Budget 2025: Finance Minister Nirmala Sitharaman has given relief to senior citizens in the budget. In Budget 2025-26, the Finance Minister has completely taxed to withdraw money from the National Savings Scheme (NSS) after 29 August 2024. If the senior cities who withdraw their money from NSS on or after 24 August, they will not have to pay any tax on that money. The money withdrawn from NSS will be tax free. The government has taken this step to give relief to the senior citizens, whose NSS accounts are no longer getting interest. He is withdrawing his money from NSS.
Government gave gift to senior citizens
Apart from exemption on NSS, the government has proposed to give NPS Vatsalya Account the same tax benefit as normal NPS accounts. However, this advantage will be given with some limitations. With this step, the senior citizens will not be taxed to withdraw money from the savings scheme.
Last year, the government made new rules for the National Saving Scheme
Last year, the Finance Ministry had made rules regarding the old small savings account. These rules were for the small saving scheme account that are open before 1990. The Finance Ministry (MOF) had directed to regularize illegally opened accounts under the National Small Saving (NSS) schemes of the post office. These rules were issued on 21 August 2024.
These are the rules of NSS
The government had issued instructions for the accounts opened before 2 April 1990 last year. The accounts opened before April 2, 1990 will get interest at the rate of the current scheme, while the second account will be given interest at the rate of post office savings account (POSA). After 1 October 2024, no interest will be received on both accounts. The accounts opened after April 2, 1990 will get interest as per the current rate, while the rate of POSA will be applicable to the second account. After 1 October 2024, the interest rate on both accounts will be zero. If there is more than two accounts, no additional account will be available on any additional account, but the basic amount deposited will be refunded.
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