Equity SWP vs Bank FD — Tax Efficiency Analyser

Client & Scenario

Client name

Prepared by

Date

Spreadsheet (7.5%) Balanced (12%) Conservative

Investment

Lump-sum investment

Expected equity-fund return (p.a.)

Income horizon

SWP withdrawal mode

Bank Fixed Deposit

FD interest rate (p.a.)

Comparison basis

Taxation

Your income-tax slab (for FD interest)

Add 4% Health & Education Cess

Surcharge on tax (if applicable)

Advanced tax parameters

Equity LTCG rate

LTCG exemption / yr (₹)

Equity STCG rate

Starting NAV

Equity-oriented fund rates per Finance Act 2024 (effective 23 Jul 2024): LTCG (holding > 12 m) 12.5% above ₹1.25 L/yr; STCG 20%.

SWP

Effective tax rate

–

Effective tax rate

–

Tax paid over horizon

–

SWP vs FD, total

Tax saved with SWP

–

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What the taxman takes, year after year

Equity SWP Bank FD

Annual tax liability, SWP vs FD

Equity SWP Bank FD

Cumulative after-tax income received over the horizon

Equity SWP (net) Bank FD (net) Investment value (SWP corpus)

Assumptions & Disclaimer