Senior citizens were offered quite a few benefits in the Union Budget 2018. One of these was the proposal that interest income of up to Rs50,000 earned by a senior citizen from bank deposits will attract neither income tax nor tax deduction at source (TDS).
Falling interest rates in the past few years have affected finances of many senior citizens as many such investors prefer fixed income instruments such as bank deposits and small savings schemes for investment, over market-linked instruments like mutual funds. Therefore, for this group of people, interest income of up to Rs50,000 being made tax-free brings some relief.
