Be Familiar with Tax Saving Fixed Deposits in 5 Points
Tax Exemption
The interest earned from the tax saving FD is taxable and the interest will be added to your taxable income annually for the calculation of tax. The principal amount you invest in a tax saving FD is exempt from taxes and can be claimed as deduction under Section 80C while filing for returns. Tax Deduction at Source (TDS) is collected by banks at the end of every financial year and is usually 10 percent. TDS is also applicable if the interest paid exceeds 
10000 in a financial year.
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Financial Budget 2016 Speaks in Favor of Individual Taxpayers
