How to save income tax through SBI tax savings fixed deposit scheme

1 min read 02 Mar 2022, 12:55 PM IST Join us

Livemint

‘Grow your savings with SBI Tax Saving Term Deposits,’ the country's top lender tweeted via its official handle

An SBI Tax Savings Scheme account cannot be withdrawn before the expiry of five years from the date of its receipt. (Mint) — An SBI Tax Savings Scheme account cannot be withdrawn before the expiry of five years from the date of its receipt. **(Mint)**

When it comes to saving tax on their hard-earned money, everyone looks for options to avoid paying taxes. There are many tax-saving instruments available for the same. In order to save tax, you must choose a tax-saving scheme so that you can avail of the benefit while filing income tax returns. SBI Tax Savings Scheme, 2006 is one such investment option.

“Grow your savings with SBI Tax Saving Term Deposits," the country's top lender tweeted via its official handle.

SBI Tax Savings Scheme: Features, benefits and eligibility

Investment amount

The minimum deposit in an SBI Tax Savings Scheme, 2006, fixed deposit plan is ₹1,000 or multiples thereof whereas the maximum deposit should not exceed ₹1,50,000 in a year.

SBI Tax Savings Scheme tenure

For an account in the SBI Tax Savings Scheme, 2006, the minimum tenure is for five years which can go up to a maximum of 10 years.

SBI Tax Savings Scheme interest rate

The rate of interest for the SBI Tax Savings Scheme, 2006, is similar to that of fixed deposits. Recently, SBI hiked the interest rates on term deposits. SBI FDs maturing between5 years to 10 years will give 5.5% to general customers. These rates are effective from 15 February 2022.

SBI Tax Savings Scheme withdrawal and nomination rules

An SBI Tax Savings Scheme account cannot be withdrawn before the expiry of five years from the date of its receipt.

A nomination facility is also available with the scheme.

SBI Tax Savings Scheme benefits

Tax benefits under section 80C of Income Tax Act, 1961. TDS is applicable at a prevalent rate. Form 15G/15H can be submitted by the depositor to get exemption from Tax deduction as per Income Tax Rules.

SBI Tax Savings 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).

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

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!