How to save Income Tax through SBI Tax Saving Scheme - EXPLAINED

Who doesn't want to save Income Tax! But, in order to save our hard-earned money, we must choose tax-saving scheme wisely so that we can get benefit while filing income tax returns. SBI TAX SAVINGS SCHEME, 2006 is one such scheme. Here are details of the features, benefits, eligibility and terms & conditions of SBI TAX SAVINGS SCHEME, 2006:-

 FEATURES

Type of Account : Term Deposit (TD) account / Special Term Deposit (STD) account.
 
Minimum period of deposit – 5 Years
 
Maximum period of deposit - 10 Years 

Available at all branches (except specialized credit intensive branches) all over India. 

Minimum deposit amount Rs. 1,000/- and in multiples of Rs. 100/- thereafter.

Maximum deposit amount not exceeding Rs. 1,50,000/- in a year 

Rate of interest as applicable to Term Deposits 

The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate. 

The rate applicable to all Senior Citizens of age 60 years and above will be 0.50% above the applicable rate. 

Payment of interest as applicable to Term Deposit/ Special Term Deposit 

TDS is applicable at prevalent rate. Form 15G/H can be submitted by the depositor to get exemption from Tax deduction as Income Tax Rules. 

Nomination available 

Loan facility not available during the lock in period of five years. After five years as per the extant instruction of Term Deposit (TD)/ Special Term Deposit (STD) 

Transferability among our branches Allowed 

BENEFIT:-

Tax benefits under section 80C of Income Tax Act, 1961.

ELIGIBILITY

Resident Indians for himself/ herself as an individual or in the capacity of the Karta of the Hindu undivided family, having Income Tax Permanent Account Number (PAN). 

The joint account shall be issued jointly to two adults or to an adult and a minor.

TERMS & CONDITIONS 

No term deposit shall be encashed before the expiry of lock in period of five years from the date of its receipt.

After completion of 5 years, premature closure will be allowed as per terms and conditions applicable to Term Deposit. 

In case of death of account holder, the nominee/legal heirs can withdraw the deposit any time before or after maturity. 

In case of death of first account holder in joint account, the other holder is entitled to withdraw the deposit before its maturity. The Bank shall pay interest at the rate applicable for the period deposit has run without any penalty 

HOW TO APPLY: 

To apply for SBI TAX SAVINGS SCHEME, 2006, please visit this link:

 https://www.sbi.co.in/web/personal-banking/investments-deposits/deposits...

 In conclusion, before applying be sure you run through the checklist properly and see what benefits are accruing to you.