Everyone dreams of leading a stress free and smooth life after their retirement. An ideal retirement should bring an end to social and economic tension along with the end of work pressure. There are many benefits for senior citizens that ensure the same. Out of a long list of various socio-economic benefits that a senior citizen can enjoy, here is a list of 5 exceptional benefits that will make your retired life easier.
Tax Benefits on savings and investments
Financial year 2018-2019 has brought many modifications in terms of tax benefits for senior citizens. These changes, effective from 1st April 2018 include:
- Tax would be exempted on income up to 3 lakh for senior citizens
- Interest income from savings or various investment up to Rs 50,000 will be tax free
- Senior citizens can enjoy a concession of Rs 5,000 onincome tax liability while super senior citizens can get concession up to Rs 25,000
Furthermore, investment in senior citizen fixed deposit with NBFCs provides a higher senior citizen fixed deposit interest rate up to 8.20%. With hassle free investments in Bajaj Finance Fixed Deposits, you can invest your money for better returns. Along with the discounts on tax various schemes like Senior Citizen Saving Scheme, Rashtriya Vayoshri Yojana, Indira Gandhi Pension Scheme, Pradhan Mantri Vaya Vandana Yojana, etc. provide financial aids to senior citizens.
Easy Issuance of Passport
The process of issuing a passport is a bit long, where you have to apply online and take an appointment for document verification. Once the documentation is done your passport does not get issued till the process of police verification is complete. But, for senior citizens whose kid (above the age of 18) stays abroad, the passport can be issued before the police verification. Also, there is no need for prior appointment for passport documentation for any senior citizen.
You can just walk-in at the passport office with your applications for new passport or renewal and you will be served on first come first serve basis.
Travel Discounts and Subsidized Phone Bills
Senior citizens get exceptional facilities and discounts for travel. The flight tickets are available at 50% lower rate than the regular rates, for citizens above the age of 60. A discount of 40% on the train tickets for males and 50% for females is available. This discount is applicable for all types of rail reservation and for all classes of seats i.e. AC and Non AC. Additionally, as a senior citizen you get local discounts on city bus rates. For every mode of travel special seats and lower berths are also reserved for senior citizens. Similarly, various discounts are also available on phone schemes for senior citizens. BSNL provides services for senior citizen without registration process and also gives 25% concession on monthly service charges.
Benefits on Home Loans Insurance Policies
In addition to the various tax exemptions on insurance premiums, senior citizens also enjoy benefits on various insurance schemes. The Varishtha mediclaim policy offered by government includes insurance of Rs 1 lakh for hospitalization and of Rs 2 lakh for critical illness. Other benefits on insurance policies include tax deduction on insurance amount, special deductions for premium towards spouse, parents or children, and a maximum tax benefit of Rs 60,000 on insurance amount according to Section 80D.
You can also avail home loan on your pension income. The loan amount can be as high as 50 times your monthly pension income or 4 times your annual pension income. Previously, the tenure of the loans was shorter and dependent on the age of the applicant. But, today you can extend your tenure up to the time your age is 75 years.
All these benefits ensure that you lead a smooth and stress-free retired life while earning stable income through various investment schemes.
Also Check: Bajaj Finance FD