00:00Before the Central Budget of this year is presented to the Parliament, it is being argued that the government can take a big step to increase investment in banks.
00:13For this, income tax can be removed from the interest on the fixed deposit and FD investors can be given a lot of relief.
00:21For now, the bank imposes taxes on the interest on FD according to the income tax slab of the people.
00:28So let's tell in this video that if this decision is taken in the budget, then what benefits will you get from it?
00:34There are such news that the banks have legislated to remove this income tax on the interest received from FD.
00:40If this is implemented, then this solution can benefit those people to a great extent who are dependent on FD for savings and income.
00:49According to reports, before the budget meeting with Finance Minister Nirmala Sitharaman, financial institutions,
00:56especially banks, have legislated to give tax benefits on FD to encourage savings.
01:03This suggestion has been given in view of the recent decline in the savings deposited in the FD of banks.
01:11Due to this big decline in FD, banks had to face a shortage of funds to give loans.
01:17According to reports, bank representatives have proposed to impose a long-term capital gain tax, i.e. LTCG, on FD on the basis of the income tax slab.
01:32Currently, taxes are imposed on the interest on FD according to the income tax bracket of the investors.
01:39This system encourages the person to invest in low-tax options such as mutual funds instead of a fixed deposit.
01:48Let me explain the whole process through an example.
01:52Suppose a person has a FD of Rs. 10 lakh on an annual interest rate of 8%, then he will get an interest of Rs. 4 lakh in 5 years.
02:02Suppose he comes under the 30% income tax slab, then there is no tax on the FD interest of Rs. 40,000.
02:09But above this limit, he will have to pay tax according to the slab rate.
02:14This means that he will have to pay 30% tax on Rs. 3,60,000.
02:19And this amount will be Rs. 1,08,000 in total.
02:23On the other hand, if LTCG, i.e. Long Term Capital Gain Tax, is applicable on FD, then he will have to pay a tax of 12.5%.
02:33In this way, his total tax will be only Rs. 45,000.
02:37In this way, about Rs. 63,000 will be left for the investors.
02:41So, there are a lot of issues being raised regarding Budget 2025.
02:46A lot of decisions are being taken.
02:48A lot of thinking is being done to reduce the burden on the general public and make them happy with this budget.
02:55What are your expectations regarding this budget?
02:58Give us your expectations in the comment box.
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