K. V. Rao, Assistant General Manager (Retired), State Bank of India.

The current definition of Senior Citizens under the Income Tax Act is individuals aged 65 and above. Those who are in Government service (including public sector undertakings and banks) retire at 60 years. So the budget should aim at amending IT Act to bring down the age to 60 in conformity with the general retirement age.
Further, the interest earned on fixed deposits or even on savings parked in savings accounts attracts income tax if it exceeds Rs.10000. Considering the reduced value of rupee due to continuous inflation, this ceiling should at least be doubled. This would also achieve the objective of routing deposits through bank channels. Banks deposit growth is dwindling that would affect the credit-deposit ratio. At present the rural rich are averse to keeping their surplus in banks due to anxiety about deduction of tax at source. Banks can attract such deposits especially when they have been going in a big way for financial inclusion in rural areas.