In Budget 2019, the Central government launched a pension scheme named Pradhan Mantri Shram Yogi Maandhan for workers in the unorganized sector. Under this, workers in the unorganized sector will get a monthly pension of Rs 3000 per month after 60 years of age. Experts say this will benefit both the senior citizens and the women across the country. With a minimal contribution of Rs 100 per month, this pension scheme will provide assured monthly pension of Rs 3,000 for workers in the unorganized sector after 60 years of age. The TDS threshold on interest earned on bank and post office deposits has been raised from Rs.10,000 to Rs.40,000 per annum.
The Finance Minister has underscored that the women have been the central government’s topmost priority. Pradhan Mantri Shram Yogi Maandhan was launched to extend the Social Security Benefit for unorganized workers. Finance Minister Piyush Goyal also added that working women are entitled to 26 weeks of maternity leave. Apart from these, the Pradhan Mantri Matritva Yojana is empowering women across the country. In Budget 2018, Finance Minister Arun Jaitley had announced providing Rs 3 lakh crore under the Mudra Yojana. Over 75 per cent beneficiaries are women.
Earlier it was expected that the government brings in few alterations in the tax relief for senior citizens. In the last four budgets tax relief for salaried, middle class and senior citizens were announced. However, much was not done in the eyes of taxpayers; no major tax reforms were introduced that would have left this section of people with some more disposable income. Industry experts believed it was time for the Government to meet the expectation of the taxpayers and especially senior citizens.
The current age criterion that classifies senior citizens and super senior citizen for tax slab rates, set many years ago, hence, lowering the age limit of super senior citizen from the current to 70 – 75 years would have been a welcome step. Experts suggest senior citizens should have also been exempted from health and education cess, along with an increase in a deduction under section 80C to Rs 2 lakhs from Rs 1.5 lakhs.
The difference of Rs. 50,000 on account of deduction may still not give any substantial benefits to senior citizens. Hence, it was expected that these slab tax rates would be increased to Rs 3.5 lakhs for senior citizen and Rs 6 lakhs for the super senior citizen. Additionally, it was expected that the Government would merge the senior citizen and super senior citizen classifications.