Centre Rules Out Income Tax Relief for Senior Citizens
On November 26, 2024, the central government clarified in the Lok Sabha that no proposal to provide income tax relief for senior citizens is currently under consideration. This statement was made by Minister of State for Finance, Pankaj Chaudhary, during the ongoing discussions leading up to the Union Budget for the next fiscal year.
Key Highlights
- Clarification on Proposals:
States Elders’ Welfare Associations had proposed income tax revisions for senior citizens.
Suggestions included:
Tax rebate for annual income up to ₹7.5 lakh.
5% tax on annual income up to ₹10 lakh.
Increase in National Savings Certificate (NSC) deduction from ₹1.5 lakh to ₹3 lakh.
The government, however, stated that none of these are under active consideration.
- Budgetary Process:
The government receives various proposals for amendments to the Income-tax Act during the annual Budget process. These are deliberated upon, and any approved changes are reflected in the Finance Bill. - Union Budget Announcement Timeline:
The Union Budget for the next fiscal year will be presented in Parliament on February 1, 2025, as per tradition.
Recent Tax Measures
While the government dismissed the possibility of tax relief for senior citizens, it highlighted measures announced earlier in the year, such as:
Savings of ₹17,500 per year for salaried individuals under the new tax regime.
50% increase in the standard deduction for salaried employees to ₹75,000.
Enhanced deduction on family pensions from ₹15,000 to ₹25,000, benefiting about 4 crore pensioners.
Conclusion
Senior citizens seeking changes to tax provisions may need to await further updates in the upcoming Union Budget. The government’s response indicates a focus on maintaining its current fiscal strategy while addressing proposals selectively.
