Updated February 21st, 2024 at 16:54 IST

NITI Aayog proposes elderly-focused tax reforms and savings plans

Key strategies include introducing reverse mortgage, mandatory savings, and revising tax policies for senior care products.

Reported by: Business Desk
NITI Aayog recommends elderly savings plans | Image:Unsplash
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Senior savings initiative: NITI Aayog has put forth proposals for tax reforms and savings plans tailored to senior citizens in a bid to boost their financial well-being, as highlighted in its recent report focusing on senior care services. Amongst the key strategies recommended are the introduction of a reverse mortgage mechanism to enhance financial liquidity for the elderly, mandatory savings schemes, and revisions to tax and GST policies concerning senior care products.

The report highlights the necessity of addressing existing gaps and challenges within the senior care ecosystem to ensure comprehensive support for the elderly population. It advocates the establishment of a national portal dedicated to senior care services to facilitate easy access to essential resources.

Addressing ageing population

Emphasising the demographic shift towards an ageing population in India, the report stresses the importance of reassessing policies such as the reverse mortgage mechanism to better cater to seniors' financial needs. It cites the government's draft National Policy for Senior Citizens, which includes provisions for integrated insurance products, pension systems, and senior-friendly tax structures.

Additionally, initiatives like the SACRED portal and the SAGE initiative have been launched to connect senior citizens with employment opportunities and promote senior care products and services. The report suggests various measures to ensure financial security for seniors, including high-yielding investment options, simplified reverse mortgage mechanisms, tax incentives, and discounts on senior care products.

Private-public collaborations

Furthermore, the report proposes utilising CSR funds for the welfare of non-affording elderly individuals and fostering partnerships with the private sector to provide discounted medical care services. The Ministry of Finance's existing tax rebates for senior citizens are also highlighted, along with top schemes such as Ayushman Bharat PMJAY and the Senior Citizen Health Insurance Scheme aimed at providing healthcare coverage for the elderly population.

Overall, NITI Aayog's recommendations aim to address the evolving needs of India's senior citizens and create a more supportive environment conducive to their financial empowerment and well-being.

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Published February 21st, 2024 at 16:48 IST