New Delhi In a relief to senior citizens, the government has raised the exemption limit of tax deducted at source on interest earned from any deposit under the Senior Citizens Savings Scheme, 2004.
The tax exemption threshold has been enhanced from Rs 5,000 earlier to Rs 10,000. The change comes into with effect from June 1 following a notification to this affect.
"No tax will be required to be deducted at source under section 194A of Income Tax Act on interest credited or paid or likely to be credited or paid on deposit made under Senior Citizens Savings Scheme, 2004 where such interest does not exceed Rs 10,000 during a financial year," PTI quoted an official statement.
The enhanced exemption limit of Rs 10,000 will also apply to payments of interest by banking companies and cooperative societies.
The decision will benefit senior citizens who have made deposits under such schemes with banks and cooperative societies.
(With agency inputs)
Comments
0 comment