New Delhi: India has doubled the tax exemption limit on interest earned in a savings scheme for elders from June, the finance ministry said in a statement on 4 June.
A depositor now has to pay tax at a rate of 10% only if the interest income from a Senior Citizen Savings Scheme exceeds Rs10,000 ($247) from June. The previous exemption limit was Rs5,000.
The scheme, launched in 2004, offers 9% interest to depositors aged 60 years and above.
A depositor can invest up to Rs1.5 million in the scheme that has a lock-in period of five years.