Tax saving investments under section 80C include PPF, EPF, LIC Premium, Equity Linked Savings Scheme (ELSS), Sukanya Samriddhi Yojana (SSY), National Saving Certificate (NSC) and National Pension System (NPS), Senior Citizen Saving Scheme (PSS). SCSS), ULIPs and tax saving FDs. But out of all the tax saving options, post office small savings schemes and 5 year bank FDs are the safest to invest in. Therefore, it is better to pay attention to these investment options.
Great option for tax saver
At present, among the low interest rates of bank FDs, there are few banks which are offering higher returns on 5-year tax-saving FDs as compared to post office time deposits. We will give you information about these banks. If you are a tax saver and want to invest in a safe haven to reduce your tax liability, then invest in tax saving FDs from the banks we mention. This will be the best option for you. Know further where you can get the highest interest on tax saving FDs.
Interest Rate on Tax Saving FD in Private Banks
At present, ordinary citizens are getting 6.50 percent and 7.25 percent interest on tax saving FDs in Yes Bank. At the same time, these interest rates are 6.50 percent and 7.00 percent in DCB Bank, 6.50 percent and 7.00 percent in RBL Bank, 6.00 percent and 6.50 percent in IndusInd Bank, 6.00 percent and 6.00 percent in Karur Vysya Bank.
5 Best Tax Saving FDs in Public Sector Banks
These interest rates are 5.55 percent 6.05 percent in Union Bank, 5.50 percent and 6.00 percent in Canara Bank, 5.30 percent and 5.80 percent in State Bank of India, 5.30 percent and 5.80 percent in Bank of India and 5.30 percent and 5.80 percent in Punjab and Sind Bank. is.
5 Best Tax Saving FDs in Small Finance Banks
These interest rates are 6.75 percent and 7.25 percent in Utkarsh Small Finance Bank, 6.75 percent and 7.25 percent in Jana Small Finance Bank, 6.75 percent and 7.25 percent in Ujjivan Small Finance Bank, AU Small Finance Bank 6.25 percent and 6.75 percent and Suryoday Small Finance Bank are 6.25 per cent and 6.50 per cent.
Know the multiplication of tax
Under Section 80C, any investor who invests in a tax saver FD with a lock-in period of 5 years can claim a deduction on deposits up to Rs 1.5 lakh. Post office fixed deposit investment of 5 years is eligible for tax exemption under section 80(c) of the Income Tax Act of 1961. TDS (Tax Deduction at Source) is deducted from the interest earned on these deposits depending on the tax slab of the investor. You have to pay TDS if the total interest income in a financial year exceeds Rs.40,000. Senior citizens can claim deduction under section 80TTB for interest received on fixed deposits up to Rs.50,000.
