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Calculate your Section 80C tax deduction and find out the effective yield of your 5-year lock-in Fixed Deposit.
Max Section 80C deduction limit is ₹1,50,000.
(Old Regime Selectors Only)
Immediate Tax Saved (Under 80C)
₹2,12,217
15.11%
A tax-saving FD is a special type of fixed deposit that offers tax deduction under Section 80C of the Income Tax Act. You can claim a deduction up to ₹1.5 Lakh per financial year by investing in this FD.
Tax-saving FDs have a strict lock-in period of 5 years. You cannot prematurely withdraw the funds, nor can you take a loan or overdraft facility against this FD.
No. The interest earned on a tax-saving FD is fully taxable as per your applicable income tax slab rate. Only the principal invested is deductible under Section 80C.
Under the New Tax Regime, Section 80C deductions are not available. Therefore, you cannot claim any tax deduction for investing in a tax-saving FD if you file your taxes under the new regime.
Yes, TDS is deducted by the bank @ 10% if the interest earned across all your FDs exceeds ₹40,000 in a year (₹50,000 for senior citizens). If your total income is below the taxable limit, you can submit Form 15G or 15H to avoid TDS.