Sri Lanka’s 2025 budget brings some welcome relief for senior citizens, making it easier to manage taxes and enjoy better returns on savings. If you or your loved ones are 60 years or older, here’s everything you need to know about these new benefits.
1. Manual Income Tax Return Filing
Gone are the days when senior citizens had to struggle with online tax filing! From 2025 onwards, individuals aged 60 and above can file their income tax returns manually. This is a huge relief for those who are not comfortable using digital platforms, ensuring a simpler, hassle-free process.
2. 3% Additional Interest on Deposits
Saving money just got better! Senior citizens will now receive an additional 3% interest on deposits up to Rs. 1 million. This incentive is designed to encourage savings and provide financial stability in retirement.
3. No Withholding Tax (WHT) on Interest
If a senior citizen’s total annual income from all sources is less than Rs. 1.8 million (Rs. 150,000 per month), they are exempt from Withholding Tax (WHT) on interest earned from bank deposits. To avail of this benefit, the individual must submit a declaration confirming their total income is below the specified limit.
Why This Matters
These new provisions aim to reduce financial burdens on senior citizens, making it easier for them to manage their savings and taxes without unnecessary deductions.
Spread the Word!
If you know someone aged 60 or above, make sure they are aware of these changes. Share this information with family, friends, and community groups so that every eligible senior citizen can take full advantage of these benefits.
Venuganan February 20, 2025
Good one