The Fixed Deposit
If you want to invest your money then these two popular investment options are really considerable, one is Fixed Deposit and other is an investment in Gold. But it is difficult to choose one. So let's compare both:
Taxation in Fixed Deposit or Gold Loan
Investing money in fixed deposit is really a good idea but the money you make in Fixed Deposits is taxed by the government. Suppose you are investing an amount of Rs. 5,000 in Fixed Deposits for one year at 10% interest rate, so after one-year total interest you will get is Rs. 500 but after a taxation of 30% your profit came down to 350. which is not the same amount. So you can calculate your interest amount of FD with the help of Fixed Deposit Interest Calculator.
Gold and gold-related ornaments have come under the capital gains tax that means the tax will come in a scenario when you sell your asset. So if you are not selling your gold assets then no tax will be charged.
In case of Fixed Deposit if Market goes down, it will not create any impact on your invest. But in gold investment, there might a huge possibility that you may incur a loss.
So in short, if you planning a short term investment for one or two years then Fixed Deposit is a better option for you but in case of a long term investment, you can consider investing in gold.
If you are consulting to invest money in fixed deposit then you have to know about the pros and cons of FD before investment.
Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms.