Interest from Fixed Deposits is entitled to a tax deduction and it will be deducted according to the type of tax slab rate that investors fall under. For regular customers, if the interest obtained is higher than Rs. 10 and in the case of senior citizens, if it is higher than Rs. 50 then the banks and other non-banking firms would subtract TDS. Just look at the below table to know the revenue tax slabs for the 2020-21 fiscal year.

Documents required to open a tax-saving fixed deposit account:

To open a tax-saving FD account for both general public and senior citizens, the following documents are essential:

Voter ID Card
PAN Card
Aadhar Card
Ration Card
Passport
Passport size photographs
Age proof (for senior citizens)
Government-recognised address proof

Benefits of tax-saving fixed deposit:

Exemptions from applicable tax under section 80C of the IT Act, 1961
The tax deduction is applicable to a maximum amount of Rs 1.50 lakh per fiscal year
Premature withdrawal facility after 5 year lock-in period.
Senior citizens can get high-interest rates up to 0.50 per cent.

Look at the table and know tax saving FD rates: