Your computation is totally absurd. This is what they call creative accounting. 33% profit added before investing and the same profit is again added after 1 yr. Reading rediff business section these days is nonsense.
Thats very smart....or should I say very cheeky. My friend who wrote this forgets that the Rs.33,000 is not a return on investment. Its a saving of tax.
By his logic, if someone decides not to invest Rs.100,000 then does that mean he doesn't get 33k savings of tax? No! So please ask him to stop talking out of his hat.
I never saw anything more ridiculous & kiddish in my entire life. I wonder how some one can write like this. Listen man this is an article but look like a chit fund company's brochure. Any body & every body who pays income tax knows all this. Now i m short of words....so try to write something good else dont write.......plzzzzz
Good Attempt. Very optimistic indeed. Best suited to the style of Mr.Chidambaram.
See, You invest Rs.100000. Get a tax exemption of Rs. 33000 and a return of Rs.8000. So, the net earning is Rs.41000 only and not anything more.Where comes 61%?
When you consider the investment as RS.67000 , the return can't be Rs.108000. It can be, at the maximum, Rs.75000 only.
I don't agree with this calculation of earnings in first year. Rs. 33000/- tax becomes payable over a period of one year in proportion to his earnings. The saving here is assumed based on TDS that a person does not pay. The TDS does not get deducted on day 1 of the Financial Year and hence it is wrong to assume that just by investing Rs. 67000/- the person gets Rs. 108000/- at the end of year 1.
Dear Mr Bajaj Kindly correct me ,ragarding your mail of "60 % return " ,if the returns are as low as 33% + (8% of 67000) 5.3 % = 38 % in toto because the investment is Rs 100,000.
