Senior Citizens Tax Deduction: Finance Minister Nirmala Sitharaman has also given a big gift to senior citizens in the Budget 2025 presented on Saturday. Now not only will they get help in saving more tax, but relief has also been given in filing income tax returns.
The Modi government has also given a big gift to the elderly of the country in the budget. Not only have they been given tax exemption and relief on savings, but it has also made it easier for them to follow the income tax rules. The government knows that most of the elderly in the country invest money in FD, which is considered the safest investment scheme. Keeping this in mind, the scope of tax exemption on FD has been increased. Along with this, a big exemption has also been provided for filing income tax returns.
Finance Minister Nirmala Sitharaman has made many big announcements for senior citizens while presenting Budget 2025 in Parliament today. He announced that the TDS exemption on interest income for senior citizens will be doubled. Apart from this, the burden of filing ITR, NSS account and tax compliance has also been reduced.
How much exemption on FD
Most of the elderly in the country invest in FD to keep their money safe. Till now, the elderly are given TDS deduction of up to Rs 50,000 on interest income from FD. This means that interest up to Rs 50,000 received on FD remains outside the scope of tax, but now this limit has been increased to Rs 1 lakh. This means that interest up to Rs 1 lakh on FD will remain outside the scope of tax.
Exemption in filing ITR also
The elderly have also been given exemption in filing income tax returns. Till now, the elderly earning up to Rs 5 lakh annually were exempted from the hassle of filing income tax returns. Now this limit has been doubled to Rs 10 lakh. This means that senior citizens earning up to Rs 10 lakh annually will not need to file ITR.
Relief on NSS account too
The government has also given relief to those senior and super senior citizens who have old National Savings Scheme (NSS) accounts. Withdrawals made after 29 August 2024 from accounts which are no longer getting interest have also been made tax free. Apart from this, the government has also announced tax benefits for NPS Vatsalya accounts. Now NPS Vatsalya accounts will also get the same tax benefits as normal NPS accounts. It will remain within the overall limits. Senior citizens and taxpayers are expected to get a lot of relief from these decisions of the government in Budget 2025-26.
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