Not only free treatment, the government is also running many other beneficial schemes for senior citizens. These include facilities like tax exemption on pension, higher interest rate on investment schemes and income tax exemption.
There is good news for the elderly of the country. The central government has taken several steps to make the life of the elderly more pleasant and comfortable. From Ayushman Bharat Yojana to pension, the government has taken care of every aspect of the elderly. Under the Ayushman Bharat Yojana, now all the elderly above 70 years of age will get free treatment up to Rs 5 lakh. But not only free treatment, the government is also running many other beneficial schemes for senior citizens. These include facilities like pension, high interest rate on investment schemes and income tax exemption.
Free treatment up to Rs 5 lakh under Ayushman Bharat Yojana
Modi Government has expanded the scope of Ayushman Bharat Yojana keeping in mind the health of the elderly. The central government has made a big change under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana and has announced the inclusion of senior citizens aged 70 years and above in it. Now, senior citizens aged 70 years and above will be given health insurance cover. Senior citizens of this age group will get the facility of cashless and paperless treatment up to Rs 5 lakh in more than 29,000 listed hospitals across the country.
If senior citizens of a family above the age of 70 years are already associated with Ayushman Yojana along with their families, then an extra top-up cover of up to Rs 5 lakh will be given to them. Under this scheme, many serious major diseases are treated free of cost, which include cancer, heart and kidney related diseases as well as Corona, cataract etc.
Regular income from Post Office Senior Citizens Savings Scheme
Many government schemes are being run to ensure that senior citizens do not face any financial problems in their old age after retirement from their job and they have a regular income source, in which the Post Office Senior Citizens Savings Scheme is the most special. In Senior Citizens Savings Scheme, you can invest from Rs 1000 to a maximum of Rs 30 lakh. A great interest of 8.2% is given on investment in this scheme.
Suppose someone invested Rs 30 lakh in Senior Citizens Scheme (Post Office SCSS), then according to the current interest rate, an annual interest of Rs 2.46 lakh i.e. a guaranteed monthly pension of about Rs 20,000 per month will be given. It also provides many other facilities including tax exemption of up to Rs 1.5 lakh.
Strong interest is being offered on Fixed Deposit (FD)
Fixed Deposit (FD) in government and private banks is a safe and excellent option for investment to ensure financial security in old age. It is not only a safe investment but also a good source of regular income. Recently many banks have increased FD rates. Most banks offer higher interest on FD to near citizens than the normal interest rate.
In such a situation, the elderly are getting an opportunity to get more returns on their investment. Senior citizens can make FD for different periods as per their convenience. Many banks provide easy withdrawal facility on FD
Exemption in Income Tax Return to the elderly
Those elderly above 75 years of age whose income is only from pension and interest on bank deposits are exempted from filing Income Tax Return. The government has given this exemption by including a new section 194-P in the Income Tax Act, 1961 under the Finance Act 2021.
If you are above 75 years of age and all your income comes from pension and bank interest, then you do not need to file ITR (Income Tax Rule). Just keep in mind that the bank in which your pension comes should be recognized by the government. With this exemption, the elderly have got relief from the hassle of filing income tax returns (ITR Filing).
