Senior citizens struggling to make ends meet due to rising inflation now have something to cheer about, with the Union Budget 2025 providing relief for this age group. Official data shows that while consumption inequality between rural and urban India has been reducing in recent times, there still remains concern. Economists say the fear of further escalation in the prices of essential commodities and financial uncertainties led to a significant drop in consumption last year. In this midst, Budget 2025 has come as a silver lining on the dark clouds on the horizon. The budget provides five significant respite for senior citizens: 1. Enhanced TDS Threshold Says Suneel Dasari, founder and CEO of EZTax, an online tax filing web portal, and a former Oracle USA executive: “The threshold for TDS deduction on interest is increased to ₹1 lakh from ₹50,000. It gives more relief to senior citizens who have less taxable income to get the full amount in their banks.” “This provides two-pronged benefit to seniors, as now the bank would deduct TDS only when the higher threshold is reached, and they would have more money in hand due to higher tax deduction,” adds Abhishek Kumar, a Sebi-registered investment advisor. 2. Zero Tax Up To ₹12 Lakh Income The senior citizens are not required to pay taxes if their net taxable income, including pension and interest, is less than ₹12 lakh under the new tax regime 3. Changes In Slab Rates Budget 2025 also proposed changes in slab rates, which would help senior citizens whose income is more than ₹12 lakh pay less taxes compared to earlier years. 4. Higher Exemption Limit Budget 2025 has increased the threshold limit of the base slab in the new tax regime from ₹3 lakh to ₹4 lakh. This change will put more money in the pockets of senior citizens. The flip side Seniors filing taxes under the old tax regime would no longer be able to enjoy a higher tax exemption limit of ₹5 lakh. Now, all senior citizens would get the same tax exemption limit of ₹3 lakh, so it is a negative for super senior citizens, says Kumar. 5. Tax Exemption on NSS Income The government has now exempted the National Savings Scheme (NSS) withdrawals made after August 29, 2024, from taxation. This relieves seniors who have faced a dilemma since October 1, when their NSS accounts stopped earning interest, and withdrawals became taxable on both principal and interest components, says Kumar. He adds, “All in all, it’s a ‘Zyada Khushi, Thoda Gham’ kind of budget for senior citizens.”Original Article