Reap benefits of your seniority
Nov 10, 2014 - Adhil Shetty
Several organisations extend benefits to senior citizens but the definition of the term varies. It will be helpful to know who is offering what.
Generally, people who are above 60 years old are referred to as senior citizens. However, the definition of the term 'senior citizens' changes from one organisation to another. Sometimes, even people above 55 years old are referred to as senior citizens, while in other cases the term refers to people above 65 years of age. Irrespective of this age definition, senior citizens are eligible to get a host of benefits, depending on the respective organisation's interpretation of the term. The following are some benefits for senior citizens.
Taxation: The basic exemption limit for a senior citizen is Rs 3 lakh for a senior citizen (above 60 years) and Rs 5 lakh for a super senior citizen (above 80 years of age). This is in comparison to a basic exemption limit of Rs 2.5 lakh for people below 60 years. Further, a senior citizen can claim a deduction of Rs 20,000 under Section 80D towards payment of medical premium, as against a normal deduction of Rs15,000. Senior citizens can submit Form 15H and avoid Tax Deducted at Source issues, which means there is lesser trouble of claiming refunds. Under Section 80DDB, senior citizens can claim a deduction of Rs 60,000 instead of Rs 40,000 which is applicable for others. This section is towards expenses incurred for treating specified illnesses. Taxation benefits can result in considerable savings for senior citizens who file income tax returns.
Railway Tickets: Indian Railways allows a discount on train tickets for senior citizens. Accordingly, a male above 60 years can get a discount of 30 per cent on the fare of the train ticket. A woman who is above 60 years of age can get a concession of 50 per cent on the fare of the train ticket. The senior citizen needs to carry the proof of age while travelling. The discount is applicable for all trains including Shatabdi, Rajdhani and Jan Shatabdi trains. Note that in case of tatkal reservations, these concessions do not apply.
Fixed Deposits: Senior citizens who open fixed deposits with banks can get an additional interest rate of anywhere between 0.25 per cent and 0.75 per cent above the normal interest rate applicable for other deposit holders. The extent of benefit varies from bank to bank. Individuals need to be above 60 years of age to claim this benefit.
Loans: If you are a senior citizen and wish to avail loans from banks, you can receive a concession in interest rate in most cases. Bank of India Star Personal Loan scheme for example gives a two per cent concession for senior citizens who wish to avail a personal loan. The personal loan from Punjab National Bank is available for senior citizens without upfront fees or margin requirements.
Air tickets: Air India gives a discount of 50 per cent on basic fare of normal economy class fare for domestic flights for senior citizens above 63 years of age. The age as on the journey date.
Special Schemes: There are certain special schemes meant for senior citizens which can give an attractive return. Senior Citizens Savings Scheme for example is available for individuals above 60 years which can earn an interest of 9.2 per cent per annum. The reverse mortgage scheme is another scheme for senior citizens above 60 years of age, wherein if there is a need for funds, the senior citizen can mortgage his property and earn a regular income on this.
Other Benefits: Some banks offer a concession in service charges for some of its services. For example, State Bank of India offers a 50 per cent concession for several services such as issuance of duplicate statements, cheque books, etc.
The senior citizen community is increasing, with growing life expect-ancy in the country. Several initiatives are being introduced from time to time to ease their finances. However, the level of awareness of these benefits is low. As a result, many senior citizens do not avail these benefits.
The writer is the CEO of BankBazaar.com
http://www.asianage.com/business/reap-benefits-your-seniority-436
Nov 10, 2014 - Adhil Shetty
Several organisations extend benefits to senior citizens but the definition of the term varies. It will be helpful to know who is offering what.
Generally, people who are above 60 years old are referred to as senior citizens. However, the definition of the term 'senior citizens' changes from one organisation to another. Sometimes, even people above 55 years old are referred to as senior citizens, while in other cases the term refers to people above 65 years of age. Irrespective of this age definition, senior citizens are eligible to get a host of benefits, depending on the respective organisation's interpretation of the term. The following are some benefits for senior citizens.
Taxation: The basic exemption limit for a senior citizen is Rs 3 lakh for a senior citizen (above 60 years) and Rs 5 lakh for a super senior citizen (above 80 years of age). This is in comparison to a basic exemption limit of Rs 2.5 lakh for people below 60 years. Further, a senior citizen can claim a deduction of Rs 20,000 under Section 80D towards payment of medical premium, as against a normal deduction of Rs15,000. Senior citizens can submit Form 15H and avoid Tax Deducted at Source issues, which means there is lesser trouble of claiming refunds. Under Section 80DDB, senior citizens can claim a deduction of Rs 60,000 instead of Rs 40,000 which is applicable for others. This section is towards expenses incurred for treating specified illnesses. Taxation benefits can result in considerable savings for senior citizens who file income tax returns.
Railway Tickets: Indian Railways allows a discount on train tickets for senior citizens. Accordingly, a male above 60 years can get a discount of 30 per cent on the fare of the train ticket. A woman who is above 60 years of age can get a concession of 50 per cent on the fare of the train ticket. The senior citizen needs to carry the proof of age while travelling. The discount is applicable for all trains including Shatabdi, Rajdhani and Jan Shatabdi trains. Note that in case of tatkal reservations, these concessions do not apply.
Fixed Deposits: Senior citizens who open fixed deposits with banks can get an additional interest rate of anywhere between 0.25 per cent and 0.75 per cent above the normal interest rate applicable for other deposit holders. The extent of benefit varies from bank to bank. Individuals need to be above 60 years of age to claim this benefit.
Loans: If you are a senior citizen and wish to avail loans from banks, you can receive a concession in interest rate in most cases. Bank of India Star Personal Loan scheme for example gives a two per cent concession for senior citizens who wish to avail a personal loan. The personal loan from Punjab National Bank is available for senior citizens without upfront fees or margin requirements.
Air tickets: Air India gives a discount of 50 per cent on basic fare of normal economy class fare for domestic flights for senior citizens above 63 years of age. The age as on the journey date.
Special Schemes: There are certain special schemes meant for senior citizens which can give an attractive return. Senior Citizens Savings Scheme for example is available for individuals above 60 years which can earn an interest of 9.2 per cent per annum. The reverse mortgage scheme is another scheme for senior citizens above 60 years of age, wherein if there is a need for funds, the senior citizen can mortgage his property and earn a regular income on this.
Other Benefits: Some banks offer a concession in service charges for some of its services. For example, State Bank of India offers a 50 per cent concession for several services such as issuance of duplicate statements, cheque books, etc.
The senior citizen community is increasing, with growing life expect-ancy in the country. Several initiatives are being introduced from time to time to ease their finances. However, the level of awareness of these benefits is low. As a result, many senior citizens do not avail these benefits.
The writer is the CEO of BankBazaar.com
http://www.asianage.com/business/reap-benefits-your-seniority-436
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