The increase in human life expectancy is not a myth anymore. Even the government has taken note of this. What else can explain the new "Super Senior" category that Finance minister of India has carved out of the existing senior citizens ?
Two of the good things the 2011 budget presented by Pranabh Mukherjee is the reduction of Senior citizen's age from 65 to 60 and the creation of this "very senior citizen" group. Pranabh Mukherjee has bought relief to those who really deserve it.
You can check the different tax slabs for different categories here Tax slab for India 2011-2012
While life expectancy was growing and 80 became the new 60, still the people above 80 were considered only above 60. With a fragile health and more spending on medicine, they deserved more rebates and subsidies than most in the society. It is a good move from the Government in giving them more tax relief and hence providing more money at their disposal at the old age.
Another anomaly that the government corrected through this budget is the reduction of Senior citizen's age from 65 to 60. In India most of the salaried people in both the government and semi government enterprises retire by the age of 60. So this is the time when their income has decreased remarkably. There was no reason for the Government to continue charging them normal tax when they have stopped working. Making them Senior citizen at 60 can bring them much needed tax relief and some extra amount to take care of themself.
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