SBI Tax Savings Scheme: 80C Income Tax benefit! Check features, eligibility and more

SBI Tax Savings Scheme offers tax benefits under section 80C of Income Tax Act, 1961.

SBI Tax Savings Scheme offers tax benefits under section 80C of Income Tax Act, 1961. Resident Indians, as an individual, can avail the benefits of this tax saving scheme by the largest lender of India, State Bank of India. Here are top features, benefits, eligibility and terms & conditions you should be aware about before investing in SBI Tax Savings Scheme:-

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

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Benefits

-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 And 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

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