Thanks for all who actively discussed my previous update “Really FD interest not taxed upto 50000 Rs for senior citizens ? “ One friend corrected me that 40000 RS Standard deduction is only for people in service. Thanks for this correction. I wrongly interpreted it for retired people. In this case, they have to pay more tax than what I calculated. Another friend corrected me that there is no 10% slab now. I agree and convey my thanks. As per current policy of Govt, If interest on FDs is more than 10000 Rs , 10000 Rs will be deducted at source annually, unless we fill form and sign saying that interest amount is not taxable, even after adding it to our annual income. If our declaration is wrong, we can be punished also. That clause is there in that form. Whether our interest is less than or greater than 10000 Rs, it should be added to our annual income. If we are already in say 5% slab without that interest added, we are required to pay 5% tax on that interest also ( even if it is 5000 Rs ). TDS deducted will be adjusted against tax to be paid at the time of filling returns .This I confirmed from my auditor and I am regularly doing this. Now coming to current proposal of 50000 RS TDS limit for senior citizens, there is some confusion , whether tax on interest also is exempted for senior citizens or not. One friend suggested that from April,2019 , Tax on interest up to 50000 Rs will be totally exempted. If it is true, there is some relief. It is more likely that many retired people put their retirement benefits+lifelong savings in FDs. Because they are only supposed to be safe investment ( though current Bail in clause is threatening to some extent ) and they have to survive lifelong with that amount only. Then the annual interest will be at least 3 to 4 times 50,000Rs. Hence even if interest income up to 50000 Rs is exempted from tax, it is a partial relief. One friend suggested that up to 15000 Rs can be saved under 80 c and some relief can be obtained. This is not new relief given by govt. Above all , main contention of the petition is that tax on interest on FDs should be abolished for both people in service and retired people for the following reasons. The amount put in FD is balance amount after paying IT. Interest given by banks don’t preserve its true value over time. Hence tax on interest amounts to double taxation. If at all , in any year , interest exceeds inflation rate, balance amount of interest after adjusting inflation , only should be taxed.