Union Bank of India seeks LTCG tax cuts for investors
Union Bank of India is asking the government to reduce the long-term capital gains (LTCG) tax on equity investments held for one to three years and fully exempt holdings beyond three years.
They say this could help investor returns and attract steady foreign money by reducing the current 12.5% tax on these holdings.
The bank also suggests lowering the hefty top 30% tax on bank deposit interest to around 15% to 20%, or matching it with income tax slabs, making saving in banks a bit more rewarding.
Union Bank warns of higher rates
Union Bank points out that just having a growing economy isn't enough: global investors care about real returns, especially in US dollars.
The bank warns that interest rates might go up if the Reserve Bank of India tries to support the rupee, which could impact everyone's savings and loans.
They're urging bigger reforms to make India more attractive for foreign investment and exports, hoping these changes will create a friendlier environment for both local savers and global investors.