Finance Minister Nirmala Sitharaman in her Budget speech proposed a new tax regime for banks. He has proposed to introduce a bill to change the rules related to nominees in banks. Under this bill, account holders will be given the facility to add more than one nominee to their bank account. According to the new provisions, the account holder can now nominate four people as nominees and also decide how much share each nominee should get.
The bill, which was introduced in the monsoon session, currently under the existing rules, an account holder can make only one nominee. This means that after the death of the account holder, the entire amount deposited in the account (100%) goes to the same one nominee. The bill was introduced during the first monsoon session of the Parliament. It is now being reintroduced in the winter session.
Under the amended rules, the account holder will be able to nominate his wife, parents, son, daughter, siblings or any four persons as nominees. Also, he will be able to decide which nominee will get a share of how much money. The arrangement of the nominee is important so that after the death of the account holder, the money deposited in his account can be easily transferred to his chosen nominee.
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According to the Economic Times report, the suggestion to add more than one nominee to bank accounts was given by Pramod Rao, an ICICI Bank official. Currently, he is working as Executive Director in Securities and Exchange Board of India (SEBI).
The passage of this Bill will provide greater flexibility and convenience to the account holders, thereby ensuring a fair and equitable distribution of wealth among their family members.
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