K.S.Narayanaswamy, Coimbatore

I am a senior citizen in my 86th year having retired from the post of Nursing Superintendent of the Tamilnadu Medical Service. For me and other senior citizens interest income from deposits have completely dwindled to about less than 50% of what it was in effect some years ago. Interest on balances in the Savings Accounts in Banks have also come down very much. Investing in fixed deposits and watching the interest accruing has also become a tiresome job. You have been good enough to grant some preferential rate of interest for senior citizens for deposits made in Post Offices Such a concession as far as I am given to understand is not available in all nationalised banks. Interest income from all sources put together is exempt from income tax upto a limit. Amounts in savings accounts even if a minimum is there for more than a year does not get the interest that the same amount will fetch if placed in fixed deposits though such amount in S.B. account is as good as a fixed deposit with the bank My request to you Sir is to exempt entire interest income from savings accounts of senior citizens and pensioners (all categories) from income tax. The number of beneficiaries will also be very small in number and this concession is not likely to affect the tax income of the government to a great extent. Another point I wish to bring to your kind attention is - The interest on savings accountant is based on the minimum balance in the account for each month and paid once in six months. In this the most minimum balance of the six month period will be in deposit for six months, the next lowest balance for five months ,the next lowest for four months and so on. And the balances do deserve a little more interest since any short term deposit for 15 days and more definitely gets a higher rate of interest than when the same amount is in savings account These balances may be paid interest half yearly, treating the balances as if in short term fixed deposits and for periods of six months, five months, four months three months two months and a month at 6% 5.5%.5% 4.5% 4.5%, 4.5% and so on, or the then existing rate whichever is higher(?). This concession if implemented will help senior citizens to some extent. I am sure you will understand the suggestion stated herein and do give us senior citizens some relief.

K.S.Narayanaswamy

B.25.Hudco Houding Unit

Behind Rangavilas Mills

Peelamedu. Coimbatore 641004

Ph.0422 571477

e.mail sagoki@eth.net or sagoki@airtelmail.in