InvestorQ : I heard some new TDS benefits for a retired person. Any idea about it?
Aastha Awasthi made post

I heard some new TDS benefits for a retired person. Any idea about it?

Answer
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leah Diaz answered.
1 year ago


In the Interim Budget Government amended Section 194-A which exempts from TDS on the interest income from deposits to Senior citizen with a taxable income of up to Rs 5 lakh. They all need to do is to submit Form 15H in banks and post offices to claim the exemption at the beginning of the year to avoid deduction.

Without this change, taxpayers earning income up to ₹5 lakh had to deduct TDS on interest and later have to file a refund claim for the same. Now with this change, not only the taxpayer is at relief but also the administrative burden of CPC (Central Processing Centre) will be reduced.

Interim Budget was proposed on 1st Feb 2019, which made not only this change but few other changes too. However, the final Budget will be probably presented in the first week of July after completion of government formalities.