Nerevarine
Incarnate
You can get 6.5 % PA for 2 year FD if you do it via groww on indusind bank.
TheSloth
The Slowest One
I did not think of FD since I want this amount to be available quickly whenever the need arises. I thought of Liquid funds because of very short maturity terms like 90 days and I will be able to withdraw the amount and or reinvest it. This 90 days maturity term I came to know from Youtube videos only.
Also, not willing to open new bank account for this investing money, since managing multiple accounts is already proving difficult to me.
Also, not willing to open new bank account for this investing money, since managing multiple accounts is already proving difficult to me.
Zangetsu
I am the master of my Fate.
just to keep in mind that now Income Tax Dept. knows how much interests you are earning for all your PAN linked Bank account. Since 2021 ITR website shows it as income from other sources automatically. so if the interest is more than 10k then it will be taxable.
TheSloth
The Slowest One
While filing ITR this time, my interest amount of 2k generated through Savings account was added as income and I was taxed on that. Or this 10k amount is only for investments done in Liquid Funds?
SaiyanGoku
kamehameha!!
You can declare upto 10k as non-taxable interest amount under 80TTA.
There is a section in itr form called 80TTA, once you add it in exemptions section then in the box for this you can enter your actual interest income from savings acc interest(not fd interest) & the deduction box below it will automatically take 10000 or your actual savings interest income whichever is lower. After this amount is deducted from your interest income then whatever remains will be added to your taxable income.
It is not exactly declaration but deduction, nowadays this interest income comes pre-filled in itr so you don't have any choice to declare it as it is already declared by itr.
And what interest rate are you expecting from a 90 days liquidity fund not to mention that breaking a fd online to get the amt in your savings acc will almost certainly be faster than redeeming your units in any liquid fund. If only having an extra bank acc is an issue then you can look at the fd rates of all of your existing bank accs too & it is advisable to close any psu bank acc except sbi while recommended to have a bank acc in at least 1 major pvt banks like hdfc/icici/axis/kotak. Keep/open 1-2 bank acc only for high interest rates. In short, having 4-5 bank acc is normal & if you have more than that then you need to close the unused/unnecessary accs sooner or later.
It is not system automated, even interest less than 10k will be taxable unless one avails the deduction under 80TTA by manually adding the entry for it.
Nerevarine
Incarnate
It's very
Dude give it a try, its super easy to manage via groww. Make sure you login via browser not the app.
Zangetsu
I am the master of my Fate.
Yes, the total interest earned will be deducted by 10k under this
Zangetsu
I am the master of my Fate.
I mean that column is prepopulated when we open that section in ITR
Zangetsu
I am the master of my Fate.
2-3 months is too short for getting good profit of stocks.
TheSloth
The Slowest One
Oh. What is the correct duration then? I won't be investing big amount in stock, may be 5k-6k at max at a time.
Zangetsu
I am the master of my Fate.
To gain the actual benefit from Stocks it is highly recommended to invest for long term.
TheSloth
The Slowest One
I thought this was only for equity related investments.
Stocks are equity.
TheSloth
The Slowest One
Lol and I thought I am able to understand little bit about investments. Sigh.
So what are the options for small term investments like 2-3 months, or may be 6 months. Something other than FD and better returns(its fine with the risk since I wont be investing more than 5-6k anyway).
So what are the options for small term investments like 2-3 months, or may be 6 months. Something other than FD and better returns(its fine with the risk since I wont be investing more than 5-6k anyway).
Zangetsu
I am the master of my Fate.
Everyone wants to double their money in 25days. No idea which investment will give profit in 2~3 months.
SaiyanGoku
kamehameha!!
TheSloth
The Slowest One
I didn't mean to ask to double my money in 3 months. Just wanted to know at what kind of option I need to look at for very short term investments. Liquid funds seem one of those options, but I am only learning about it so not sure about returns. On Groww they mention only 1-3-5yrs returns but if the maturity date is just after 3 months then why do we even need to look at 1year data. That's why I am confused and asked here.
I am putting all my money in long term investments, except emergency funds. I thought of keeping some money for quick withdraw but also something better than Savings account or FD.