Budget 2024: Savings Account Interest Up to Rs 25000 May Become Tax-Exempt

The government is considering a proposal to increase the tax-exempt interest on savings accounts to ?25,000 annually. This suggestion, advocated by banks, aims to incentivize deposits and address the widening credit-deposit ratio. Currently, interest up to ?10,000 is exempt under Section 80TTA, and ?50,000 for seniors under Section 80TTB. The proposed change seeks to extend these benefits to both old and new tax regimes, addressing concerns raised by the RBI's Financial Stability Report on the declining CASA deposits and rising credit-deposit ratio.