The author ends with line " However, you also need to evaluate the credit risk involved in the underlying securities held by the plan. Why every socalled financial expert / advisor do not start their preaching by this line.
RE:FD v/s Debt option
by Balasubramaniam R on Aug 06, 2008 01:22 PM Permalink
Good question. But thats their profession lots of ifs and buts to wriggle out of responsibility.
RE:FD v/s Debt option
by varghese on Aug 06, 2008 02:03 PM Permalink
Lack of accountability is the hallmark of Indianess..be it the Indian Judiciary or any system in this nation..land of the corrupt ..slaughterers of Honest people////
How do you deserve to work with magazine like “Outlook Money”.
TDS on FD is 10 % not 30% mentined by dear Veena
If the fixed deposit holder is a resident individual and HUF, for a payment of up to 10 lacs, TDS will be deducted at a rate of 10% in addition to it there is an education cess of 3% which takes the total deduction to 10.3%. For a fixed deposit of resident individual or HUF with payments equal to 10 lacs or more the TDS rate is 10%, in addition to it there is a surcharge of 10% and educational cess of 3% this takes the total deduction to 11.3%.
For corporate body. If the fixed deposit holder corporate body, for a payment of up to 1 crore TDS will be deducted at a rate of 20% plus an education cess of 3% which takes the total deduction to 20.6%. For a fixed deposit of corporate body with payments equal to 1 crore or more the TDS rate is 20% in addition to it there is a surcharge of 10% and educational cess of 3% this takes the total deduction to 22.6%
RE:Writer need to increase her knowledge
by Balasubramaniam R on Aug 06, 2008 01:18 PM Permalink
TDS may be 10% but an individual in 30% bracket will have to pay extra ie the difference before the yr end as self assessment tax.
RE:Writer need to increase her knowledge
by hjkhkjk hjkhhkj on Aug 06, 2008 01:25 PM Permalink
the author is talking abt actual tax rate on income from interest. it doesn't matter what is the tds rate. you have to pay tax at applicable slab as per your total income. the author is right. - more moderation is required in the language that you use. just because u have right to comment, does not essentially mean you can use any language - Aditya
For Insurance policies from LIFE INSURANCE CORPORATION OF INDIA & Home Loans from LIFE INSURANCE FINANCE CORPORATION OF INDIA call Door step services on 9867479676 on write for details: poopathi.mudaliyar@gmail.com. (Services available in and around Mumbai and Navi Mumbai)
We also undertake revival of Lapsed policies & Insurance Claims.
If an individual does not have to pay tax ie if he/she earns amt below taxable limit then FD is ok as it is less risky. the writer has to put ideas in proper perspective.
FDRS are the safest as Mutual Funds, stocks etc are very risky, you may even loose your capital whereas in FDR interest compounded after some years would look more attractive.
The compounded figure is not applicable in stocks and mutual funds
All experts fail in share market predictions! Fixed deposits are attractive for people who do not have to pay income tax. For others PPF is there. Equity market is good for who can take risk and spend some time for investing. The difference between FD and shares is that in the case of FD, you are assured to get your capital plus some interest without much risk. In the case of equity, you may get profit or loss depending on various factors many of which are out of your control. By putting in MF/SIP/Insurance you can make someone else also rich when your capital is not assured to be returned. To the extent of risk capacity one may invest directly in stocks.
RE:Interest on 5 years Bank FD is Tax Free?
by Karan Hi on Aug 06, 2008 01:14 PM Permalink
NO For Gods Sake NO Only the amount of Investment upto Rs 100,000 is given tax benefit u/s 88 for periord of FD of 5 yrs and more The Intrest all of it is Taxable at all times.
RE:RE:Interest on 5 years Bank FD is Tax Free?
by Balasubramaniam R on Aug 06, 2008 01:28 PM Permalink
Karan is right pl do not mislead anyone. Long term banks FD are like National savings Scheme for tax benefits. Only the inv is exepted upto 1 lac limit as per sec 80 C interest is taxable.
RE:Interest on 5 years Bank FD is Tax Free?
by Simhan on Aug 06, 2008 01:21 PM Permalink
interest rates on 5 year deposits are lesser than those on 2 years deposits right now. so just check it if you want to invest in 5 year FD
