Tax Saver FDs

By -
.
Tax Saver Fixed Deposit (FD): Tax Benefits

Tax Saver Fixed Deposit, Tax benefits first introduced in Budget 2006, have a tenure of five years with no premature withdrawals. So tax deduction u/s 80C is only allowable, if FD have a tenure of 5 years. The amount invested will be locked up to five years, this is the main condition. In march, at the end of the financial year, ‘tax investments’ in tax-saving schemes to avail more tax benefits on rise. Let’s discuss the features, benefits & important points of Tax Saver fixed deposits (FD).
Tax Saver Fixed Deposit Features

Amount of Investment: The minimum investment start from Rs. 100 and can be made in multiples of Rs.100 subject to maximum of Rs 1,00,000/-


Interest Period: One can avail the option for monthly and quarterly payout of interest on the Fixed Deposit (FD)

Rate of Interest: You can go to this link to check latest rates of Tax Saving fixed deposit rates.You can also compare the fixed deposit rate of various banks before invest.

Interest Taxable: Interest on FD will be taxable in the head of “Income from other sources”, TDS is also will be applicable if interest is above Rs. 10,000 in a financial year. But you can avoid TDS on bank fixed deposit, read the tips to avoid TDS on FD.

Deposit Receipt: Bank will issue a Fixed Deposit Receipt that shall be the basis of claiming tax benefits.

Yes, after reading the above features, you might be thinking that Fixed Deposit is the best tool to save tax. But here are some points to noted before invest in FD especially to save tax.

Points to remember before invest in FD
You cannot pledge the term deposit as collateral to secure a loan to meet your liquidity needs.
Banks do not offer overdraft facility on tax-saver deposits.
Income Tax Benefits on Tax Saver Fixed Deposit (FD)

Amount invested in bank fixed deposits (along with other eligible investment u/s 80C) like PPF, LIC, NSC, etc. up to maximum of Rs. 1,00,000 is eligible deduction u/s 80C.
= = = = =

Popular posts from this blog

Kayastha

By -
Image
.                                       Chitragupt Maharaj                           Progenitor of the Kayasthas                        Left: Devi Sudakhina and four Sons, Right: Devi Iravati & Eight Sons   Kāyastha   or   Kayasth   ( Hindi :   कायस्थ ) is a   caste /ethnic-group of India. They are the only sect who are referred to as direct descendants of a Vedic God in the religious texts and the only ancestor worshipping sect of Hinduism also called Chitranshi/Devputra [1] . They are said, in the Vedas   and   Puranas , to have a dual-caste status i.e.   Brahmin   and   Kshatriya . They are mainly spread across   North India   and are a sub-sect of Brahmins   whose ancient profession was writing   [2]   [3]   [4]   [5] The Sanskrit dictionary at   Hindunet.org   defines Kayastha as follows: ka_yastha, ka_yata   a man belonging to the writer-caste; a tribe of bra_hman.as whose employment is writing (Ka.)(Ka.lex.) . BRAHMINS   by vedah.net   is an arctic
Read more

All About GOA

By -
= = = = = = = http://www.bits-goa.ac.in/About%20BPGC/BITS%20360/index.html Goa is India 's smallest state in terms of area and the fourth smallest in terms of population . Located on the west coast of India in the region known as the Konkan , it is bounded by the state of Maharashtra to the north, and by Karnataka to the east and south, while the Arabian Sea forms its western coast. Panaji is the state's capital. Vasco da Gama is the largest city. The historic city of Margao still exhibits the influence of Portuguese culture. The Portuguese first landed in Goa as merchants, in the early 16th century, and conquered it soon thereafter. The Portuguese overseas territory existed for about 450 years, until it was annexed by India in 1961. Renowned for its beaches , places of worship and world heritage architecture , Goa is visited by large numbers of international and domestic tourists each year. It also has rich flora and fauna , owing to its location on the West
Read more

Internet TLDs

By -
  Internet Country Code Top-Level Domain By: Internet Assigned Numbers Authority ( IANA ) A .ac – Ascension Island * .ad – Andorra .ae – United Arab Emirates .af – Afghanistan .ag – Antigua and Barbuda * .ai – Anguilla * .al – Albania .am – Armenia * .an – Netherlands Antilles .ao – Angola .aq – Antarctica .ar – Argentina .as – American Samoa * .at – Austria * .au – Australia .aw – Aruba .ax – Åland Islands .az – Azerbaijan B .ba – Bosnia and Herzegovina .bb – Barbados .bd – Bangladesh .be – Belgium .bf – Burkina Faso .bg – Bulgaria .bh – Bahrain .bi – Burundi .bj – Benin .bl – Saint Barthélemy .bm – Bermuda .bn – Brunei .bo – Bolivia .br – Brazil .bs – Bahamas * .bt – Bhutan .bv – Bouvet Island (not in use; no registrations) .bw – Botswana .by – Belarus .bz – Belize C .ca – Canada .cc – Cocos (Keeling) Islands .cd – Democratic Republic of the
Read more