Tax Saving FD: Grow Money, Save Tax – Dual Benefits in One Investment

• Tax Saving FD offers dual benefits: excellent returns and tax savings under Section 80C.
• Invest up to Rs 1.5 lakh annually for tax deduction and earn up to 7% interest.
• Benefits apply only to investors filing ITR under the Old Tax Regime; New Tax Regime offers no Section 80C exemption.
• Features a 5-year lock-in period; premature withdrawal incurs penalties and loss of tax benefits.
• Interest earned is taxable; TDS applies if annual interest exceeds Rs 40,000 (Rs 1 lakh for senior citizens).