Arun Jaitely normally I do not like to tell people how to do their jobs. However what you do impacts a lot of people. I deal with a lot of senior citizens and I have the following requests to make to you:

  • We are a country that has no Social Security, so please do not tax the senior citizens.
  • If it sounds radical please make the tax exemption limits Rs. 5Lakhs for people above 60, Rs. 10 L for those above 65, Rs. 20L for those above 70 and Rs. 1 crore for those above 75 years of age.
  • Make sure that the TDS rules are also suitably amended.
  • Frankly it should not matter – let us accept the fact that for most of these people the income is interest income or rental income that we are talking about.
  • Yes there are some professors who might be earning in this period or some businessmen
  • Keep earned income out of this bracket…or damn it, does it matter?
  • Please ask Raghuram Rajan to create a counter in certain branches to deal with senior citizens. Ensure that this counter is manned by an employee who is 55 years of age and has some empathy towards the senior citizens
  • Make it mandatory that the senior citizen’s help counter person should SIGN the declaration that no toxic product is pitched to him.
  • Make it illegal to sell any insurance product to a senior citizen. The premium for any insurance product should come ONLY from a non senior citizen account.
  • Make sure that if a senior citizen gives his pan card there is no TDS.
  • Raise the TDS limits to deposits of about Rs. 30Lakhs. Assuming 10% interest rates even Rs. 30L deposits can give him only Rs. 25k per month income.

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  1. Dear Subra Sir, you touched the nerve here I think, this is definitely common issues for senior citizens, bur how do we formally request these changes?

  2. Touching post… The generation of Senior Citizens (because of which what we are now) actually should be given extra privileges.

    During their working life, interest rates were high, many of them took their housing loans at very high interest rates, after their retirement the interest rates came almost 50% down. Also, there were no financial planning awareness when they worked and not much infrastructure available for investing in MFs and Equity Markets. It would take almost a month for a person to receive the amount in his account after an equity sale if he is not in a major city. Also, transparency was hardly present during those times.

    Considering all these, we should be empathetic to them at least now.

  3. This is India boss, I doubt anything would change for seniors.

    I have seen IT notices being sent to 85 years old people, what do you expect from IT department of India. The Direct Tax code version 1 was so good but it was diluted to a verly large extent in subsequesnt revisions and that bill too is pending since a long time…

  4. the sad and funny thing here is these ideas are so simple effective and commonsensical that it will never get implemented

  5. I totally agree with you sir. Senior citizen at their current age are averse to equity and rely on interest from bank so these rules should be strictly implemented. I agree wholeheartedly with you sir. Hope this reaches FM Jaitley sir.

  6. i like to add:
    1. annuity plan VARISHTHA PENSION BIMA YOJANA (UIN: 512G291V01) by LIC should be extended in the earlier form at least for 5 yrs.
    2. suitable low premium (subsidised by govt.) mediclaim for senior citizens should be introduced.

  7. Very well said Subra sir,

    I completely agree with what you say.
    DIRECT Taxes for people below 30 and above say 65 should definitely be relaxed.
    For below 30 it should be directly linked to investing in some form, so that the habit of investing can be cultivated.
    For above 65, what you have written sir is perfect.

    Indrirect taxes are anyways climbing up every year. Its high time Direct Taxes are simplified.

  8. Dear Subramoney,
    Thank you Sir. You have indeed voiced our real concern. Earnestly hope our FM gives serious thought to simplify IT related issues for Sr. citizens, and make his evening of life stress and hassle free. Our GOI could also introduce some more attractive investment schemes for SR.Citizens.

    Thank you once again,


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