SBI's Tax Savings Scheme offers tax benefits of up to Rs.
1.5 lakh under Section 80C of Income Tax Act.State Bank of India (SBI) offers a type of fixed deposit or term deposit scheme called SBI Tax Savings Scheme, 2006.
Resident Indians as an individual or in capacity of Karta of Hindu Undivided Family, are eligible to avail benefits of this scheme, said country's largest bank on its website, sbi.co.in.
One also needs to have income tax Permanent Account Number (PAN), said bank.
SBI's Tax Savings Scheme offers tax benefits of up to Rs.
1.5 lakh under Section 80C of Income Tax Act.Here are 5things you need to know about SBI's Tax Savings Scheme, 2006:1.
Amount: Customers need to deposit a minimum of Rs.
1,000 or in multiples thereof whereas maximum deposit should not exceed Rs.
1,50,000 in a year.2.
Tenure: The minimum tenure for SBI Tax Savings Scheme, 2006, is five years which can go up to a maximum of 10 years, according toSBI.3.
Rate of Interest: The rate of interest for savings scheme is similar to that on term deposits.
The interest rates for retail domestic term deposits below Rs.
1 crore is 6.85 per cent for general public and 7.35 per cent for senior citizens in maturity period of 5 years and up to 10 years.4.
Premature withdrawal: Customers cannot withdraw term deposit before expiry of five years from date of its receipt, said SBI.5.
Other facilities: A nomination facility is also available with SBI's Tax Savings Scheme.
However, customers investing in scheme cannot use term deposit account to secure loan or as security to any other asset.