January 5, 2015 10:40 am
I have a huge amount in my sb (kept for purchasing a house). I would like to know a product where i can earn more interest for a shorter period without tax implications
Dont over think about the taxation part . If you are keeping your money in Saving bank account, you will earn 3.5% , you also have to pay tax on the interest part if you earn more than Rs 10,000 in a year (upto Rs 10k is tax exempted) .
Now all you have to think is how can you do better than this. In short term, its almost impossible to get any great return or tax free income. All you can do is earn decent return in range of 6-8% and then pay tax on it which will make the post tax return for you in range of 4.5-5% , which is ok .
Now you have options like Debt funds , FD for 3 months or 6 months .
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