What Are the Benefits that you get Once you Turn 60?

Posted by Arwind Sharma on July 24th, 2017

You have worked all your life and when you start nearing the age of 60 you start expecting some financial benefits from various investment options that are available in India most trust able FD investment scheme. Once you turn 60, you will discover that there are a lot of financial benefits that the government and even some private sector companies give you.

Here are some of the benefits for senior citizens:

The Higher Amount is Deducted for Medical Insurance Premium:

It is a popular belief that older people or senior citizens need more medical care and attention as compared to younger family members. If you are a senior citizen, you will get extra tax benefits when you buy your health insurances. But the important thing to remember is that you cannot get a health insurance plan once you have turned 65. A better option is to buy an insurance policy before you turn 65 as all insurance policies are to run for a lifetime.

The premium that you pay for a health insurance policy will qualify for tax benefits under Section 80D of the Income Tax Act. The premium that you pay for a life insurance policy for health riders will also qualify for Tax benefits under this section.

You can avail the benefits of the premium paid for self, children, and spouse or even for your parents. The important thing to remember is that you can avail the benefits of the policy irrespective if your children or parents are independent.

The tax benefit is dependent on the age of the individual who wants to be medically insured. You can avail a deduction of maximum RS.25,000 per year on the premium that you pay for yourself, child or parents, only if the age of the applicant is not over 60. If you pay a premium of policy for your parent then the maximum deduction of RS.30,000 can be done.

Hence any taxpayer who has done the above can get maximum tax benefits under Section 80D of RS.55,000 if his age is for 60 years and his parents are over 60 years. If the taxpayer is 60 years old or more and if you pay the premium for your parents then the maximum tax benefit that you will get under Section 80D is RS.60,000.

Therefore, the maximum tax benefit that you will get under Section 80D if you are below 60 years is RS.55,000 and if you are above 60 years then you will get the maximum tax benefit of RS.60,000.

The Tax Exemption Limit is High:

When it comes to tax circulation, the Department of Income Tax considers people above the age of 60 as senior citizens and above the age of 80 years as very senior citizens. If you are a resident senior citizen, whose age is somewhere between 60 and 80 years old at any given time of the last year, an income of maximum RS.3 lakhs is exempted from tax. If your income is somewhere between RS.3 lakhs to 5 lakhs then you will have to pay 10% of tax and if your income is between 5 lakhs and 10 lakhs then you will have to pay a tax of 20%. If you earn more than RS.10 lakh then you will have to pay 30% tax.

Loans:

A lot of banks offer home loans to people who are above the age of 60 years, but only if they maintain a pension account. A typical home loan is about 50 times as that of monthly pension/ income if you are a pensioner or a salaried person or it is about 4 times your average gross annual income if you are a pensioner who starts working later or if you are self-employed if the maximum amount of loan is RS.75 lakhs. All the financial institutions make sure that the Equated Monthly Installment or the EMI is about 50% of the new take-home income. The maximum tenure of the loan is 15 years or until you reach the age of 75 years.

No matter how good the offer sounds, senior citizens need to be careful and make sure that they do not fall pray for any schemes.

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Arwind Sharma

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Arwind Sharma
Joined: April 15th, 2016
Articles Posted: 48

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