Tax benefit on Fixed Deposit upto 1 Lakh
Tax benefit under section 80(c) is available to assessee.
The conditions are:
- Tax Saving through tax exemption under section 80C of Income Tax Act, 1961.
- Maximum deduction of Rs.100,000.
- Duration of investment is 5 years.
If fixed deposit for less than 5 years than no deduction available. Deposit can be made in any Bank or Post Office.
Interest accrued & received on the above deposit is taxable as a normal interest income, please note that this is not exempt.