Ahead of new budget session, all eyes are on Finance Minister Nirmala Sitharaman and what sort of changes she will implement.
Nirmala Sitharaman is expected to present a bill for a new direct tax law during the upcoming budget session. The focus of this proposed legislation will be on simplifying existing provisions, eliminating redundant ones, and making the language more accessible to the general public.
However, there are rumors that a tax will be imposed on a certain amount deposited in savings account.
According to the rumors doing rounds on social media, depositing more than 10 Lakh Rupees in cash into a saving account now requires PAN card details and proof of income. The failure to provide such proof may result in a 60% tax deduction.
So is there any truth to this rumor?
So far, there are no reports confirming this rumor ahead of the budget session. The government is expected to bring a new income tax bill and a framework but the objective of this modification is to simplify the legislation, ensuring it is clear and easy to understand, and drastically cutting down its volume by approximately 60%.
Finance Minister Nirmala Sitharaman during her Budget speech in July 2024 had pledging a comprehensive reassessment within six months to resolve any current intricacies and conflicts.
“The new Income Tax law will be introduced in the Budget session of Parliament. It will be a new law and not an amendment to the existing Act. Currently, the draft law is being vetted by the law ministry and it is likely to be brought in Parliament in the second half of the Budget session,” according to the PTI report citing a source.
But as of now there is no report of any kind confirming a 60% tax on savings.
Nirmala Sitharaman is expected to announce the changes in speech in the Parliament on February 1.
