SBI Chief Demands Equal Tax for Bank Deposits and Equity Investments Before Budget

• SBI Chairman C. S. Shetty advocates for uniform tax treatment on earnings from bank deposits (FD/savings) and equity investments.
• Shetty highlighted that such tax disparity is uncommon globally and India should align with international markets.
• He believes there should be a level playing field for all financial savings instruments, despite potential fiscal challenges.
• The current system taxes bank deposit returns up to 30% based on income tax slabs, while listed equity returns enjoy concessional rates (12.5% LTCG over 1.25 lakh, 15-20% STCG).
• Bankers are increasingly demanding this parity as savers prefer equities for better returns, impacting banks' ability to raise deposits for lending.

Why It Matters: SBI Chairman calls for equal tax treatment on bank deposits and equity investments to ensure fair financial savings.