INCOME TAX14 Sept 2026
Power of compounding: First crore takes time, then your money blooms; how your lump sum and SIP investment jump ahead
A simple example shows how compounding works for long-term investors. Invest ₹30 lakh as a lump sum for 30 years at 10% a year, and it grows to about ₹5.23 crore. The first ₹1 crore takes 13 years, but the second arrives just 7 years later. Stay invested and be patient in the early years.
Key Statutory Highlights
- ₹30 lakh invested as a lump sum for 30 years at 10% a year grows to around ₹5.23 crore.
- The investment crosses ₹1 crore only after 13 years, while the second crore comes about 7 years later.
- About ₹4.93 crore of the final amount is growth, earned without adding any extra money.
Actionable Advice for Taxpayers / Founders:If you are investing for a long-term goal, consider staying invested so your returns can keep earning returns, and speak to your advisor about whether a lump sum or a monthly SIP (systematic investment plan) fits your cash flow.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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