DelhiDesk Tax-saving fixed deposits (FDs) provide tax benefits to investors under Section 80C of the Income Tax Act, allowing them to deduct up to Rs. 1.5 lakh from their annual taxes. However, the interest earned on these FDs is taxable as per the investor’s income tax slab rate. Tax-saving FDs have a five-year lock-in term and do not permit premature withdrawals, making them unsuitable for investors who need liquidity or want to invest for a shorter period. Before investing, investors should consider factors such as the reputation of the bank or financial institution, interest rates, lock-in period, tax benefits, penalties for premature withdrawal, interest payout frequency, nomination, documentation, joint account, and reinvestment option. Investors should plan their investments according to their financial goals and risk appetite while keeping these factors in mind.
Follow DelhiBreakings on Google News
Here is the news bullets sorted by DelhiBreakings.com team.
👉 Tax-saving FDs provide tax advantages to investors under Section 80C of the Income Tax Act.
👉 Investors can deduct up to Rs. 1.5 lakh from their annual taxes by purchasing tax-saving FDs.
👉 Interest earned on these FDs is taxable as per the investor’s income tax slab rate.
👉 Tax-saving FDs have a five-year lock-in term and premature withdrawals are not permitted.
👉 Choose a trustworthy bank or financial institution with a solid reputation.
👉 Compare interest rates offered by different banks before investing.
👉 Tax-saving deposit comes with a lock-in period of 5 years.
👉 Investment in tax-saving deposit is eligible for a deduction of up to Rs. 1.5 lakh under section 80C of the Income Tax Act.
👉 Understand penalties and charges applicable in case of premature withdrawal of the deposit.
👉 Nominate a beneficiary while investing in tax-saving FDs.
For superfast news and Delhi Breaking Stories visti us daily at https://delhibreakings.com
Something went wrong. Please refresh the page and/or try again.