Deduction up to Rs 1.5 lakh annually

Senior citizens can deduct up to Rs 1.5 lakh annually by investing in tax saving FDs. Banks offer slightly higher interest rates to senior citizens as compared to general customers. Senior Citizens Tax Saving FD can be opened by any person who is 60 years or above.

Facilities available in tax saving FD

>> You can invest in tax saving FD for a total of 5 years.
>> Under Section 80TTB of IT, senior citizens can deduct up to Rs 50 thousand from the total interest received on FD within a financial year.
>> If the amount of interest deposited in a financial year is more than 50 thousand rupees, then banks will charge TDS on this income.
>> TDS under section 194A of IT is currently 10 percent less. Senior citizens can use Form 15H to claim tax exemption under interest earned on FD.

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Senior Citizen Tax Saving FD: If you are above 60 years and are looking for a safe tax saving investment option, then tax saving FD can be a great option. You can get a rebate of Rs 1.5 lakh under section 80C of income tax by investing in tax saving FD for a total of 5 years. Let us give information about those banks, which are offering the highest interest rates to their customers.

Private sector DCB Bank (DCB Bank) is offering 8.10 percent interest rate tax saving to senior citizens. Axis Bank, IndusInd Bank and Yes Bank are offering tax saving FD 7.75% interest rate to senior citizens.

HDFC Bank, ICICI Bank and RBL Bank are offering 7% interest rate on tax saving FDs to senior citizens. The thing to note is that you will have to pay tax on the interest earned on these FDs as per the tax slab.

The post Senior citizens special FD: Senior citizens are getting the highest interest on FD here, see full list first appeared on Rightsofemployees.com.