Finance minister Nirmala Sitharaman made the youth happy!
There is a lot of discussion about the exemption on interest received by senior citizens from bank FD. Finance minister Nirmala Sitharaman has also made the youth happy in the 2025-26 budget. They have increased the limit of TDS on interest received on FD in the bank. Earlier, TDS was not deducted on income up to 40 thousand through interest from bank FD. Now it has been increased to 50 thousand. That is, now the banks 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 bank does not have a PAN card, then 20 percent TDS is deducted on the taxable income of FD interest. All persons below the age of 60 years will get the benefit of this. The announcements made in the budget will benefit the general public, the middle class and the elderly.
Will be implemented from april 1, 2025
The limit of TDS for people below 60 years of age on income from bank FDs, which the government of india has increased, 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 banks from time to time. The announcements made in the budget will benefit the common people
Initiative to give more cash in the hands of the people
From other provisions of the budget and increasing the limit of TDS on bank FDs, it has also become clear that the government wants to reduce tax deductions from the middle class and give more and more cash in the hands of the people. Its purpose is to increase consumption.
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