Dear All, I'm from India. I come under the tax purview & my current CTC is 2.7 lakshs per annum For this amount, the tax is 1)(2.7-1.5)* 10/100= Rs.12,000 2) Cess tax on education, 3% on 12,000 = Rs 360 so totally I need to pay a tax of 12,360 as Tax for this year.
To save this amount, a ICICI financial executive says me to come in ICICI prudential Life Insurance. For this, I need to pay a yearly amount of 20,000 for a lock-in period of 3 years continuously where the compound-interest rate is 15% which will vary slightly each year. He says that these amount will be invested in government securities.
The benefits he says are 1)Free Insurance policy worth 1,00,000 rupees. 2)If the sum of 20,000 is invested continuously for 10 years he assures that it will come to Rs.4,50,000 at the end of 10 years. 3) The yearly returns I get from these model is non-taxable under 1010(D) & also you get Tax benefits under 80(c) Any ranchers experience in this model is expected! Regards.
All this said, I'm not sure this is really a job discussion so much as financial advice. While economic discussions and savings are relevant, this seems a bit far afield. I'm moving it to Meaningless Drivel--although I certainly don't see the question as meaningless.
Mark Herschberg, author of The Career Toolkit
With all due respect, anyone who in November 2008 is promising annual returns of 15% for the next three years on any investment is lying like a rug. The 400k figure assumes an APY near 9% for ten years, which is also quite optimistic given the current climate.