where should one Invest considering the tax slab of a individual is 30%?
Fd giving Return 6-7% return
Liquid Funds–> Returns slightly greater than FD
T bills
Considering above the question arises here is, if any investment instrument is giving return of the 6-7% then, tds deducted is 30%, So at the end the Principal amount= Principal +interest- 30% tds–> loss in principal to some percentage.
Suggest any alternate investment instruments solving the query.
Any solution suggested solution to the above query would be appreciated.
There will not be loss due to this.
TDS is only deducted on interest, not on principal. So your 6% return post tax would be around 4.8%, but it still positive return and no loss in principal.
(Also on a separate note, TDS is not 30%, if you have updated your PAN details, should be 10% TDS)