The Tamil Nadu Elders’ Welfare Association has demanded that the maximum limit on the purchase of National Savings Certificate (NSC) VIII be increased for senior citizens to help them get tax benefits.
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Members said senior citizens and super senior citizens aged above 80 could not claim tax exemptions through many other investments. The association has written to the Prime Minister’s Office and Union Finance Minister Nirmala Sitharaman seeking increase in maximum limit to ₹3 lakh from the existing ₹1.5 lakh for tax exemption from this fiscal. While there is no maximum limit on investment, there was a sealing on deposit amount for earning tax breaks, said association’s president S. Subramanian.
The association wanted the tax exemption limit for super senior citizens to be revised from the present ₹5 lakh to ₹7.5 lakh. Its general secretary S.M. Chellaswamy suggested that the Income Tax slab may begin from 5% for income exceeding ₹7.5 lakh and up to 20% for income exceeding ₹15 lakh.
The government must consider the revision of the Income Tax slab for super senior citizens whose income was largely restricted. This incentive would help elderly persons who largely spend on healthcare, he said.