Updated 30 Aug 2023
There are multiple Tax-saving schemes for investors on the market currently. One of the most famous deductions people love is the 80C deduction, which we will discuss in the following blog. Kotak Mahindra also offers a tax-saving FD, helping individuals to deduct up to Rs. 1.5 Lakhs. Let’s take a look at its features, eligibility and documentation needed.
Resident Individuals: Any individual resident in India can open a Tax-saving FD.
Hindu Undivided Families (HUF): HUFs operating in India can also invest in these FDs.
Identity Proof: PAN Card, Driving License, Passport, Voter's ID, Aadhaar Card.
Address Proof: Passport, Driving License, Voter's ID, Aadhaar Card, Utility Bill, Bank Statement, Bank Account Passbook (Updated and no more than 3 months old)
Signature Proof: PAN Card, Driving License, Passport
Latest Passport Size Photographs (4 copies)
Are the returns on Tax-saving FDs tax-free?
While the amount you invest in a Tax-saving FD is eligible for a deduction under Section 80C, the interest earned on it is taxable.
Can I break the Tax-saving FD before the maturity period?
No, premature withdrawal is not allowed before the completion of the 5-year lock-in period.
Do senior citizens get any extra interest on Tax-saving FDs?
Yes, many banks, including Kotak Mahindra, typically offer higher interest rates for senior citizens.
How is the interest on Tax-saving FDs paid out?
Depending on the bank's policy and the customer's preference, the interest can be paid monthly, quarterly, half-yearly, annually, or reinvested.
Can I take a loan against my Tax-saving FD with Kotak Mahindra?
No, loans against Tax-saving FDs are generally not permitted during the 5-year lock-in period.
Is a nomination facility available for Tax-saving FDs?
Yes, most banks, including Kotak Mahindra, offer the nomination facility for FDs.
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