PRE-BUDGET PROPOSALS OF NCCPA FOR THE CONSIDERATION OF CENTRAL GOVERNMENT
NATIONAL CO-ORDINATION COMMITTEE
OF PENSIONERS ASSOCIATIONS..
(Registered under the T.U. Act. No. RTU01/2021.Dated.7.01.2021)
13.c Feroze Shah Road, New Delhi. 110 001
Website: nccpahq.blogspot.in
E mail: nccpahq@gmail.com
PRESIDENT:
COM.SHIV GOPAL MISHRA.(97176 47594)
SECY.
GENERAL: COM.K.K.N.KUTTY.
(98110 483030)
Dated: 14th
January, 2021.
To
Smt. Nirmala Sitharaman,
Hon’ble Finance Minister,
Government of India,
North Block,
New Delhi. 110 001.
Dear Madam,
We, on behalf of
the Pensioners and Senior Citizens of the country submit the following for your
kind consideration, while you prepare the annual budget of the country for the
year 2021-22. We make these suggestions to
provide relief to the Senior Citizens, who suffered immensely during the
pandemic period. The agony and
difficulties undergone by them is likely to continue for some more months as
the dispensing of the vaccine and eradication of the disease is certain to be
time consuming. The foray of private
entrepreneurs in the health sector of the
economy, as you are aware Madam, has made the health care costly and
certainly unbearable for the senior citizens, most of whom do not have a regular income or gainful
employment. In the absence of a
universal social security system, they need special care from the
Government. No doubt the Government is
concerned as is reflected from various proposals that had been incorporated in
the Income tax Act in earlier years. While
those in the lower strata of the society find it difficult to make the both
ends meet, those who are pensioners and
receive certain fixed income gets
dejected over the erosion of it through taxation. We fervently hope that the acceptance of our
undermentioned suggestions will go a long way to ameliorate their standard of
living and would render them a little free from the financial strains and
stresses in the evening of their life.
In the background that many countries in the world has exempted the Senior
Citizens from the purview of direct taxation, we appeal to you that the
suggestion may kindly be accepted.
Suggestion
No. 1.
Kindly raise the
non taxable maximum in respect of Senior Citizen to Rs. 5 lakhs an in the case
of Super Senior Citizens to Rs. 8 lakhs, both exclusive of the entitled
exemptions and deductions.
Suggestion
No. 2.
The
rates of tax may be restructured as under:-
For
Senior Citizens: For
Super Senior Citizens:
Upto
5 lakhs- NIL Upto 8 Lakhs NIL
5-10
lakhs 05% 8-10 lakhs 05%
Beyond
10 lakhs 10% Beyond 10 lakhs 10%
The surcharge
being levied on tax so computed may be done away with in the case of Senior
Citizens and Super Senior Citizens.
Suggestion
No.3.
Deduction
under section 16(1) may please be raised to Rs. 1 lakh in the case of both
Senior and Super Senior Citizens.
Suggestion No. 4
Family
pension being not salary, it may please be exempted under Section 10 by
introducing a new sub- clause in that section.
Suggestion No. 5.
The
ceiling limit stipulated under Section 80-C may be raised to Rs. 3 lakhs in the
case of all Senior Citizens.
Suggestion No. 6
The
restriction to the effect that the premium entitled for deduction under section
80-C in the case of Life Insurance policy, which is presently 10% of the sum
assured, may please be raised to 20% of the sum assured as was the case
earlier. Similarly the quantum of PPF
contribution which is entitled for the deduction under Section 80C may be
raised to Rs. 3 lakhs.
Suggestion No. 7
Section
80-DDB be amended to provide a deduction of Rs. 1 lakhs for all Senior Citizens
for ou-tpatient treatment, without any
restrictions covering all diseases, and Rs. 5 lakhs for hospitalisation for a
period of not less than one week. The tax payer may be asked to provide the
requisite information in the return itself viz.Bill No. GST No. etc.
Suggestion No. 8.
In
view of the reduction in the interest rate, the income of Senior Citizens have come down
considerably. The deduction under
Section 80-TTB may, therefore, be raised to a maximum of Rs. 1 lakh in the case of all Senior Citizens.
Suggestion No.9.
The
Government has recently withdrawn the concession provided for Senior Citizens
in respect of Rail, Road and Air travel.
These concessions may be restored.
Suggestion No.10
Kindly
introduce a comprehensive health insurance scheme with an affordable premium
amount payable either monthly or yearly to cover all Senior Citizens in the
country for in-patient and out-patient treatment,
in private hospitals.
Thanking you,
Yours
faithfully,
K.K.N.Kutty
Secretary General
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