Income Tax Return: Fixed Deposit (FD) can be a good option for people looking for an option to save tax before the end of FY 2023. Many banks and post offices offer tax saving FDs with a maturity period of five years. Let’s know the complete details about it.
This option can help you save maximum tax, especially if you have already explored other options like post office schemes, National Pension System (NPS), home loans and mutual funds.
Tax saving
There are many banks in the country that offer interest rates ranging from 6.50 per cent to 7.60 per cent on tax saving FDs. By investing in tax saving FDs, you can save tax under section 80C of the Income Tax Act, 1961. However, only those people who have opted for the old tax regime can avail tax exemption through this. Under the new tax regime, the option of tax saving through FD is not available.
Tax saving FD
It is important to note that only individuals and Hindu Undivided Families (HUFs) can invest in tax saving FDs. Minors can invest with the help of their parents.
The maximum amount that can be invested in a tax saving FD is up to Rs 1.5 lakh. At the same time, there are about 10 days left for the next financial year to begin. In such a situation, by getting a tax saving FD done in this financial year, its benefit can be availed while paying income tax. At the same time, it should also be known that the maturity period of tax saving FD is five years.
Income tax return
If you are looking for an option to save tax before the end of FY 2023, then tax saving FD can be a good option. Many banks offer this option with attractive interest rates and it can help you save tax under section 80C of the Income Tax Act, 1961. However, it is important to consider the maturity period and liquidity requirements before investing.
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