Senior Citizen Tax Saving FD: If you are above 60 years and are looking for a safe tax saving investment option, then tax saving FD can be a great option. Tax saving FD gives you the benefit of tax exemption under section 80C of income tax. In such a situation, through tax saving FD, senior citizens can take advantage of tax savings along with earning interest.
Deduction up to Rs 1.5 lakh annually
Senior citizens can deduct up to Rs 1.5 lakh annually by investing in tax saving FDs. Banks offer slightly higher interest rates to senior citizens as compared to general customers. Senior Citizens Tax Saving FD can be opened by any person who is 60 years or above.
Facilities available in tax saving FD
>> You can invest in tax saving FD for a total of 5 years.
>> Under Section 80TTB of IT, senior citizens can deduct up to Rs 50 thousand from the total interest received on FD within a financial year.
>> If the amount of interest deposited in a financial year is more than 50 thousand rupees, then banks will charge TDS on this income.
>> TDS under section 194A of IT is currently 10 percent less. Senior citizens can use Form 15H to claim tax exemption under interest earned on FD.
