80(c) Tax Savings Fixed Deposits in Banks

80(c) Tax Savings Fixed Deposits in Banks Tax Savings Fixed Deposit Rates in India, Ratekhoj.com

Fixed deposit schemes eligible for tax savings under Sec 80c of IT act.

Salient aspects of the scheme are as follows:

  • An assessee can invest in the fixed deposit any amount not exceeding Rs. 1 lakh in a year.
  • Fixed deposits made upto Rs. 1 lakh for a period of 5 years are exempted from payment of income tax under Sec 80C.
  • The maturity period of term deposit shall be five years commencing from the date of the receipt. No term deposit can be encashed before the expiry of five years from the date of its receipt.
  • No premature payment before 5 years possible.
  • The deposit cannot be pledged to secure any loans or as security to any other loan/facility.