what is limit of money for income tax in fix deposit?

Question

how many amount we can deposite in the fix deposit for tax exception

Answer 1

Tax Saver Fixed Deposit

In the Finance Bill of 2006, the government had announced Tax benefits to Bank Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.

The salient points of the scheme notification are; (a) Fixed tenure without premature withdrawal. (b) Year is defined as a financial year. (c) Amount limited to Rs. 100 minimum and Rs. 100,000 maximum. (d) Bank will issue a Fixed Deposit Receipt that shall be the basis of claiming tax benefit. (e) Term deposit under this scheme cannot be pledged to secure a loan.

But before depositing in the FD first confirm with the bank weather it is allowed for deduction u/s 80c or not. You can avail Rs.1,00,000 as tax benefit (Deduction from your income) u/s 80C. This benefit is available for you for one year only, that is for the year you have deposited.

Regarding the interest on the FD, there is no tax benefits at all. In addition, if your FD interest earns more than Rs.10,000 per year, then the bank will deduct TDS @10% on the interest paid or credited to your account in that year.

Answer 2

Now you have mixed two questions - one do you want to know about tax on Savings Bank Account or Fixed Deposit Account - second or you asking about TDS. The answers are that the interest earned on Savings Bank and Fixed Deposit is part of your income and will be subject to tax as per the rules in India. There is no deduction of tax at source on interest earned on Savings Bank Account. But in case of interest earned on Fixed Deposit is subject to TDS (Tax Deducted at Source) if the interest income is more than Rs.10000/- p.a. on all Fixed Deposit Receipts. I hope that this will clear all your doubts.

Answer 3

If you are asking about fixed deposits offered by banks, then the answer is "zero". FDs of scheduled commercial banks are not included as an allowable investment under Section 80 (C) and hence you will not be able to get any benefit out of it.

Under Section 80 (C), you can invest a total of Rs.100,000, which will be deductible from your taxable income. Investments under 80 (C) include those in Employees' Provident Fund (if you are a salaried employee), NSC, ELSS, Public Provident Fund, Life Insurance Premiums, etc.

Answer 4

For Tax exemption ou can deposit up to Rs. 1 Lakh in a year in specified Fixed Deposit. Not all Fixed Deposit scheme are eligible for Tax exemption.

You have other option also for tax exemption if you don't want to investment only in Fixed Deposit. You can Invest in LIC, PPF, Mutual Funds, NSC etc.

Answer 5

You can invest upto Rs. 1 Lakh to get benefit of I.Tax. It is better to invest in Mutual Funds, B'coz, the interest that you will earn from mutual Fund is totally exempted (If Long Term). If you invest in F.d. and you earn the Interest that will be taxable.

Answer 6

the maximum limit of exemption, including bank deposits, is rs 1 lakh

Answer 7

u can split the amount and deposit with adding your wife,daughter,son,father,mother name with your name

Answer 8

Hai,you can deposit up to 1 lac. that is the threshold limit to avail I.Tax excemption,but instead you can invest that money in Mutual Fund under E.L.S.S plans of any company.It will fetch you handsome appriciation.and also tax excemptions.

Call me at 098413 11253

Answer 9

i duno.
sorry

Answer 10

$5000