STCG on debt / bond is taxed at slab rate and not 20% flat.
It is LTCG that is taxed @20%
So securities (Gsecs / Tbills) when purchased will go to DEMAT account?
Would love to see this addition. What is the expected time that RBI / Dhan plans to launch this?
Can you share link to article where I can read more about such announcement by RBI and how it will function?
Thank you
@amish Yes you can bid for securities via Dhan. They will be credited directly into your Demat account. You can read more on NCB here.
Also with google search, I see T-Bills being taxed at STCG! 
I’ll explore this more. Maybe there could be some difference on openion for sure.
T-bills are bought at a discount and sold at par. The appreciation is considered as STCG and taxed as per the applicable slab rate.
Yes but what you have not realized that STCG for debt = Tax at slab rates and not at 20% as per your first post.
I know about NCB but how to bid on / via Dhan?
First of all, decent comparison. Thanks for thinking this way.
But I feel sorry that you considered 6.55% ROI in bank FD, whereas you can easily earn 7.99% in regular banks like Indusind, etc . (I am not even bringing SF banks which give 9% ROI)
the 7.99 vs 6.55 automatically clears the gap of stcg 20% and 30% tax slab
fd will turn out to be better.
additionally, when you cancel FD, you still get some interest guaranteed but in Tbills, it may happen sometimes that even though 50% duration has crossed, I havent got any return due to market pricing. (it has happened with me so I know)
TRUST ME - FDs are better.
Tbill is a scam nothing else. only buy it if you’re able to get it at 9 to 10% IRR due to market pricing disparity. (only if you’re lucky)
Pls dont mind but I think the seller of Tbills / SGBs get some small commission fee thats why tbills are shown superior to FDs
Apart from the unlimited vs 5L insurance guarantee, I cant see any other benefit from return point of view.
Ideally, for maximum conservative investors investing upto 3 CR, I would suggest investing 20L each with major banks & 5L with few SF banks.
And some gold ETFs / SGBs correctly priced
I haven’t looked into T-bills yet. The interest rates don’t really catch my eye, unless you have a lot of savings and want to use them to manage risk.
Like bonds, T-bills can be tough to understand for someone like me who isn’t an expert in investing.
This is one of those instruments that one would struggle to explain how it works and to persuade their grandmother to invest in it.
The key point missed in this analysis is that all FDs aren’t equal.
There is an additional risk associated with the banks that are unable to raise sufficient funds at a lower rate of interest that they would have to pay out, hence their willingness to pay a few additional percentage points of interest more to raise sufficient funds.
Adjust for the principal at risk
and a sovereign guarantee far outweighs a guarantee on an FD that any individual bank within the same country can offer. RBI can literally “print money”# to fulfill a sovereign guarantee. Of course that leads to inflation and a weaker-rupee, But, in such a scenario, that’s a problem for the rest of the folks who do not hold a bond with sovereign guarantee.
Maximum conservative? definitely not.
What is “conservative” here?
Did you perhaps mean traditional without exposure to modern markets?
For example. there isn’t sufficient diversification to protect against any factors that affect all banks.
For example, and even more “conservative” approach would be -
Also, what specific risks does this approach protect against?
When comparing investment opportunities, my favorite goto these days is -
T-bills ARE bonds.
Here’s an elevator pitch of T-Bills for one’s grandma
i.e. in terms that someone from a previous generation,
who is aware of banking products like FDs,
would understand -
" An Indian T-Bill is like an FD
issued by THE BANK that controls the rupee (RBI),
that pays its “interest” upon maturity. "
T-Bill is a bond :
Compared to a traditional bank FD,
the largest risk is liquidity before maturity.
While one can always sell a T-BIll before maturity on BSE/NSE,
one often ends-up losing a lot more than what typical banks charge on premature withdrawal of FDs held at the bank.
For more details,
checkout Government Securities – Varsity by Zerodha
and use the Markets > Bonds >T-Bills section in Dhan
to find out T-Bills trading at a discount,
and scalp them to get anywhere between 7% - 20% annualized returns on most days,
on T-bills maturing anywhere between 3 - 300 days.
PS: How do i know these numbers?
Over the last 5 years, if you have sold any T-Bill / SDL / GSEC at a deep discount on either BSE/NSE, chances are that i was the counter-party who purchased it. 
And if I bought one, you were the seller?
Thank you for taking the time to help us understand this topic. With your many years of experience working with this instrument, it’s clear you have gained a lot of knowledge about it.
After new finance bill 2025, stcg is not included for rebate so it became far less attractive than FDs for people earning upto 12L. bcz selling tbills and earning interest would attract 20% stcg which otherwise would have been fully exempt
Did it actually say that?
I thought that only LTCG came under the scope of the Special Rate Income, that gets excluded from rebates etc.
STCG as well.
for FY 2024-25 you will get bcz of bombay high court order but from FY 2025-26 you wont get bcz they have reversed the court order by amending the law
Exactly. Its special rate of 20%. The rebate for income upto 12L doesnt apply in stcg income
