15 October 2016
All-your-money-queries-answered
Are there any bank fixed deposits that help 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.