SBI Chairman Urges Tax Relief on Interest Income in Upcoming Budget

Keywords: SBI Chairman, Dinesh Khara, Budget 2024, Interest Income, Tax Relief, Financial Inclusion, Senior Citizens, Fixed Deposits, Savings Accounts

The Chairman of State Bank of India (SBI), Dinesh Khara, has pitched for tax relief on interest income in the upcoming Union Budget 2024. He believes that such a move would be beneficial for financial inclusion and senior citizens, who rely heavily on interest income from fixed deposits and savings accounts.

Khara highlighted the fact that interest income is taxed at the marginal rate, making it a significant burden for many individuals, especially those in the lower income brackets. He also emphasized the importance of encouraging savings and financial stability, which could be achieved by providing tax relief on interest income.

This suggestion comes amidst calls for tax reforms and increased disposable income in the upcoming budget. While the government’s response remains to be seen, the proposal has sparked debate and discussion regarding the role of taxation in promoting financial well-being.

Many experts believe that offering tax deductions or raising the limit on tax-free interest income could provide much-needed relief for savers and contribute to the overall financial health of the country.

The upcoming budget is expected to be a crucial one, with the government looking to balance economic growth with social welfare. It remains to be seen whether the government will consider SBI Chairman’s proposal and implement tax relief on interest income. However, the call for such relief highlights the need for a holistic approach to taxation that prioritizes both economic growth and the financial well-being of its citizens.