The Taxable income level of senior citizen should be elevated as is being done in other cases from Rs 1,000,000 to 15,000,000 as applicable to non salaried taxpayers. The Senior Citizen who renders services is liable to 15 percent income tax deduction being non filers of income tax returns. Further they are providing services based on their qualification and experience which other cannot provide. This aspect has not been looked at by the Finance managers.
The Senior Citizens are contributing to the national economy through provision of services and contributions to GNP and GDP in services sector. There should be some mechanism to provide them relief of Income Tax so that they continue to provide their services such as reduced rate of tax @ 10 percent as being paid by Tax fillers
Similarly, now as it has been proposed that 0.5 percent wealth tax will be levied on wealth of the citizens in the country. This will be blow to the mental status of the senior citizen as they have constructed their houses in posh area and the present worth of the same house has risen to millions of rupees. If this tax is levied on them they will be unable to pay it as they have meager resources to meet their own expenses and their medical treatment such as expensive medicines etc.
They have to sell the same and they will be deprived of their shelter. The retired Government servants are already in miserable condition due to living conditions in the country. Some of them even own a plot to build a shelter for their living, protection should be provided to retired government servants from these new taxes.
Another issue which needs to be addressed in the new budget is Tax Exemption. No relief is given to persons whose parents have reached the age of 85 years or more than 65 years who are totally incapacitated by reason of physical or mental infirmity and they are themselves retired Government servants and they have to pay the service changes of maid or nurse to take care of daily heath care, this may include wife or husband or wife needs to be provided Tax exemption or relief in some way, exemption to Retired Government Servants from Capital Gain Tax
The retired government servants sell their property for number of reasons as their income source is reduced and has to meet number of liabilities such as marriage of their daughters, medical treatment at private hospitals and treatment of wife or mother or father or dependent children under such circumstances senior citizens need relief
Exemption Relating to Medical Expenses of incapacitated persons and if any person is permanently incapacitated because of physical or mental infirmity, a gift or inheritance taken by him to meet medical expenses (including, for example, the cost of nursing home care) should be exempted from gift or inheritance tax.
Copyright Business Recorder, 2017