Tax Exemption Limit for Senior Citizens raised to 10,000
TAX EXEMPTION LIMIT ENHANCED TO TEN THOUSAND RUPEES UNDER SENIOR CITIZENS SAVINGS SCHEME
PIB Press Release (June 4, 2007)
The Government, vide notification SO No.861 (E) dated 1st June, 2007, has enhanced the threshold limit for exemption from deduction of tax at source from Rs. 5,000 to 10,000 on interest on any deposit under Senior Citizens Savings Scheme, 2004. The enhanced threshold limit of ten thousand rupees has come into force from 1-6-2007. This notification has been issued pursuant to an amendment made to section 194A of the Income-tax Act, 1961 by the Finance Act, 2007.
By virtue of the aforementioned notification, no tax will be required
to be deducted at source under section 194A of the Income-tax Act on
interest credited or paid or likely to be credited or paid on any
deposit made under Senior Citizens Savings Scheme, 2004 where such
interest does not exceed ten thousand rupees during the financial year.
The move is expected to benefit many senior citizens who have made deposits under the said Scheme. The enhanced limit of ten thousand rupees is also applicable with effect from 1.6.2007 to payments of interest by banking companies and co-operative societies engaged in the business of banking.
- CBSE results: 8,120 students score over 90 percent >>More - Kendriya Vidyalayas top in CBSE class 12 results>>More - IAS Exam Success: These Guys did it - so can you >>More
