Unlock Wealth Generation with Zero LTCG Tax and Double Tax Savings
9 Lucrative Short-Term Investment Options in India
Generate Passive Income with High Returns
Looking to earn substantial wealth with minimal risk? Explore these exceptional short-term investment options that offer high returns, zero LTCG tax, and double tax savings under 80C:
1. Bank Fixed Deposits (FDs)
FDs offer guaranteed returns and tax exemption of up to INR 10,000 annually on interest earned. Choose FDs with tenures ranging from 7 days to 5 years for maximum flexibility.
2. Liquid Funds
Liquid funds are open-ended mutual funds that invest in short-term debt instruments. They provide high liquidity, low risk, and tax-free returns up to INR 1 lakh per fiscal year.
3. Short-Term Bonds
Short-term bonds, typically with maturities less than 3 years, offer higher interest rates compared to FDs. Interest earned is taxable at your income slab rate.
4. Corporate Deposits
Corporate deposits are unsecured loans made to reputable companies. They offer competitive interest rates and can be customized to specific investment timelines.
5. Money Market Funds
Money market funds invest in highly liquid debt instruments with maturities of less than 91 days. They provide stable returns and low risk, with tax treatment similar to Liquid Funds.
6. Recurring Deposits (RDs)
RDs offer regular deposits over a fixed tenure. They earn fixed interest and qualify for 80C tax deductions up to INR 1.5 lakhs annually.
7. Post Office Monthly Income Scheme (POMIS)
POMIS is a government-backed savings scheme that provides monthly income and tax benefits under 80C. It offers guaranteed returns and lowers the tax burden.
8. Senior Citizen Savings Scheme (SCSS)
SCSS is exclusively for individuals aged 60 years and above. It offers higher interest rates and tax-free interest up to INR 15,000 annually.
9. Tax-Free Bonds
Tax-free bonds, such as National Savings Certificates (NSCs) and Public Provident Fund (PPF), offer tax-free returns on maturity and are eligible for 80C tax deductions.
Consult with a financial advisor to determine the best investment options based on your risk appetite and financial goals. Embrace these opportunities for wealth generation with substantial returns and tax benefits.
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