IndusInd Bank Tax Saving FD

What is an IndusInd Bank Tax Saving FD?

IndusInd Bank Tax Saving FD is an investment plan designed to help investors save taxes while earning assured returns. The deposit amount may range from ₹10,000 to ₹10 lakh. But, investors can claim a deduction of up to ₹1.5 lakh in a financial year under Section 80C of the Income Tax Act. The bank offers interest rates of 6.65% for regular investors and 7.15% for senior citizens. These Tax Saving FDs have a mandatory 5-year lock-in period, during which premature withdrawals are not permitted. 

How Does an IndusInd Bank Tax Saving FD Work?

A Tax Saving FD IndusInd Bank offers a secure way to save taxes while earning fixed returns. Here's how it functions: 

• Open the FD: Apply online via IndusInd Bank’s web application, IndusMobile app, or IndusNet banking portal. 
• Deposit the Amount: Invest any amount starting from ₹10,000 to ₹10 lakh in a financial year. However, the tax deduction limit is ₹1.5 lakh as per Section 80C of the Income Tax Act. 
• Lock-in Period: The deposit is locked for 5 years; premature withdrawal is not allowed. 
• Interest Calculation: Interest is calculated on the deposit amount at the applicable fixed rate.
• Interest Payout: Choose to receive interest monthly, quarterly, half-yearly, yearly, or at maturity. 
• Maturity: At the end of 5 years, receive your deposit amount and accumulated interest.

IndusInd Bank Tax Saving FD Highlights

Here are the key highlights of the IndusInd Bank Tax Saver Fixed Deposit presented in a clear table for easy reference:

How to Open an IndusInd Bank Tax Saving FD

Opening a Tax Saving Fixed Deposit (FD) with IndusInd Bank is a straightforward process, available both online and offline. Here's a detailed guide for Tax Saving Fixed Deposit IndusInd Bank to help you through each step:

1. Online FD Booking

   IndusInd Bank provides a fully digital process for opening a Tax Saving FD, making it simple for both new and existing customers. Here are the steps to apply online:

   • Visit Digital Platforms: Go to the IndusInd Bank website, log in via IndusNet internet banking, or use the IndusMobile app.
   • Log In or Register: Existing customers can log in directly, while new customers need to register to begin the application.
   • Verify Identity: Enter your Aadhaar and PAN details. New customers or those investing above ₹90,000 must complete Video KYC.
   • Select FD Details: Choose the Tax Saver FD, enter your deposit amount (up to ₹1.5 lakh), and confirm the mandatory 5-year lock-in period.
   • Set Interest Payout Option: Decide whether you want interest credited monthly, quarterly, annually, or at maturity.
   • Fund & Confirm: Make the payment from your linked savings account. Once successful, you’ll get an FD receipt via email and SMS.

2. Offline FD Booking

   IndusInd Bank provides an offline application process for those who prefer in-person assistance at its branches. The following are the steps to apply offline:

   • Visit a Branch: Locate your nearest IndusInd Bank branch.
   • Obtain Application Form: Request the bank representative's Tax Saving FD application form.
   • Provide KYC Documents: Submit your Aadhaar card, PAN card, and proof of address for verification.
   • Fill Out the Form: Complete the application with accurate personal and FD details. 
   • Deposit Funds: Pay the investment amount via cheque, demand draft, or transfer from your savings account. 
   • Receive FD Receipt: Collect the FD receipt as proof of your investment after processing.

Who Should Consider IndusInd Bank Tax Saving FD?

IndusInd Bank Tax Saving FD is an attractive option for investors seeking to reduce their taxable income while ensuring capital safety. The following categories of customers may find this investment beneficial:

• Tax-Saving Investors: Depositors aiming to lower their taxable income can invest up to ₹1.5 lakh in a Tax Saving FD and claim deductions under Section 80C of the Income Tax Act, 1961. 
• Resident Individuals and HUFs: Only resident individuals and Hindu Undivided Families (HUFs) can invest in these FDs. 
• Risk-Averse Investors: Investors who prefer stable returns instead of market-linked options may find these FDs suitable.
• Long-Term Savers: Investors with a 5-year investment horizon can leverage the mandatory lock-in period to meet long-term financial goals. 

TDS on IndusInd Bank Tax Saving FD

IndusInd Bank Tax Saving FD offers tax benefits under Section 80C of the Income Tax Act, allowing investors to claim deductions up to ₹1.5 lakh. However, interest earned on these FDs is subject to Tax Deducted at Source (TDS). It applies to individuals below 60 years old if the total interest income exceeds ₹50,000 in a financial year. 

For senior citizens aged 60 years and above, the exemption limit is ₹1,00,000. If a customer’s total income is below the taxable limit, they can submit Form 15G and Form 15H (for senior citizens) to the bank, declaring that their income is below the taxable threshold. This will help in avoiding TDS deductions on your FD interest. Ensure that your PAN details are updated with the bank to facilitate proper TDS processing.

Key Takeaways

IndusInd Bank Tax Saver FD offers a secure investment avenue with dual benefits of tax savings and guaranteed returns. Under Section 80C of the Income Tax Act, investors can claim a deduction of up to ₹1.5 lakh per financial year, reducing their taxable income. The 5-year lock-in period encourages regular saving, and the interest earned is taxed according to the investor’s income tax slab. Regular citizens may get rate of interest of tax-saving FD at 6.65% and 7.15% per annum for senior citizens. Investors can choose from various interest payout options, including monthly, quarterly, half-yearly, yearly, or at maturity, providing flexibility to meet individual financial needs.