The government has doubled the tax exemption limit under Senior Citizen Savings Act, 2004, to Rs 10,000.

With this move, no tax will be deducted at source under the Income Tax Act on interest payments on deposits made under the scheme, where such interest does not exceed Rs 10,000 during a financial year.

The enhanced limit of Rs 10,000 is also applicable with effect from June 1 to payments of interest by banking companies and co-operative societies engaged in the banking business. The move is expected to benefit many senior citizens who have deposited money under the scheme

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