2007-11-10 08:30:17 · 5 answers · asked by charese.payne 1 in Business & Finance ➔ Taxes ➔ India
tax exempt. it wont bump my tax bracket, and its simpler to figure out actual gains... etc.
cheers!
2007-11-10 08:35:22 · answer #1 · answered by michael 6 · 0⤊ 0⤋
If i take a hypothical situation and calculate your tax liability my suggestion is as follows. I consider that you have two situation where your income is as per follows (after considering your 80 C savings)
Gross Income Other then 239000 260000
int income in question
Add: Interest @ 10.7% 10700 10700
Total 249700 270700
Tax Liablity 25688 32146
If additional income is 8.1% Tax free
then the tax liability 23484 28840
Tax Saving 2204 3306
Interest Loss 2600 2600
From above you can see that if youare in 20% tax braket better you go for tax bearing interest and if you are in 30% braket then go for tax exempted interest
HOpe it is clear to you
2007-11-11 20:29:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
This depends on your tax bracket, your investment horizon, your risk tolerance, and your investment goals.
Generally speaking, you should calculate how much you'll save on taxes in the "tax-exempt" investment (which taxes do you mean? All taxes?) and see if it's worth more than the extra money you'd make in the fully taxed investment.
2007-11-10 08:34:48 · answer #3 · answered by ruatango 2 · 1⤊ 0⤋
I would rather we drop the income tax and made it up by dropping corporate and tax cuts and charging millionaires more, and cutting foreign aid to countries who don't appreciate us anyway.
2007-11-10 08:33:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
depends on my BRACKET--whichever result is better for me. Remember, it's not what you make, it's WHAT YOU KEEP.
2007-11-10 11:00:45 · answer #5 · answered by Mike 7 · 0⤊ 0⤋