Note: Brief quotes may not cover various nuances or the language may not be precise. Occasionally they misquote what I actually said. So please take them with a pinch of salt. Also I may or may not agree with the entire article
"Inflation is a hidden and blunt tax imposed by the government on people. It is blunt because though the government causes it, the government cannot precisely control it"... “This is caused by people not understanding the difference between nominal returns (for example, FDs pay seven per cent pre-tax interest) and real returns (after subtracting six per cent inflation, FDs pay one per cent pre-tax interest). Applying a 30 per cent tax rate, the nominal returns on FDs drops to 4.9 per cent and after subtracting six per cent inflation, the real returns are negative 1.1 per cent,” says AvinashLuthria, SEBI registered investment advisor (RIA), Fiduciaries.in, an investment management firm.
Published in Business World in June 2024; The online version of the article is an excerpt from the full print version of the article
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