Monday, January 17, 2022

Pre-Budget Pitch

 Source: The Times of India, Jan 17, 2022, pg 14

The Indian Banks' Association ( IBA) has proposed to the Govt before Budget 2022, with regards to the following.

* Reduction in the lock-in period for Fixed Deposits( FDs) from 5 yrs to 3 yrs, which are used for claiming tax exemption U/ S 80 C of the Income tax Act. This is an effort to make FDs compete favourably with other products like mutual funds, ELSS or direct investment in shares, thereby attracting more investors.

* Seeks faster hearing for disputes with government departments through special mechanism with timelines for completion of appeals.

* Branches of foreign banks be given an option to pay tax at 22% instead of 40%.

* Permission to do away with quarterly TDS certificates.

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