Income Tax: Now how much tax exemption will be available on the income from FD, the government has fixed the new limit..

Union Finance Minister Nirmala Sitharaman presented the budget for the financial year 2025-26 on Saturday. This is the first full budget of the third term of the Modi government. In this budget, the government opened the treasury for the middle class.

The central government announced that annual income up to Rs 12 lakh will now be tax free. This is a big gift for small and medium businesses and employed people. Along with this, the central government has also given a gift regarding the tax of FD.

TDS exemption on FD from the central government

There is an atmosphere of happiness in the middle class of the country since the announcement of the budget. Along with the exemption on income tax in the budget, the Finance Minister has also increased the limit of tax deduction source (TDS) on the income from interest received on fixed deposits (FD) in banks. This will benefit those who make FDs.

This is the new limit now.

Finance Minister Nirmala Sitharaman has increased the limit of TDS deduction on interest income on bank FDs (FD Income tax) from Rs 40000 to Rs 50 50,000 per year in the budget. In this, senior citizens will not get this benefit. This exemption on the saving scheme is a big gift for the middle class.

TDS is deducted at 10 percent

Banks deduct tax from the FD of the account holder every financial year. It is deducted from the income after a limit. TDS for interest income is different for senior citizens and general people (Income Tax FD). It is deducted at ten percent, but it is necessary to have a PAN card for this, if you do not have a PAN card then it will be deducted at 20 percent.

You will get your money back.

If your TDS is deducted from the interest income of FD (Income Tax on FD), then you also get this money back. Your interest is added to your total income. If your income does not come under the purview of income tax, then when you file your ITR, you will get back the TDS deducted from the interest. You will get your TDS back on income of Rs 12.

Benefits also received on rent.

Apart from FD in the budget, the government has also increased the limit of deduction of TDS on rent. TDS on annual income has been increased from Rs 2 lakh 40 thousand to Rs 6 lakh. TDS will have to be paid only on rent of more than six lakhs.

Benefits will be available from April 1

The benefit of exemption in the limit of TDS for people below 60 years of age on income from FD will be applicable from April 1. At the same time, the limit of TDS exemption in FD for senior citizens is different. At the same time, the limit of TDS from income on interest on bank deposits for senior citizens has been increased from Rs 50 thousand to Rs 1 lakh.

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