login-icon
mahindra-finance-logo
login-icon
  • English
  • Hindi
  • Bengali
  • Marathi
  • Telugu
  • Tamil
  • Gujarati
  • Kannada
  • Odia
  • Malayalam
  • Punjabi
|

What are the benefits of tax-saving FD?

mahindra-finance-author

by Mahindra Finance

|

December 15, 2023

|

1 mins read

Generally, the interest you earn from investments in FD is taxable. But, there are tax-saving FDs too that allow you to get tax benefits up to 1.5 lakhs in a financial year on the invested amount. The fixed deposit tax benefit is covered under Section 80C of the Indian Income Tax Act. It is important to understand all benefits of tax saver FD to make smarter financial planning.

Other FD tax benefits include:

  • You can appoint a nomination for your tax-saving FD
  • If your total annual income does not fall under the taxable bracket, you can submit Form 15H/15G to avoid TDS deductions on the interest earned.
  • You can open a tax-saving FD account for your children as well.

Related articles

How To Claim Home Loan Interest In Income Tax Return

Owning a home is a dream for many, but the journey often involves taking a home loan. The good news is that you can claim tax benefits on the interest you pay on your home loan. Understanding how to c...

KNOW MORE

April 18, 2024

Diversifying Investments With Multiple Types Of Fixed Deposits

Who doesn’t wish to grow their money with minimal risks? Everyone appreciates those extra gains. However, each FD investment carries some risks. But, the advantages of FD far outweigh the risks. A f...

KNOW MORE

February 23, 2024

What are the Pros and Cons of Investing in a Fixed Deposit?

An ideal way to kickstart your investment portfolio is through a fixed deposit (FD). It is not only risk-free and easy to comprehend, but also helps you in growing your wealth. In an FD, you...

KNOW MORE

June 29, 2023