Are there any bank fixed deposits that help save tax?
The five-year deposit under Section 80C of the I-T Act helps to save tax
Please suggest bank fixed deposits that help save tax.
Sudha Pai, Bengaluru
The only bank deposit that enjoys tax concession is the five-year deposit notified under Section 80C of the I-T Act. Investments made through them are eligible for deduction from taxable income, up to a maximum of Rs 1.5 lakh (along with other products under Section 80C, including PF). The deposits are subject to a lock-in of five years. The interest earned from deposits is taxable.
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