| message : |
Following are the main Changes announced.
1. Banking industry brought under service tax.
2. TDS on Time deposits at rs. 2500.00.
3. Cut in small savings rate.
TDS on Time deposits reduced from rs 10000 to2500 , this move will put lot of pressure on banking industry in terms of complying such a provision and puts them under disadvanatage visavis Post office deposits and Mutual funds which donot attract any such TDS.
Besides u/s 80 L when u have upto 9000 deduction on interest income from bank deposit, the tDS shud have been applicable on Rs. 9000 earnings in one FY.
Service tax on Credit cards need to interpreted.It is not clear as to who will bear the tax. Is it at the time of
bank charging the fees to its customers or on every transaction.The latter interpratation will kill the industry.
Last but not the least drop in interest rates will hit bootom lines in Banking industry.The gain on debt portfolio is only one time but the banks will be under pressure in the coming years as the earnings on float balances will fall.
thankyou for reading my views , i wud love your response.
|
