Under section 80C, fixed deposits are among the savings options for tax saving that offer income tax benefits.
Its maturity period is 5 yrs. For regular incomes, senior citizens frequently depend on the bank FD.
For the senior citizens, FD is the first investment choice in which they work for their regular income.
When it comes to the best Fixed Deposits are the popular choice/option for many investors.
Particularly for the senior citizens who prefer capital safety over capital admirations.
Guaranteed returns are viable the massive reason behind the enormous popularity of FD in the country.
Still, the RBI keeps remaining unchanged the repo rate over a year now at 4%.
But most of the banks have been reduced their FD interest rates.
Furthermore, returns for fixed deposits are wholly taxable as per the income tax slab rate for the investors.
Which was additional leads the actual rate of return.
In such a situation, an investor like senior citizens could have opportunities for tax saver FDs that offer both the convenience of FDs and tax benefits.
Under the Income Tax Act,1961, could help deduct the tax amount up to 1.5 lakh in an FY.
The senior citizens offered 0.5% p.a. or more than the regular tax-saving fixed deposit interest rates.
These fixed deposits could be opened by the Hindu Undivided Families and individuals in a” joint or single” mode of holding.
Important, Tax deducted at source (TDS) is applicable on the returns as per the slab rate of investors.
Yet, the senior citizens could keep away from this by submitting form15G for non-senior citizen depositors to the bank.
The senior citizens are also qualified for the tax deduction under section 88TT8 of the Income Tax Act of Rs.50,000 deposits on the interest income.
At the start of every FY of the Income Tax Acts under section 80C, the senior citizen will start to explore all the convenient tax-saving chances to avail to deductions up to Rs. 1,50,000.
Here the market few banks are current interest rates are offered by the leading small, public, and private finance banks- ICICI Bank, PNB, SBI, Axis Bank, and HDFC Bank; in our country.
The government has also provided various schemes for senior citizens.