Bank Fixed Deposits (FDs) That Save Income Tax Under Section 80C
Time to revisit your yearly earnings and check on the investments you have done throughout the year to save income tax. It’s a common knowledge that there is a deduction of INR 1.5 lacs under section 80C of Income Tax Act. This can be easily done through tax saving fixed deposits with a minimum tenure of 5 years. However you need to lock in your amount for a minimum of 5 years. Many banks nowadays offer online provisions for such tax saving fixed deposits. The interest rates are similar to the non-tax savings fixed deposits with senior citizens given a premium on the regular rates. Other popular investment plans are insurance premium, EPF or PPF contribution.
10 Points you need to remember that will help you save income tax:
1) All income tax saving fixed deposits have a lock in period of minimum 5 years. The amount cannot be withdrawn pre maturely in such cases
2) Some banks such as SBI offer Fixed deposits with minimum tenure of 5 years and maximum ten years.
3) Below is a comparative interest rates of common banks in India
| Banks | Interest Rate General | Rates For Senior Citizens |
| SBI | 6% | 6.50% |
| ICICI Bank | 6.50% | 7% |
| HDFC Bank | 6% | 6.50% |
4) The maximum investment under 80 C through income tax saver fixed deposits is Rs. 1.5 lakh.
5) This fixed deposit can be started with a minimum amount of as low as INR 100. SBI for instance gives this investment opportunity with a minimum amount of INR 1000.
6) Interest earned on such tax saving fixed deposit is taxable according to the individual slabs.
7) Tax deducted at Source also known as TDS is applicable on the earned interest. TDS is applicable on payable interest or interest reinvested on fixed deposits across all branches exceeding INR 10,000 in a complete financial year.
8) Interest can be earned monthly, quarterly, semi-annually or annually and can be reinvested according to the investors’ discretion.
9) For joint holder fixed deposit the tax benefits can be paid only to the primary holder..
10) All Tax savings deposits have nomination facilities.
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Is there anything for farmers? How he can make FD and earned interest. Is there any incom tax for this.
No income no fixed deposit. Hence no deduction for 80c and interest income.
To get a rebate of 1,50,000 what should be the amount of fixed deposit and whether this deposit earned interest is again taxable?
If Rs 1,50,000.00 is deposited it will earn tax free income. More so, in most deposits made u/s 80C (to claim Rs 1.5 Lac rebate) the interest earned remain taxable.
Amount of fixed deposit of Rs 150000 is more than five years should be for one year for per Assessment year. The earned interest on that fixed deposit is taxable as per Indian Income Tax Act.
then what is the big fun in putting with bank .
Investments on government bonds or traditional insurance policies are better than bank fixed deposits.
Fixed Deposits are better for long term savings. Not for investments. May be from Government point of view, customer is earning profits using fixed deposits and customer should pay tax on profits as per the slabs decided.
whether for scss 5 year scheme with quaterly interest are eligible for deduction under section 80c
Yes. Deposit in scss scheme will qualify for deduction u/’s 80c
I m senior citizen n I have FD with the Bank for 3 years. My interest income from FD is taxable on maturity. I m not having PPF or other deposits,n I depend on this amount for day to day expenses besides. Pension of INR14000k pm
Amount of fixed deposit of Rs 150000 is more than five years should be for one year for per Assessment year. The earned interest on that fixed deposit is taxable as per Indian Income Tax Act.
Sir,
Try to keep within capacity. What will be your fixed deposit. You have not mentioned to calculate your interest income. Hence if your pension is Rs 14000 per month your income from pension is not qualified for taxation as present Indian taxation system of income tax.
अकक्टूबर 2017 से बैंको मे भी एनएससी की सुविधा मिलनी थी, लेकिन लखनऊ मे IDBI, Bank of India, State Bank of India मे यह सुविधा नही मिल रही है । कृपया बताने का कष्ट करें कि यह सूविधा कब तक मिलनी शुरे हो जायेगी ।धनन्यवाद ।
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We had 2lacks FD one year bond in SBI there are debit means TDS cutting on realeted interest 10%
How to save TDS
whether for scss 5years scheme with quarterly interest are eligible for deduction under section 80c
whether for senior citizen saving scheme 5 years with quarterly interest are eligible for deduction under section 80c
whether for senior citizen saving scheme 5 years with quarterly interest are eligible for deduction under section 80c
Principal of upto Rs 1,50,000/- is tax free and Interest (upto Rs. 10,000/-) yearly on such deposit is tax free. But because bank will deduct TDS, one has to claim refund of tax on interest.
If a person whose income is Rs500000/ will not be Rs7500 by investig Rs150000 whereas a person whose income
is Rs1150000/ will not be paying Rs45000/towards income tax by investing Rs 150000/
This is pro rich and anti poor
communist please protest
This is India. We have to pay for grants for poor. Hence poor should pay more tax to save rich.
There is no concrete method adopted by.the person to garner one side.as savings and another side no effect is foreseen to achieve. Simply waste of time by.scratchin our head.
Don’t tax your brain. Be happy by paying tax to the Consolidated fund of India to save Government as the Constitution is by the pepole, for the pepole etc.
I am seneior citizen ,retired from service .i put 14.5 lakhs in SBH Now SBI) .i used pay income tax on interest every financial year .2018-19 how much I could saved from MODi budget
IS M.A.C.T ACCIDENT CLAIM TAXABLE,TDS U/S194A DEDUCTED,WHAT IS THE PROVISION? DO PLS GIVE A REPLY
Send me the details