1 min read.Updated: 12 Jan 2019, 11:55 AM ISTLivemint
An investor can claim deduction up to ₹1.5 lakh by investing in tax-saving fixed deposits
New Delhi: Tax-saving fixed deposits (FDs) are among the savings options that offer income tax benefits under Section 80C . Normally, tax saver deposits are of two types— ‘Single holder type deposits’ and ‘Joint holder type deposits’. In case of a joint account, tax benefit will be availed by first holder of the deposit as per the Income Tax Act, 1961. An investor can claim deduction up to ₹ 1.5 lakh by investing in tax-saving FDs. To save tax, many prefer this investment as they are considered to be less risky compared to equities.