According to income tax guidelines under 80C of the Income Tax Act, you can get tax exemption for investments up to Rs. 1.5 lakh in fixed deposits. This is one of the easiest way for how to save tax on FD interest.
Pay utility bills through NoBroker utility payment services and earn cashback and rewardsFixed Deposit are the safest option to get good returns. If you ask your parents, they will immediately agree to it. Let us learn how to save income tax on FD interest.
How to save tax on FD interest India?
People belonging to Hindu Undivided Family (HUFs) can invest in FD to save on taxes.
You can opt for FD with the minimum amount. The minimum amount differs from bank to bank.
The FD must have a 5 year lock-in period. You cannot withdraw any amount against the FD in premature condition.
You cannot claim tax exemption if you have FD in rural banks or co-operatives. However, you can invest in FD through public or private sector banks.
You can claim tax exemption if you have invested in a Post Office Fixed deposit for five years.
You can transfer a Post Office Fixed deposit from one post office to another.
You can opt for Single or joint mode in FD to claim tax. Although you must know that the benefit is available for the first holder.
The interest earned from FD is taxable so TDS is applicable. Although you can avoid TDS by submitting form 15 G pr Form 15H to the bank.
For senior citizens, the banks offer higher interest rates on FD.
This was all about how to save tax on FD interest. I hope you find this informative.
Read more:
What Is Section 80C Of Income Tax Act?
What Is Form 15G And 15H?
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How to save tax on FD interest?
sanjukta
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2022-05-20T10:21:50+00:00 2022-05-20T10:21:52+00:00Comment
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