However, this exemption is only for interest income on a savings bank deposit. "Unlike Section 80L, which exempted interest on bonds, fixed deposits, recurring deposits and savings account, this new deduction is only for bank interest," says Sudhir Kaushik, CFO and Co-founder of Taxspanner.com. But still this will definitely help senior citizens, who have a large amount of their money in savings accounts and they will not have to pay tax on income up to 10,000 a year. “Rich taxpayers have benefited from the budget more than the middle- and low-income people,” says Delhi-based tax consultant Surya Bhatia, as quoted to ET.

If you are a Senior Citizen with an

- Annual income of 6 lakh, then you will have to pay a tax of 21,630 which is same as previous.

- Annual income of 9 lakh, then you will have to pay a tax of 79,310, that is again same as previous.

- Annual income of Rs12 lakh, then after the budget your tax comes down to 1,47,290 from 1,67,890, which is a decline of 12.3 percent.

- Annual income of 20 lakh, then your payable tax amount is 3,94,490, which was 4,15,090 till now.

If you are a Very Senior Citizen with an

• Annual income of 6 lakh, then you will be exempted from paying tax.
• Annual income of 9 lakh, then you will have to pay the same amount of tax as previous which is 54,590.
• Annual income of 12 lakh, then there’s a good news for you as you payable amount of tax would 1,23,085 which was 1,43,685 till now, which means your tax will be cut by 14.3 percent.
• Annual income of 20 lakh, then your payable tax amount is 3,68,740 which was 3,89,340 under section 80.