Bank FD TDS: There is a lot of discussion about the exemption on interest received by senior citizens from bank FDs. Finance Minister Nirmala Sitharaman has also made the youth happy in the budget for 2025-26.
The limit of TDS on interest received on FD in the bank has been increased. Earlier, TDS was not deducted on income up to Rs 40,000 through interest from bank FDs. Now it has been increased to Rs 50,000. That is, now banks will not automatically deduct TDS on income less than Rs 50,000.
Banks will deduct TDS and inform the Income Tax Department only if the income from FD interest is more than 50 thousand. 10% TDS is deducted if the bank has a PAN card number. If the bank does not have a PAN card, then 20% TDS is deducted on the taxable income of FD interest. All persons below the age of 60 years will get its benefit. The announcements made in the budget will benefit the general public, the middle class and the elderly.
Will be implemented from April 1, 2025
The Government of India has increased the limit of TDS for people below 60 years of age on income from bank FDs, which will be implemented from April 1. The limit of exemption on TDS in bank FDs for senior citizens is different from all these. These are also announced separately by the banks from time to time. The announcements made in the budget will benefit the common people.
Initiative to put more cash in the hands of people
Other provisions of the budget and the increase in the limit of TDS on bank FDs have also made it clear that the government wants to reduce tax deductions from the middle class and put more and more cash in the hands of the people. Its aim is to increase consumption.
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