Sunday, January 24, 2016

Bank FD vs Liquid Fund Taxation


FIXED DEPOSIT
Amount Invested Rs. 100 Lakh
Tenure : 3 years
Interest Rate : 7.5%
Maturity Amount : 124.35 Lakh
Tax Rate : 34.61%  {30% + surcharge 12% + 3% cess}
Tax Liability : 8.43 Lakh

Net Amount : 115.93 Lakh


LIQUID FUND / FMP / DEBT FUND
Amount Invested Rs. 100 Lakh
Tenure : 3 years
Return Rate : 7.5%
Maturity Amount : 124.35 Lakh
Indexed Cost : 122.50  (Assuming Inflation 7%)
Capital Gain : 1.86 Lakh
Tax Rate : 23.07%  {20% + surcharge 12% + 3% cess}
Tax Liability : 0.42 Lakh

Net Amount : 123.94 Lakh

You can save a whopping Rs.8 Lakhs by simply taking wise deciscion.


Note: This calculation are done to simplify the understanding of the tax calculations. you might consult your C.A for exact calculation and Tax rates applicable in that particular year.

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