| Year | Opening | Principal | Interest | Closing |
|---|
EMI (Equated Monthly Instalment) is your fixed monthly repayment. Formula: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ−1)
On ₹50L at 8.5% for 20 years — EMI is ₹43,391/month. You pay ₹54L in interest alone. Prepayment saves significantly.
| Year | Invested | Value | Gain |
|---|
₹10,000/month for 15 years at 12% = ₹1 Crore. But you only invested ₹18L — the rest is compounding returns!
Rupee cost averaging means you buy more units when markets fall — smoothing volatility automatically.
| Item | Old | New |
|---|
New Regime: ₹75K standard deduction. Zero tax if income ≤ ₹12L (87A rebate). No other deductions.
Old Regime: Higher rates but 80C, HRA, 80D, home loan interest all allowed. Better if deductions exceed ₹3.5L.
| Component | Rate | Amount |
|---|
Intra-state: Split equally as CGST + SGST. Inter-state: Full rate as IGST.
Slabs: 0% (essentials), 5% (medicine), 12% (processed food), 18% (services), 28% (luxury). Gold: 3%.
| Component | Monthly |
|---|
CTC includes Employee PF (12% of basic), Professional Tax (₹200/mo), TDS, and Gratuity — none of which reach your bank account.
₹12 LPA typically gives ₹76K–₹82K/month in hand depending on city and regime.
FD interest is taxable as per your slab. TDS deducted at 10% if interest exceeds ₹40,000/year.
EEE status: Investment qualifies for 80C, interest is tax-free, maturity is completely tax-free. No other instrument offers all three.
Rate: 7.1% p.a. Max: ₹1.5L/year. Lock-in: 15 years. Partial withdrawal from Year 7.
| Detail | Value |
|---|
₹50K/month today = ₹2.4L/month in 30 years at 6% inflation. Start early — waiting 10 years means investing 3× more monthly.
Rule of thumb: Need 25–30× your annual retirement expenses as corpus.
| Rule | Amount (Monthly) |
|---|
① Actual HRA received
② 50% of basic (metro) / 40% (non-metro)
③ Rent paid minus 10% of basic
Only applicable in Old Tax Regime.
| Component | Amount |
|---|
TDS (Tax Deducted at Source) is income tax your employer deducts monthly and pays to the government. Too much → get refund at ITR. Too little → pay balance.
| Detail | Value |
|---|
Triple tax benefit: 80C (₹1.5L) + 80CCD(1B) extra ₹50K + employer deductible. At 60: 60% lump sum tax-free + 40% to annuity.
| Detail | Value |
|---|
(Last Basic × 15 × Years) ÷ 26 for companies under the Gratuity Act.
Minimum 5 years service required. Tax-free up to ₹20 lakh.
| Year | Monthly SIP | Total Value |
|---|
₹10K flat for 20 yrs = ₹1 Cr. Same ₹10K with 10% annual increase = ₹2+ Cr. The difference is massive!
| Detail | Value |
|---|
Interest on education loan is fully deductible under Section 80E — no upper limit! Available for 8 years after repayment starts.
RBI allows up to 75% of gold value (LTV). Rates typically 9–12% p.a. — much lower than personal loans. Same-day disbursal, no income proof.
| Detail | Current | New Bank |
|---|
Switch makes sense if rate difference is at least 0.5% with 5+ years remaining. Break-even typically 6–18 months.
| Detail | Value |
|---|
Financial Independence Retire Early. Core idea: save 25× your annual expenses. At 4% withdrawal rate, corpus lasts forever (historically).
Both you and employer contribute 12% of basic salary. Current rate: 8.25% p.a. (FY 2025-26). Tax-free at maturity after 5 years.