The TDS limit for senior citizens has been increased from the existing Rs 50,000 to Rs 1 lakh.
Budget 2025: Finance Minister Nirmala Sitharaman has given a big gift to senior citizens. The Finance Minister has announced to increase the TDS limit on interest for senior citizens in Budget 2025-26. The TDS limit for senior citizens has been increased from the current Rs 50,000 to Rs 1 lakh.
TDS deduction limit increased for senior citizens
The Finance Minister said, “I propose to rationalize tax deduction at source (TDS) by reducing the number of TDS deductible rates and limits. Apart from this, the threshold amounts for tax deduction will be increased for better clarity and uniformity. The Finance Minister said, the limit of tax deduction on interest for senior citizens is doubled from the current level of Rs 50,000 to Rs 1,00,000.
No tax on income up to 12 lakhs
The Finance Minister has also given a big relief to salaried taxpayers in his budget. Under the new income tax regime, those with annual income up to Rs 12 lakh will no longer have to pay any tax. With this announcement of the Finance Minister, those with income more than Rs 8 lakh will save tax liability ranging from Rs 30000 to Rs 110000 annually. According to the new income tax slab, now there will be no tax on annual income up to Rs 12 lakh. If we look at the slab rates, there is 0% tax up to Rs 4 lakh, 5% tax from Rs 4 lakh to Rs 8 lakh, 10% tax from Rs 8 lakh to Rs 12 lakh, 15% tax from Rs 12 lakh to Rs 16 lakh, 20% tax from Rs 16 lakh to Rs 20 lakh, 25% tax from Rs 20 lakh to Rs 24 lakh, 30% tax above Rs 24 lakh.
New income tax law is coming!
The Finance Minister has increased the period of filing income tax returns from one year to four years. Also, the Finance Minister has announced to bring a new income tax bill in the budget session next week.
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