Government policies and welfare programs mean a lot to senior citizens. Schemes like tax deduction benefit under sections 80C, u/s 80D, and investment products specially designed for senior citizens such as Senior Citizen Saving Scheme (SCSS), and Pradhan Mantri Vaya Vandana Yojana (PMVVY) are some of the benefits and schemes that the government is already offering for senior citizens. However, some of these schemes are quite old and seniors now need new schemes as per their needs according to the current market situation. So, here are four things that the new government can include in budget 2024, for the betterment of senior citizens.

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Exemption On Stamp Duty For Senior Citizens Buying A Home

When a person buys a home, they have to pay stamp duty and registration charges on the value of the property. Stamp duty and registration charges vary from around 4 per cent to 8 per cent from state to state. It means, if the senior citizen person is buying a home worth Rs 1 crore, they have to pay an additional Rs 4 lakh to Rs 8 lakh towards stamp duty and registration charges. It makes home buying more and more difficult for seniors. The new government can discuss this issue with the state government and make way for waiver of such stamp duties for senior citizens. It will make home buying easier for the elderly citizens.

Removing GST On Health Insurance Policies

Do you know when you buy a health insurance policy, you have to pay a GST of 18 per cent on the premium amount? Yes, that’s correct and the 18 per cent tax makes health insurance more and more costly for seniors as their premiums is already higher due to old age. Removing the GST from health insurance will make it affordable for a large section of people who currently can’t afford it due to high premiums.

Increasing Loan Repayment Tenure For Senior Citizen Borrower

There is an upper age limit for most of the loan products that range around 60 to 70 years for final equated monthly instalment (EMI) payment, depending on the type of the loan. So, if a person takes a loan at the age of 67 years, the maximum tenure he may get would be three years. The government should increase the permissible loan repayment tenure for senior citizens to 75 years. It will help seniors to get loan easily and repay EMI with greater flexibility.

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Increasing Tax-Free Income Slab For Senior Citizens

Tax free income limit for senior citizens under the old tax regime is currently Rs 3 lakh and for super citizen, the limit is Rs 5 lakh. The tax-free income limit has not been increased in the last many years and now the senior people require more disposable income in their hand to meet the increased expenses. Increasing the tax-free income for senior citizens will help them spend more money for essential things like health insurance premiums, and life insurance premiums to repay their loan EMIs on time, etc.

The full budget for 2024 may be presented in July 2024. Seniors are hopeful that the new government will announce schemes that would make their lives easier.

The author is an independent financial journalist.