Fd in sbi

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Tanvi

Tanvi (Querist)
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22 December 2011 Is FD in SBI deductible u/s 80C?? what is its lock in period and whether its interest is taxable?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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22 December 2011 FD in SBI is Deductible u/s 80C, If Invested for 5 Years or More.
and Interest is taxable Under O/S.
Treat Normal Income, TDS Deducted @10%.

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Tanvi

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22 December 2011 What is the interest rate on this?

CA Manish Sukhani

CA Manish Sukhani (Expert)
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22 December 2011 TDS not deductible if form 15G/15H (as the case may be)submitted to the banker.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 December 2011 Yes. But it should be 5 year Tax Saving Fixed Deposit. Lock-in-Period is 5 years. Interest income will be taxable.

CA Manish Sukhani

CA Manish Sukhani (Expert)
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22 December 2011 If u r talking about Interest rate on FD,it may very from bank to bank, which is based on their strategic decision.

Tanvi

Tanvi (Querist)
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22 December 2011 Ok thanks a lot

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 December 2011 Tax Saving Fixed Deposit u/s 80C:

W.e.f. Asst. Year 2007-08 investment in term deposit for a fix period of 5 years with a scheduled bank qualifies for deduction u/s 80C. Individual/ HUF are eligible for this investment. Following are the key points regarding the tax saving fixed deposit u/s section 80C:

1)It has the lock-in period of 5 years. depositing under this scheme, you will not be able to take the money before five years.
2)The interest rates for this scheme will be vary for each bank.
3)Tax savings fixed deposit is available only through banks. You can not open it with company fixed deposit product.
4)Minimum of 100 is deposited.
Maximum of 100000 is exempted u/s 80c for one financial year.
5)If you are depositing in this scheme, there will not be many other benefits which is allowed for the normal fixed deposit
* No Partial/Premature withdrawal allowed.
* Sweep-in not allowed.
* No Over Draft facility allowed.
6)If you have the joint account, the deductions u/s 80c will be allowed only for the first account holder.
7)The interest income for this fixed deposit is taxable.

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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22 December 2011 For Rate on FD, You have to Enquire in Bank, Since Each Bank Have Their Own Rate, Which May Differ .5%-1% Comparing to Other Bank.
& If You dont Wanna to Go Bank & Ask, U Just Visit Bank WebSite Also, There U Find rates Also.
If U Hav Net Banking Then U Can Do FDR, Online Too. Without Visiting Bank Branch.

Tanvi

Tanvi (Querist)
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22 December 2011 so FD is better or NSC?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 December 2011 NSC Lock-in-Period reduced to 5 years. rate of Interest raised to 8.40%

FD also has Lock-in-Period of 5 Years.

Interest earned on both are taxable. So if Bank offers more than 8.40% interest it will be better to invest in FD.

You can also get an idea about the interest rates on FD from below link by filling the required details---

https://www.apnapaisa.com/investment/fixed-deposit/rates.html

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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22 December 2011 I Think Best Option is NSC if Doing FD for 5 Years Lock in Period.
Since Interest on NSC is Indirectly Not Taxable.Its Allowed as Deduction u/s 80C.
Best to go With NSC. Instead of Doin Tax saving FDR for 5 Years.

Tanvi

Tanvi (Querist)
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22 December 2011 OK....Thanx a lot of you.....Every answer was helpful

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