Senior Citizen FD: Today, from 1st April, the new financial year (FY2025-26) has started. Let us tell you about the announcement made by Finance Minister Nirmala Sitharaman while presenting the budget on 1st February 2025. All those announcements have been implemented from today. In the budget, taxpayers got a big gift regarding Income Tax. At the same time, an announcement was also made regarding TDS exemption on interest income to senior citizens, when the Finance Minister talked about doubling the limit of interest income.

Today, from 1st April 2025, senior citizens will get the benefit of the increased limit of TDS deduction. This means now schemes like FD (Fixed Deposit New Rule) and Senior Citizen Savings Scheme (SCSS) have become more profitable for senior citizens. If you want to invest in FD, then you can earn huge profits by getting FD done in the name of senior citizens.

TDS limit doubled -

From the new financial year, the limit of TDS deduction for senior citizens (Senior Citizen FD TDS Limit) has doubled. Now TDS will not be deducted on returns (interest) up to Rs 1,00,000. This means that now if senior citizens invest money in schemes like FD, and SCSS and take profit up to Rs 1,00,000 as return (interest), then they will not have to deduct any TDS on that interest. At present, this limit is up to Rs 50,000.

Senior citizens will get this much interest in FD -

Let us tell you that in terms of safe investment, FD is the most popular investment option for senior citizens (senior citizen FD). Senior citizens can invest their hard-earned money in FDs after retirement without taking any risk. Another major reason for investing in it is that FDs provide guaranteed returns and the money is safe. Most of the government and private banks in the country offer higher interest rates to senior citizens than to general customers. And to attract investors, they keep increasing the interest rates of FDs (fixed deposit benefits) from time to time.

Usually, banks offer 50 basis points i.e. 0.50 percent more interest to senior citizens on FDs of different tenures as compared to the general fixed deposit rate. Apart from this, some banks also offer an additional interest of 0.25 percent to 'super senior citizens' aged 80 years or above.

Double profit on getting FD in the name of senior citizens -

Let us tell you that the limit of TDS (TDS exemption FD) deduction for senior citizens has been increased from 50 thousand to 1 lakh rupees. But for common people, this limit is still 40 thousand rupees. In such a situation, if you are planning to invest in FD (tax-free FD income) in the new financial year, then instead of getting it in your name, if you get FD in the name of an elderly (senior citizen) of your house, you can get double profit on the interest income.

Know how much benefit is there in getting FD in the name of the elderly -

Let us understand here through an example, suppose you invest Rs 3,00,000 in your name in a 3-year FD (best FD rates) and interest is given on it at the rate of 7 percent, then your amount on maturity will be Rs 3,69,432. This means that you got a return of Rs 69,432 in three years.

But at present, the limit of TDS deduction for common people is Rs 40,000, so TDS will be deducted from the income (return) of Rs 69,432. On the other hand, if you get this FD done in the name of a senior citizen of your family, then you will not only get 0.50 percent more interest but there will be no TDS deduction. In such a situation, if you invest Rs 3,00,000 at the rate of 7.5 percent, then on maturity you will get a return of Rs 74,915, but not even a single rupee of TDS will be deducted from it.

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