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Life expectancy

The average age of Indians is on the rise mostly because of the better economic status and healthcare facilities that have emerged over the years.

     Print Edition: February 19, 2009

The average age of Indians is on the rise mostly because of the better economic status and healthcare facilities that have emerged over the years.

  1. 40% has been the rise in life expectancy over the past 38 years.
  2. Over the past four years, (2005-8), life expectancy has gone up by more than 4 years.
  3. 7.5% of India’s population falls in the senior category.
Live longer
  1. 1970: 49
  2. 1990:58
  3. 2005: 64
  4. 2008:68.6

Life expectancy in years; Source: Unicef

The gender gap

  1. Men: 37 million
  2. Women: 38 million

(No. of men and women over 60 years in India)

Rates of relevance for seniors

  1. 20-25% is the discount offered by airlines to senior citizens on full economy fares.
  2. Rs 60,000 is the deduction under Section 80DDB for medical treatment of those above 65 years.
  3. 9% is the quarterly interest rate for the Senior Citizens Savings Scheme.
  4. 60 is the age at which the Indian Railways starts giving discounts to the elderly.
  5. 0.5-1% is the additional interest on bank fixed deposits that senior citizens can avail of.
  6. 65 is the age when senior citizens can begin availing of tax benefits.
  7. 50% is the concession for women above 60 years across all classes of rail travel.

Taxation
Taxable Income (Rs)Tax Liability (Rs)
2 lakh0
4 lakh28,325
6 lakh79,825
8 lakh1,41,625
10 lakh2,03,425
12 lakh2,91,747.5
14 lakh3,59,727.5
16 lakh4,27,707.5
18 lakh4,95,687.5
20 lakh5,63,667.5
After full benefit of Section 80C and Section 80D; Tax liability includes surcharge and education cess and has been calculated for the financial year 2008-9.
 
Tax Rates
Total Income (Rs)Senior Citizens
Up to Rs 2.25 lakhNil
Rs 2.25 lakh to Rs 3 lakh10
Rs 3 lakh to Rs 5 lakh20
Above Rs 5 lakh30
• A surcharge of 10% is applicable if the total income exceeds Rs 10 lakh.
• Education cess of 3% is payable on the amount of income tax (including surcharge) for all income levels.


Health Insurance

A look at the premium rates for various mediclaim policies for senior citizens across insurance companies.

The takeaways:

  1. You can avail of tax deduction up to Rs 20,000 under Section 80D.
  2. If you had taken a policy earlier, continue with it into old age and get discounts for claim-free years. This will help bring down your premium cost.
  3. Let’s assume that someone takes a health insurance plan for Rs 2 lakh at 35 years and continues it till 60 years and beyond. Given the current premium rates, it works out to an average premium of Rs 5,000 a year for the next 25 years.

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