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Thursday, January 14, 2021

NCCPA WRITES TO HONOURABLE FINANCE MINISTER

 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,

Sd/-

K.K.N.Kutty

Secretary General

 

 

 


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