Announcing a series of benefits for senior citizens, has given the exemption of income tax limit on income from interest has been raised five times to Rs 50,000 per year and that is a right step in the right direction. The tax benefits provided for 2018-19 pleased the seniors very much. Seniors clerks in PSB will get Tax Concession of Rs 6432 (20 per cent tax bracket) due to Newly Introduced Standard Deduction of Rs 40,000 for salaried class, because at present he gets transport allowance of Rs 470 pm i.e. yearly Rs 5,640 and Annual Medical Aid Rs 2,200 both amounting to Rs 7,840 which is fully exempted instead now he will get 40,000 exempted so net Income of Rs 32,160 extra exemption. In addition Tax Deduction at source, that is TDS will not be required under Section 194A of the Income Tax Act. Further, this has been extended to both fixed and recurring deposits as well. Like farmers, senior citizens are also pleased to get such fringe benefits in the bargain.
Jayanthy S. Maniam
(The views expressed by the author in the article are his/her own.)