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Post Budget Scenario


Banking Sector

Budget Offers
Reduction in dividend tax to 10% from 20%.
Limit for TDS on deposits reduced to Rs 2,500 from the current Rs 10,000.
Removal of surcharge on profits.
Reduction of limit under section 80L to Rs 9,000 from the current Rs 12,000
Cut in small savings rates 1-1.5%
Abolishment of banking service recruitment board.

The Impact
Scrapping of dividend tax: The tax on distribution of dividend has been reduced from 20% to 10%. Further, removal of surcharge will contribute in enhancing their profits growth. This will have positive impact on profits of banks as given in the following table.