Sun Feb 02 02:38:27 UTC 2025: ## Budget 2025: Middle Class and Senior Citizens Get Tax Breaks

**New Delhi, India** – Finance Minister Nirmala Sitharaman presented Budget 2025 with significant tax relief for the middle class and senior citizens. A major highlight is the complete exemption from income tax on annual earnings up to ₹12 lakh.

For senior citizens, the threshold for Tax Deducted at Source (TDS) on interest income from bank deposits and fixed deposits (FDs) has been doubled. The TDS exemption limit has been increased from ₹50,000 to ₹100,000. This means senior citizens will not face TDS on interest income up to ₹100,000 per financial year. Previously, this exemption was capped at ₹50,000 under Section 80TTB of the Income Tax Act. This change will significantly benefit retired individuals who rely heavily on interest income from bank deposits.

Furthermore, the TDS exemption limit on rental income has been raised from ₹2.40 lakh to ₹6 lakh per financial year.

The government believes these measures will boost bank liquidity and provide considerable financial relief to both the middle class and senior citizens.

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