tax saving fd has a lock period if i am not wrong
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Need advice on where to invest 8.75lakh for guaranteed high returns
- Thread starter DaDarkkNight
- Start date
You know what is tax saver fd? Is interest income exempt on those fd?
It's 6.06% flat and 11% reducing, emi every month varies little and around 77k
brother is building a plan on clouds
Everyone is not liable to pay taxes, if ur income is <5lakh (old regime) and banks won't deduct tds on interest if u submit form ?G pre hand while booking fd.
Now who are not liable to pay taxes? Senior citizens, parents in my case
That is 5 year tax saving FD for section 80C exemption. I think he told about senior citizens who are under tax limit.
Certainly know it , I even have a few running to avail remaining 80c limit in prev financial years
I memtioned senior citizen bcoz banks give higher interest rate to them, also no tds/tax liability here
Yes, understood your point. So what is your final decision?
i thought that you did tax planning by paying them rent
I am not a dependent one on my parents, and I do tax planning by claiming a handsome hra from my employer.
These tricks are for dependent kids living with their rich parents
5 lakh in 9% fd or whatever highest avail for 1 yr in my parents account.
Rest I am not yet decided probably may try risking that sum
no harm in claiming extra tax benefits when it is available
but if not
then yes making a fd in your parents name wont attract taxes and plus you might be able to claim upto 50k interest and 2L principal as deductibkles
but if not
then yes making a fd in your parents name wont attract taxes and plus you might be able to claim upto 50k interest and 2L principal as deductibkles
I don't think you file your taxes yourself? I see a gap in ur understanding
You are not Factoring in the EMI's Which you are paying. You won't see any benefit in doing this if you are not able to generate at least 15% (Considering the intrest is paid Monthly)
Check My Attachment
At 8.5% Yearly Rate, You would net make ~Rs118 after factoring in the EMI's which you would be paying.
If you are able to get 1% CB on The Final Paid Amount then that would be your only profit.
I don't see any point in doing this with FD. Moreover You can't even claim the intrest Paid as Deduction if you are putting in FD. And Add 30% The Tax Amount on the intrest Earned.
What You Can Do:
You can't generate any return using FD on the borrowed amount. If you want to make any return them You have to be Risk Taking and invest it in Equity.
There are 2 Benefits in this:
(1) The Entire Interest Amount can be Deducted as Cost Of Acquisition. So That Means Rs 61250 Can be claimed. Which Further Means That You are Directly Saving 61250*15% = Rs 9188 If you made any STCG with the invested amount.
You can even claim the interest paid in Section 57(iii)
(2) You would be paying Reduced Tax. 15% STCG As Compared to 30%
9188 + 9362(1% CB Amount) = Rs 18550
So You are already up With Rs 18550 If you managed to make a profit in a Year.
Don't do any F&O, Invest in plain Stocks. Lower Risk (Still Risk😂) And Your Only Chance of Getting Return. If you don't know anything about Stock Market. Then Kindly don't try to do this.
Check My Attachment
At 8.5% Yearly Rate, You would net make ~Rs118 after factoring in the EMI's which you would be paying.
If you are able to get 1% CB on The Final Paid Amount then that would be your only profit.
I don't see any point in doing this with FD. Moreover You can't even claim the intrest Paid as Deduction if you are putting in FD. And Add 30% The Tax Amount on the intrest Earned.
What You Can Do:
You can't generate any return using FD on the borrowed amount. If you want to make any return them You have to be Risk Taking and invest it in Equity.
There are 2 Benefits in this:
(1) The Entire Interest Amount can be Deducted as Cost Of Acquisition. So That Means Rs 61250 Can be claimed. Which Further Means That You are Directly Saving 61250*15% = Rs 9188 If you made any STCG with the invested amount.
You can even claim the interest paid in Section 57(iii)
(2) You would be paying Reduced Tax. 15% STCG As Compared to 30%
9188 + 9362(1% CB Amount) = Rs 18550
So You are already up With Rs 18550 If you managed to make a profit in a Year.
Don't do any F&O, Invest in plain Stocks. Lower Risk (Still Risk😂) And Your Only Chance of Getting Return. If you don't know anything about Stock Market. Then Kindly don't try to do this.
Tax saver fd are for 5yrs, cannot prematurely withdraw. You don't have that much time.
Their interest is taxable if total income more than Exemption limit.
To summarise, you are doing a mistake by taking this loan. You will most likely be at a loss. Try to foreclose, ask experts here (@xywowowvw and others) if they can help with foreclosure.
Tsunami
TF Neo
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