Updated 04 Sep 2023
Fixed Deposits have always been a popular investment option in India due to their safety, assured returns, and simplicity. Canara Bank, one of India's oldest and most trusted banking establishments, offers a unique Fixed Deposit scheme designed to provide a secure return on investment and significant tax benefits.
Their Tax-saving FD is an attractive avenue for investors to minimise taxable income while earning competitive interest. Designed in alignment with the provisions of Section 80C of the Income Tax Act of 1961, this product is a convergence of savings, returns, and smart tax planning.
The interest earned on all types of FDs is included in the total income and is taxable per the prevailing slab rate.
Now let’s take a look at the features a little bit in-depth:
If you are not a prior customer or account holder in Canara Bank, here are some documents you must submit.
For Identity Proof and Signature Proof
For Address proof
What is the maximum and minimum amount I can deposit in a Tax-saving FD?
Typically, you can start with a minimum amount, such as ₹100. The maximum amount that qualifies for a deduction under Section 80C is ₹1.5 lakhs in a financial year.
Do senior citizens get an extra interest rate on Tax-saving FDs?
Senior citizens are generally offered a higher interest rate than regular deposit rates.
Is the interest earned on Tax-saving FDs tax-free?
No, the interest earned on Tax-saving FDs is taxable. Only the principal amount you deposit is eligible for a tax deduction under Section 80C.
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