Budget 2026: Savers Demand Higher Tax Relief on FD and Savings Interest

• Indian savers, especially retirees, rely on bank deposits for financial security, but existing tax relief limits are outdated.
• Current tax exemptions under Section 80TTA (up to Rs 10,000 for savings interest) and 80TTB (up to Rs 50,000 for senior citizens on all deposits) are deemed insufficient.
• Tax professionals advocate for increasing the 80TTA limit to Rs 20,000 and the 80TTB limit to Rs 1 lakh due to inflation and rising costs.
• The treatment of fixed deposit interest for non-senior citizens is a concern, as it's fully taxable despite FDs being a preferred savings option.
• Experts suggest a small, standardized deduction for interest income within the new tax regime to make it more appealing to conservative savers.

Why It Matters: Budget 2026 urged to revise outdated tax relief limits on savings and FD interest for Indian savers.