Budget 2025 Update: The Central Government can announce significant relief if your family has senior citizens. The Central Government will open the treasury box for Senior Citizens in the entire budget, benefiting everyone. Finance Minister Nirmala Sitharaman will present the general budget on February 1, 2025, giving senior citizens significant tax relief.
The central government can announce tax relief on interest for Senior Citizens. Representatives of some organizations related to senior citizens demanded tax relief from Nirmala Sitharaman. The organizations demand that after retirement, the interest received on their money deposited in bank savings and fixed accounts means a lot to them. If the government gives tax relief, Senior Citizens will benefit greatly.
Know how much deduction is available?
Do you know that in the Old Regime of Income Tax, the interest of Rs 10,000 on money deposited in a bank savings account is tax-free? This tax exemption benefit is also available under Section 80TTA of the Income Tax Act. Meanwhile, if older people are to be believed, this limit should be increased to Rs 20,000.
Do you know that senior citizens keep money in a bank savings account? They trust the bank the most. Finance Minister Nirmala Sitharaman can approve the demand of senior citizens on February 1, 2025. If this happens, senior citizens will get bumper benefits.
How much deduction is given under 80TTB?
If tax experts are to be believed, the tax exemption on interest on savings under Section 80TTA has not been changed since FY13. In addition, under section 80TTB of the Income Tax Act, senior citizens are allowed a Rs 50,000 deduction on interest on bank deposits.
This benefit is applied to both bank savings and fixed deposits. Meanwhile, the elderly demand that the deduction be directly increased to Rs 1 lakh. If this is done, older people will surely benefit greatly.