From 1 April 2025, many new rules are going to be implemented for Senior Citizens, which they are likely to benefit in terms of banking and TDS. The purpose of these rules is to make senior citizens financially strong and save more money in their pockets. These rules declared in the Union Budget 2025 will benefit not only senior sites, but also investors and commission earners.
Under these new rules, the limit of TDS has been increased on the interest received on fixed deposits (FD) and recurring deposits (RD). Now this limit has increased from ₹ 50,000 to ₹ 1,00,000 for Senior Citizens, which means that if the annual interest income of a senior citizen is less than ₹ 1 lakh, then no TDS will be deducted on them. This rule will not only give relief to senior sites, but will also make the process of tax refund easy for them.
New TDS Rules for Senior Citizens
Description of the rule set
The table below gives details of the new rules:
| Type of rule | Old limit | New border (from 1 April 2025) |
| TDS limit on interest income (Senior Citizens) | ₹ 50,000 | ₹ 1,00,000 |
| TDS limit (regular citizens) on interest income | ₹ 40,000 | ₹ 50,000 |
| TDS discount on mutual funds and stock dividend | ₹ 5,000 | ₹ 10,000 |
| TDS limit on rental income (Senior Citizens) | ₹ 2,40,000 per year | ₹ 6,00,000 per year |
| TDS exemption for insurance agents and brokers | ₹ 15,000 | ₹ 20,000 |
| TDS on Lottery and Gaming Income | ₹ 10,000 | ₹ 10,000 (but the rules have been changed) |
Benefits of new rules
These new rules will have many benefits to senior sites:
- Exemption in TDS on interest income: The limit of TDS on interest income for senior sites has been increased to ₹ 1 lakh, which will have to pay less tax and save more money in their hands.
- Relief on rental income: The limit of TDS on rental income has been increased from ₹ 2.40 lakh to ₹ 6 lakh, which will also benefit the senior sites that get income from rent.
- NSS account withdrawal on withdrawal: NSS (National Savings Scheme) withdrawals from account will now be tax free, which is applicable for 29 August 2024.
- Interest on post office and cooperative bank deposits: Interest income on these deposits will also be tax free up to ₹ 1 lakh.
TDS rules for regular citizens
TDS limit has also been increased for regular citizens:
- TDS limit on interest income: TDS limit on interest income for regular citizens has been increased from ₹ 40,000 to ₹ 50,000. This means that if the annual interest income of a citizen is less than ₹ 50,000, then no TDS will be deducted on them.
- Exemption for mutual funds and stock investors: TDS discount on dividend income from mutual funds and stock has been increased from ₹ 5,000 to ₹ 10,000, which will give more profit to investors.
TDS rules for insurance agents and brokers
TDS limit has also been increased for insurance agents and brokers:
- TDS exemption on commission: TDS discount on commission for insurance agents and brokers has been increased from ₹ 15,000 to ₹ 20,000, which will improve cash flow for them and reduce compliance of compliance.
TDS rules on income from lottery and gaming
TDS rules have also been changed on lottery and gaming income:
- TDS on lottery win: Now TDS on lottery win will be deducted only when the winning amount is more than ₹ 10,000. According to the earlier rules, even if a person wins several times, the TDS will not deduct if the total win is less than ₹ 10,000.
Impact of new rules
These new rules will benefit not only senior sites, but also investors and commission earners. These rules have been made to simplify taxpayers as well as to provide relief to taxpayers. This will reduce tax liability and increase disposable income.
List of benefits of new rules
The advantages of new rules are as follows:
- TDS exemption on interest income for Senior Citizens: No TDS will be deducted on interest income of up to ₹ 1 lakh.
- TDS exemption on interest income for regular citizens: No TDS will be deducted on interest income up to ₹ 50,000.
- TDS exemption on dividend income for mutual funds and stock investors: No TDS will be deducted on dividend income up to ₹ 10,000.
- TDS exemption on commission for insurance agents and brokers: No TDS will be deducted at commission up to ₹ 20,000.
- Increase in TDS limit on rental income: No TDS will be deducted on rental income of up to ₹ 6 lakh for senior sites.
conclusion
These new rules will give financial strength to senior sites and will save more money in their pockets. These rules will be beneficial not only for senior sites, but also for investors and commissioners. With the implementation of these rules, tax compliance will be easy and taxpayers will get relief.
Disclaimer: This article is written only for the purpose of providing information. These rules are real and have been declared in the Union Budget 2025. Senior Citizens and other sections are likely to benefit economic benefits with the implementation of these rules.
