The budget proposes an increase in the TDS threshold for interest earned on fixed deposits for general (non-senior) citizens from the existing ₹40,000 to ₹50,000 per financial year. Meanwhile, for senior citizens, the threshold will be doubled from ₹50,000 to ₹1 lakh from FY2025-26.
Breakdown of Expected Deposit Inflows
Speaking at a post-Budget media briefing, Nagaraju highlighted the projected inflows into the banking system:- ₹20,000 crore is anticipated from the hike in the tax rebate limit.
- ₹15,000 crore is expected due to the increased TDS threshold on interest earned by senior citizens.
- ₹7,000 crore is estimated to come from non-senior individuals benefitting from the revised income tax slabs.
MTNL Debt Resolution & NARCL Updates
When asked about the debt resolution for Mahanagar Telephone Nigam Limited (MTNL) and potential losses banks may bear, Nagaraju emphasized that decisions would be made as per existing banking norms. "Banks will determine the haircut based on RBI guidelines. Have you seen banks taking a haircut before loan restructuring or resolution under the Insolvency and Bankruptcy Code (IBC)?" he remarked.On the performance of the National Asset Reconstruction Company Limited (NARCL), he revealed that lenders have transferred 24 non-performing asset (NPA) accounts worth ₹1 lakh crore to the entity for resolution.
The Budget 2025’s tax reforms aim to encourage greater financial inclusion and strengthen the banking system by attracting more savings, particularly from senior citizens.
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