New Delhi: The central government has taken many important decisions including income tax exemption in the Union Budget presented for the financial year 2025-26, which will directly benefit the common man.
Along with this, changes have also been made in the rules of TDS deduction, which is very important to understand. The government has doubled the TDS levied on interest received by senior citizens on bank fixed deposits, which has given them great relief. With this decision of Finance Minister Nirmala Sitharaman, the income through senior citizen schemes and bank FDs will be doubled.
The government doubled the limit
The central government has doubled the limit of TDS deduction on FD interest for senior citizens. Earlier it was Rs 50 thousand, while now it has become Rs 1 lakh. Meaning now TDS will not have to be paid on earnings up to Rs 1 lakh from interest. Let us tell you that the new limit will be applicable from the next financial year 2025-26 i.e. April 1. Actually, banks offer 0.50 percent more interest to senior citizens on their FD schemes than the normal interest rate. In such a situation, their earnings will increase. At the same time, investment in popular schemes like Post Office Senior Citizen Savings Scheme is expected to increase.
How much TDS will have to be paid above the limit?
At present, if the interest received by senior citizens from bank FD is more than Rs 50,000, then the account holders have to pay TDS of 10 percent. This means that if a person earns Rs 80,000 as interest in a financial year, then he has to pay TDS of Rs 8,000. Now, from April 1, 2025, 10% TDS will have to be paid on interest earned above Rs 1 lakh.
Common man also got relief
It is known that the limit of TDS deduction on interest income for general citizens has also been increased. Finance Minister Nirmala Sitharaman said in her budget speech that the limit of TDS on interest from FD for non-senior citizens has been increased from Rs 4 thousand to Rs 50 thousand. If your annual income is less than the taxable income, then you can claim TDS in the income tax return.
Related Articles:-
- Bank License Cancelld: Big news for a/c holders! RBI has now cancelled the license of this bank, check immediately
- Ration Card E-KYC : Ration cards of these holders will be cancelled after February 15, check details
- IMD Rain Alert: It will rain in this state for the next 72 hours, check weather condition in your city
- J&K: Ban on alcohol and non-vegetarian food around Vaishno Devi temple extended by 2 months
- New Vande Bharat: Good news: Railways can start new Vande Bharat on this route, check route details here
