EEE, ETE, EET

When it comes to making investments, it is important to look at taxation, as it can end up reducing your returns in some cases, and provide you benefits in some others. From fixed-income instruments like post office schemes and fixed deposits to market-related instruments like mutual funds and direct equity, every investment has a taxation aspect. Taxation can arise at different points—when you make the investment initially (contribution), during the tenure when the corpus starts generating an interest (accumulation), as well as at the time of maturity or withdrawal. Typically, the tax-exempt or taxable status at these three points are denoted by ‘E’ and ‘T’, respectively. While some instruments fall under the exempt-exempt-exempt (EEE) status, others fall under and exempt-taxable-exempt (ETE) category, and still others are treated as exempt-exempt-taxable...