Yes, you can claim tax benefits on a 5-year fixed deposit (FD) under Section 80C of the Income Tax Act in India. Fixed deposits with a maturity of 5 years or more are considered long-term deposits and are eligible for tax benefits under Section 80C.

Section 80C allows an individual to claim a deduction of up to INR 1.5 lakhs per financial year for various specified investments and expenditures, including fixed deposits. The investment in the 5-year FD must be made in the name of the taxpayer or his/her spouse or children to be eligible for tax benefits.

It’s important to note that the interest earned on a fixed deposit is fully taxable as per the tax slab rate applicable to the individual. However, the investment made in a 5-year FD is eligible for tax benefits under Section 80C, which can help reduce your taxable income and ultimately lower your tax liability.

It’s advisable to consult with a tax professional to determine the best course of action for your specific situation and to ensure that you claim the maximum tax benefits that you’re entitled to.