Looking for avenues to save tax as well as get assured returns?
Tax saver fixed deposit (FD) is a type of fixed deposit, by investing in which, you can get tax deduction under section 80C of the Indian Income Tax Act, 1961.
Any investor can claim a deduction of a maximum of Rs.1. 5 lakh by investing in tax saver fixed deposits.
- Lock-in period of 5 years
- Interest earned is taxable
- Rate of Interest ranges from 5.5% – 7.75%
Why to invest?
- Dual benefits of attractive interest rates and tax saving
- Invest as small as ₹10,000
- Get tax deduction up to ₹1,50,000 under Section 80C
- Flexible interest pay out – monthly, quarterly or reinvestment in principal.
Benefits of Tax Saving Plan
Fixed Deposit is a financial tool that has enjoyed iron-clad trust of the general population since decades, when it comes to savings. Since it is a bank-based investment product, closely monitored by RBI, investors are assured of its safe and low-risk nature. The money deposited is safe and is easily redeemable with interest once it reaches maturity.
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- FD has a higher interest-earning potential than savings account
- FD allows only a one-time lumpsum deposit
- TDS from the interest on FDs is applied
- Flexibility in the amount and tenure for investors
- Get tax deduction up to Rs.1, 50,000 under Sec 80C
- It is easy to get loan on the FD amount for lesser interest
- Premature withdrawl inot available
Features of Tax Saving Plan
- Get tax benefits on interest earned on 5-year deposits
- Choose the scheme you want
- Invest between limits
- Decide between single or joint holder type deposits
- Claim benefits with a fixed deposit receipt
- Forfeit tax benefits on premature closing
- Stay compliant with prevalent tax laws
- Withdraw from joint term deposits easily
