Amazing scheme with government guarantee for 5 years, will get excellent returns, will not have to pay any tax and money is completely safe

Tax Saver Fixed Deposit scheme: Fixed deposit can be made anywhere and anytime. But, if you plan the investment, then along with good returns, you can also get the benefit of tax exemption. Tax Saver Fixed Deposit scheme with a lock-in period of 5 years offers tremendous benefits.

Amazing scheme with government guarantee for 5 years, will get excellent returns, will not have to pay any tax and money is completely safe

Tax Saver Fixed Deposit scheme: Financial burden is increasing continuously due to inflation. Due to the increase in the repo rate, EMI has also become costlier continuously. It often happens that when loans are costlier, banks pay more interest on your deposits as well. In such a situation, if you are looking for a better investment plan, where your money is completely safe or you get benefits like tax exemption along with good returns, then fixed deposit is a great option. Fixed deposits can be made anywhere and anytime. But, if you plan the investment, then along with good returns, you can also get the benefit of tax exemption. Tax Saver Fixed Deposit scheme with a lock-in period of 5 years offers tremendous benefits.

Why is Tax Saver Fixed Deposit Scheme better?

In tax saving fixed deposits, you get income tax exemption on your investment. The returns received during the lock-in period of 5 years are tax free. But, only interest up to Rs 40 thousand in 1 year is tax free. According to the Income Tax Act 1961, tax exemption is available under section 80C. Investment up to Rs 1,50,000 in every financial year will be completely tax free. There is no risk because there is a government guarantee on Fixed Deposit. FD can be made in any government or private bank. The PO also has the facility of getting tax saving FD.

Lock in period rule in Tax Saver Fixed Deposit Scheme

Tax saving FD scheme is for 5 years. Your coins stays locked in the ones 60 months. There is not any exemption to withdraw coins before 5 years i.E. Maturity. In case of lack of lifestyles of the FD holder, the nominee is allowed to withdraw the money in advance than maturity.

TDS will have to be paid on excess interest earned

There is not any tax on tax saving FD (Tax Saver Fixed deposit scheme). But, if the interest earned at the invested money exceeds Rs 40,000 in a yr, then tax will need to be paid. The exemption limit is 50,000 rupees. On maturity, the bank will pay the stability after deducting TDS.

Tax Saver Fixed deposit scheme benefits

  • Tax exemption under section 80C
  • Investment up to Rs 1.50 lakh
  • Interest rate fixed for 5 years, there is no risk
  • Nominee Facility
  • 0.50% more interest to senior citizens
  • No facility to break FD before maturity and auto-renewal

If you want to spend money on Tax Saving FD then the ones documents are required

  • ID Proof
  • Address Proof
  • Signature Proof (Passport or Driving License)
  • 2 passport size photographs

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