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Thread: Tata capital ncd

  1. #1
    Moderator Rahul's Avatar
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    Default Tata capital ncd

    How safe are Non-Convertible Debentures? Your views on the new TATA CAPITAL NCD offer?




  2. #2
    PolicyWala Member
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    Default

    For the amount invested in TATA NCDs , you will not get tax rebate. whereas for the amount invested in 'Tax saving bank FDs' , you will save save atleast 10% on your invested amount ( assuming you are in 10% tax-slab ) and FDs will give a return of around 8-10%. So, effectively , return on amount invested in FDs will be more and you will have more capital to invest elsewhere after competing your 1 lac investment limit under 80C. And you can invest the remaining capital in mutual funds, shares .

    However, if you will still invest the remaining capital in Debt instruments only , then NCD is fine.

    I am not sure about the interest on the NCDs. I think it will be added to your taxable income.


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