• Notification Date: 03-03-2022
• Notification No: N/A

Save Income Tax through SBI Fixed Deposit Scheme

SBI Tax Savings Scheme, 2006 offers some extremely beneficial investment options under which an individual can save the maximum amount of tax payment. Under this scheme, the minimum amount of deposit is Rs.1,000 or multiples of Rs.1,000. The maximum limit of the deposit is Rs.1,50,000 in a year.

The minimum period of depositing funds under the SBI Savings Scheme is five years. The maximum tenure for making the fixed deposit is ten years.

The rate of interest under the SBI Tax Savings Scheme, 2006 is similar to that available from the fixed deposits. The rate of interest is enhanced by SBI on term deposits. The rate of interest is 5.5 per cent offered to general customers on the SBI Fixed Deposits that are maturing from 5 to 10 years. The rates of interest are going to be effective from 15 February 2022. 

The fixed deposit cannot be withdrawn before the five-year tenure of maturing expires from the date of its receipt. The individuals are offered the facility of choosing a nominee under this scheme.

Under Section 80C of the Income Tax Act, 1961, TDS is applicable at a particular rate. The depositor may submit Form 15G/15H to claim the Tax deduction exemption as per the Income Tax Rules.

The individual is required to be an Indian Resident for themselves or has to be in the capacity of the Karta of the Hindu undivided family for being eligible to deposit in the SBI Tax Savings Scheme. They also need to have an Income Tax Permanent Account Number (PAN).   

The joint account held by two adults, or an adult and a minor, shall be issued to them.