Relief for senior citizens; Rs. 15 b for additional 3% interest rate; WHT waiver

Tuesday, 18 February 2025 01:10 - - {{hitsCtrl.values.hits}}

The Budget 2025 presented by President and Finance Minister Anura Kumara Dissanayake yesterday announced relief for senior citizens.

“We propose to implement a special interest scheme for senior citizens. Under this scheme, individuals above 60 years of age will be eligible for one-year fixed deposits of up to Rs. 1 million with an annual additional interest rate of 3%, above the prevailing interest rates in the market for ensuring their financial stability,” President Dissanayake said.

To implement the scheme, the Government proposes to allocate Rs. 15 billion to subsidise the 3% additional interest to be paid for the senior citizens. This scheme will be implemented from July 2025.

The Budget 2025 also announced that Withholding Tax (WHT) will not be deducted by a financial institution from the interest paid on deposit made with that financial institution by any senior citizen, whose assessable income from all sources does not exceed Rs.1.8 million for any year of assessment and if such individual tenders a declaration to the financial institution confirming his assessable income.

Any Individual, other than senior citizens, whose assessable income from all sources does not exceed Rs.1.8 million for any year of assessment, will be entitled to a refund of WHT deducted on interest under the refund scheme presently applicable for senior citizens.

Senior citizens will be allowed to file their income tax returns manually, starting from the year of assessment 2024/2025.

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