22 December 2011
FD in SBI is Deductible u/s 80C, If Invested for 5 Years or More. and Interest is taxable Under O/S. Treat Normal Income, TDS Deducted @10%.
22 December 2011
Tax Saving Fixed Deposit u/s 80C:
W.e.f. Asst. Year 2007-08 investment in term deposit for a fix period of 5 years with a scheduled bank qualifies for deduction u/s 80C. Individual/ HUF are eligible for this investment. Following are the key points regarding the tax saving fixed deposit u/s section 80C:
1)It has the lock-in period of 5 years. depositing under this scheme, you will not be able to take the money before five years. 2)The interest rates for this scheme will be vary for each bank. 3)Tax savings fixed deposit is available only through banks. You can not open it with company fixed deposit product. 4)Minimum of 100 is deposited. Maximum of 100000 is exempted u/s 80c for one financial year. 5)If you are depositing in this scheme, there will not be many other benefits which is allowed for the normal fixed deposit * No Partial/Premature withdrawal allowed. * Sweep-in not allowed. * No Over Draft facility allowed. 6)If you have the joint account, the deductions u/s 80c will be allowed only for the first account holder. 7)The interest income for this fixed deposit is taxable.
22 December 2011
For Rate on FD, You have to Enquire in Bank, Since Each Bank Have Their Own Rate, Which May Differ .5%-1% Comparing to Other Bank. & If You dont Wanna to Go Bank & Ask, U Just Visit Bank WebSite Also, There U Find rates Also. If U Hav Net Banking Then U Can Do FDR, Online Too. Without Visiting Bank Branch.
22 December 2011
I Think Best Option is NSC if Doing FD for 5 Years Lock in Period. Since Interest on NSC is Indirectly Not Taxable.Its Allowed as Deduction u/s 80C. Best to go With NSC. Instead of Doin Tax saving FDR for 5 Years.
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