After the new decision of Axis Bank, FD interest rates for maturity between 15 and 18 months have increased by 15 basis points to 6.40% from 6.25% earlier.
Axis Bank Hikes FD Interest Rates: Axis Bank has increased the interest rates of Fixed Deposit (FD) for the second time in the month of November. Axis Bank says that the increased interest rates on Fixed Deposit will be effective from 15 November. Let us tell you that even before this, on November 5, Axis Bank had increased the FD rates. Axis Bank has increased the interest rate on FDs of less than Rs 2 crore.
After the new decision of Axis Bank, FD interest rates for maturities between 15 to 18 months have increased by 15 basis points to 6.40% from 6.25% earlier. Deposits maturing in 18 months to 3 years will now attract an interest rate of 6.50% as against 6.30% earlier, representing an increase of 20 basis points by Axis Bank. The interest rates on deposits maturing in three to ten years will continue to be available up to 6.50%.
Tax exemption is available on FD
- Investment up to Rs 1.5 lakh in tax saving FD is exempted from income tax under section 80C.
- The interest earned on all types of FDs is added to your income tax and taxed as per your income tax slab.
- TDS of 10% is applicable if the PAN card is provided to the bank.
- If PAN card is not provided, TDS 20% is applicable.
- If the interest income from all your FDs is less than Rs 40,000 then no TDS will be levied. For senior citizens this amount is Rs 50,000.
- If your total annual income is less than Rs 2.5 lakh, ie if you are below the taxable limit, you can avoid TDS by submitting Form 15G to the bank.
- Similarly, senior citizens who are below the taxable limit can avoid TDS by submitting Form 15H to the bank.
Features of Tax Saving FD
- You can avail tax exemption under Section 80C on the amount deposited in a tax-saving FD up to a maximum of Rs 1.5 lakh.
- Tax exemption is given only on the initial deposit amount and not on the same deposit amount every year.
- You can book a new tax-saver FD every year to get tax exemption.
- The tenure is of five years and it cannot be withdrawn before the expiry of five years.
- Joint holding is permitted, but only the first holders will be allowed to claim tax exemption on the amount deposited.
