Bank FD TDS: There is a lot of debate over the exemption on interest received by senior persons from bank deposits. Finance Minister Nirmala Sitharaman has also made the youth happy with her budget for 2025-26. The TDS ceiling on bank FD interest has been enhanced. Previously, TDS was not deducted on bank FD interest income of up to $40,000. It is now up to 50,000. That is, the bank will no longer automatically deduct TDS on revenue under $50,000.
Only if the income from FD interest exceeds $50,000, would the bank deduct TDS and notify the Income Tax Department. If the bank has the PAN card number, it deducts 10% TDS. If the PAN card is not available with the bank, 20% TDS is deducted from the taxable income of FD interest. Everyone under the age of 60 will gain from it.
Will be introduced starting April 1, 2025 : Bank FD TDS
The Indian government has doubled the TDS limit for those under the age of 60 on revenues from bank FDs, which will take effect April 1. The exemption limit for TDS on bank FDs for older folks differs from all of the above. The banks also make separate announcements from time to time.
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Initiative to put more money in the hands of people
Other budget proposals, like as increasing the TDS limit on bank FDs, have made it obvious that the government aims to put more money in people’s pockets by cutting tax deductions for the middle class. Its objective is to stimulate consumption.
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