In an exclusive conversation with Siddharth Zarabi, Editor of Business Today, SBI Chairman CS Setty shared his perspective on the tax treatment of fixed deposits and how it could be leveraged to incentivize savings. He emphasized the unique characteristics of deposits, such as safety, liquidity, and stability, which set them apart from higher-yield investment options like mutual funds or equities. Setty suggested that reducing the minimum tenure for tax benefits from five years to three years could encourage long-term savings. However, he noted that taxation alone might not significantly influence investment decisions, as many individuals are drawn to alternative investments for higher returns. Highlighting the critical role of fixed deposits in financial planning, Setty reiterated their enduring value in providing security and stability to investors.
Fixed Deposits Vs Mutual Funds: SBI Chairman On Tax And FD Investment Returns
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