(a) whether the Union Government has decided to tax all incomes from
interest;
(b) if so, the details thereof alongwith the reasons therefor; and
(c) the manner in which the Government will safeguard the interests of
pensioners and senior citizens?
(a) whether the Union Government has decided to tax all incomes from
interest;
(b) if so, the details thereof alongwith the reasons therefor; and
(c) the manner in which the Government will safeguard the interests of
pensioners and senior citizens?
MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI S.S. PALANIMANICKAM)
(a) and (b) Finance Act, 2005 has omitted section 80L of the
Income-tax Act. Accordingly, deduction of Rs.15,000/- on income by way
of interest on government securities and of Rs.12,000/- on income by way
of interest on National Savings Certificates, debentures of public sector
companies, deposits with banking companies or financial corporations,
etc., shall not be available from assessment year 2006-07.
(c) The exemption limit for individuals has been raised from Rs
50,000/- to Rs.1,00,000/- and in the case of senior citizens, it has been
further increased to Rs.1,85,000/-. Besides, section 80C inserted by
Finance Act, 2005 provides for deduction up to Rs.1,00,000/- of the
amount deposited in specified saving schemes.
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