Rebate in income tax?

I want to know that the tax free FDs’ which some banks used to provide for 05yrs, can really be used as savings. Can i get the tax rebate if i show same in my income tax return.

3 Replies to “Rebate in income tax?”

  1. it is Tax saving fixed deposit which is one among the investment in ur section 80 c savings. All earning members are eligible to show their invesment in one among the other either nsc, ppf, tax saving mutual funds. ulips,lic,nps,and it is big list.

    so the interest on nsc and td is taxable.

    Always the returns of ppf and Tax saving mutual funds are tax free.
    ppf-15 yrs lock in.
    Tax saving mutual funds-3 yrs lock in.

    Based on your risk profile and tax bracket(Slab) u need to choose ur tax saving instruments.

    To effectively make ur Tax saving portfolio u can refer this link


  2. Investment in Fixed deposit for 5 years period as Tax Saver Deposit with banks is deductible u/s 80C along with other investments etc., subject to the overall limit Rs. 100000.00. Accordingly, you are eligible to get deduction from your total income of the year. Of course, interest on FD every year is subject to tax.

    It is more beneficial, if you are under tax rate above 20% (if taxable income exceeds Rs. 5.00 lakhs)
    It is also important to note that, loan is not eligible against the deposit and premature of the deposit is subject to tax.

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