Dear Sir,
Businessmen use their savings to expand their business. They do not deposit their savings in Fixed Deposits in Banks.
Senior citizens and salaried employees deposit their savings in Fixed Deposits in banks to earn interest and to get back their money, whenever needed. These fixed deposits are used by banks to lend to entrepreneurs and commercial organizations for productive purposes. These deposits indirectly help the development of the economy, without budgetary support. The Borrowers pay more taxes to the government, because of their expanded business.
At present, the interest earned on the Fixed Deposits is taxed by the Government as Income and the tax is deducted at source. Senior citizens, who depend on the interest income, are subjected to difficulty, while claiming refund of tax deducted. The interest rates are being decreased gradually. As a result, the interest from Fixed Deposits is becoming less and the Fixed Deposits have become unattractive. Yet, Senior Citizens do not have any other option.
In view of the above facts, the Government may totally exempt the interest income from Fixed Deposits in Nationalized/Scheduled Banks from Income Tax.
A.S.Mahaboob Jan
Retired Chief Engineer/TNEB (Age 62)
27-1, SPIC NAGAR, Velachery, Chennai – 600 042. (Phone -9444219013)
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