5 Most Important Pointers To Know before Investment in Tax-Saving Fixed Deposits

1.   As per the Income Tax Law, Only individuals and HUFs are allowed to invest in tax-saving fixed deposits. If investment made in name of a minor, the deposits account can be held jointly with a 18+ individual.

2. A maximum of Rs. 1.5 lakh tax deduction allowed under Section 80C of the Income Tax Act. 

3. Tax- saving FDs come with a lock-in of 5 years with no premature withdrawal or advance facility against the FD scheme.

4. In case the Tax- saving FDs is held jointly, the tax deductions shall be available only to the first account holder.

5. Interest earned on Tax- saving FDs is taxable so attracts TDS. For reducing TDS implication, the investor needs to submit Form 15G or 15H.


 
 

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