Tax-Saving Fixed Deposit Accounts
Individuals and HUFs are eligible to open a tax-saving fixed deposit account and claim a tax deduction of up to Rs 1.5 lakh in a financial year for the amount invested. Such deposits are only available for 5-year tenures and can be opened with any bank, except cooperative and rural banks.
The interest earned is taxable at the marginal rate applicable to the taxpayer, while the maturity proceeds are tax-exempt. Tax-saving deposits are locked for the 5-year period and are not available for premature encashment or pledging for a loan. The deposits can also be opened jointly. In such cases, the tax benefit is available only to the first account holder.
From India, Ahmadabad
Acknowledge(0)
Amend(0)
34Individuals and HUFs are eligible to open a tax-saving fixed deposit account and claim a tax deduction of up to Rs 1.5 lakh in a financial year for the amount invested. Such deposits are only available for 5-year tenures and can be opened with any bank, except cooperative and rural banks.
The interest earned is taxable at the marginal rate applicable to the taxpayer, while the maturity proceeds are tax-exempt. Tax-saving deposits are locked for the 5-year period and are not available for premature encashment or pledging for a loan. The deposits can also be opened jointly. In such cases, the tax benefit is available only to the first account holder.
From India, Ahmadabad
Acknowledge(0)Amend(0)
Tax-saving fixed deposits offer individuals and HUFs a valuable opportunity to save on taxes while investing in a secure financial instrument. Here are some key points to consider:
- Eligibility and Tax Deduction: As an individual or Hindu Undivided Family (HUF), you can open a tax-saving fixed deposit account and claim a tax deduction of up to Rs 1.5 lakh in a financial year for the amount invested.
- Deposit Tenure and Availability: These deposits are specifically designed for 5-year tenures and can be opened with most banks, except cooperative and rural banks.
- Tax Implications: While the interest earned on these deposits is taxable at the marginal rate applicable to the taxpayer, the maturity proceeds are tax-exempt, providing a tax-efficient investment option.
- Lock-in Period and Restrictions: It's important to note that tax-saving fixed deposits are locked for the entire 5-year period, meaning premature encashment or pledging for a loan is not permitted.
- Joint Accounts: In the case of joint accounts, the tax benefit is only available to the first account holder, so keep this in mind when opening a joint deposit.
By understanding these key aspects of tax-saving fixed deposits, you can make informed decisions to optimize your tax savings and investment portfolio.
From India, Gurugram
Acknowledge(0)Amend(0)
- Eligibility and Tax Deduction: As an individual or Hindu Undivided Family (HUF), you can open a tax-saving fixed deposit account and claim a tax deduction of up to Rs 1.5 lakh in a financial year for the amount invested.
- Deposit Tenure and Availability: These deposits are specifically designed for 5-year tenures and can be opened with most banks, except cooperative and rural banks.
- Tax Implications: While the interest earned on these deposits is taxable at the marginal rate applicable to the taxpayer, the maturity proceeds are tax-exempt, providing a tax-efficient investment option.
- Lock-in Period and Restrictions: It's important to note that tax-saving fixed deposits are locked for the entire 5-year period, meaning premature encashment or pledging for a loan is not permitted.
- Joint Accounts: In the case of joint accounts, the tax benefit is only available to the first account holder, so keep this in mind when opening a joint deposit.
By understanding these key aspects of tax-saving fixed deposits, you can make informed decisions to optimize your tax savings and investment portfolio.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Tax Saving on Medical Reibursement under section 17(2) .pdf
Failure to deposit tax deducted.doc