One of the many long term goals is that of saving for retirement. The earnings during one's working life are already taxed and are invested by an individual to meet the regular income needs in the retired years. The funds deployed to fetch such regular income or annuity during retirement should not be further subject to tax.
We, therefore, feel the FM should exempt annuity income received by senior citizens in the year of receipt. This move will also incentivise the younger population to save towards retirement and become self-reliant in line with the government's vision of becoming Atmanirbhar.
(The author is Chairman & MD, Bajaj Capital)
Published 30 January 2021, 01:41 IST