Budget 2021: What is in store for the senior citizens?

New Delhi, Feb 01: Senior citizens will be looking forward to the announcements of Budget 2021 to be presented by Finance Minister Nirmala Sitharaman with keen interest.

In these times, when COVID-19 pandemic has brought the focus on health care costs, the importance of keeping a health insurance plan has increased manifold.

Health insurance plans and exclusive health plans for senior citizens have been a saviour to them to some extent but still higher premium in such plans keeps many seniors buy inadequate coverage.

In its pre-Budget memorandum, the Institute of Chartered Accountants of India (ICAI) has suggested the government that the interest income benefit up to Rs 50,000 provided to senior citizens under Section 80TTB should be extended to income received from investment in the National Savings Certificate (NSC).

NSC is one of the safest investment options widely used by senior citizens.

Explaining the reason for such suggestion, the ICAI said that The Finance Act 2018 inserted a new section 80TTB to allow a deduction up to Rs 50,000 in respect of interest income on deposits made by senior citizens.

ICAI said that bringing NSC interest income under Section 80TTB will greatly benefit the senior citizens whose main source of income is generally from interest income.

"It is suggested that income by way of interest on National Savings Certificate also be included within the ambit of provisions of section 80TTB, so that senior citizens who have purchased NSCs from post offices are also able to avail the benefit of enhanced deduction under section 80TTB," ICAI said.