|Pre-Tax Return||Investment Amount||Redeemed / Maturity Amount||Total Interest / Profit Amount||Annual Interest / Return (%)|
|Savings Bank Deposit||100,000||104,000||4,000||4.0|
|ICICI Prudential Liquid Fund - Growth||100,000||105,492||5,492||5.49|
|Post Tax Return||Pre-tax Interest / Profit Amount||Capital Gains Tax||Indexed Amount||Income / Capital Gains Tax||Post Tax Interest / Profit Amount|
|Savings Bank Deposit||4,000||Not Applicable||Not Applicable||0||4,000|
|ICICI Prudential Liquid Fund - Growth||5,492||Short Term||Not Applicable||1,648||3,844|
1. Short Term in case of debt funds is defined as less than or equal to 3 years. Long Term in case of debt funds is defined as more than 3 years.
2. Short term gain formula:
Short term capital gain = Amount realised - Amount invested
Short term capital gain tax = Short term capital gain * Tax rate of the investor
3. Long term gain formula:
Indexed cost of acquisition = Amount invested * (Index in Year of redemption / Index in year of investment)
Long term capital gain = Amount realised - Indexed Cost of Acquisition
Long term capital gain tax = Long term capital gain (post indexation) @ 20%
Please note that Section 80TTA grants a deduction on savings account interest up to Rs 10,000 per annum. It applies to all individuals and HUFs other than senior citizens (those above 60). Senior citizens can instead take advantage of a bigger deduction of Rs 50,000 per annum which includes both savings and FD interest under Section 80TTB.
Section 80TTA was introduced in the Finance Bill of 2013 and became applicable from the Financial Year of 2012-13 onwards. Whereas deduction under Section 80TTB is applicable w.e.f. April 01, 2018.
No tax has been applied on the gains of saving bank interest in this tool.