Senior citizens in Chennai welcome increased tax deduction in Union Budget 2025

CHENNAI: The Union Budget 2025 brought a huge relief not just for the middle class but also for the elderly.

Finance minister Nirmala Sitharaman announced relaxation for senior citizens by doubling the tax deducted at source (TDS) and tax deduction on interest income from Rs 50,000 to Rs 1 lakh.

"When citizens are speaking about the old and tax regimes, there are topics beyond that, such as health, education and social security, that have to be taken into consideration in a better way. Even though certain exemptions have been given for health insurance, the tax on health insurance must be fully exempted," said P Viswanathan, a resident of Tambaram.

"Also, the pension amount, which is currently 50 pc, must be increased, as the expenses are high and this is the income for them," Viswanathan added.

"After retirement, senior citizens’ main income is fixed deposits (FD), and tax is levied on the interest from FD. In this budget, the tax on FD interests has been reduced. The announcement of full exemption on basic customs duty on 36 life-saving drugs for cancer, rare and chronic diseases is a welcome move as it will reduce medical expenses," said M Somasundaram, a senior citizen and consumer activist.

"From this budget, senior citizens stand to gain on two counts. Raising the threshold limit for TDS on interest income from 50,000 to Rs 1 lakh for TDS is a big boost. Raising the threshold limit for TDS from rental income from Rs 2.40 lakh to Rs 6 lakh is another boost as many senior citizens depend on rental income. Overall, this budget has been good for the aged," said V Gopalakrishnan, an economic consultant.

Lawrence Thangasamy, a chartered accountant, also acknowledged that interest is the area where the senior citizens would benefit the most.