The minimum age to qualify as a senior citizen may be reduced from 65 to 60 years in the forthcoming budget, say government sources.
This will enable people in the 60-65 age group avail of the tax benefits and higher interest rates for savings schemes available to this section. The government is also considering raising the tax exemption limit on income for senior citizens from Rs 185,000 to Rs 200,000 annually The senior . citizens savings schemes, which are currently tax-free, will remain so. The move is being seen as an attempt to tap the resources of persons who invest in bulk after superannuation. To increase long-term resources, the government may also introduce tax concession on contributions to pension schemes.
(Source-Hindustan Times,21/02/07)
