
NEW DELHI: Department of Financial Services (DFS) secretary M Nagraju has said that part of the Rs 1 lakh crore income tax bonanza that the people have received in the budget would be parked in bank accounts.
“Based on our estimate, we think Rs 40,000-45,000 crore would be parked in banks. This amount would be available for further lending,” Nagraju said in a post-budget interaction with Industrialists.
The government has announced a major overhaul in income tax rules by leaving individuals earning up to Rs 12 lakh out of the tax net. Also, the government changed the tax slabs in such a way to benefit even those earning more than Rs 12 lakh. These tax measures would cost the exchequer Rs 1 lakh crore.
Meanwhile, the DFS secretary said that only Rs 82,000 crore foreign direct investment (FDI) has come into the insurance sector since 2000. He says that the government’s move to increase the FDI limit in the insurance sector from 74% to 100% will bring more investment into the sector.