BUDGET 2025 

The TDS exemption limit on interest earned from deposits is doubled from ₹50,000 to ₹1 lakh for senior citizens.

Previously, TDS was deducted above ₹50,000, requiring many senior citizens to file ITR for refunds. The new ₹1 lakh limit reduces this hassle.

Senior citizens earning below ₹3 lakh (under the new tax regime) benefit from the higher TDS threshold, making tax compliance easier.

Senior citizens who earlier had to file ITRs to claim TDS refunds will now face fewer compliance requirements.

Previously, senior citizens had to submit Form 15H to banks to prevent TDS deductions. The ₹1 lakh limit minimises this need.

Senior citizens with old NSS accounts that no longer earn interest can withdraw their funds tax-free from 29 August 2024.

The new changes ensure senior citizens can maximise their savings without unnecessary tax deductions.

The move allows higher interest retention and easier access to old savings, improving financial security post-retirement.

Higher TDS exemption may encourage more senior citizens to invest in bank deposits without worrying about excessive tax deductions.

The measures collectively aim to reduce financial stress, ensure better savings protection, and enhance post-retirement financial freedom.