With a challenge to enhance the financial development along with giving relief to the middle class and these hit by the pandemic, Finance Minister Nirmala Sitharaman is going to present her second complete Union Budget on February 1, 2021.
As all people eagerly await announcement on earnings tax positive aspects below Section 80C and Section 80CCD, there are demands from the senior citizens as properly. Severely hit by the pandemic, this year’s spending budget will be keenly observed by the senior citizens who are expecting rebates, as properly as rise in the Income Tax (I-T) exemption limit.
According to the law, a senior citizen is an person resident in between the age group of 60 to 80 years. A super senior citizen is an person resident who is above 80 years.
Most senior citizens rely on fixed earnings investments to meet their standard earnings demands. Bank fixed deposits are largely the preferred decision of most of them. However, banks FD’s are presently providing a price of interest of much less than 6 per cent per annum across distinctive tenure. The falling interest prices have hit the earnings of most senior citizens.
The interest earned on saving deposits and fixed deposit with banks or post workplace or co-operative banks for an quantity up to Rs 50,000 by the senior citizen is eligible for deduction below Section 80TTB. Also, there will be no deduction of tax at supply up to Rs 50,000. This limit of Rs 50,000 has to be computed for every single bank individually.
Hence, the I-T exemption limit has been sought to be raised to Rs 1 lakh for senior citizens from the present Rs 50,000.
“The government should enhance some of the tax breaks, including increasing the exemption limit on interest income for senior citizens so that some portion of their income can be restored,” mentioned KP Saha, retired government employee.
However, lots of elders are tweeting the finance minister to not charge interest on earnings from FD’s and savings schemes.