Date:01/03/2008 URL: http://www.thehindu.com/2008/03/01/stories/2008030159211400.htm

National

Centre to set up two national institutes of ageing

Special Correspondent

Additional rebate under Section 80D on medical insurance premium for parents
Rs. 3,443 crore for old-age pension scheme

NEW DELHI: The Centre will start a National Programme for the Elderly in 2008-09 with an outlay of Rs. 400 crore. Announcing this, Finance Minister P. Chidambaram said that among other measures, the government would establish two national institutes of ageing, eight regional centres, and a department for geriatric care in one medical college or tertiary-level hospital in each State during the 11th Plan period.

The government would allow an additional rebate of Rs.15,000 under Section 80D to a person who paid medical insurance premium for his/her parent or parents.

It was proposed to add the Senior Citizen Savings Scheme, 2004, and the Post Office Time Deposit Account to the basket of saving instruments under Section 80C of the Income Tax Act.

The Indira Gandhi National Old Age Pension Scheme, expanded from November 19, 2007 to include all those over 65 years falling under the below poverty line category, would now cover 157 lakh beneficiaries.

For this, the government proposed to allocate Rs. 3,443 crore in 2008-09, against Rs. 2,392 crore in 2007-08.

To clarify the tax issues arising out of the Reverse Mortgage Scheme, notified by the National Housing Bank in the current financial year, Mr. Chidambaram said the government would amend the Income Tax Act to provide that reverse mortgage would not amount to “transfer,” and the stream of revenue received by the senior citizen would not be “income.”