SBI tax saving scheme: Big news! Save tax with SBI’s Savings Term Deposit Scheme, know- what is the method?

INCOME TAX SAVING SCHEME: SBI has come up with Income Tax Savings Scheme in which loan facility is not available during the lock in period of five years. The deposit cannot be encashed before the expiry of 5 years from the date of deposit, except in case of death of the depositor.

INCOME TAX SAVING SCHEME: State Bank of India (SBI) is introducing an income tax saving scheme. SBI customers can avail tax benefits under Section 80C of the Income Tax Act.

The public sector bank tweeted, “Take a smart step and save more with SBI Tax Saving Term Deposit. Save big with SBI Tax Saving Term Deposit under Section 80C of the Income Tax Act.

Income Tax Saving Scheme

• SBI customers need to open a Fixed Deposit (TD) account or a Special Fixed Deposit (STD) account.
• The minimum period of deposit is five years and maximum period of deposit is 10 years.
• The minimum deposit amount is Rs.1,000 and thereafter in multiples of Rs.100.
• The maximum deposit amount in a financial year is Rs 1.5 lakh.
• Tax Deducted at Source (TDS) is applicable at the prevailing rate.
• According to SBI, Form 15G/15H can be submitted by the depositor to get exemption from tax deduction as per Income Tax rules.
• Loan facility is not available during the lock in period of five years.
• The deposit cannot be encashed before the expiry of 5 years from the date of deposit, except in case of death of the depositor.
• If the account holder dies, the nominee or legal heir can withdraw the deposit at any time before or after maturity.
• If the first account holder dies in a joint account, the second holder is entitled to withdraw the deposit before its maturity.

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