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.
