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Home Personal Finance Attention FD investors… 15% flat tax can be imposed on all FDs,...

Attention FD investors… 15% flat tax can be imposed on all FDs, SBI suggested

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Attention FD investors... 15% flat tax can be imposed on all FDs, SBI suggested
Attention FD investors... 15% flat tax can be imposed on all FDs, SBI suggested

Budget 2025 Expectations: The Union Budget 2025 will be presented on February 1. Everyone from the salaried to the businessmen has high expectations from this budget. The country’s largest public sector bank SBI has recommended that the income tax on FDs should be changed. For this, SBI has talked about a flat 15 percent tax.

New Delhi: If you like to invest in FDs then there is important news for you. This time in the budget, a flat 15% tax can be announced on all FDs. The country’s largest government bank, State Bank of India (SBI) has suggested this to the government. Till now, slab-based tax is levied on the profit from FDs.

SBI has presented its pre-budget report ‘Preface to Union Budget 2025-26’. It has suggested that a flat tax of 15% be imposed on the profit earned in the form of interest from all types of FDs. The proposal aims to link deposit taxation with equity and stabilize bank liquidity. However, this may result in a loss of revenue of Rs 10,408 crore annually to the government.

This is the current tax system on FD

The interest received on FD is currently based on the slab system. It is 5 to 30 percent per annum. The interest received from FD is added to the income of that person. Then the person has to pay income tax according to the slab in which his income falls. On the other hand, if the annual interest income is more than Rs 40 thousand, then 10 percent TDS also has to be paid on it.

More discount on savings account!

SBI has also recommended increasing the limit of tax exemption on interest from savings account. Till now, tax exemption is available on interest up to Rs 10,000 on the amount deposited in the account. SBI has recommended that this exemption be increased to Rs 20,000.

Burden on the government will increase

If both these recommendations are implemented, it will increase the burden on the government. The implementation of both the recommendations will cost Rs 11,965 crore annually. This is 0.14% of India’s estimated GDP of Rs 357.2 lakh crore for the financial year 2026.

Budget will be presented on February 1

The Union Budget 2025 will be presented on February 1 next month. Union Finance Minister Nirmala Sitharaman will present it in Parliament at 11 am. In this budget, there is a discussion about changes in the income tax slab. At the same time, the budget of important sectors like textile and railways can be increased substantially.


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