Tax Slab Changes Announcement Made in Budget 2025 May Increase Bank Deposits

Budget 2025: Finance Minister Nirmala Sitharaman presented the country’s general budget on 1 February 2025. During this, he made a change in the tax slab under the New Tax Regime. Income up to Rs 12 lakh was declared tax free. Speaking to the media on Monday, Financial Services Secretary M Nagaraju said that it will bring Rs 40,000-45,000 crore as deposited in banks.

Senior citizens also gift in budget

While presenting the budget, the Finance Minister also proposed to increase the TDS limit from Rs 40,000 to Rs 1 lakh at the interest rate on bank FD, taking care of senior citizens of the country. At the same time, TDS limit on interest was increased from Rs 40,000 to Rs 50,000 for people below 60 years.

Banks also benefit from change in tax slab

Nagaraju said, these measures will approximately about Rs 40,000-45,000 crore as deposited in banks. If the deposit increases, the cash flow in the banking system will also increase. This will also reduce dependence on such borrowings on which they have to spend more. He said, the current account savings account (CASA) ratio of banks is already at the level of 40 percent annually, these announcements made in the budget will give it even more boost. The CASA ratio of a bank is the ratio of deposits in the total and savings accounts in the total deposit of the bank.

Work will also be instant on insurance law (amendment) bill

In a media conversation with the media, Nagaraju also said that the Insurance Act (Amendment) Bill has also been approved by the Ministry of Finance, in which the Foreign Direct Investment (FDI) limit to 100 percent and composed license including a large scale in this sector There are proposals for improvement. It will be presented in the current budget session of Parliament. He said that the Ministry of Law is considering the final draft of the amendment bill and will soon be sent for the approval of the cabinet__

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