Does rd comes under 80c?
No, RD (Recurring Deposit) does not come under Section 80C for tax benefits. I also used to think that since we are saving money regularly in RD, it should give tax deductions like Fixed Deposit. But when I checked with my bank and read about it, I found that only a 5-year tax-saving Fixed Deposit is eligible under Section 80C, not a normal RD. The interest you earn on RD is also taxable as per your income slab. So, RD is good for disciplined savings, but if you’re looking for tax benefits under 80C, you’ll have to go for options like PPF, ELSS or 5-year Tax-saving FD.