Retail depositors earning   negative returns; relook taxation on interest: SBI economists

Country’s largest lender SBI has said that there is need for reviewing taxes on interests earned and if it not for all depositors, the taxation review should be carried out for at least deposits made by senior citizens who depend on the interest for their daily needs because retail depositors are earning negative returns on their bank deposits.

The RBI can also relook at the regulation that does not allow interest rates of banks to be determined as per age-wise demographics.

At present, generally banks deduct tax interest income of over 40,000 for all the depositors while for senior citizens the taxes set in if the income exceeds Rs 50,000 per year.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close