Same rupee. Three numbers.
They are not interchangeable.
Every return has a sticker rate, an after-tax rate, and a real rate. The gap between the first number and the last one is the whole game.
|
Nominal |
After tax |
Real |
| FD . 30 pct slab | 6.50 | 4.55 | 0.60 |
| FD . 20 pct slab | 6.50 | 5.20 | 1.22 |
| Equity . 12.5 pct LTCG | 11.00 | 9.62 | 5.48 |
At today's inflation, prices double in about 18 years. Rs 100 now buys Rs 50 of the same shopping by then. A return that cannot clear inflation is not protecting your money, it is shrinking it in slow motion. Push inflation to the RBI's own 6 percent ceiling and that top-slab FD turns real-negative at minus 1.4 percent.