Sometime back I decided to write about something which I have been advocating for years.

How will you like it if I can postpone your tax payment from the year 2014 to 2034? You will love it right? First of all it means your money compounds for 30 more years, and you are paying with a 2034 rupee instead of a 2014 rupee. Brilliant, right?

Hold on, no fund house suggests this simple strategy – if your IFA told you this, he is worth all the commissions and trail that he is getting. He has earned it.

How can this be done?

On the 18th I had done an article on debt funds vs fixed deposits…which is actually an article which I had done for MoneyControl many eons ago.

Then I  spoke to a few mutual funds – I got polite answers, but no calculators. Then Pattu of freefincal created a lovely calculator which shows you why you should SAVE in a debt fund and not in a bank / company fixed deposit.

Here is the calculator…


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  1. Sorry Srikanth and Vidya Bala this article is not about income funds and fixed deposit the way ALL WRITERS WRITE. THIS is the ONLY (REPEAT) the only article in INDIA about the impact of compounding due to tax deferral. It comes from the deep thought of Subra – the tax planner – of how tax deferral and paying with a cheaper rupee makes sense. He has shared this idea with an excel expert with a nice deep sense of mathematically capturing Subra’s thoughts.

    I hope Subra or Pattu read and comment on this. But hey Srikanth, this article SHOULD be read along with Subra’s article which appeared a few days back. Brilliant thought. Pattu captures subra’s thoughts in a calculator.

    Jugalbandhi madri irrukku. Shabash. Now we need a Subbudu to write about the performance, that is all!!!

  2. Dear Subra,

    Will the comparison gets impacted with tax proposal on debt funds in recent budget by PC, if so to waht extent?

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