10 Important Things You Need To Know About Tax Saving Fixed Deposits - CiteHR
Sagar.modi11
Hr Professional
Sharmaamrita852
Financial Advisor

Prime Sponsor - FactoHR.com - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Below are some additional points you should be aware of about tax saving FDs.

1. Only Individuals and HUFs can invest in tax saving fixed deposit(FD) scheme.

2. The FD can be placed with a minimum amount which varies from bank to bank.

3. These deposits have a lock-in period of 5 years. Premature withdrawals and loan against these FD's are not allowed.

4. A person can invest in these FD's through any public or private sector bank except for co-operative and rural banks.

5. Investment in Post Office Time Deposit of 5 years also qualifies for deduction under section 80 (C) of the Income Tax Act, 1961.

6. Post Office Fixed deposit can be transferred from one Post office to another.

7. One can hold these FD's either in 'Single' or 'Joint' mode of holding. In the case the mode of holding is joint, the tax benefit is available only to the first holder.

8. The interest earned is taxable as per the investor's tax bracket and therefore, TDS is applicable. The interest on deposits is payable on either monthly/quarterly basis or can be reinvested.

9. Nomination facility is available for these FDs.

10. Most banks offer slightly higher interest rates on FDs to senior citizens (as compared to the interest rate offered on the same FD to a non-senior citizen). This interest rate differential exists for tax saving FDs also
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
As per Section 80C of the Income Tax Act, 1961, you can claim an exemption of up to INR 1.5 lakhs for investment under various schemes in a financial year. This amount can be spread out over different saving schemes or can be invested in a single scheme. The said exemption is only available for the money invested in tax saving FD. When you deposit money in a normal FD, it will be a long-term saving plan. But it will not get you any tax exemptions.
Prime Sponsor - Talentedge.com "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
Please Login To Add Reply






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™