Save/spend for social security absent in new tax regime
Incentive to invest for social security absent in new tax regime Bring parity on tax incentives in interest earned on deposits vis-a-vis gains made in alternate investments: SBI Economic Research Department has suggested that the interest income on demand and time deposits made in the banks by the individuals should be given tax parity vis a vis the income that is available on the short term/long term gains made in equity and mutual funds*. It further says that the household net financial savings, which is on the decline now, is likely go up by bringing parity and will also help the banks to grow their deposits especially CASA. Tax Exemptions absent in the new tax regime: Incidentally, the old tax regime permitted up to Rs.50,000 deduction from the taxable income for senior citizens on interest income earned on deposits, while allowing up to Rs.10,000 in respect of savings deposits for others. This is not available in the new tax regime. In fact, the exemptions ...