vinayak (accounts executive) (125 Points)
29 November 2013Can anyone tell me what are the schemes one can make use of to avoid TDS. I am not in favour of FDS or splitting of FDs.
One thing i saw was some banks are giving shares and paying FD interest thus avoid TDS for over 1 year deposit.
Now, i wanted to check if there are any such things to avoid tds. I also read that investing in debt funds can help in reducing tds.
Can anyone tell us what are the other investing avenues to avoid paying taxes through better tax planning.
Mihir
(Wealth Manager)
(5293 Points)
Replied 30 November 2013
Interest received on PPF is tax-free. But the maturity is for 15 years. Good for retirement corpus.
Interest from NSC is exempt from TDS but it is taxable, and matures after 5 years.
It also depends on the investible funds you have, your objective of investing, and how risk-averse you really are.
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