Taxation plays a very important role in the returns generated by your investment and so you should know how India tax investments before you choose one. We list down the most common investments and how they are taxed?
Most banks today pay interest in the range of 2% to 3% on their savings account. However there are banks who can pay up to 7%. We have compared the interest rate offered by all banks in India across different balances here.
Fixed Deposit with Banks is one of the most popular and convenient investment option. To help you choose the best, we compare the interest rates on fixed deposit across all major 48 banks in India including government, private, foreign and small financial banks in India every month. This may prove to be quite handy for you in choose the Best Bank FD scheme.
Are you worried about Tax Deduction at Source (TDS). In case you are eligible you can fill up Form 15G (if below 60 years of age) and Form 15H (if senior citizen). We show step by step instruction on how to fill up Form 15G/H and save TDS.
Capital Gains Tax on Bonds:
NCDs or non-convertible debentures or more popularly known as Bonds are a bit complex investment products. You must understand the product, risk involved, the taxation on interest received and when you sale it. We have done a separate post regarding this titled – Know all about NCDs.
Also you can keep track of upcoming NCD issues here.
Example: You have Rs 9,000 interest from Bank account and Rs 5,000 from Post Office Saving Account; you can claim Rs 3,500 tax exemption u/s 10(15)(i) for post office account and Rs 9,000 for bank account & Rs 1,000 for Post office account (total – Rs 10,000) u/s 80TTA separately.
Sukanya Samriddhi Account, PPF, Senior Citizens’ Savings Scheme are part of small saving scheme sponsored by Government of India. These schemes are quite popular and rightly so because of the safety, higher interest rate offered among other things. We have built calculator for each of them where you can check the maturity amount, loan eligibility, partial withdrawal and more. Click on the links to get the relevant calculator – PPF Calculator, Sukanya Samriddhi Yojana Calculator, Senior Citizens’ Savings Scheme Calculator, NSC Calculator.
Do you know how much tax you need to pay for the year? Have you taken benefit of all tax saving rules and investments? Should you use the “NEW” tax regime or continue with the old one? In case you have all these questions just Download the Free Excel Income Tax Calculator for FY 2021-22 (AY 2022-23) and get your answers.
For tax purpose Mutual Funds are of two types:
Any scheme which has more than 65% invested in equities is treated as Equity Mutual Fund.
Equity Mutual Funds are one of the best investments to generate wealth in the long run while Debt mutual funds are more suited to park money for the short term (as an alternative to fixed deposits). But as in case of any investment, the final returns are determined on the way these Mutual Funds are taxed. We discusses tax on mutual funds for FY 2021-22 [AY 2022-23] in all details.
We looked at more than 55 years history of gold to see if its a good idea to invest in Gold. We concluded that its more volatile than perceived but investing in long term may provide you with more stable returns. You can look at the complete analysis and our conclusion here – Looking at Gold Price History in India – Should you Invest in Gold?
Are you worried that you are paying too much in income tax? Are you aware of all the changes in the tax laws? Where should you invest to save taxes? Do you know all tax sections that you can use to save your tax. Download a concise 43 page presentation free to answer all the above questions and save your taxes – legally.
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I am a senior citizen.
I am having a pension plan namely, Life Stage Pension Advantage, from ICICI Prudential Life Insurance.
The commencement date of the policy is, 09-01-2010 & the maturity date is, 09-01-2020.
The policy has been converted into paid-up policy after paying five consecutive annual premiums.
Now I want to surrender this policy.
Please advise me about the Tax Implications of this surrender.
Whether exemption of rs 50000 available to interest income from non convertible debentures
no
Great Contribution by Mr. Amit Kumar. I have get familiarized with so many schemes.
Hi Amit,
Thanks a lot for selecting this topic. Very well explained and easy to understand.
its very valuable information to individual
Some of the provisions are old dated and not correct for the current FY.
Point No. 23: Property holding period has been reduced to 2 years.
Point No. 22: In both the cases, whether rented or self occupied, the interest deduction is capped at Rs. 2.00 lakhs.
Point No. 5 and 15 are inconsistent. In both the cases, for STCG, the holding period is 3 years while for LTCG for more than 3 years, the tax is 20% with indexation.
It seems that this is an old post, relevant to earlier years and has been reproduced with/without author's permission.
Please check and revert back the latest status.
Thanks for pointing this out. This indeed was my old post which I republished - sorry for errors.
Have changed the tax treatment related to rental & property which was proposed in Budget 2017.
However taxation of NCD & Mutual Funds are correct in the post.
So you mean to say that LTCG on NCD/Bonds is applicable for the holding period of more than 1 year whereas LTCG on debt mutual funds is applicable for the holding period of more than 3 years.
LTCG applicability on NCD/Bonds holding for one year is only applicable in case these NCD/Bonds are listed on stock exchange and are sold through stock exchange and on which STT has been paid. Otherwise if somebody holds these NCD/Bonds till maturity and there is a capital appreciation on account of any thing and this capital appreciation is paid at the time redemption, then, the holding period of 3 years is applicable for LTCG.
Please correct me if I am wrong.
You have covered almost all schemes and plans. But in respect of item 9 Senior citizen savings scheme, you have mentioned no TDS. I am to say that a TDS is recovered at 10% in this scheme also as like in FDs. Please make suitable corrections accordingly. Thank you
Thank you for pointing this out. Have corrected it now!