Tax Saving Fixed Deposit
Tax saving fd is the best way to get tax deduction under section 80C of the Indian Income Tax Act, 1961. Everyone can claim a deduction of a max. of Rs. 1.5 Lakhs by investing in tax saving fd.
Other Tax Saving Investment Plans
Along with Fixed deposit there are so many other tax saving options that help you to get deductions in income tax, such as NSC, PPF and Mutual Funds. Although FD is the one of the safest investment option that help you to increase your finances without any ups and downs. But the returns from these schemes are taxable. There are so many banks such as PNB Housing finance, ICICI Bank, SBI etc. offer you best interest rate on fixed deposit.
Advantages of Tax Saving Fixed Deposits
Tax-saver fixed deposit is one of the tax saving instruments where you can invest to save tax under section 80C of the Income Tax Act 1961. In fact, if you can place the fixed deposit in the same bank branch on which you are drawing the cheque then the transfer of funds can happen quickly and the investment can be done within a few hours.
Main benefits of Tax saver FD are as follows-
- Fixed Deposit has a higher interest rate as compare to savings account
- Fixed Deposit accept only a one-time lump-sum amount
- TDS from the interest on Fixed deposits are applied
- Tax deduction under section 80C upto Rs.1.5 Lakhs
- Easy to get loan on fixed deposit amount on less interest rate
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