No 40k limit is only for TDS deduction. From first rupee of FD interest is taxed at slab rate.
-
Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.
Need advice on where to invest 8.75lakh for guaranteed high returns
- Thread starter DaDarkkNight
- Start date
i guess mine that is being offered by indus and citi are both reducing balance ones but both are as high are 13 and 15 without any processing fee
so you will keep paying 6% even on repaid prinicipal?
I have a feeling there is some teaser rate type stuff. Can't be 7% for unlimited period.
Anyways, you need 10% return to break even post 30% tax. ( Excl cc bill payment cb)
Best advice: repay unless you can lend it to someone on monthly interest with collateral.
Advice based on your ask: use for corporate deposits like incred with coupon of >10%. hold for max 6 mnths or 1 yr. Sell in secondary mkt. But risky.
Worst thing to do will be invest in equity mf or stocks (mkt can drop anytime) or p2p lending(risk to principal).
Anyways, you need 10% return to break even post 30% tax. ( Excl cc bill payment cb)
Best advice: repay unless you can lend it to someone on monthly interest with collateral.
Advice based on your ask: use for corporate deposits like incred with coupon of >10%. hold for max 6 mnths or 1 yr. Sell in secondary mkt. But risky.
Worst thing to do will be invest in equity mf or stocks (mkt can drop anytime) or p2p lending(risk to principal).
Oh so that's the trick.
in corporate deposits he might face liquidity risk
It is latter. You need to submit 15H or 15G that your taxable income is Below 2.5L so that TDS is not deducted. AIS is quite robust and can easily find this out as interest under this declaration is reported separate. Don't do it will be my advice.
Only way is cash dealing like chit funds or turn into short term loans to known people fully under the radar.
Hopefully you are not filling your own returns. Lol.
All will be reported in ais. No way out of tax.
Savings account interest is also reported and taxed now.
codenerd
TF Ace
Just curious, wasnt it reported and taxed earlier?
True. There is definitely risk. Credit risk also there.
Liquidity risk still bearable esp as recently issued security
It was taxed. But people did not report and tax dept did not get info from banks. Now they do get info and we see that info on ais
simplewarrior
TF Select
Yes it is reported but it is also not taxable till 10000. I mentioned SA because it is risk free and the most liquid option.
Until about a year ago, savings interest was not reported by banks. So you could decide and report it or not even though legally it was taxable. There was a 10k exemption available under the old tax regime as well. Normally it was enough for most people as the interest rate is low like 3 to 4% and most people don't keep a lot of money in savings accounts.
Upto 10k interest earned from saving account is exempted. Earlier banks didnt share that mandatorily to itr, but now it is compulsory for banks to report savings acc interest.
Earlier i used to mention it in my itr anyway but now it automatically shows in ais.
I am little skeptical about this fd interest income reported by banks. There is some flaw but i don't remember it now
simplewarrior
TF Select
In my opinion currently P2P is the highest risk taking option in current digital investment options.
You does not know where your money is being deposited too.
RBI guidelines say P2P platform like lendbox etc, are required to give names,details of person to whom money is being lent to, but currently I see no such option provided by third party paltforms like cred, 12% club.
You does not know where your money is being deposited too.
RBI guidelines say P2P platform like lendbox etc, are required to give names,details of person to whom money is being lent to, but currently I see no such option provided by third party paltforms like cred, 12% club.
7 lakhs at 7% would be much more than 10k per year. 49k to be precise. So why not do a FD at 8.5% as it is going to be taxed in savings as well?