Tax on FD vs liquid funds

Fir short term of say 1 year the tax on FD’s and Liquid funds are same i.e. the as per the income tax slab. But FD’s/RD’s have tax free returns upto 40000 as per the recent budget announcement. So, aren’t FD/Rd a better choice now (minus the liquidity problem of FD/RD) ? Please correct me if I cited some wrong information.

Interest on FD’s & RD’s is not exempt from tax. Only the threshold limit for TDS has been increased to 40000 in the recent budget, meaning no TDS wiltbe deducted if annual interest is under 40k. But the assessee has to pay income tax on interest income as per the tax slab he falls in.

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Thanks for pointing. Can I invest in FD online like the MF’s ?

Yes. You can log into net banking and do it. But in my experience liquid funds are better at returns than an fd. With instant 30 min redemption upto 50k with reliance mf, liquid funds are more attractive.

Hey thanks for the answer:-). But is instant redemption possible on Coin ?


So I would have to buy a regular plan through the particular fund or banks website ?

yes, you can buy directly from the mf website. I use for managing my mf portfolio. You can try that also.

Not necessary to buy a regular plan. You can buy a direct plan from the fund’s website