Income Tax Budget 2025: 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.
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 of 2025-26. The limit of TDS on the interest received on FD in the bank has been increased. Earlier, TDS was not deducted on the income of up to 40 thousand through interest from bank FD. Now it has been increased to 50 thousand. That is, now the bank will not automatically deduct TDS on income less than 50 thousand.
Only if the income from FD interest is more than 50 thousand, the bank will deduct TDS and inform the Income Tax Department. 10 percent TDS is deducted in case the PAN card number is available with the bank. If the PAN card is not available with the bank, then 20 percent TDS is deducted on the taxable income of FD interest. All persons below 60 years of age will get its benefit.
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 earnings 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.
Initiative to give more cash in the hands of people
Other provisions of the budget and increasing the limit of TDS on bank FDs have also made it clear that the government wants to give more and more cash in the hands of people by reducing tax deductions from the middle class. Its purpose is to increase consumption.
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