With Budget 2026 around the corner, senior citizens anticipate targeted tax relief. Expectations include higher exemptions on fixed deposit interest, enhanced deductions under Sections 80TTB and 80D, and healthcare support. Rising inflation and medical costs have amplified calls for reforms, with flexibility between tax regimes also under consideration.
Anticipation Builds Ahead Of Budget 2026:
As Finance Minister Nirmala Sitharaman prepares to present the Union Budget on February 1, senior citizens are keenly awaiting announcements that could ease financial burdens. With inflation and medical expenses rising, retirees are pressing for reforms that directly address their unique challenges.
Key Highlights:
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Higher exemption on fixed deposit interest income is being considered, with possible relief from tax deducted at source (TDS).
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Enhanced deductions under Section 80TTB, which currently allows up to Rs 50,000 on interest income, may be expanded.
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Section 80D deductions for health insurance premiums could be raised beyond the current Rs 50,000 limit, reflecting medical inflation.
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Greater flexibility between the old and new tax regimes is expected, allowing seniors to choose the most beneficial option.
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Affordable healthcare provisions, including preventive and geriatric care, are on the wishlist, alongside social security measures and senior housing support.
Why Relief Matters
Senior citizens often rely on fixed deposits for steady income. With interest rates fluctuating and inflation eroding savings, higher exemptions could provide much-needed stability. Rising medical costs further strain finances, making enhanced healthcare deductions critical. Experts argue that aligning tax policy with demographic realities is essential for inclusive growth.
Broader Expectations
Beyond senior-specific measures, Budget 2026 is expected to balance fiscal restraint with reforms. Analysts highlight potential rationalisation of tax slabs and increased capital expenditure, but seniors remain focused on immediate relief in healthcare and savings.
Sources: The Financial Express, Outlook Money, The Economic Times, JM Financial