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Senior Citizens Need Relief for Living Life with Dignity

This petition had 270 supporters


This is a Petition by Senior Citizens who are not in receipt of Pension from either Government or from employers. After retirement they depend on income from investment in Annuity from LIC, Term Deposits with Banks/Companies, Senior Citizen Savings Scheme, EPF Pension and Varishta Bima Pension Scheme which was available till 14 August 2015.  

Senior Citizens Savings Scheme was started in 2004 and maximum permitted investment amount is 15 Lakh Rupees. The interest rate was 9% payable every quarter. After 11 years the interest rate has been increased to 9.3% w.e.f. 01/04/2015. The interest received is taxable.

Annuity from LIC is normally arranged by Employer by investing contribution to Superannuation Fund of the employee. The interest paid by LIC on a Annuity taken in April 2003 is 7%. The amount invested in the annuity is for life.

Interest from Term Deposits with Banks is used by Senior Citizens to meet day to day expenses. Banks pay half percent extra to Senior Citizens. The rate of interest on Term Deposits changes with every policy announcement by Reserve Bank of India. Two years back interest rate on 5 year deposit was 9.75% and now it is 8%. Thus interest income is not able to keep pace with increasing prices of essential food items and vegetables etc. required every day.

Varishta Bima Pension Scheme which was available till August 2015 for one year also locks up invested amount for life time. Interest rate is 9% if taken yearly and less if taken monthly. The maximum amount of pension is Rs.5000/- per month.

A person with 42 years of service gets EPF Pension of Rs. 1298/- per month which is very low.

With the Inflation coming down according to Government figures (but the prices of all commodities used by common man are increasing disproportionately) and the interest rates coming down, the Senior Citizens are one of the hardest hit, and face financial hardship, in their twilight years. With no Forum to address the grievances they suffer in silence. They deserve some relief to be given to address their long pending problems.



We request you to kindly consider the following:-

1. Senior Citizens Savings Scheme

a) The rate of interest to be increased to 12% with immediate effect and thereafter reviewed every year and revised.

b) The eligible investment amount to be increased to Rs.25 Lakhs.

2. Term Deposit with banks

Rate of interest applicable for Senior Citizens should be fixed as 12% for a 5 year deposit and 5 year Tax Saving Deposit

3. Annuity from LIC

LIC should revise the interest paid on Annuities once in 3 years.

4. Minimum amount of EPF pension should be Rs.3000/- per month

5. Tax exemption limit  for Senior Citizens should be increased to Rs.5 Lakhs for the AY 2016-2017. Thereafter every year the exemption limit should increase by 10%.

6. No Tax should be deducted at Source on interest payment by Banks and LIC. The interest paid by Banks and LIC can be reported to Income Tax Dept. by uploading it on Form 26AS. This will avoid the hardship faced by Senior Citizens for submitting Form 15H to avoid TDS.

7. Senior Citizens should be given concession of 25% in and for:-

a) Property Tax

b) Broadband Internet Service Charges

c) Electricity Charges

At present MTNL and BSNL give 25% rebate in Telephone rental charges to Senior Citizens.

8. Eligibility age for Super Senior Citizens be reduced to 70 years from 80 years.

9. Health Insurance Policy of Rs.5 Lakhs for cashless treatment in hospitals may be made available at reasonable premium. Reserve 5% beds in all hospitals for Senior Citizens. In case of emergency all hospitals should admit the Senior Citizen without insisting on payment of Deposit first.

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