Tax saving FD through Bank Loan : correct or wrong?

POSTED BY sushilkumar ramchand bhandari ON April 9, 2013 6:20 pm ONE COMMENT

Saprem Namaste,

Humare family me 3-4 proprietership firms hai. Hum sabhi firm me Bank loan use kar rahe hai. Usimese hum tax saving ke liye FD kharidte hai to hum galat kar rahe hai kya?
Bank loan interest  =15%
80CC FD Interest = 9.75%
Tax saving percentage = 10%

5 saal ka calculation karenge to
Bank ko 15×5=75% interest dena padega.

FD interest 9.75×5=48.75% milega

tax saving 10% benefit milega.

Sab milakar benefit 58.75%  milega.
Par hum bank ko 75% interest de rahe hai.
Isme humara 16.25% ka nuksan hume lag raha hai.
75%  hum jo pay kar rahe hai uske upar bhi 10% calculation  kiya to 7.50% ka benefit milta hai. Yeh benefit 16.25% me se ghatate hai to bhi 5 saal me 8.75% ka nuksan hota hai.
Yeh baat 9.75% tax saving FD ka calculation lene ke baad hoti hai. Agar insurance policy (5-6% return)  ki baat karenge to isme investment karna galat lag raha hai.

Upar likha hua mera calculation mai apse is bare me apki ray janna chahta hu.

krupaya mujhe margadarshan kare.
Agar apko bat abhi bi clear nahi ho rahi hai to hume apka mobile no. mail kijiye. mai apko call karke puri jankari dunga.


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

  1. Dear Sushil, how can you caculate flat 15% ROI for all these bank Loans for 5Y continuously? Are you not repaying any principal in between? What about tax liability on FD interest. As you are discussing prop. firms & related taxation matters, my dear friend, this is not the ideal platfor & you may got wrong advice. This forum brelongs for personal finance & not for commercial finance.

    The query posted out by you, I assume that you are also taking help of a CA or a Tax professional. If My assumption is right, you should pop this question to him/her.



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