Quick Summary
The government is considering a proposal to increase the tax-deductible amount on interest earned from savings accounts to ₹25,000, sources familiar with the matter revealed. This proposal was suggested by banks during a recent meeting with key finance ministry officials.Key PointsProposal Under Review: "It is under review, and there could be some relief for banks, which have demanded incentives to boost deposits," a government official stated. A final decision on the proposal is expected closer
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FAQ :
The government is considering a proposal to increase the tax-deductible amount on interest earned from savings accounts to £25,000.
The proposal to increase the tax-exempt limit was suggested by banks during a meeting with finance ministry officials.
Under the older tax regime, interest earned up to £10,000 annually from savings accounts is tax-exempt. For senior citizens, this limit is £50,000, including fixed deposit interest.
Yes, under Section 10(15)(i), taxpayers can claim exemptions on interest from Post Office savings accounts up to £3,500 for individual accounts and £7,000 for joint accounts.
Banks are advocating for these benefits to boost deposits and address concerns over the widening credit-deposit ratio, especially as household savings diversify.
A final decision on the proposal is expected closer to the budget announcement.
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