Displays soft corner for seniors
E ven as inflation has been hitting the senior citizens below the belt with rising expenses and diminishing returns on savings, the Union Budget 2023 presents some good news and hope. The budget provides significant relief to India’s middle-class taxpayers, senior citizens, salaried employees, women and girl children.
Indian taxpayers fall under three categories: Citizens below the age of 60 years both residents as well as nonresidents, up to 60 years and above but below 80 years and above 80 years of age. The new tax regime will now be the default tax regime from the 2023-24 fiscal year.
The budget has unveiled a boost in investment limits rate on the SCSS has been hiked to 8% for the quarter ending March 31, 2023. The depositor may now extend the account for a period of three more years after the maturity period of five years. The maximum deposit limit for the Monthly Income Account Scheme will be increased from Rs4.5 lakh to Rs9 lakh for a single account and from Rs 9lakh to Rs15 lakh for a joint account.
As of now, in this government-backed small saving scheme, the interest rate is 7.40% per annum, which is comparatively higher than normal returns given by banks to fixed deposits. The SCSS interest is payable on a quarterly basis. However, the SCSS has a lock-in period of five years. But, in case of financial requirements, premature withdrawal is allowed. A person who has attained 60 years of age is eligible to open an SCSS with the nearest bank or post office. An individual who is above 55 years of age but below 60 years and has retired on superannuation is also eligible for opening an SCSS account.
The Indian Census 2011 observes that seniors will constitute almost 12.5% of the total population in the country by 2026 and surpass 19.5% by 2050. Senior interests have often taken a back seat, but unlike in past years, there is an increase in the government's focus on the changing needs of seniors.