Time to file your income tax returns: Due to its attractive returns and tax advantages, the Tax Saving Fixed Deposit (FD) has emerged as a popular investment choice for senior citizens. It is not only a safer alternative to high-risk equity investments and other risky options, but it also provides tax savings. Investors can claim an exemption from taxes under Section 80C of the Income Tax Department with this option.
Putting resources into an TAX Saving FD can give great returns while likewise offering tax reductions. This option, which offers interest rates of up to 8.1%, is an option for investors looking for a risk-free way to save taxes.
Tax Saving FDs are offered by a number of banks at attractive interest rates. The highest interest rate is 8.1% at DCB Bank, followed by 7.75% at Axis Bank and 7.75% at IndusInd Bank. The interest rates offered by Yes Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Bank of Baroda are 7.15 percent, 7.5%, and 7%, respectively.
Individuals can claim tax exemption under Section 80C of the Income Tax Act of 1961 by investing in a Tax Saving FD. This exemption only applies to FDs with a five-year maturity period and can offer a discount of up to Rs 1.5 lakh. Under Section 80TTB of the Income Tax Act, senior citizens can also claim a rebate of up to Rs 50,000 on interest during a financial year.
The last day to save money on taxes for the fiscal years 2022 and 2023 is March 31, 2023. As a result, putting money into a Tax Saving FD is an option if you want to save money on taxes this year.
