Is there no income tax on a Tax Saver FD?
That’s a great question. Many of our customers ask whether Tax Saver FDs have no tax implications on the interest earned. This information is not accurate. Any interest earned on a Tax Saver FD is also taxable according to your income tax slab.
With Tax Saver FDs, you can claim an exemption under Section 80C of the old tax regime, up to ₹1.5 lakh. This is the only tax-saving benefit, meaning your taxable income is reduced by the claimed amount.
Please note that all Tax Saver FDs have a minimum lock-in period of 5 years and cannot be withdrawn prematurely.
For any questions, please feel free to reach out to us at help@stablemoney.in, and our experts will guide you further.