FD Calculator: If you also want to save tax on fixed deposits, know the rules

FD Calculator: If you also want to save tax on fixed deposits, know the rules
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FD Calculator: If you also want to save tax on fixed deposits, know the rules

FD Calculator: If you also want to save tax on fixed deposits, know the rules

Fixed deposits are considered to be a better asset in terms of earning. This is because there is no market risk involved. Due to which your money remains safe and returns are guaranteed. By the way, you also save in tax on fixed deposits. For this, you have to make a fixed deposit of up to 5 years. For a tenure less than this, you do not get the facility of saving in tax. In such a situation, it is very important to keep in mind that your investment is not broken in the middle. Otherwise you will not get any benefit.

Tax exemption of Rs 1.5 lakh: In tax saving FD, you can invest to save tax under Section 80C of the Income Tax Act. For this, you have to invest in a fixed deposit scheme of at least five years. With which you can take a maximum tax exemption of Rs 1.5 lakh. By the way, you can invest in a tax saving FD scheme for a maximum period of 10 years. At present, banks are offering an interest of 5.30 per cent to 6 per cent per annum on FDs of five years. In this, you can invest from Rs 100 to Rs 1.50 per annum.

Benefits of Tax Saver FD: Tax exemption is available under section 80C of the Income Tax (IT) Act, 1961.
You can prematurely withdraw the money after completing the lock-in tenure of 5 years.
Most of the banks offer 0.50 percent more interest to senior citizens.
Joint account can also be opened in most tax saving FD schemes.
In the joint account, only the primary account holder gets tax exemption.

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Eligibility for Tax Saving Fixed Deposit: Must be an Indian resident.
Hindu Undivided Family (HUF)
You can open tax saving FD in single or joint account.

Documents to open Tax Saving FD Account:- Must have PAN card.
Aadhar Card
driving license
ration magazine
Voter ID Card
Government recognized address proof
Age proof (for senior citizens)
2 latest passport size photographs

Tax deduction on fixed deposits: As per the existing tax laws, an individual can claim tax deduction on investment in tax saving fixed deposits up to Rs 1.5 lakh. Let us also tell you the terms and conditions.

Only Hindu Joint Family (HUF) and Individuals can invest in Tax Saving Fixed Deposits.
Tax saving fixed deposits have a lock-in period of 5 years.
One can invest in these fixed deposits through any private or government sector banks, except cooperative and rural banks.
– Post Office Fixed Deposit of 5 years can also be availed of tax saving benefits under Section 80C of the Income Tax Act of 1961.
Post Office Fixed Deposit can be easily transferred from one branch to another branch.
The interest earned on these fixed deposits is taxable, hence TDS is applicable on it.
Tax deductible fixed deposits have the facility of nomination.

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