Section 80TTB Income Tax exemption limit for senior citizens: The exemption is there on the Interest income of up to Rs 50,000 on savings accounts, fixed deposits, and recurring deposits from income tax for senior citizens under Section 80TTB of the Income Tax Act. SBI Research recommended in its recent report that this limit must surge to Rs 75,000/Rs 1 lakh.
“Under 80TTB interest income from deposits by senior citizens (Savings bank accounts, fixed deposits, recurring deposit accounts) up to Rs 50,000 is exempted from income tax. This threshold may be increased to Rs 75,000 / Rs 1 lakh which still will have much lower fiscal cost,” writes Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.
Also, the research of SBI would recommend that the government must surge the max age limit for the subscription to Sukanya Samriddhi Yojana (SSY) to 12 years as a one-time measure to boost small saving deposits.
GDP Growth Anticipated
For financing the fiscal deficit in the Fiscal year 2024, the government shall carry on to lay on the small saving schemes. The real GDP growth in FY24 would be around 6.2%, as per SBI research.
“For FY24, real GDP growth is likely to be around 6.2% and with deflator expected at 3.6%, nominal GDP would grow by 9.8% to Rs 300 lakh crore in the FY24 budget,” it articulated.
The fiscal deficit in FY 23 is nearly Rs 17.5 lakh cr, as per the report. But the higher nominal Gross Domestic Product (GDP) growth approximates maintains the financial deficit at 6.4% of GDP.
Anticipated by the Government to surge the expenditure by roughly 8% in FY24.
Government expenditure is expected to rise around 8% to Rs 46.0 lakh crore in FY24 over FY23 estimates. The report outlined that in FY24 the subsidy bill would be capped at around Rs 3.8-4.0 lakh crore and capital expenditure would increase by at least 12%.
