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Wednesday, September 12, 2012

SBI TAX SAVINGS SCHEME, 2006


SBI Tax savings scheme is a pure debt product and a tax savings fixed deposit scheme. This deposit scheme comes under tax exemption in the 80C.
The useful features of this financial product are :

1) If you are an individual or as a Hindu undivided family, having Income tax Permanent Account Number you can avail this financial product and claim tax exemption under 80C.

2) Minimum Deposit amount : Rs. 1,000/- or multiples thereof and Maximum Deposit Rs. 1,00,000/- in a year.

3) Tenure minimum: 5 years - Maximum: 10 years.

4) Rate of interest as published or reviewed by SBI time to time.

5) You can not encash this, before the specified term as the instrument is tax exempted under 80C.

The best part of this scheme is you can park lump sum amount in a safe place and enjoy tax benefit for invested amount. But this financial product attracts TDS which will ultimately affect your final return value. So, you need to submit 15G / 15H form before the tax assessment of that year. If you are a salaried person then there could be a chance that your income is above the minimal taxable income, and in that case you will be taxed the TDS. So, for those individual it is better to park the money into other safe debt product. We can discuss about them in later point of time.

1 comment:

  1. It was amazing scheme ! you have to publish the good information That is to much good ! Thank you so much

    ReplyDelete