Highest tax-saving FD interest: Senior citizens can earn 7.75% rate, 7.25% rate for public; full list of banks
Under section 80C of the Income-tax Act, 1961 an individual would get a tax deduction of the amount invested in eligible investments. However, it must be noted that any income arising from selling these eligible investments for which the Section 80G deduction was claimed would be taxable in the hands of the taxpayer.
«Many taxpayers opt for 5-year tax-saving fixed deposits (FDs) to claim a tax deduction. Although the initial investment qualifies for a tax deduction under section 80C, it's crucial to remember that the interest earned on these FDs is still taxable. Interest from FDs is considered 'Income from Other Sources' and needs to be included in your total taxable income,» says Rahul Singh, Senior Manager, Advisory and Research, at Taxmann.
Also read: Last-minute tax-saving investment: Will investing in PPF and SSY on March 30 and March 31 qualify for tax benefits in FY 2023-24?
Here's the latest interest rate on tax-saving FDs for general public offered by various public and private sector banks for making tax savings FDs:
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IndusInd Bank tax-saving FD rate
IndusInd Bank's tax-saving FD of five-year tenure is offering an interest rate of 7.25%.
Axis Bank tax-saving FD rate
Axis Bank is offering an interest rate of 7% for investing in its tax-saving FDs.
HDFC Bank tax-saving FD rate
HDFC Bank's tax-saving FD of five-year tenure is offering a 7% interest rate.
ICICI Bank
