Income Tax Saving Fixed Deposit..!
(1) Individuals and HUFs are eligible to open a income
tax saving fixed deposit account and claim tax deduction up to Rs. 1.5 lakh in
a financial year (2015-16 and 2016-17) for the amount invested.
(2) Such
deposits are only available for five (5) year tenures and can be opened with
any bank, except cooperative & rural banks.
(3) The interest earned is taxable at the
marginal rate applicable to the tax holder, while the maturity proceeds are
tax-exempt.
(4) Tax-saving deposits are locked for the 5-year
period and not available for premature encashment or / pledging for a loan.
(5) The deposits can also be opened jointly. In
such cases, the tax benefit is available only to the first account holder.
Courtesy : Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
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