Union Finance Minister Nirmala Sitharaman on Friday gave a big relief to senior citizens in the budget by announcing to increase the limit of tax deduction on interest income to Rs one lakh and the limit of tax on rent from Rs 2.4 lakh to Rs six lakh.

The Finance Minister also proposed to rationalize the 'Tax Deducted at Source' (TDS) by reducing the number of rates and limits above which TDS is deducted.

He said that the limit amount for tax deduction will be increased for better clarity and uniformity. The limit of tax deduction on interest income to senior citizens is being increased from the current Rs 50,000 to Rs one lakh.

At the same time, in the case of people below 60 years of age, the limit of TDS on interest has been increased from the current Rs 40,000 to Rs 50,000. Along with this, the government has announced to increase the limit of Rs 2.40 lakh to Rs six lakh for tax deduction on rental income.

The Finance Minister said that the limit of 'Tax Collection at Source' (TCS) on sending money under RBI's LRS has been increased from Rs 7 lakh to Rs 10 lakh. TDS is levied on deduction from payment made for goods and services, while TCS tax is collected by the seller from the buyer while purchasing the goods.