-- *Mar*Which is Better? Suppose no interest is given on bank deposits and actually a fee is charged for keeping your money in the bank. Suppose your savings are Rs one crore in Fixed Deposits and the interest and inflation, both are 6%.Now:
Interest is 600,000. Inflation cut is also Rs 600,000 Therefore income is nil.But, corrosion in the value of the principal is Rs 600, 000, the clear loss. But the interest of Rs 600,000 will be added to the taxable income, bloating the taxable income figure, and pushing one to the higher income slab, often into the 30% slot. The over taxation of the other incomes actually increases, the loss of Rs 600,000. Suppose no interest is paid at all by the banks and suppose they charge say 4% for keeping your money safe.Then you lose Rs 400,000 only. Your income will not be bloated and you will not be put into the bigger slab. Better they end this fraud of interest on bank deposits totally and charge a fee for keeping your money safely. Then as trustees of your money they cannot be mere debtors but only safe keepers of your money. Even if the bank fails, your deposit will be safe. YM -- You received this message because you are subscribed to the Google Groups "Thatha_Patty" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To view this discussion on the web visit https://groups.google.com/d/msgid/thatha_patty/CACDCHCJXwm6QTNj7ngJh1M1%2B6R1tpZ90mhFqOkdBuqNzscggYw%40mail.gmail.com.
