Budget 2012 Impact on Senior Citizen

News & FAQs | By ALOK PATNIA | Last updated on Apr 4, 2012

Budget 2012, proposed by our Finance Minister will have impact on senior citizen also, but the most of the impacts are positive for them. In this write-up we have tried to summarize various amendments which would have impact on them.

TAX SLAB

The basic exemption limit of senior and very senior citizen has not changed, though the upper limit for those falling in 20 per cent tax slab has been raised from 8 to 10 lakhs.

For Senior Citizens (60â€“80 years)

Â FY 2012-2013Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â TAX RATE

Upto Rs.2.50 lakhsÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â NIL

From Rs.2.50 to 5 lakhsÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10%

From Rs.5 to 10 lakhsÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 20%

Rs.10 lakhs and aboveÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 30%

For Very Senior Citizens (80 years and above)

FY 2012-2013Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â TAX RATE

Upto Rs.5 lakhsÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â NIL

From Rs.5 to 10 lakhsÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 20%

Rs.10lakhs and aboveÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 30%

AGE LIMIT REDUCED

Qualifying age of senior citizens in various provisions has been amended. Age limit has been reduced from 65 to 60 years to avail benefit of section 80D & 80DDB. Moreover, age limit for Form 15H which is applicable for senior citizen has also been reduced from 65years to 60 years.

Section 80D & 80DDB amendment will be effective from 1st April, 2013 and amendment relating to Form 15H will be effective from 1st July, 2012.

EXEMPT FROM ADVANCE TAX PAYMENT

Senior citizen, who do not have any income from business, would be exempted from payment of advance tax.

DEDUCTION ON SAVING BANK INTEREST

Individuals, be it senior citizens can claim deduction upto Rs. 10000 on Saving Bank Interest under new section 80TTA inserted in Budget 2012. Senior citizens can now save more for better living. This deduction will take effect from 1^st April, 2013.

DEDUCTION ON HEALTH CHECK-UPS

Individuals, be it senior citizen, will be benefited from deduction of Rs. 5000 on preventive health check â€“ ups u/s 80D. The proposed deduction on preventive health check up will be available upto Rs. 5000 and it is included in overall limit and not additional one.

We can conclude that the budget announced by Finance Minister has positive impact on senior citizens and has made the life of senior citizen much easier and hassle free. Budget is appreciated by the senior citizens.

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