Mon Feb 03 15:44:52 UTC 2025: ## Senior Citizens Get Tax Break on Interest Income in Union Budget 2025

**New Delhi, [Date]** – Finance Minister Nirmala Sitharaman announced significant tax relief for senior citizens in the Union Budget 2025. The limit for tax deduction at source (TDS) on interest income for senior citizens is being doubled from ₹50,000 to ₹1 lakh, effective April 1, 2025.

This means senior citizens will not face TDS on interest earned from bank deposits, post office deposits, and cooperative bank deposits if the annual interest income remains below ₹1 lakh. Currently, a 10% TDS is deducted on interest exceeding ₹50,000. The increase directly benefits those investing in popular schemes like Senior Citizens Savings Scheme (SCSS) and fixed deposits.

The budget also raises the TDS threshold for non-senior citizens from ₹40,000 to ₹50,000, starting FY 2025-26. Individuals who have TDS deducted but whose total annual income falls below the taxable limit (₹12 lakh under the new tax regime and ₹5 lakh under the old regime) can claim a refund by filing their Income Tax Return (ITR). The new tax regime’s tax-free limit increases to ₹12 lakh for FY 2025-26, while the old regime remains unchanged. The government says this will significantly boost the take-home earnings for many, particularly senior citizens and small depositors.

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