Prashant Kishor’s ₹7.36 Cr FDs: Tax Implications Explained
By ThePip Desk
Explore the tax implications of Prashant Kishor’s ₹7.36 crore in fixed deposits. Understand how interest income is taxed on substantial FD investments.
When you start earning, understanding how different investments are taxed is key. Political strategist and newly elected MLA Prashant Kishor recently declared total assets of approximately ₹198 crore in his election affidavit, with a significant chunk invested in fixed deposits.
His financial portfolio shows a substantial ₹7.36 crore held in fixed deposits with HDFC Bank. This contrasts sharply with his equity investments, which amount to a much smaller ₹63 lakh.
Prashant Kishor’s Key Financial Holdings
- Fixed Deposits (HDFC Bank): ₹7.36 crore
- Equity Investments (Bharti Airtel, Indian Overseas Bank): ₹63 lakh
- Bharti Airtel shares: ₹38.11 lakh
- Indian Overseas Bank shares: ₹25.32 lakh
These figures provide a clear picture of how his declared wealth is structured, largely favoring fixed-income assets.
Calculating the Potential Tax on FD Interest
For someone like Prashant Kishor, with such a large FD corpus, the interest earned can lead to a considerable tax obligation. Assuming an annual interest rate of 7% on his fixed deposits, he would generate around ₹51.52 lakh in interest each year.
If you’re in the 30% income tax bracket, as he would be with this income, here’s how the tax calculation breaks down:
- Estimated Annual FD Interest: ₹51.52 lakh
- Income Tax Liability (30%): Approximately ₹15.46 lakh
- Health and Education Cess (4%): ₹61,862
- Total Tax on FD Interest: Around ₹16.08 lakh
- Effective Tax Rate on FD Interest: 31.2%
This shows how quickly interest income can add up, especially for high-value investments, pushing you into higher tax brackets and increasing your overall tax burden.
Beyond FDs: Other Declared Assets
Beyond his fixed deposits and equities, Kishor’s affidavit also detailed other significant assets. He reported movable assets valued at nearly ₹122 crore.
Additionally, he declared immovable properties worth ₹86.29 crore. These properties include both non-agricultural land and various residential buildings, rounding out his substantial asset declaration.