How to save money in Fixed deposits?
Hi everybody, my father s going to retire this month.... he is getting some major amount(lik PF etc).... really we dont know wht to do with this money.... if anybody hav ideas pls pass it me... at present all the money we r planning to do fixed deposit... but in banks the interest amount above 10,000/yr we need to pay 10.5% tax..... anybody know how to save this money without paying tax... any option s there ....pls guide me..... Thanks
Public Comments
- deposit the first 9 lakhs in post office monthly income scheme ( in a joint account , one person can depsit, maximum rs 4.5 lakhs. ) this will give u 8% interest per annum , plus 10 % bonus, ( i.e. rs 90,000 ) at the end of the term, which is for six years. depsoit the next 15 lakhs in Senior Citizens account in a nationalised bank , this will fetch u 9% interest per annum. this will give a income of rs 15,000 per month whichcomes to rs 1,80,000 per year.if u still have more money left invest it in debt/equity mutaul funds. the capital will increase, ( normalyy ) depending upon the market condtions. what ever u ear from this after 1 year will be fully exempt from tax.
- Its not really tax you know. Its TDS. So if you dont have other incomes, then you can get it back as refund. But coming back to your query. Its really hard earned money of your father, and personally it should be pretty planned out. Ideally if you invest it in property then nothing like it, cos Land is one thing that is never gonna fall, and with a country like ours, land is getting dearer and dearer. But otherwise you should invest a major portion in the Fixed Deposits. Dont worry you will get back the amount as refund even if they deduct tax. And some portions in good equities, Large Cap Shares - Blue Chips, like Reliance Industries, and Tata Steel, ONGC etc etc. But not right now, let the market cool off a bit. And you could also go for Mutual Funds. But the best option would be to go for IPO's. Companies issuing shares, and you applying for them. They usually give around 10% return in a month on the total amount given to them. But in the end, its all very hard earned money, so if it was my money, I would buy some property, definitely.
- your question is not complete ,to get best answer you should have provide your father income after retirement any how in my view you should try the following combination. 1.20%in fdr(don't worry about tds 10.5 % if your father's income is less than taxable amount than they can claim refund any way,moreover fdr for more tan 5 years are eligible as tax saving u/s 80 c. 2.20 % in equity mutual fund diversified for long term growth,return from mutual fund is tax free if you holds them for more than one year means tax liability nil. 3.20% invest in property. 4. 20 % invest in monthly income scheme of post office its income is taxable but return is monthly,but as my friend says above 10% bonus is not applicable now 5.10% in directly in shares ,invest only in blue chip companies. 6.10% can be invested in insurance etc. http://simpletaxindia.blogspot.com/
