Tax imposed on FDs and Savings increased from 2.5% to 5%

20 March 2018 06:38 pm

The tax has been increased from 2.5% to 5% from the interests earned from Fixed Deposits and Savings Accounts of Banks and Financial institutions according to the new income tax act which will come into effect from 1st of April.

The new tax revision will be applicable, if the income of a senior citizen is over Rs.1.5 million, according to new income tax act.

Ministry of Finance says, that the many changes have been introduced by new income tax act and P.A.Y.E. (Pay As You Earn) tax also has been increased from Seven Hundred Thousand to Twelve Hundred Thousand per year.

Arrangements have been made to tax 5% from the interests of the deposits of immigrants workers according to new income tax act. 5% of tax has been imposed according to new income tax for the deposits of emigrants workers despite the taxes in various forms have been charged from 2% to 10% on their deposits. (Ranjan Kasthuri)