• Budget 2026 will be presented soon


• Big government decision on pension and health spending?


• Will Budget 2026 be a golden opportunity for the elderly?

Union Budget 2026: Millions of senior citizens across the country are expecting something good from Finance Minister Nirmala Sitharaman’s upcoming Union Budget 2026. With interest rates falling and inflation rising, senior citizens are looking to the government for their income and health security. This budget is expected to increase the income tax exemption limit for senior citizens and provide higher returns on investment schemes. This budget can be financially easy, especially for pensioners and senior citizens who depend on Fixed Deposits (FDs).

Under the old tax regime, senior citizens currently have a basic exemption limit of up to Rs 3 lakh. In order to ensure their more spendable income amid rising expenses, there is a demand to increase this limit to 5 lakhs in the coming budget. Moreover, additional slab benefits are also likely to be announced to make the new tax regime more attractive to senior citizens.

50,000 for senior citizens on bank and post office interest under Section 80 TTB can be increased to Rs 1 lakh. Since the primary source of income for most senior citizens is fixed deposit (FD) interest, this change will directly benefit them. The TDS limit will also be relaxed, reducing the long wait for refunds.

In the face of rising medical expenses, the deduction of Rs 50,000 on health insurance premium under Section 80D can be increased to Rs 75,000 or Rs 1 lakh. The government is considering an additional deduction for treatment of critical illnesses (80 DDB) for senior citizens. This will provide significant relief to senior citizens who do not have adequate insurance coverage and depend on their savings to meet their medical expenses.

In the last budget, the investment limit of Senior Citizen Savings Scheme (SCSS) was increased from Rs 15 lakh to Rs 30 lakh. At this time, it is expected that the interest rates on this scheme may be made more attractive or some flexibility may be provided in the investment period. Moreover, there is talk of relaunching pension schemes like the Pradhan Mantri Vaya Vandana Yojana (PMVVY) in a new form.