Tax saving FD through Bank Loan : correct or wrong?

POSTED BY sushilkumar ramchand bhandari ON April 9, 2013 4:41 pm ONE COMMENT

Dear Sir,

1. If I buy tax saving FD using Bank loan, that is correct or wrong?

Bank interest 15% X 5 years = 75 % We will lost in 5 years. Because we are using Bank loan.

Bank interest FDR 9.75 % X 5 = 48.75% we will get in 5 years from tax saving FD.

We will save 10% tax in 1 time. Hence, we get 48.75 + 10 % = 58.75% & we lost 75% means lose of 16.25% in 5 years. But due to this FD we can get 75% interest amount deducted as a expenses because our capital remains in our balance sheet. 75 X 10% = 7.5. If we consider this amount our loss will be 8.75% in 5 years. What is your opinion about it?                        Please guide me.

2. Please send perfect IRR calculator & XIRR  calculator to us. Using these calculators we can check return of various insurance policies & etc. When you will publish answer please send to me on

One reply on this article “Tax saving FD through Bank Loan : correct or wrong?”

  1. Dear Sushil, I’m unable to understand your mathematics. Can you simplified a bit for all of us?



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