Image Source : INDIA TV Nirmala Sitharaman.
Budget 2025: Finance Minister Nirmala Sitharaman, in her Budget speech today (February 1), announced about doubling limit for tax deduction for senior citizens. “Limit for tax deduction on interest income to be doubled to Rs 1 lakh for senior citizens; limit for TDS on rent to be increased to Rs 6 lakh,” she said.
The limit for tax deduction on interest for senior citizens is being doubled from the present Rs 50,000 to Rs 1 lakh.
A number of senior and very senior citizens have very old National Savings Scheme accounts. As interest is no longer payable on such accounts, therefore the government has proposed to exempt withdrawals made from NSS by individuals on or after August 29, 2024. Govt also proposed to allow similar Tax treatment to NPS Vatsalya accounts as is available to normal NPS accounts, subject to overall limits.
Image Source : INDIA TVBudget 2025: Limit for tax deduction for senior citizens to be doubled to Rs 1 lakh.
Govt to rationalise TDS to ease compliance burden, says Sitharaman
Finance Minister Nirmala Sitharaman on Saturday announced rationalisation of TDS (Tax Deduction at Source) regime to ease compliance burden. Presenting the Budget for 2025-26, she said tax proposals are guided by income tax reforms for middle class, TDS rationalisation, and easing compliance burden.
The government will also be introducing a new Income Tax (I-T) bill in Parliament next week. Reforms are not destinations but means to achieve good governance for the people and economy, the finance minister said and added that the new I-T bill will be half of the current volume, clear and direct in wording.
Meanwhile, the government will increase the limit of TCS on remittances under RBI’s liberalised remittance scheme from Rs 7 lakh to Rs 10 lakh.
Also, Sitharaman said that 35 additional goods for EV battery, 28 additional goods for mobile phone battery production will be included in the list of exempted capital goods.
