Tax Exemption tricks
This query is : Open
Pranil Sarode
(Querist)
13 April 2021
Hi,
I want to know how to get tax exemption in salary if we create a FD. It has lockin for 5 years and will I get tax exemption if I break it before 5 years. Also please suggest some ways to save tax.
Thanks in advance
I want to know how to get tax exemption in salary if we create a FD. It has lockin for 5 years and will I get tax exemption if I break it before 5 years. Also please suggest some ways to save tax.
Thanks in advance
CMA Poornima Madhava
(Expert)
13 April 2021
I think premature withdrawals are not allowed in case of tax saving FDs. Further, interest income on such FDs will be taxable. Other tax saving options would include PPF, ELSS, NPF, NSC etc
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