SBI Tax Saving Tips : Tax Savings Scheme SBI Know the benefits in detail, see the details here Taxpayers continue to look for ways to avoid taxing their income. With so many tax-saving investment tools on the market today, it is difficult for investors to choose the plan that will save them the most.
One of those plans is that of the country’s largest public bank, the State Bank of India (SBI). We are talking about SBI Tax Savings Scheme 2006. The minimum term of this scheme is 5 years and the maximum term is 10 years.
income tax savings scheme
- SBI customers are required to open a Fixed Deposit (TD) account or a Special Fixed Deposit (STD) account.
- The minimum term of the deposit (SBI Fiscale Spaartips) is five years and the maximum term of the deposit is 10 years.
- The minimum deposit is Rs 1,000 and then multiplied by Rs 100.
- The maximum deposit in a financial year is Rs 1.5 lakh.
- Tax Deducted at Source (TDS) will apply at the prevailing rate.
- According to SBI, Form 15G/15H can be filed by the depositor to take advantage of tax deductions under income tax rules.
- The loan facility will not be available during the five-year lock-in period.
- The deposit cannot be collected before the expiry of 5 years from the date of deposit, except in the event of the death of the depositor.
- If the account holder dies, the nominee or legal heir may withdraw the deposit at any time before or after the due date.
- If the first account holder in a joint account dies, the second holder has the right to withdraw the deposit before its expiration.
This is a good thing, and that’s where it should end
Under this scheme, the investor is required to deposit a minimum of Rs 1,000 or more. The maximum deposit that cannot be made in a year is more than Rs 1,50,000.
Tax saving is done by Fixed Deposit (SBI Tax Saving Tips)
SBI Tax Savings Scheme 2006 is in fact a Tax Saving Term Account / Special Term Deposit. This account can be invested for a minimum period of 5 years and a maximum term of 10 years. The account can be opened at any SBI branch. A fixed deposit account can be opened under SBI Tax Saving Scheme with a minimum of Rs 1000. The maximum deposit is Rs 1.50 lakh per annum.
Key Features of SBI’s Tax Saving Term Deposit –
- By investing in SBI’s Tax-Saving Term Deposit Scheme, you will get a tax exemption of Rs 1.5 lakh under Section 80C of the Income Tax Act.
- You can open two types of accounts under this scheme. One is a fixed deposit account and the other is a special fixed deposit account.
- You can invest for a minimum term of 5 years and a maximum term of 10 years.
- You can use this scheme in any branch of SBI.
- You can spend a minimum of Rs 1,000 per year and a maximum of Rs 1.5 lakh in a financial year.
- Once invested, you will not be able to withdraw for five years
- The nominee can only receive the invested amount in the event of the death of the account holder.
- Please note that you will not receive a loan facility during the five-year lock-in period.
Which facilities are there, which are not?
Nomination, account transfer facility is available in any branch of the bank under SBI Tax Saving Scheme. There is no loan facility during the lock-in period of 5 years on the Fixed Deposits opened under the scheme. Also, the deposit cannot be repaid before the expiry of the 5-year fixed deposit, although this can be done in the event of the depositor’s death. After the expiry of 5 years, the account may be closed before the maturity date according to the conditions applicable to the Fixed Deposit.
General terms and conditions for investing in SBI Tax Saving FD
According to the official website of SBI, any Indian citizen who has a permanent account number i.e. PAN card can invest in SBI Tax Savings FD either for themselves or as a Hindu Undivided Family Karta. The minimum deposit amount under this scheme is Rs 1,000.
Thereafter, each investor can deposit up to a maximum of Rs 150,000 per annum in multiples of 100. Under this scheme, the investor can invest for a minimum of 5 years and a maximum of 10 years. The investor gets an interest rate of 5.5 percent, while if he is a senior, the interest rate is 6.3 percent. Please note: pursuant to the 80C Income Tax Act, the payment falls under the SBI savings scheme.
What are the rules in the event of the death of the account holder?
In the event of the account holder’s death, the nominee/legal heir may withdraw the deposit at any time before or after the term expires. In the event of the death of the first account holder, the second account holder can withdraw the amount from the joint account before the due date. Over the period that this amount is deposited with the bank, the bank pays interest at the interest rate applicable for that period and no penalty is levied.