Hi, for the coming 3 years, I will have no income. I have 10 lakhs, which I want to deposit in gild debt mutual fund or any other, you recommend. I want to withdraw 25,000 each month.
So which fund would you recommend? I was thinking of HDFC and L&T.
And as my income will be 3 lakh a year, I will not have to pay any income tax, in this period, right?
Thank you, for your advice
2 Answers
Hi,
Kindly note that income up to Rs 2.5 Lakh is non-taxable.
Read:
https://www.relakhs.com/latest-income-tax-slab-rates-for-fy-2017-18/
May I know if you can afford to take risk? Even Liquid funds or Gilt funds can be subject to risks.
Read :
https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/
Kindly note that when you withdraw say Rs 25,000 , the entire amount is not subject to taxes, only the Capital gains are taxed.
Read :
https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
Thank you for replying. I am fine with the risk in gild funds, without risk- the only option would be saving account or fixed deposit both of the interest rates are too low. So the next option is debt mutual funds.
If you have any other suggestions for me, kindly let me know of my options. And which, fund would be right?
Hi,
You may consider mix of risk-free options like, Post office MIS Scheme, GoI 8% Bonds (interest payable every 6 months) and you can also set up SWP (Systematic withdrawal plan) on Debt mutual funds Short Term Debt Funds like Franklin Low Duration Fund or Birla Short Term Fund.
Kindly read :
https://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/
https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/
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Thank you, I think I will choose short term debt mutual fund, which you have mentioned with SWP… Thank you again.. it’s been very helpful.