can fixed deposit be shown for tax exemption?
Yes, but only certain types of fixed deposits qualify for tax exemption. if you invest in a tax-saving fixed deposit with a 5-year lock-in period (available in most banks), you can claim a deduction of up to ₹1.5 lakh in a financial year under Section 80C of the Income Tax Act.
I invested in a 5-year tax-saving FD of ₹1 lakh in my bank and received tax deduction a the time of ITR filling just by showing the deposit receipt.
Regular FDs (without the 5-year lock-in) don’t give this benefit, but remember the interest you earn on any FD is still taxable.