What is tax saving FD? How will you get benefit in income tax, know the main things related to it

Tax Saving Fixed Deposit Interest Rates: If you are planning to invest, then this news can prove to be useful for you. Usually, most of the people invest their hard earned money in the Fixed Deposit of the bank. Due to this, they get a lot of benefit in Income Tax. We are going to tell you in this news that how you can take advantage of Tax Saving Fixed Deposit. And in income tax also, you can take advantage of tax exemption up to Rs 1.5 lakh. Know how to get benefit..

Will get tax exemption

Tax Saving Fixed Deposit is a type of deposit scheme. It is known that many banks are running their own schemes for investing in tax saving schemes. On which there is usually a lock-in period of up to 3, 5 or 10 years. If you do this, then under Section 80C of Income Tax Rules-1961, you can get tax exemption on annual investment of Rs 1.50 lakh in tax saving fixed deposit. If you want, you can invest even more than this. But you will get tax exemption only on investment of Rs 1.50 lakh.

Know what is special

You may find it a bit strange to hear that tax saving FD is just like any regular fixed deposit, as the maturity amount (principal amount + FD interest) is deposited directly into your bank account. They have a lock-in period of 5 to 10 years and tax-saving FD interest rates usually range from 5.5 – 7.75 per cent on bank interest.

Important things about tax saving fixed deposit

• With this, tax can be saved under Section 80C of the Income Tax Rule.
• You get both the benefits of tax savings and high returns in this.
• One can start from Rs.1000 as the minimum deposit amount is Rs.
• A maximum of Rs 1.50 lakh can be deposited in a financial year.
• Its lock in time is for 5 to 10 years.
• You get the facility of nominee. Due to which your money will be given to your nominee after you.

read this also

This scheme of Post Office is giving strong returns, many benefits are available including tax benefits