Budget 2025: Finance Minister Nirmala Sitharaman will present the first full-fledged Budget 2025 (Modi 3.0) on February 1. Taxpayers and common people are expecting major reforms in income tax in this budget. Will any changes be announced to reduce the burden on the common man? Many expectations are being expressed regarding this. Let us know what special expectations the common man and taxpayers have from this budget…
This year’s budget is expected to focus on possible changes in tax slabs and introduction of concessions. Additionally, more deductions are expected to be included in the old tax system. Experts suggest that the government should increase the limit of deduction under section 80TTA (savings account interest) to Rs. 10,000 to Rs. 20,000 should be considered. Deduction limit for senior citizens under Section 80TTB increased to Rs. 1 lakh has been recommended, which is currently Rs. Rs 50,000 (for fixed deposit interest).
Deduction for savings interest
Section 80TTA of the Income Tax Act, 1961, allows individuals and Hindu undivided families (HUF) on interest income received in banks, co-operative banks or post office savings accounts of Rs. Offers a discount of up to Rs 10,000. This deduction is applicable for individuals below 60 years of age and HUFs. However, this does not apply to interest earned from fixed deposits or recurring deposits (RDs).
There has been no change in the rules for applying interest deduction limit in FD and recurring deposits in the financial year 2012-13.
Senior Citizen Rs. Getting a discount of Rs 50000
According to Section 80TTB, senior citizens are entitled to Rs. Tax exemption up to Rs 50000 is available. This deduction is applicable on interest income earned on bank deposits including savings and fixed deposits as well as post office deposits.
This demand was made regarding the new tax system
Keeping in mind the rising healthcare costs in India, a provision of Rs. 80,000 under Section 80TTB for senior citizens has been made. The existing limit has been increased to at least Rs 50,000. 1 lakh will have to be done. The revised limit will help offset the possible decline in interest rates due to the expected cut in repo rate by the RBI. These changes are expected to bring more people into the new tax regime.
