Union Budget 2025 India TDS Limit on Income from Bank FD Increase for Non Senior Citizen

Bank fd tds: Senior Cities have a lot of discussion about exemption on the interest received from the bank FD. Finance Minister Nirmala Sitharaman has also made the youth happy in the budget of 2025-26. He has increased the TDS limit on the interest on FD in the bank. Earlier, TDS was not deducted on the earnings of up to 40 thousand from the bank FD. Now it has been increased to 50 thousand. That is, now the banks will not cut TDS automatically on the earnings of less than 50 thousand.

The bank will inform the Income Tax Department by cutting TDS only after earning more than 50 thousand from the interest of FD. In the event of PAN card number is available with the bank, 10 percent TDS is deducted. If the PAN card is not available with the bank, then 20 percent of TDS FD is cut on taxable income of FD interest. All people below 60 years of age will get its benefit.

It will be applicable from April 1, 2025

The Government of India will be implemented from April 1 for people below 60 years of age on earnings from bank FDs. The limit of exemption on TDS in bank FD to Senior Cities is different. They are also announced separately by banks from time to time.

Initiative to give more cash in people’s hands

It has also become clear that the government wants to reduce the tax deduction from the middle class and give more and more cash in the hands of the people by increasing other provisions of the budget and TDS on bank FDs. Its purpose is to increase consumption.

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