Senior citizens: Strike a balance between tax saving and liquidity

They must also maximise the utilisation of the higher deductions available to them

life expectancy, old age, senior citizens, pensions, insurance

A senior citizen can claim deduction of up to Rs 1 lakh on expenditure for the medical treatment of specified diseases

Bindisha Sarang Mumbai
The government offers several benefits to senior (60-80 years of age) and very senior citizens (above 80 years) in the matter of income-tax (I-T). Such benefits come either in the form of enhanced deductions or relaxations in tax-filing procedures.

Senior citizens need to strike a proper balance between their tax and financial planning. Suresh Surana, founder, RSM India, says, “They should make tax-saving investments after taking into consideration their liquidity needs, the lock-in period of an investment, their requirement of funds for medical and other emergencies, etc.”

Higher basic exemption limit: Senior citizens’ income of up to Rs 3 lakh is tax-exempt. Says Vivek Jalan, partner, Tax Connect Advisory Services LLP: “They also get a deduction of Rs 1.5 lakh

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First Published: Jan 19 2021 | 6:10 AM IST

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