Investment ??
This query is : Resolved
03 April 2015
where to do investment for good return
equity vs debentures vs fd
along with their tax implications
03 April 2015
Investment is always based on 'high risk high return, low risk low return'.
Equity - highly risky investment area. Therefore, you can book the high return as well as high loss also. In bull market, you can expect 15%-20% return on your investment.
FD - Very low risky investment. Therefore, normal return is 8%-9%
Debenture - It is also low risky investment. However, debenture normally secured against immovable property of the company. The rate of interest always higher than the FD interest rate.
Tax Implication:
Equity:
1. Dividend is exempted
2. Long term capital gain i.e. if the holding period is more then 1 year, is exempted.
3. Short term capital gain i.e. if the holding period is less than 1 year, then it is taxable at the rate of 15%.
FD & Debenture:
Interest is taxable.
Equity - highly risky investment area. Therefore, you can book the high return as well as high loss also. In bull market, you can expect 15%-20% return on your investment.
FD - Very low risky investment. Therefore, normal return is 8%-9%
Debenture - It is also low risky investment. However, debenture normally secured against immovable property of the company. The rate of interest always higher than the FD interest rate.
Tax Implication:
Equity:
1. Dividend is exempted
2. Long term capital gain i.e. if the holding period is more then 1 year, is exempted.
3. Short term capital gain i.e. if the holding period is less than 1 year, then it is taxable at the rate of 15%.
FD & Debenture:
Interest is taxable.
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