ICICI Bank Tax Saving Fixed Deposit

Saving money on tax payments might be the most gratifying thing. Although taxes become inevitable after a particular income threshold, it is important to understand that you can always reduce your tax liability by taking appropriate measures.

If you’re looking to invest long-term with an objective to reduce your tax liability on your amount, tax-saving FDs are the way to go. Let’s look at how ICICI offers its Tax-saving FDs and the various perks you get along with.

• The Tax-Saving FDs have a minimum lock-in period of 5 years.
• ICICI Bank Tax Saving Fixed Deposits are entitled to tax saving up to ₹ 1,50,000 p.a. under section 80C of the I-T Act.
• Also, the interest income from ICICI Fixed Deposit is taxable according to the slab income tax rates. Any customer can claim a deduction up to ₹ 40,000 per annum of the interest income earned on the fixed deposit as per section 80TTB of the  I-T Act. For senior citizens, the deduction limit is ₹ 50,000 per annum.
• According to section 194A of the I-T Act, the bank is liable to deduct TDS at 10% of the interest income their customers earn on fixed deposits. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
• This feature of tax-saving FDs is constant throughout all banks and services. Under no circumstances can you break a tax-saving FD before its maturity period of 5 years.

• Both individuals and Hindu Undivided Families (HUFs) are qualified to invest in these tax-saving FD schemes.
• For the purpose of tax savings, one can opt for fixed deposits in either public or private sector banks. However, cooperative and rural banks don't qualify.
• A 5-year term deposit in a post office is also recognized as a tax-saving instrument.
• Deposits can be made individually or as a joint account. However, only the first account holder is entitled to the associated tax advantages.

Regarding the documents required-

Identity Proofs

• Aadhar Card 
• Passport
• Drivers License

Address proofs

• Gas Bills
• Utility Bills
• Bank Statement 
• Or a Cancelled Bank Cheque