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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Complete article covering all investment avenues.
What happens if NCD bought on stock exchanges at discounted price and held till maturity? Eg: Bought 100 NCD of face value of Rs 1000 at the price of Rs 745. How the gains will be treated if these NCDs hold till maturity?
nice
How you can say that?
Great
Sir can I get 80TTA-10000+10(15)i 3500/- post saving interest = 13500/-
I have bank int -15000+ post office saving int 4500= 19500/-
Can I take benefit of both??
OVER ALL GOOD INFO IN SIMPLE LANGAGUE WITHOUT MUSH SECTION & SUB SECTION.
What are the best prudent investments for senior citizens to save tax 100%
Please advice about term plans (Insurance)
Dear Amit
Nice and informative article. Thanks for such a useful update.
Very informative and well compiled.
Believe capital gains up to 1 lakh is tax free. Is this true only for equity or MFs too?
only for mutual funds
Kindly advise whether Standard Deduction of Rs 40000 announced in Budget 2018 Katcould be claimed from EPS received under Employees Provident Fund Act
Yes standard deduction can be claimed from EPS pension (though there may be difference of opinion by some experts but as per me this is allowed).