Kumar Bahukhandi
India’s Finance Minister Nirmala Sitharaman holds up a folder with the Government of India logo, She only knows whets there in – File Photo
New Delhi : Experts suggest that the government should consider increasing the limit of deduction under Section 80TTA (savings account interest) from Rs 10,000 to Rs 20,000… Similarly, they recommend increasing the limit of deduction for senior citizens under Section 80TTB, which is currently Rs 50,000.
Finance Minister Nirmala Sitharaman will present the upcoming budget (Union Budget 2025) of Modi tenure on February 1, for which taxpayers and common people are eagerly waiting. There is particular interest in the Income Tax category, where people want to see if any changes will be announced to reduce the burden on the common man? People have high expectations from the Finance Minister regarding some things. In such a situation, it is possible that some big announcements can be made in Budget 2025.
Let us know what special expectations the common man and taxpayers have from this budget.
Speculations about this year’s budget are focused on possible changes in tax slabs and the introduction of new relief measures. Apart from this, higher deductions are expected to be included in the old tax regime. Experts suggest that the government should consider increasing the deduction limit under Section 80TTA (savings account interest) from Rs 10,000 to Rs 20,000. Similarly, they recommend increasing the deduction limit for senior citizens under Section 80TTB, which is currently Rs 50,000 (for fixed deposit interest), to Rs 1 lakh.
Deduction for savings interest
Section 80TTA of the Income Tax Act, 1961, provides individuals and Hindu Undivided Families (HUFs) a deduction of up to Rs 10,000 on interest income from savings accounts maintained with banks, co-operative banks or post offices. This deduction is applicable to individuals below 60 years of age and HUFs. However, it does not apply to interest earned on fixed deposits or recurring deposits (RD).
