Investment Tips: The Union Finance Minister announced several reliefs for the middle class and senior citizens in Budget 2025-26. In which the limit of TDS deduction for senior citizens will be increased, which will double their interest income from the next financial year. If elderly people live in your house and you are planning to invest in FD, then you may get an opportunity to make double profit.
FD and Senior Citizen Savings Scheme will be benefited
In the budget, the limit of TDS on interest income earned by senior citizens has been increased to Rs 5 lakh. Increased Rs 50,000 to Rs. It has been announced to make it one lakh. This will increase the interest income earned from bank FD and savings schemes for senior citizens.
This is a chance to get double returns.
Banks and financial institutions provide more interest rates to senior citizens than normal. In addition, the interest rates of small savings schemes for senior citizens are also higher. With the government’s announcement to increase the limit of TDS deduction from the new financial year, now they will be able to deduct interest up to Rs 1000. You will get a chance to take up up to one lakh earning home.
Benefits of investing in the name of family elderly
With several facilities available to senior citizens, you can invest in FD or small savings schemes in the name of an elderly person of your house. Interest income will also double for them due to double TDS deduction limit. While the limit of TDS deduction on interest for the common citizen is Rs 10 lakh. This is 40000. If you invest in bank FD in the name of your elderly, you can get a high interest rate and can also get rid of the problem of paying TDS.
Understand like this…
Suppose you invest 1000 rupees in a three -year bank FD. You invest three lakh rupees, on which interest is available at the rate of 7 percent per year. Therefore, the annual interest income of Rs. This will be 69,432. But the TDS deduction limit for the common people is Rs 500. Their number is 40,000. So you have to pay 100 rupees. Tax will have to be paid on 29432. While the limit of TDS deduction for senior citizens is one lakh rupees. Also, senior citizens get 0.50 percent more interest than normal. So you can get 1000 rupees without paying any TDS on bank FD. You can earn up to 74915.
