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Your money stays in the savings account so you can get this discount in the budget

Sagar Patel

By Sagar Patel

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Will there be tax savings on top of budget savings?

If you keep some money deposited in the bank savings account or some money keeps on being deposited in your account. Then it is possible that this money will also help you in saving on income tax. The government may make a big announcement in this regard in the budget now. The government is considering increasing the tax exemption limit on interest received on bank deposits under the old tax regime.

Currently, if you receive interest up to Rs 10,000 per annum on the amount deposited in your bank account, then you are exempt from net tax. While for senior citizens this limit is up to Rs 50,000. This also includes FD interest for them.

Interest earnings up to Rs 25,000 are tax-free

ET has reported in a news report citing sources that in the budget, the government may make banks’ interest income up to Rs 25,000 tax-free. While the senior citizen limit will remain the same as before. In fact, in the pre-budget discussion, banks had expressed to the government their concern over their declining deposits.

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Banks say that the habit of people taking credit is increasing due to which the credit-deposit ratio of banks is worsening. In such a situation, the government should promote the habit of saving among people by offering relief in the old tax regime. The Finance Ministry is deliberating on their proposal.

Will you also benefit from the new tax regime?

Banks want the government to give taxpayers the benefit of tax deduction on savings under Section 10(15)i of the new tax regime. Currently, under this section, individuals get interest up to Rs 3,500 on savings made at the post office under the old tax regime and interest up to Rs 7,000 on joint accounts.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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