The revenue department in the finance ministry has decided to review the tax benefits available on small savings instruments with a tenure of over six years in the budget for 2003-04.
Presently, these instruments qualify for a 15 per cent tax exemption up to an investment of Rs 60,000 and withdrawals on maturity do not attract any tax.
According to finance ministry officials, while all recommendations of the YV Reddy expert committee report on administered interest rates have been accepted and implemented, those related to tax aspects of small savings schemes have still not been addressed.
Officials said the review pertained to the Reddy committee
