For those seeking substantial tax exemptions, investing in a 5-year Fixed Deposit (FD) emerges as a top-tier option.
While ensuring the safety of your capital, this investment avenue promises attractive returns.
Notably, tax benefits under Section 80C are applicable only in the old tax regime, which is also the default regime for the fiscal year 2024.
Hassle-Free Opening Process:
HDFC Bank simplifies the process of opening a Tax-Saving FD, whether you’re an existing account holder or not.
Utilize your net banking account to initiate the FD application or visit the nearest branch with the necessary documents.
Seamless Online Procedure:
Within your net banking account, navigate to the FD option, input your preferred branch, duration, and deposit amount, and designate a nominee. Verify the details, proceed with the transaction, and download the FD deposit receipt for your records.
In-Branch Application:
Should you opt to open the FD at an HDFC Bank branch, ensure a smooth experience by downloading the FD application form beforehand.
Complete the form, gather photocopies of the requisite KYC documents, and present both the filled form and originals for verification.
Attractive Interest Rates:
HDFC Bank offers competitive interest rates of up to 7.75% on its Tax-Saving FDs, ensuring significant returns over the 5-year lock-in period.
Maximize Exemptions:
Investors can claim tax benefits under Section 80C of the Income Tax Act, with a cap of Rs 1.5 lakh on investments in tax-saving FDs.
However, it’s crucial to note that the interest accrued on the FD is taxable. Senior citizens enjoy additional tax exemptions of up to Rs 50,000 under Section 80TTB on FD interest income, enhancing their overall savings.
