Need advice on where to invest 8.75lakh for guaranteed high returns

[DaDarkkNight]

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.

Both SA and FD are risk free (insurance upto 5lkh per bank) and both are immediately liqudable. This is the reason banks introduced auto sweep facility

 

[Lobogris]

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

What flaw? All income is reported.

 

[thanix]

What flaw? All income is reported.

Currently the only interest that is not reported is SGB interest by RBI 😊

 

[DaDarkkNight]

Since long ? U are holding icici credit card 💳

3 years- icici apay

 

[simplewarrior]

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?

As i said some bank can provide upto 6% interest rate. Plus you are letting go of interest on emi payments that will be paid from saving account balance. So the opportunity cost and the 10K benefit will result in lower rate than 8.5%. Anyway this will require excel calculation to find the exact rate.

 

[sm9811911]

Currently the only interest that is not reported is SGB interest by RBI 😊

That was last year. Before that post office interest wasnt reported but got reported last year. Who knows even sgb interest will also be reported this year.

 

[codenerd]

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.

Mobikwik Xtra gives name and amount details to whoever your money is lent. I myself have access to 10-20 pages of PDF which gives me details about who my money is lent to and what amount. This is from within the app. Now obviously I wont have access to their contact details.
I have 23 page of reports containing just the list of ppl to who my money is lent to 😀

 

[sm9811911]

As i said some bank can provide upto 6% interest rate. Plus you are letting go of interest on emi payments that will be paid from saving account balance. So the opportunity cost and the 10K benefit will result in lower rate than 8.5%. Anyway this will require excel calculation to find the exact rate.

Calculate whatever way, saving int cannot match fd rate even with monthly/ qtly int payout.
Saving int of 6% or so is not from Rs.1, its generally after 5 lakhs. So avg is much lower. 10k tax benefit is just 3k only assuming op has 0 balance throughout the year in any other saving account.

 

[simplewarrior]

Mobikwik Xtra gives name and amount details to whoever your money is lent. I myself have access to 10-20 pages of PDF which gives me details about who my money is lent to and what amount. This is from within the app. Now obviously I wont have access to their contact details.
I have 23 page of reports containing just the list of ppl to who my money is lent to 😀

11. Transparency and Disclosure Requirements

(1) An NBFC-P2P shall be required to disclose the following:

(i) to the lender

1. details about the borrower/s including personal identity, required amount, interest rate sought and credit score as arrived by the NBFC-P2P.
2. details about all the terms and conditions of the loan, including likely return, fees and taxes;

I did not know there was such option provided by mobikwik, still lacks in transparency as per RBI guidelines.

 

[vaibhav111vaibhav111 is verified member.]

No 40k limit is only for TDS deduction. From first rupee of FD interest is taxed at slab rate.

If your interest income from all FDs with a bank is less than Rs 40,000 in a year, the bank cannot deduct any TDS - was just referring to TDS calculation for non - senior citizen.

 

[akshayhs]

For a risk-free investment, go for T-bills that will return back the money in a fixed time with interest. T-bills are available with all brokers and is sold every Monday and Tuesday.

I am recommending this approach as the money is a loan. So, technically you have to repay it back with interest.
My personal recommendation is not to go with P2P as it is not well regulated and your money is in turn being lent to someone, with a hope of them repaying it back. So there is a huge risk involved.

 

[DaDarkkNight]

If your interest income from all FDs with a bank is less than Rs 40,000 in a year, the bank cannot deduct any TDS - was just referring to TDS calculation for non - senior citizen.

but still as per law, we are liable to report this income and pay tax on it? whether or not the bank deducted tds.
I guess opening two fds in my parents name in two small finance banks at around 9% interested rate is good, no hassle of income tax

 

[Deleted member 11974]

If you are considering stock market, check options selling on both sides for monthly expiry. It is risky but monthly returns will be better to overcome tax rate and loan interest.

One call unwinding or put unwinding and he is done
First time option sellers will end up with margin calls

 

[Deleted member 11974]

For a risk-free investment, go for T-bills that will return back the money in a fixed time with interest. T-bills are available with all brokers and is sold every Monday and Tuesday.

I am recommending this approach as the money is a loan. So, technically you have to repay it back with interest.
My personal recommendation is not to go with P2P as it is not well regulated and your money is in turn being lent to someone, with a hope of them repaying it back. So there is a huge risk involved.

In a tbill he is losing money

His cost of breakeven is 11%

 

[thanix]

One call unwinding or put unwinding and he is done
First time option sellers will end up with margin calls

Agreed for first time sellers but don't see much 'options' for generating 10+% returns 😊

 

[thanix]

but still as per law, we are liable to report this income and pay tax on it? whether or not the bank deducted tds.
I guess opening two fds in my parents name in two small finance banks at around 9% interested rate is good, no hassle of income tax

Of course yes but even if you don't, now a days bank has to report and it comes in AIS 😉

 

[Deleted member 11974]

Agreed for first time sellers but don't see much 'options' for generating 10+% returns 😊

Yup risk free or close to 0 risk Max you can make is 9 % gross that too on a senior citizen fd

 

[thanix]

Yup risk free or close to 0 risk Max you can make is 9 % gross that too on a senior citizen fd

Or you need a overdraft account like SBI Max gain home loan account with 10%+ interest rate and park this fund to adjust against the home loan interest 😏

 

[DaDarkkNight]

Of course yes but even if you don't, now a days bank has to report and it comes in AIS 😉

very stringent measures by govt to collect every paisa of income tax. But the irony is 80D still stands at 50k-75k whereas medical inflation increased more than 50% in the last few years.
They refunded the tds on 80D after I claimed expenditure for medical costs since i missed reporting to employer hence missing in my form 16, but they are yet to share the itr return statement approval yet, god knows what they are upto either send the notice or be done with it

 

[DaDarkkNight]

How u got so low interest rate on personal loan?

Its 11% reducing interest rate , and for different tenures the interest rate is different. All options arent shown to u on the app or online portal, connect with cc on call and they may have some hidden details or dsicounted schemes