As we approach the last quarter of the financial year, tax-saving strategies take center stage for many taxpayers. Section 80C of the Income Tax Act offers several popular investment options, including PPF (Public Provident Fund), EPF (Employee Provident Fund), life insurance, and ELSS (Equity Linked Savings Schemes). Among these, 5-year tax saver deposits is quite popular. But are they still an attractive choice in today’s financial environment? Let’s dive into the details.
What Are 5-Year Tax Saver Deposits?
A 5-year tax saver deposit is a fixed deposit scheme that qualifies for deductions under Section 80C. Taxpayers can invest up to ₹1.5 lakh annually and claim the amount as a deduction, thereby reducing their taxable income. While this may sound like a straightforward tax-saving tool, these deposits come with certain limitations and conditions.
The Strings Attached to 5-Year Tax Saver FD
Mandatory Lock-in Period:
One of the key conditions of 5-year tax saver deposits…
