Tax Saving Fixed Deposits As per Income Tax Act, an individual can claim a tax deduction under Section 80C for investments in tax-saving fixed deposits of up to Rs.1.5 lakh. Below are the criteria to be fulfilled to claim this deduction: Only individuals and Hindu Undivided Families (HUF) are eligible to invest in tax-saving FD schemes. The FD amount can be the minimum amount stipulated by the respective bank. The tax-saving FDs have a 5-year lock-in period. Premature withdrawals of the FD are not permitted. Individuals can invest in FDs through any public or private bank, except rural and co-operative banks. The Post Office Time Deposit of 5 years tenure also qualifies for claiming tax deductions under the Income Tax Act of 1961. FDs can be held individually or jointly. In the case of a joint FD, the tax benefit will be given to the first holder. Interest earned on the FDs is taxable under the investor’s tax bracket, thus, Tax Deductible at Source (TDS) is applicable. Banks offer higher interest rates to senior citizens on FDs. The increased interest rate exists for a tax-saving FD also. #tcm https://g.co/kgs/EWruJK https://tcmservicemart.com