2024-08-27 12:17:22
New Delhi: Fixed deposit (FD) is the preferred option for investment by many people. The reason for this is that investors get a fixed return in it. There is no market risk. According to a report, the share of senior citizens in term deposits (RD and FD) is continuously increasing. According to the SBI research report, the share of senior citizens in total FD is about 47 percent. At the same time, the youth are keeping distance from such traditional investments and are showing interest in the capital market. The average age of investors in the capital market is now 32 years. Not only this, about 40 percent of the investors in it are below 30 years of age. That is, the youth are giving importance to investing in the capital market. In such a situation, now the question is arising that should the government make changes in the tax on returns from mutual funds or equity market?
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It has so much impact
Currently, short term and long term capital gains are applicable on investments. In a news published in our Yogi Economic Times, the tax applicable on FD was calculated. In this, annual data of per capita income (PCI) on deposits from 1970-71 to 2023-24 was used. The result obtained from this showed that if the per capita income increases by Rs 1000, there is an increase of Rs 613 after paying tax. Otherwise, it could have increased by Rs 652. However, the tax liability on long term and short term investments is different.This is the reason for staying away from traditional investments
According to the report, the youth are also keeping distance from depositing money in banks and term deposits. This is when investing here gives a fixed return. Even then, the youth are not attracted to such investments. Actually, after paying tax on the returns received from here, not much money is received.
How much interest do you get?
All banks offer higher interest rates to senior citizens as compared to ordinary investors. If a bank is offering 8.50% annual interest on FD for a specific period like one year or two years, then this interest rate can be 9% for senior citizens. Senior citizens also get some exemptions in paying taxes. Due to these reasons, senior citizens are liking investing in FD more.