Interest on fixed deposits like LTCG and STCG, lock-in period of 3 years like ELSS for 80C advantage, what SBI Research suggests for Budget 2026

SBI Research proposes aligning fixed deposit interest tax with capital gains. It also suggests shortening the lock-in for tax-saving FDs to three years, matching ELSS mutual funds. This aims to offer tax Section 80C tax benefits also to those investors who invest in 3-year FDs. As Finance Minister Nirmala Sitharaman presents Budget 2026 on Sunday (February 1, 2026), many investors expect changes related to FD interest.