FD Tips: Now get FD done in the name of the elders of the house, not in your own name, you will earn double profit..

Many announcements were made in the budget of February 1. Meanwhile, Finance Minister Nirmala Sitharaman also made a big announcement regarding the elderly. The Finance Minister said that the TDS exemption on interest income of senior citizens will be doubled in the new financial year. After this announcement, schemes like Fixed Deposit and Senior Citizen Savings Scheme (SCSS) have become very beneficial for the elderly. If you also want to invest in FD, then get FD done in the name of the elders of the house from the new financial year, you can earn double profit from this. Understand how.

Elders consider FD as a reliable means of investment.

In fact, most of the elderly in the country consider FD as a reliable means of investment and do not want to take any kind of risk on their deposits after retirement. Therefore, they invest in FD to keep their money safe. Keeping this in mind, the government has doubled the scope of tax exemption on FD.

This is the current limit for TDS.

Till now, if the annual income of the elderly through interest on FD exceeds Rs 50,000, then TDS is deducted, but from the new financial year, this limit will be Rs 1,00,000. Meaning, if they earn up to Rs 1,00,000 as interest from schemes like FD, SCSS, then TDS will not be deducted on it.

This is how you will get the benefit.

The limit of TDS deduction for the elderly is certainly double, but for you, this limit is still Rs 40,000. In such a situation, if you make an FD in the name of an elderly person in your family instead of yourself in the new financial year, then you will be able to take advantage of the exemption on the income from interest.

Understand with an example.
Suppose you invest Rs 3,00,000 in a 3-year FD in your name and interest is paid at the rate of 7%, then you will earn Rs 69,432 from the interest. Since the limit of TDS deduction for common people is Rs 40,000, TDS will be deducted from the income of Rs 69,432. On the other hand, if you invest the same amount in the name of an elderly person in your house, then you will get 0.50% more interest and TDS will not be deducted. In such a situation, you will earn Rs 74,915 from interest at the rate of 7.5% on Rs 3,00,000, but TDS will not be deducted from it.

This budget announcement is also useful for the elderly
During the budget speech, the Finance Minister announced that those who have old National Savings Scheme (NSS) accounts, which no longer get interest, withdrawals made from them after August 2024 will be made tax free. Many senior and super senior citizens of the country have old NSS accounts, on which no interest is paid. They will get a lot of relief from this.

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