Budget 2025 Senior citizens Tax Exemptions
In Budget 2025, Finance Minister Nirmala Sitharaman has given a big gift to senior citizens in which they have been given relief in the deduction limit on interest received on FD and withdrawal rules in some savings schemes.
In Budget 2025, the deduction limit on interest received on FD has been increased from 50,000 to 1 lakh, that is, now if senior citizens get interest up to Rs 1 lakh on the money deposited in FD, then they will not have to pay any tax on income up to 1 lakh. Apart from this, TDS for payment of rent has been increased from Rs 2.40 lakh to Rs 6 lakh.
In the budget presented by Finance Minister Nirmala Sitharaman, senior citizens will get relief not only in saving tax but also in filing income tax returns. The Finance Minister has increased the TDS exemption on interest income to senior citizens. Apart from this, relief has also been given in filing ITR and NPS accounts.
Senior citizens mainly secure their money in the form of FD, due to this, special attention has been paid in this year’s budget to ensure that the senior citizens get exemption from TDS on their income. For this, the government has provided exemption in various schemes including NSS and NPS, which will benefit senior citizens.
What will be the benefit
Before Budget 2025, there was no tax on the interest paid on the FD money by the elderly if they got an income of up to ₹50000 in a year, but now it has been increased to 1 lakh, that is, now the elderly will not have to pay any tax on interest earned up to 1 lakh.
Tax will have to be paid on interest above one lakh, apart from this, senior citizens will also be given exemption in filing ITR, according to which till now tax return was not required to be filed on income up to 5 lakh, but now it has been increased to Rs 10 lakh for the elderly, that is, senior citizens will not have to file ITR on income up to Rs 10 lakh.
Relief given on other accounts including NPS
In this Budget 2025 presented by Finance Minister Nirmala Sitharaman, not only the elderly get double exemption in interest on FD but along with this, relief has also been given on NPS accounts, that is, those elderly who have old accounts and are not getting any interest from those accounts, no tax will be levied on the money withdrawn after 29 August 2024. NPS Vatsalya accounts will get all the benefits like normal NPS accounts, which will provide great relief to the elderly.
