Where should I invest given my personal tax is 30%?
Given the above, a question arises here. If the investment product returns 6-7%, the tds deducted is 30%. So in the end, principal amount = principal + interest – 30% tds –> loss of principal, a percentage.
Suggest an alternative investment product that solves the question.
I would appreciate it if you could suggest a solution to the above query.
No loss will result from this.
TDS is deducted only on interest, not principal. So after tax his 6% return would be about 4.8%, still a positive return and no loss of principal.
(Also, on another note, TDS is not 30%, it should be 10% TDS if you’re updating your PAN details)
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Hi @Markus_Lee
Read here to better understand the tax aspects of these three options.