SBI Chairman backs equal tax treatment for bank deposits, equities
Business
SBI Chairman CS Setty is asking for equal tax treatment on bank deposits and equity investments, saying it would create a "level playing field" for everyone saving money.
Right now, deposit interest can be taxed up to 30%, while long-term gains from stocks over ₹1.25 lakh are taxed at just 12.5%.
Setty notes rising trend of shifting savings from banks to stocks
Setty pointed out that, worldwide, neither deposits nor equities get special tax breaks.
He also noted that more Indians are shifting their savings from banks to stocks—the ratio of mutual fund AUM to bank deposits rose from 12.6% in 2015 to over 33.5% in 2025—mainly because equities offer better returns.
Meanwhile, another banking official suggested extending GIFT City's 10-year tax holiday to keep boosting financial activity there.