Union Budget 2026: Tax Relief Expected for Savings, FD Interest Amid Inflation

• Tax experts anticipate changes in the 2026 Union Budget regarding tax exemptions on interest income from savings and fixed deposits.
• Current exemptions under Section 80TTA (₹10,000 for under 60) and 80TTB (₹50,000 for senior citizens) are considered outdated due to rising inflation and living costs.
• There's a growing demand to increase the 80TTA limit to ₹20,000 for savings accounts and up to ₹1 lakh for fixed deposits, especially for senior citizens.
• The taxation of FD interest for non-senior citizens is also a concern, as FDs are a primary savings option for middle-class families.
• Experts suggest a balanced approach to revise limits, targeting small savers and retirees, to align with economic realities and global best practices.

Why It Matters: The 2026 Union Budget is expected to revise tax exemption limits on savings and FD interest for savers and retirees.