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I have Rs 50 lacs for investment how do I get a tax free return in India of Rs 3.5 lacs?

i have Rs 50 lacs for risk free investment. How do I get a tax free return in india of Rs 3.5 lacs per annum

Risk free investment and tax free return of Rs.3.5 lakhs on 50 lakhs is not passable.

On the other hand you can deposit in a Nationalised bank @8.5% interest and can get 4.25 lakhs as interest per annam. That is 75 thousands more than your expectation of Rs.3.5 lakhs (4.25-3.5=0.75 lakhs). This excess amount of 75 thousands can be utilised for paying income tax.

4,25,000 Interest income (Assuming that you have no other income)
1,10,000 Less: basic exemption for Men <65 years
------------
3,15,000 taxable income
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78,795 is the net tax payable on Rs.4.25 lakhs interest.
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In this case insted of 3.5 lakhs you will get Rs. 3,46,205. That is nearly 3.5 lakhs.

HDFC Bank is offering interest rate @8.75% on 2 years FD. If you invest in that, you can achive your target of 3.5 lakhs tax free income or after tax income.

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