Government earns Rs 27,000 crore as tax on interest on fixed deposits from elderly people

Senior Citizen Fixed Deposit: According to the report of SBI Research, this accretion scheme has turn out to be fairly common amongst senior residents as a consequence of excessive interest charges on fixed deposits.

– Advertisement –

Senior Citizen Fixed Deposit: The authorities has earned greater than Rs 27,000 crore in tax from interest on investments in fixed deposits of senior residents of the nation. This is an efficient determine and as per the earlier figures, a major enhance has been registered in it.

Tax taken from senior residents
The authorities has collected greater than Rs 27,000 crore tax from senior residents on interest earned on fixed deposits within the final monetary 12 months. This data has been acquired in response to the report of SBI Research, the nation’s largest lender.

The scheme is kind of common amongst senior residents
The report of SBI Research says that within the final 5 years, the overall quantity of deposits elevated by 143 % to Rs 34 lakh crore on the finish of the monetary 12 months 2023-24, whereas 5 years in the past it was Rs 14 lakh crore. According to the report, as a consequence of excessive interest charges on fixed deposits, this accretion scheme has turn out to be fairly common amongst senior residents. During this era, the overall variety of fixed deposit accounts has elevated by 81 % to 7.4 crore.

Estimated deposit of greater than Rs 15 lakh – SBI Research
SBI’s analysis estimates that out of those, an quantity of greater than Rs 15 lakh is deposited in 7.3 crore accounts. Keeping in thoughts the estimate of seven.5 % interest on these deposits, senior residents have earned Rs 2.7 lakh crore within the final monetary 12 months solely within the type of interest. The report says that this consists of Rs 2.57 lakh crore from financial institution deposits and the remaining quantity from Senior Citizen Savings Scheme.

“Assuming 10 per cent (common) tax paid by senior residents as constant throughout all classes, the tax assortment by the Government of India on this regard can be roughly Rs 27,106 crore,” the report mentioned. Many banks of the nation are additionally providing interest as much as 8.1 % on their fixed deposits to senior residents.

ATM Cash Withdrawal Charge : SBI, PNB, HDFC and ICICI Bank modified the foundations, now clients must pay this a lot cost for withdrawing cash from ATM.

– Advertisement –