More tax relief for seniors

NEW DELHI: The threshold limit for exemption from tax deduction at source (TDS) has been enhanced from Rs5,000 to Rs10,000 on interest on any deposit under senior citizens savings scheme, 2004.

The new threshold limit has come into force from June 1, 2007.

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 where such interest does not exceed Rs10,000 during the financial year.