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Concession and Benefits for Senior Citizens in India

Updated: Sep 6


Many facilities and concessions are available for senior citizens in India.We have taken an effort to list them down for you.

1.Concession or senior citizens on Income tax

  • For resident senior citizens who have attained age of 60 years, income up to Rs 3,00,000 is non-taxable. (For normal person non-taxable income limit is Rs 2,50,000)

  • For resident super senior citizens who have attained age of 80 years, income up to Rs 5,00,000 is non-taxable.

  • Senior citizens do not have to pay advance tax.

  • Senior citizens get deduction on interest income upto Rs 10,000 on savings bank account and Rs 50,000 on bank and post office deposits.

Check: Income Tax slabs in India

2.Concession for senior citizens on professional tax

  • For resident senior citizens who have attained age of 65 years are exempt from paying professional tax in some states.

3.Senior Citizen Saving Scheme for senior citizens

  • Senior citizen saving scheme is available for senior citizens which offers interest 7.4%(June 2020) per annum.

  • Any senior citizens who has attained age of 60 years may open the account.

  • Any senior citizens who has attained age of 55 years or more but less than 60 years, who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.

4.Concession for senior citizens on Air travel

Below listed airlines offer discount on air travel in India.

Air India:Senior citizen with Indian citizenship and permanently residing in India is eligible for 50% discount on basic fare of normal economy fare. Discount is valid for domestic travel within India. Person should have attained age of 63 years on the date of commencement of journey to be classified as senior citizen.

Jet Airways:Senior citizen both of Indian and foreign origin are eligible for 50% discount on basic fare of normal economy fare or premier fare. Discount is valid for domestic travel within India. Person should have attained age of 65 years on the date of commencement of journey to be classified as senior citizen. Discount is valid only for tickets purchased in India.

Indian airlines and Jet airways also issue senior citizen card to avail concession on air flights.


Spice Jet and Indigo airlines: These airlines offer 6% discount on base fare for domestic flight if booking is done from respective airlines website.


Vistara Airlines: Vistara offers 10% discount on base fare for domestic flight if booking is done from website. On economy lite fare category the discount is restricted to 5%.

5.Concession for senior citizens in Rail travel

  • Male and female senior citizens are eligible for 40% and 50% discount respectively. Male senior citizen and female senior citizen should have attained age of 60 and 58 years respectively to qualify for discount. Discount is available in fare for all classes of Mail/Express/Rajdhani/Shatabdi/Jan Shatabdi/ Duranto trains.Discount is not available for tatkal booking.

  • Computerised passenger reservation system automatically allots lower berth automatically to senior citizen’s subject to availability at the time of booking of ticket.

  • Six lower berths per coach in Sleeper class and three lower berths per coach in 3AC and 2AC classes are reserved for senior citizens, pregnant women and female passengers above age of 45.

  • Separate counter is available

6.Concession for senior citizens in Bus travel for senior citizens

Some municipal corporation and state governments give concession to senior citizens on bus fare. Certain bus seats are also reserved for senior citizen.

7.Concession/facilities for senior citizens at banks

  • Banks have special accounts for senior citizens with facilities like issue of senior citizen card, priority service at bank branch’s, discount at health care centre’s etc.

  • Senior citizens get 0.5% higher interest rate on fixed deposit than other individuals.

  • These facilities are available for citizens who have attained age of 60 years. Eligibility criteria is 57 years at some banks.

8.Concession/facilities for senior citizens on telephone service

BSNL:Senior citizen who have attained age of 65 are eligible for registration of telephone on priority under Non-OYT Special category and registration charges are also waived off.

MTNL:Senior citizen who have attained age of 65 are eligible for 25% concession on installation charges and monthly service charges for landlines connections under MTNL’s Plan-250

9.Priority in court hearings for senior citizens

Senior citizens who have attained age of 60 years can write to the court for preferential hearing of their cases.

10.Passport application

Senior Citizens are issued a passport on post police verification basis if they submit along with their application form a copy of their child’s passport who is staying abroad .The child’s whose passport is being submitted should above 18 years of age and passport copy should bear his/her parents name.

11.Health insurance for senior citizens

As per IRDA rules , individuals are allowed to buy health insurance upto age of 65.Any refusal of a proposal for health insurance of a senior citizen should be in writing with reasons.Policy can be refused only on grounds of fraud, moral hazard or misrepresentation.

National insurance has "Varishta Mediclaim policy", which has entry age of 60-80 years and is renewable upto age of 80 years.Max sum insured offered is Rs 1,00,000 for hospitalisation and Rs 2,00,000 for critical illness.

Goverment of India has launched top up scheme of "Rashtriya Swasthya Bima Yojna (RSBY)" for senior citizens belonging to BPL category and are aged above 60 years .This scheme will provide the health coverage of Rs. 30,000/- per annum per senior citizen over and above RSBY entitlement.

12. Varishtha Pension Bima Yojana 2017

Varishtha Pension Bima Yojana 2017 will provide an assured pension to senior citizens based on a guaranteed rate of return of 8 per cent for 10 years. Maximum 7.5 Lac can be invested in this scheme and one can get pension on monthly/quarterly/half-yearly or annual basis.This scheme will be offered by LIC.

Read: Mutual fund Myths and Facts

Read: How does mutual fund SIP work ?

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