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Axis Bank Tax Saving FD

Home Fixed Deposit Axis Bank FD Interest Rates Axis Bank Tax Saving Fixed Deposit

Axis Bank offers Tax Saver FD Scheme at an interest rate of 7.00% p.a. for regular citizens and 7.75% p.a. for senior citizens for 5 years tenure. Depositors can claim tax deductions of up to Rs 1.5 lakh from taxable income through an Axis Bank tax saver FD under Section 80C of the Income Tax Act, in a financial year.

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Updated: 09-07-2024 10:45:09 AM

Axis Bank Tax Saving FD Highlights

Interest Rate 7.75% p.a. for senior citizens; 7.00% p.a. for others 
Deposit Amount Rs 100 to Rs 1.5 lakh in a financial year
Tenure 5 years
Interest Payable Options Quarterly, Monthly, At Maturity (Re-investment/Quarterly Compounding)
Premature Withdrawal Not allowed
Loan Against FD Facility Not available
Auto Renewal Facility Not available
Nomination Facility Available

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Axis Bank Tax Saving FD

  • Interest Rates for Senior Citizens – 7.75% p.a.
  • Interest Rates for Others – 7.00% p.a.
  • Applicable Tenure – 5 years

Features of Axis Tax Saving FD

  • Deposit amount – Minimum: Rs. 100; Maximum – Rs. 1.5 lakhs in a financial year
  • As with any other tax saver fixed deposit schemes, Axis Tax Saver FD comes with a lock in period of 5 years, i.e., premature withdraw facility is not available unlike regular FDs.
  • Depositors have an option to open Axis Bank tax-saver FD with a quarterly and monthly pay-out option. The scheme also offers reinvestment of investment scheme/quarterly compounding, wherein the fixed deposit interest component is reinvested to the principal amount.
  • Additional interest rates of 0.75% p.a. is offered to senior citizen FD depositors, over and above the regular FD interest rates.
  • In the case of joint deposits, tax deduction benefit is only available to first account holder of the FD account

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Axis Tax Saving FD Eligibility Criteria

  • Resident Individuals, or
  • Hindu Undivided Family

How To Open Axis Tax Saving FD

Individuals can open tax saver FD either through mobile banking, internet banking, or by visiting nearest Axis Bank branch.

Existing customers can open a tax saver fixed deposit through Axis Bank Internet Banking by following these steps:

  1. Log in to the Axis Bank Internet Banking portal.
  2. Tap the FD section and select the tax-saving FD option.
  3. Fill in the necessary account and nomination information.
  4. Enter the amount to be invested in the Tax Saver Deposit.
  5. Funds will be debited on confirmation from the customer’s savings account. A fixed deposit account will be opened right away.

An e-advice will be mailed to depositor’s email address. Physical advice will be dispatched to the depositor’s communication address. After one working day of FD booking, the Tax Saver Fixed Deposit advice will be reflected in Internet Banking.

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Axis Bank Tax Saving FD Calculation

You can use the FD Calculator to know the maturity amount and FD interest income. You just need to enter the principal amount, tenure and applicable Axis Bank FD interest rates

Tax Deduction on Axis Tax Saver FDs

According to Section 80C of the Income Tax Act, only the principal amount of the deposit qualifies for tax deduction of up to Rs 1.5 lakhs. The interest income from FD is taxable as per the depositor’s tax slab under head “Income from other sources” in the IT return.

According to the Section 80TTB of the Income Tax Act, senior citizens (aged 60 years and above) can claim tax deduction of up to Rs 50,000 on the fixed deposit interest income of deposits (including FD). Here, the term ‘deposits’ refers to the deposit accounts opened with post office, banks and cooperative societies engaged in the business of banking.

TDS on Axis Tax Saver Fixed Deposits

TDS is deducted when the interest income exceeds Rs. 40,000 (Rs. 50,000 for senior citizens). TDS @ 10% is charged by banks on the FD interest amount in a financial year. However, if PAN details are not provided, TDS @ 20% will be levied on the interest income.

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Documents Required For Opening Tax Saving FD

Depositors need to submit any one of the following documents to open tax saver FD in Axis Bank:

  • Passport/Driving Licence
  • An introduction by an Axis Bank Savings Account holder for the last 6 months or an introduction by any other bank
  • A photograph
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