“Banks pitch for higher tax breaks on bad debt provisioning” (Business Line, January 20) brings up some good ideas. The suggestion of removing TDS at banks, given by the bank chiefs to the Finance Minister during the pre-budget meeting, is a welcome step. If considered, it will bring relief to the lakhs of depositors who had put their hard-earned money in banks for safe returns. Thanks to the changes made to key parameters by the RBI to curb inflation, banks have had to raise the interest rates to maintain their net interest margins. Hence, for the sake of depositors, doing away with TDS can probably keep them happy. Also, in the coming monetary policies to be announced by the RBI, there are indications that some key parameters will be reduced, which will, in turn, affect the interest rate structure of banks. Hence, the Finance Minister should take the suggestion of the bankers and relieve the depositors of the burden of TDS.
- T. N. Rao, Andhra Pradesh (HBL)
