The conversation between human and AI assistant.
Which one is better investment for 1 year duration considering taxation: Ultra short term debt fund or Multi option deposit (SBI savings account)?
Can you explain how taxation works for Ultra short term debt funds and SBI savings account?
Yes, of course. Income earned from Ultra short term debt funds is subject to short-term capital gains tax, which is currently at 15%. On the other hand, the interest earned from SBI savings account is subject to income tax based on the tax bracket of the account holder. For individuals in the lower tax brackets, the tax rate can be as low as 10%.