If you have not yet invested anywhere to save income tax for the financial year 2021-22, then you should think about it as soon as possible. Because to save income tax for 2021-22, you have to invest in certain places by 31st March.
If you want to invest in a place where you can get good returns and keep your money safe to take advantage of income tax exemption, then you can invest in Tax Saving Fixed Deposit (FD).
First of all understand what is Tax Saving FD?
FDs of 5 years are called tax saving FDs. In this you have to invest for 5 years i.e. for long term. All banks offer tax saving FD facility. In this, tax exemption can be taken on investment up to Rs 1.5 lakh under section 80C of Income Tax.
Senior citizens get more interest
Banks give more interest to senior citizens on FD. This is 0.50% more than the normal FD. So if you or there is a senior citizen in your family, then he/she will get additional benefits by investing in FD.
Get a fixed return
The biggest advantage of FD is that you are told at the very beginning of the investment that how much you will get on maturity. There is no risk in this. In any case, neither does he get more money nor less.
What is section 80C?
Income Tax Section 80C is actually a part of the Income Tax Act, 1961. It mentions the investment channels in which income tax exemption can be claimed by investing. Many people start investing before the end of the financial year to save tax.
