increased the limit to Rs.50,000.

Invest more in the Pradhan Mantri Vaya Vandana Yojana

The new budget increases the investment limit for the Pradhan Mantri Vaya Vandana Yojana. You can now invest up to Rs.15 lakh under this scheme, double of Rs.7.5 lakh, which is the amount that you could invest earlier. Also, the scheme was introduced in 2017 for a short period of a year, but now, the deadline for investments has been extended to 2020. Offering you an interest rate of 8% for 10 years, it is definitely a scheme worth looking into.

Claim higher deduction on critical illness expenditure

Until now, senior citizens could claim Rs. 60,000 under this category, and super senior citizens (over 80 years old) could claim Rs. 80,000 under Section 80DDB. As per the changes in this year’s budgets, all senior citizens can now claim up to Rs.1 lakh as a deduction on expenditure towards critical illnesses as defined by the law including cancer, renal failure, dementia, etc.

With plenty of benefits across segments, this year’s budget is definitely working in your favour. Use the increased tax breaks and deductions to maximise your wealth by investing in the right instruments.

Also Check: Fixed Deposit for Child