What Financial And Medical Benefits Are Available For Senior Citizens In India

Senior citizens enjoy many benefits in India, from higher interest rates and deductions to cheap travel fares and other subsidies compared to others.

Financial Benefits For Senior Citizens

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The government provides various financial benefits for senior citizens in India to help them live a happy life in old age. Besides various subsidies and discounts, mainly for the economically weaker section of society, they receive tax benefits in pension and health insurance products. For transport, seniors enjoy cheaper fares on airlines and railways and free spiritual tours in some states.

Here are some of the benefits available only for senior citizens.

Higher Interest Rates

Senior citizens enjoy higher interest rates on bank and post office deposits, including fixed and recurring deposits. These institutions provide an additional interest rate of 0.25 to 0.75 per cent on FDs for seniors. For instance, depending on the tenure, banks offer from 3 to 9 per cent on FDs.Post offices also have deposit schemes with varying lock-in periods for seniors. Also, the Senior Citizens Savings Scheme (SCSS) offers higher interest rates for regular cash flows.

Income Tax Benefits

Older individuals also get tax benefits such as higher exemptions and deductions. The tax exemption threshold for individuals aged 60-80 is Rs 3 lakh. For those over 80, it is Rs 5 lakh. They can also avail of higher deductions for health insurance premiums, up to Rs 50,000 annually. Additionally, senior citizens can avail of deductions under Section 80D up to Rs 50,000 for medical expenses, including day-to-day medication, testing, and hospitalisation.

Pension Schemes

The government offers various tax-efficient retirement savings schemes, such as the Public Provident Fund (PPF), the National Pension System (NPS), and the Atal Pension Yojana (APY). These pension plans are available to all Indian citizens, including non-resident Indians. Whether government or private, these plans also allow tax deductions and exemptions.

Door-Step Banking

Banks provide doorstep banking services, such as cash or cheque pick-up and deposit, KYC verification, withdrawals, etc., to senior citizens and differently-abled customers as per the Reserve Bank of India (RBI) guidelines. Seniors can avail of these banking services by contacting the banks’ customer care departments.

Health Insurance and Free Health Check-Up and Treatment

Additionally, senior citizens receive free health check-up and medical treatments in government-run hospitals, dispensaries and public health centres across towns, cities, and villages. Also, the government provides the Ayushman Bharat Yojna scheme for people from the economically disadvantaged groups, including senior citizens, with a Rs 5 lakh insurance cover.