People’s interest in bank savings account has decreased. The reason for this is its low interest rate. If the interest limit for tax exemption is increased, then the attraction of bank savings account may increase
India Budget 2024: There can be a big announcement in the budget for people who keep money in bank savings accounts. Finance Minister Nirmala Sitharaman can increase the limit of tax exemption on interest on bank savings accounts. Media reports have said that the Finance Minister can announce this in the budget. The Finance Minister will present the Union Budget on 23 July. There are a lot of expectations from this budget.
At present, there is no tax on interest up to Rs 10,000
According to media reports, representatives of banks had told Finance Minister Nirmala Sitharaman about their demand in the pre-budget meeting. They had told about the need to change the tax rules on the interest of money deposited in the Savings Bank Account. People’s interest in keeping money in bank savings accounts has decreased. The reason for this is that the interest rate on the money deposited in the account is very low. Secondly, interest up to Rs 10,000 received on money deposited in the savings account is tax-exempt. This tax exemption is also available on co-operative bank and post office savings accounts.
Interest up to Rs 25,000 can get tax exemption
It is expected that interest up to Rs 25,000 on savings account can get tax exemption. This will benefit those people who keep more money in savings account. Experts say that if the Finance Minister announces this in the budget, then it will increase the attraction of bank savings accounts. In the last few years, people’s interest in keeping money in banks has decreased. In such a situation, bankers believe that if the limit of interest amount is increased for tax exemption, then it will increase people’s interest in savings account.
Senior citizens get tax exemption on interest up to Rs 50,000
Under Section 80TTA of the Income Tax Act, interest up to Rs 10,000 from savings accounts is tax exempt. Senior citizens, i.e. people above 60 years of age, get tax exemption on interest income up to Rs 50,000. A big relief is expected in terms of tax in the budget coming on July 23.
