Hey Views if you want to know about 5 Year Fixed Deposit Tax-Free, then this article is for you. In this Article, Complete Information is given to you. So read this article till the end.
5 Year Fixed Deposit Tax-Free
A 5-year fixed deposit scheme can be used for tax-saving purposes under Section 80C of the Income Tax Act, 1961. Individual account holders can get an income tax deduction for a maximum amount of Rs 1.5 lakh per financial year.
Tax-saving fixed deposits have a lock-in period of 5 years, and no premature withdrawals, loans, or overdraft facilities are available against them.
Different banks offer different interest rates on tax-saving FDs, so it is best to compare rates before investing. Tax-saving fixed deposits are risk-free, and the amount invested in them is completely safe.
5 year fixed deposit tax free hdfc
HDFC Bank offers a 5-year tax-saving fixed deposit scheme that allows customers to save tax while earning interest. The minimum amount required to open an account is Rs. 100, and the maximum amount is Rs. 1.5 lakhs per financial year.
The interest rate applicable to this scheme is the same as that of a regular 5-year fixed deposit.
The interest earned is taxable, and TDS is deducted at 10% if the interest income across all deposits and branches exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year.
The scheme has a lock-in period of 5 years, and premature withdrawal is not allowed. Joint accounts are allowed, but the tax benefit under Section 80C will be available only to the first holder of the deposit.