Lok Sabha Question No. 4340 (UNSTARRED), answered on 2023-03-27
Subject: Facilities for the Retired Tax-payers
Ministry: FINANCE
Asked by: Giridhari Yadav

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED  QUESTION NO. 4340

TO BE ANSWERED ON MONDAY, 27 TH  MARCH, 2023/CHAITRA 6, 1945 (SAKA)

## FACILITIES FOR THE RETIRED TAX-PAYERS

## 4340.     SHRI GIRIDHARI YADAV:

Will the Minister of FINANCE be pleased to state:

- (a) whether public and private sector employees pay income tax to the Government honestly till the  retirement  age  of  60  years  but  they  have  not  been  provided  any  special  facilities  like medical, housing etc. in lieu thereof after their retirement and if so, the details thereof and the reaction of the Government thereto;
- (b) whether the Government proposes to exempt the retired public and private sector employees from paying income tax after their retirement  and provide housing, medical etc.  facilities free of cost and if so, the details thereof; and
- (c) if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) Income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them to be paid in accordance with the Income-tax Act, 1961(the Act). The provision of facilities like medical, housing etc. to an individual is not dependent on payment of incometax by him and is to be made by the employer. The Government does provide various facilities including housing and medical to its employees.
- (b) There is no such proposal.
- (c) Income  tax  is  to  be  paid  on  the  income,  whether  on  salary  or  pension  or  even  other income like rent, dividend, capital  gains,  business  income etc.  and  has  no  direct  relation  with retirement. However, some income tax related benefits provided to pensioners and senior citizens are given in the annexure.

## Relief provided to senior citizens/pensioners under the Income-tax Act, 1961

- (i) In  order  to  provide  relief  to  senior  citizens  including  those  senior  citizens  receiving pension, Finance Act, 2018 provided various incentives which included,-
- a. increase  in  the  limit  of  deduction  on  account  of  payment  of  health  insurance premium  and/or  medical  expenditure  from  Rs  30,000/-  to  Rs  50,000/-  under section 80D of the Act;
- b. increase  in  the  limit  of  deduction  for  medical  expenditure  in  respect  of  certain critical illness from Rs 60,000/- and Rs 80,000/-, in the case of senior citizens and very senior citizens respectively, to Rs 1,00,000/- in the case of all senior citizens (of the age of 60 years or more) under section 80DDB of the Act;
- c. a  deduction  of  Rs  50,000/-  was  provided  to  senior  citizens  on  interest  income from  deposits  with  banks,  co-operative  societies  and  post  offices  under  section 80TTB of the Act and the threshold for tax deducted at source on interest income for senior citizens was increased from Rs 10,000/- to Rs 50,000/- under section 194A of the Act.
- (ii) In order to ease compliance burden on senior citizen pensioners who are of 75 years of age or above having pension and interest income, Finance Act, 2021 provided that such persons shall be exempted from the requirement of filing of income tax if the full amount of tax payable has been deducted by the paying bank.

*******