Income Tax Return (ITR) filing: This State Bank of India scheme helps you save on taxes; gives 7.35 pct interest

Income Tax Return (ITR) filing: Income tax filing season is approaching fast and many people have already started their search for options to save taxes. With new regulations and surveillance mechanisms in place, which is backed by a crackdown against black money, evading taxes has become even more difficult than ever before. Therefore, all you can do to save on taxes is to adopt legal means to save your hard-earned money. The tax department has allowed people to claim exemptions under various sections. Many of these are under certain investments.

The State Bank of India also offers an investment tool that allows you to claim an exemption in tax. The investment attracts an interest of up to 7.35 per cent per annum. The plan is 'SBI Tax Savings Scheme'. Below are the details of the scheme:

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).

Minimum Deposit: Rs 1,000 or multiples thereof. Maximum Deposit: Not exceeding Rs 1,50,000 in a year.

Type of account: Term Deposit (TD) account / Special Term Deposit (STD) account.

Tenure: Minimum tenor is 5 years and a maximum is 10 years.

Looking for options to save on tax? The SBI Tax Saving Scheme will put an end to your search. For more information, visit https://t.co/LcZG08emkM #SBI #StateBankOfIndia #BankerToEveryIndian #StateBank #TaxSeason #TaxSavingSeason #TaxSaving #SBITaxSavingScheme2018 pic.twitter.com/c6WNFRdmAY

— State Bank of India (@TheOfficialSBI) December 10, 2018

Rate of Interest: Since the minimum tenure is five years, the rate of interest will be 6.85 per cent. However, it will be 7.35 per cent for Senior Citizens. The interest rate payable to the SBI Staff and the SBI pensioners will be 1.00% above the mentioned rate.

Premature withdrawal: No term deposit shall be encashed before the expiry of five years from the date of its receipt.

Loan facility: Not available. The TD/STD shall not be pledged to secure a loan or as security to any other asset.

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

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The tax department has widened its base in recent years. It has collected around Rs 6.75 trillion in direct taxes till November.