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Senior citizens and Sec. 80D

The plight of seniors among the senior citizens has been highlighted in The Hindu dated May 12, 2008, where a reader has commented on the complaint of another reader that he could not avail himself

of the benefit of Sec. 80C because of medical expenses. Sec. 80D is meant for deduction of medical insurance premia for healthcare of the taxpayers, whether senior citizens or otherwise. Senior citizens above the age of 70 are not able to avail themselves of the benefit of Sec. 80D, as no insurer would sell them insurance. But all the same, medical expenses for them are unavoidable and in fact more than others for whom insurance is possible. Quite a number of them spend more than Rs. 15,000 annually allowed under Sec. 80D for the premium. Deduction under Sec. 80D has been enhanced to Rs. 20,000 for senior citizens from assessment year 2008-09. I suggest that this amount of Rs. 20,000 should be made available for all senior citizens above 70 years as a deduction for medical expanses or as standard deduction. The concern otherwise often expressed in sympathy to senior citizens would be meaningless.

The point made by A. S. Sivaramakrishnan of Bangalore is well taken. It is a step which would benefit senior citizens. The information that senior citizens above the age of 70 cannot take a policy is, however, not fully correct. Policies are sold at a heavy premium after 70 for some years and for renewal of earlier policies. The answer of revenue may well be that senior citizens have a higher exemption bracket. But Sec. 80D permissible for others is beyond their reach, so that a compensating relief has its justification.

S. RAJARATNAM

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