When it comes to saving tax on your hard earned money, everyone looks for options to avoid paying tax. There are many Tax Saving Instruments available for this. To save tax, you need to choose a tax saving scheme. So that you can take advantage of it while filing Income Tax Return. SBI Tax Saving Scheme, 2006 is one such investment option. SBI, the country’s largest lender, has tweeted through its official Twitter handle, saying, “Grow your savings with SBI Tax Saving Term Deposit.” Let us also tell you what are the features of SBI Tax Saving Fixed Deposit Scheme. What are the benefits of the scheme, as well as what are the eligibility for this scheme.
SBI Tax Savings Scheme, 2006, Fixed Deposit Scheme The minimum deposit amount is 1000 or multiples thereof while the maximum deposit should not exceed Rs 1,50,000 in a year.
SBI Tax Savings Scheme Tenure
In SBI Tax Saving Scheme, 2006 for an account, the minimum tenure is for five years which can go up to a maximum of 10 years.
SBI Tax Savings Scheme Interest Rate
The interest rate for SBI Tax Saving Scheme, 2006 is same as that of Fixed Deposit. Recently SBI had increased the interest rates on term deposits. Maturity between 5 years to 10 years will give 5.5 per cent to the general customers. These rates are effective from 15 February 2022.
SBI Tax Saving Scheme Withdrawal and Nomination Rules
SBI Tax Savings Scheme account cannot be withdrawn before the expiry of five years from the date of its receipt. Nomination facility is also available with the scheme.
Benefits of SBI Tax Savings Scheme
Tax benefits are available under section 80C of the Income Tax Act, 1961. TDS is applicable at the prevailing rate. Form 15T/15॥ by the depositor for exemption from tax deduction as per Income Tax Rules can be deposited.