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
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN - Rs.1999
1799
(Excl. of GST ₹323)
2 Years PLAN - Rs.3499
3149
(Excl. of GST ₹566)
BEST VALUE
3 Years PLAN - Rs.4999
4499
(Excl. of GST ₹809)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
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.
CAclubindia
