INDIA: Exemption Limit for Tax Deduction Increased for Seniors

NEW DELHI (The Financial Express), June 11, 2007: The Government of India has issued a notification to increase the exemption limit for tax deducted at source (TDS) for senior citizens from Rs 5,000 to Rs 10,000. Under Section 194A, a TDS of 11.3 per cent is cut if the interest income of an individual from an instrument exceeds Rs 10,000 in a year. This higher TDS limit will be applicable with retrospective effect from June 1.