Best SIP Funds to Invest Online
Returns: 7 to 7.7%
The best tax-saving FDs
More than 50% of their corpus is in mid and small-cap stocks. Expect good growth.
Their interest rates have fallen significantly and the income is fully taxable. Yet tax-saving bank fixed deposits are a good choice for the Rip Van Winkles who left their tax planning for the last minute and are now running around to beat the deadline. Vinayak has to show the proof of investment under Sec 80C by the end of this week or his company will deduct a very high tax from his January salary.
For such taxpayers, the Netbanking facility is a godsend. Even if the bank branch has closed for the day, his tax planning can be done in a matter of minutes. All he has to do is open a tax-saving fixed deposit and show the proof of investment to your company.
We are suggesting bank fixed deposits for the simple reason that he cannot go wrong in these instruments. Sure, the income is taxable and the post-tax returns will be barely 5.5%. But at least Vinayak won't end up buying a low-yield life insurance policy or an unsuitable pension plan.
These fixed deposits are also suitable for senior citizens who might already have hit the Rs 15 lakh ceiling in the Senior Citizens' Saving Scheme and don't want to lock in money for the long term in a PPF account. Though NSCs offer higher rates than most banks, they still require the investor to visit the post office. Bank deposits can be done online.
Keep in mind that the interest from such deposits has to be reported in the tax return next year. Many investors have the misconception that up to Rs 10,000 earned on bank deposits is tax free. The exemption under Sec 80TTA applies to savings bank interest only. Income from fixed deposits is fully taxable and should be mentioned in the income tax return of the individual.
The best tax-saving FDs
More than 50% of their corpus is in mid and small-cap stocks. Expect good growth.
Smart tip: Opt for the quarterly or yearly interest payout option if you don't want to lock up your money for five years.
SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich
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