Know-How Sukanya Samriddhi Yojana, PPF, and FD income are taxed?

Good Investment

FD Income: Even in today’s time, there are a large number of people who want to invest the money in a place where the returns are guaranteed. Such people like to take less risk. Such people tend towards schemes like Bank FD, Public Provident Fund, Sukanya Samriddhi Yojana. But all these schemes come under the tax net even after getting exemption under 80C. Let us know which schemes do not get the exemption available at three different levels. 

What is EEE Status 

EEE stands for exempt, exempt, exempt. When you invest, you get an exemption under 80C. The second exemption means paying no tax on the returns earned during the course of your savings. The third and final exemption means that even when the money is withdrawn, the amount is fully tax-free. EEE status is generally available on long-term investment. 

Also, Read This: Attention Bank Customers RBI Changed These Rules Related to FD, Check details Here

How is Bank FD Income (Fixed Deposit) taxed? 

Bank FDs are fully taxed. TDS is levied at the rate of 10% on the interest earned from bank FDs. 

PPF (Public Provident Fund) 

Under Section 80C of the Income Tax Act, you can claim tax exemption on investments up to Rs 1.5 lakh. The maturity of the PPF account is 15 years, but it can be extended for another 5 years. 

Also, Read This: LIC Saral Pension Plan: Get Rs 12000 Per Month by Paying Premium Once, You will Get These Benefits

Sukanya Samriddhi Yojana Investment 

Like PPF, Sukanya Samriddhi Yojana is also tax free. This is also EEE i.e. tax exemption is available at three different levels. The investment made in this scheme is eligible for exemption under 80C. 

Bank fixed deposit rates 

Bank FD is considered a safe investment. The top banks of the country are giving returns ranging from 5.4% to 5.5%. At the same time, interest in SBI FD ranges from 2.9% to 5.4%. FDs are still very popular among people because of their returns. 

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