SBI Chairman Advocates Tax Relief on Interest Income in Upcoming Budget
Dinesh Kumar Khara, Chairman of SBI, called for tax relief on interest income to encourage savings, which could be utilized for funding various projects. In an interview with news agency PTI on Wednesday, Khara emphasized the potential benefits of such relief for depositors and highlighted the role of bank deposits in capital formation in India.
Currently, banks deduct tax on interest income exceeding Rs 40,000 annually across all branches, with savings accounts enjoying tax exemption on interest earnings up to Rs 10,000. Khara noted recent adjustments in SBI’s fixed deposit rates to enhance competitiveness and forecasted a higher growth rate in deposits this fiscal year, targeting a 12-13% increase.
Preparations for the Union Budget are underway, with Finance Minister Nirmala Sitharaman engaging leading economists in New Delhi to discuss fiscal strategies.
