EEE, EET and ETE are 3 terms used when making an investment.
Our Money goes through 3 phases and can be taxed at these 3 phases
1) When we Invest2) When we get returns from the investment3)When we redeem the investment
What is EEE?
Exempt Exempt Exempt during all the 3 phases of investment
Examples of investment which fall in the EEE category - PPF, EPF, Guaranteed Insurance Plans
What is EET?
Means Investment is Tax Exempt during investment and returns
phase but taxed on redemption
Examples of investment which fall in the EET category
- National Pension Scheme.
What is ETE?
It means your Investment contribution is eligible for tax
deduction at the time of investment and withdrawal but the
income is taxed.
ETE Examples
Example of investment which fall in the ETE category is a 5
year tax saving FD. Wherein the investment amount is eligible
for tax deduction but interest is taxed and withdrawal is tax
exempt
From a tax saving perspective it is always beneficial to invest
in EEE schemes