High-value term deposits in banks may not be subjected to tax deducted at source (TDS) if the finance ministry agrees to proposals made by banks on Thursday. In a pre-budget meeting with Finance Minister Pranab Mukherjee, bankers proposed that the limit on interest from deposits beyond which TDS is required to be deducted be increased from Rs 10,000 to Rs 50,000 considering the surge in volume of transactions and inflation over the last few years.
The banks also a taxation window for pension funds and long-term funds. A demand was made to make banks eligible to issue tax-free infrastructure bonds. They also called for abolition of the Securities Transaction Tax. Some bankers said borrowers should be incentivised to convert jewellery into assessed gold.
An official with another bank confirmed that they had demanded the tenure for banks deposits be eligible for income-tax rebate should be brought down to three years from the current five years.
“We have also said that banks should be allowed to float infrastructure bonds and the exemption limit under them should be increased to Rs 50,000 from the current limit of Rs 20,000,” he said.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018