Post tax return

In investment you normally get profit. Say you invested Rs.1000 in Bank Fixed Deposit for 1 year and after one year got Rs.1100. Hence you got a return of Rs.100 and calculated in percentage terms it will be 10%.

But you forget to take into account one more factor, TAXATION, which will effectively reduce your return calculated.

If you fall in 10% tax bracket then your returns will be Rs.100 minus Rs.10. Hence your effective return will be Rs.90 or 9%

If you fall in 20% tax bracket then your return will be Rs.100 minus Rs.20. Hence your effective return will be Rs.80 or 8%

If you fall in 30% tax bracket then your return will be Rs.100 minus Rs.30. Hence your effective return will be Rs.70 or 7%

Further any Cess, Levy etc added to income tax will reduce your real return.

Hence, its important for you to note not only the return on your investment but knowing the post tax return is also important as it decides the return at your hands.

Atal Pension Scheme

Have any Pension Plan ?

No?  I feel sorry for you, Please be financially independent, At least have money to eat twice daily without depending on anybody. The stories we are hearing about old age persons is very disturbing, please do not take for granted that your children will feed you ( if they take care of you we will feel happy). But have some backup plans also. Save today for your future, small amount of money saved today will return you decent sum as pension every month when you turn 60.

We are talking about Atal Pension Yojana.

If you feel that you are financially fit for your old age, then look around you,