income tax liability - Rightsofemployees.com https://www.rightsofemployees.com Know Your Rights Mon, 17 Mar 2025 10:26:34 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.4 https://www.rightsofemployees.com/wp-content/uploads/2018/01/cropped-emp1-32x32.png income tax liability - Rightsofemployees.com https://www.rightsofemployees.com 32 32 Tax-saving FDs: These are the best tax saving FD which can reduce your income tax liability https://www.rightsofemployees.com/tax-saving-fds-these-are-the-best-tax-saving-fd-which-can-reduce-your-income-tax-liability/ Mon, 17 Mar 2025 12:01:07 +0000 https://www.rightsofemployees.com/?p=41167 Due to the current volatility in the stock market, investors are turning to options with safe and stable returns. In such a situation, fixed deposits (FD) and government-backed savings schemes have become popular again. If you want safe returns as well as tax savings, then tax-saving fixed deposits (FD) can be a great option. What […]

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]]> Due to the current volatility in the stock market, investors are turning to options with safe and stable returns. In such a situation, fixed deposits (FD) and government-backed savings schemes have become popular again. If you want safe returns as well as tax savings, then tax-saving fixed deposits (FD) can be a great option.

What is a tax-saving fixed deposit?

Tax-saving FD is a special type of bank deposit scheme, which gives the benefit of deduction up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961. However, the lock-in period of this FD is five years, that is, during this time you cannot withdraw your deposit amount. This scheme comes with stable interest rates, so investors do not have to worry about market fluctuations.

Tax-saving FD interest rates

The interest rates offered on tax-saving FDs vary by different banks.

For example: ICICI Bank: 7.25% interest to general citizens and 7.80% interest to senior citizens. HDFC Bank: 7% interest to general citizens and 7.50% interest to senior citizens. SBI: 6.5% interest to general citizens and 7.5% interest to senior citizens.

Benefits of tax-saving FDs

Guaranteed Returns It provides stable and assured interest on investment. Low Risk It is free from market volatility, keeping the capital safe. Tax Savings It is eligible for tax deduction up to Rs 1.5 lakh under Section 80C. Additional Interest for Senior Citizens They get higher interest rates than normal citizens.

Things to note

  • Funds cannot be withdrawn during the lock-in period of five years.
  • Tax is applicable on the interest earned, and TDS may also be deducted.

Tax-saving FDs are an excellent option for investors who prioritize safe returns and tax savings. This investment offers you risk-free growth as well as tax benefits.

The post Tax-saving FDs: These are the best tax saving FD which can reduce your income tax liability first appeared on Rightsofemployees.com.

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