Sat Feb 01 15:32:23 UTC 2025: ## Budget 2025-26: Tax Breaks and Benefits for Senior Citizens
**New Delhi, Feb 1, 2024** – Finance Minister Nirmala Sitharaman today announced a range of tax benefits and measures aimed at easing the financial burden on senior citizens in the Union Budget 2025-26. Key highlights include a doubling of the tax deduction at source (TDS) limit on interest income for seniors, increases to TDS thresholds on rental income, and tax exemption on National Savings Scheme (NSS) withdrawals.
The TDS limit on interest income for senior citizens will be doubled from ₹50,000 to ₹1 lakh annually. For other taxpayers, the limit will rise from ₹40,000 to ₹50,000. Furthermore, the annual TDS threshold for rental income will be significantly increased from ₹2.40 lakh to ₹6 lakh. This is intended to reduce the administrative burden on small taxpayers receiving smaller payments.
A major relief for senior citizens holding older NSS accounts is the proposed tax exemption on withdrawals made from August 29, 2024 onwards. This addresses concerns about the lack of interest payments on many older accounts.
The government also highlighted its commitment to senior citizen welfare, allocating ₹289.69 crore to the Atal Vayo Abhyuday Yojana (AVYAY) program. The budget session of Parliament will continue in two phases, with the first concluding on February 13th and the second starting March 10th.
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