By TIOL News Service

NEW DELHI, DEC 16, 2017: IN his pre-budget consultations with banks and financial institutions, the Union Finance Minister, Mr Arun Jaitley, said that capital adequacy of the banks will help in credit growth and job creation among others.

The representatives of the Banking and Financial Institutions suggested that TDS limit for Bank interest should be raised from the current Rs.10,000/- especially for senior citizens and pensioners given the current scenario. The limit of Rs.10,000/- was last set in the year 1997. It was also suggested to have a Credit Guarantee Fund to encourage investment in Agriculture Sector.

It was suggested that premium up to Rs. 1 lakh on life Insurance policies be exempted from income tax.

Small and Marginal farmers have come together to form FPOs rather than Cooperatives – should get the same benefits as those of companies; Incentives should be given for investments to promote agriculture and infrastructure; Crop Insurance benefits and interest subvention on agriculture credit be given through DBT to avoid misuse; Incentives for incremental jobs among others.

Among other suggestions include to encourage affordable housing, even rental properties need to be given tax benefits; Time limit of recognition of bad debts should be aligned – RBI gives 180 days and IT Act 90 days; Monthly reporting by banks to Income Tax Department should be waived – only annual reporting.

It was suggested to incentivise digital transactions to make 2018 as a year of Paperless Access to Finance; it was suggested to extend the date of Masala Bond TDS which expires in June 2018 among others.