INSUBCONTINENT EXCLUSIVE:
Under SBI tax savings scheme, customers need to deposit a minimum of Rs 1,000.State Bank of India (SBI), country's largest lender, has
urged customers to invest in tax saving schemes to lower their tax burden
"Evaluate your financial goals to invest in tax saving instruments accordingly, to save taxes," said SBI on microblogging website - Twitter
SBI's tax savings scheme 2006, a type of fixed deposit (FD) scheme, offers tax benefits of up to Rs 1.5 lakh under Section 80C of Income
Tax Act, according to SBI's website- sbi.co.in
Fixed deposits or FDs are secure financial instruments which fetch guaranteed returns.EligibilityResident Indians as an individual or in the
capacity of the 'Karta of the Hindu Undivided Family', are eligible to avail the benefits of this scheme, according to SBI's
website.Minimum/Maximum DepositUnder SBI tax savings scheme, customers are allowed to deposit a minimum of Rs 1,000 or in multiples thereof
whereas the maximum deposit should not exceed Rs
1,50,000 in a year.TenureThe minimum tenure for SBI Tax Savings Scheme, 2006, is five years which can go up to a maximum of 10 years,
according to the lender.Interest RatesThe interest rates for the SBI tax savings scheme are similar to that of fixed deposits
citizens in maturity period of 5 years and up to 10 years.Premature withdrawalNo deposit can be encashed before the expiry of five years
from the date of its receipt under SBI tax savings scheme.
