Tax Relief on Interest Earnings: Key Proposal by SBI Chairman for Budget 2024

SBI Chairman Dinesh Kumar Khara

Tax Relief on Interest Earnings: As the pre-Budget 2024 discussion meeting is going on, SBI Chairman Dinesh Kumar Khara proposed a Tax exemption on Interest earnings from bank deposits and other means.

This measure will allow them to save more and can also be used for funding long-term infrastructure projects.

When people deposit their money in a fixed deposit account or savings account in a bank they earn interest in return. However, banks charge tax on the income earned from interest when the deposit is more than Rs 40,000.

In saving accounts, interest given up to Rs 10,000 is not taxed.

SBI Chairman Dinesh Kumar Khara in an interview with the PTI news said, “If at all some relief could be given in the Budget regarding tax on the interest earnings, it will be an incentive to depositors. Eventually, the banking sector uses deposits mobilised for the capital formation in India.”

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Business Today reported that the SBI raised the rate on some short-term fixed deposits by up to 75 basis points last month and last year it reported an 11% rise in its deposits.

SBI expects more deposits this year, its goal is to achieve at least 13% deposit growth in 2024.

Dinesh Kumar Khara was elected as the chairman of the State Bank of India in October 2020 and is also among the key people behind SBI's growth.

However, the Budget 2024 will be launched in the 2nd or 3rd week of July by Finance Minister Nirmala Sitharaman and this will mark her seventh budget announcement.

Nirmala Sitharaman also becomes the first woman to become the Finance Minister for two consecutive times.

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