There are now less than ten days remaining to invest in tax-saving opportunities for the 2023–2024 fiscal year. You should begin tax savings planning as soon as feasible, if you haven't already, for the fiscal year 2023–2024.
The National Savings Certificate (NSC) program offered by the post office should be your first consideration if you intend to obtain a tax-saving 5-year FD for individuals who are exempt from paying taxes. This scheme pays interest at a rate of 7.7% per year.
In this case, you gain from a tax exemption.
Section 80C of the Income Tax Act allows you to claim a tax exemption on any money you invest in a National Savings Certificate. By making an investment in NSC of up to Rs 1.5 lakh throughout a financial year, you can benefit from tax relief.
Children can also open accounts under their names.
Accounts can be opened under this plan in the names of minors as well. The parents may open the account in their child's name if he is younger than ten years old. When the child is ten years old, he can manage his own account, but when he becomes an adult, he is fully responsible for the account.
In addition, an individual who is eighteen years old may invest in NSC on their own behalf or on behalf of a juvenile. It is also possible to open this account in the names of three people jointly.
This is locked in for a duration of five years.
You will need to wait five years in order to withdraw your investment. This is locked in for a duration of five years. In other words, you won't be able to take money out before five years.
Before making an investment, keep these items in mind.
Investing in this scheme will not allow you to take out the interest you get on it on an as-needed basis during the maturity period.
This has a five-year lock-in term, meaning you can't take money out for sixty months. For this reason, anybody looking to invest for a year or two should not consider this strategy.
For a five-year FD, SBI is offering 6.50% interest.
Currently, SBI, the biggest bank in the nation, offers a lower annual interest rate of 6.50% on five-year fixed deposit accounts (FDs) than what is offered by NSC. Punjab National Bank (PNB) is also offering 6.50% yearly interest on 5-year fixed-rate deposits at the same time.
On a five-year FD, the tax exemption benefit is also accessible. You can deduct Rs 1.5 lakh from your total income under Section 80C of the Income Tax Act. To put it simply, Section 80C allows you to deduct up to Rs 1.5 lakh from your total taxable income.
