The budget-2012 may bring good news for the people who prefer to invest under fixed deposit schemes. The government is considering making investment under fixed deposit scheme a lucrative option.
At present, interest earned with fixed deposits comes under taxable income. The banks want to lower the duration of lock-in period for fixed deposits upto Rs. 1 lac, which falls under tax deductions from 5 years to 3 years.
The Deputy Chief Executive Officer of Indian Banks' Association, K. Unnikrishnan said, "This will bring it on par with a similar deduction available for equitylinked savings products where lock-in is only three years."