Mysuru: The Mysore City Pensioners Association has urged the Centre to raise the total Income Tax exemption for pensioners to Rs. 10 lakh and thereafter fix a maximum Income Tax slab of 10 percent, irrespective of the quantum of income for senior citizens, retirees/ pensioners who are dependent only on their pension and interest from savings.
In a letter to Prime Minister Narendra Modi and Finance Minister Arun Jaitley, Pensioners Association President K.C. Biddappa and Secretary Sonnappa have sought the PM’s intervention to fix a maximum Income Tax of only 10% on the interest accrued on fixed deposits, irrespective of the quantum of interest earned on savings for pensioners.
Senior citizen retirees and pensioners survive on pensions and the interest on fixed deposits and other safe saving instruments. With declining interest rates on fixed deposits and increasing inflation, day-to-day survival has become extremely difficult for pensioners, the letter stated.
“It is an irony that our actual medical bill reimbursement is subject to Income Tax deduction before reimbursement. It is an obnoxious practice and has no place in a civilized society. Please instruct Central Board of Direct Taxes to issue a circular cancelling tax deduction at source for the actual medical reimbursement for retirees and pensioners,” the letter stated.
The above intervention from the PM can be announced in the Union Budget on Feb. 1 and it will enable senior citizens to meet their medical expenses without having to depend on their children and lead a dignified and decent life.