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Income Tax Saving Scheme: SBI Provides Tax Saving Term Deposits | Highlights

The State Bank of India (SBI) is promoting a tax-saving plan. Customers of SBI are eligible for tax breaks under Section 80C of the Income Tax Act.

Make a wise decision and save more money with SBI Tax Saving Term Deposits. SBI’s tax-saving term deposits under Section 80C of the Income Tax Act will help you save a lot of money, according to a tweet from the public sector bank.

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INCOME TAX SAVINGS PLAN

  • Customers of SBI must open a Term Deposit (TD) or a Special Term Deposit (STD) account.
  • The minimum deposit time is five years, while the maximum deposit period is ten years.
  • The minimum deposit is Rs 1,000, and subsequent deposits are in multiples of Rs 100.
  • In a fiscal year, the maximum deposit amount is Rs 1.5 lakh.
  • TDS (Tax Deducted at Source) is levied at the current rate. According to SBI, Form 15G/15H can be submitted by the depositor to obtain an exemption from tax deduction under Income Tax Rules.
  • During the five-year lock-in term, no borrowing facility is available.
  • Except in the case of the depositor’s death, deposits cannot be encashed before 5 years have passed from the date of deposit.
  • If the account holder dies, the deposit can be withdrawn by the nominee or legal heirs at any point before or after maturity.
  • If the first account holder in a joint account dies, the other account holder has the right to withdraw the deposit before it matures.

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