SBI Urges Government to Grant Full Tax Exemption on Rs 2.7 Lakh Crore Interest Earned by Senior Citizen Deposits
State Bank of India (SBI), one of India's largest public sector banks, is urging the government to provide a full tax rebate on the interest earned by senior citizens on their deposits. The bank estimates that senior citizens have earned a staggering Rs 2.7 lakh crore in interest, and by assuming an average tax payment of 10%, approximately Rs 27,106 crore could be collected as tax revenue. SBI argues that granting a full tax rebate on these earnings would not impact the government's fiscal deficit and would be a fair measure to support senior citizens.
Rising Deposit Rates and Special Schemes:
The surge in deposit rates, coupled with higher interest rate differentials for senior citizens, has led to a significant increase in deposit accretion among this demographic. SBI highlights the s...