ITR Filing: Here’s How to Save Income Tax With This Scheme | Personal finance news
New Delhi: Every year when it comes time to file tax returns, many look for methods to save money on their income taxes. With so many tax-saving investment vehicles on the market, individuals should choose a plan carefully to maximize their savings.
The SBI Tax Savings Scheme, 2006 is one such scheme offered by the country’s largest public lender, the State Bank of India. The plan has a minimum duration of 5 years and a maximum duration of 10 years.
The investor must make a minimum investment of Rs 1,000 or multiples thereof under this program. In one year, the maximum deposit should not exceed Rs 1,50,000.
Interest rate offered by SBI Tax Savings Scheme
The interest rate for the SBI Tax Savings Scheme, 2006 is the same as that for term deposits. According to the most recent rates, as of February 15, SBI FDs maturing between 5 and 10 years would yield 5.5% for regular consumers.
SBI Tax Savings Scheme Withdrawal and Appointment Rules
The account cannot be withdrawn before the required 5-year duration of the plan. Applicants can also nominate themselves under the system.
Section 80C of the Income Tax Act 1961 provides tax relief.
The TDS is charged at a standard rate.
The filer may submit Form 15G/15H to obtain an exemption from tax deduction under the income tax rules.
Any ethnic Indian can open an account for himself as an individual or as Karta of the Hindu undivided family. They must have a current Permanent Account Number (PAN).
The joint account must be open to two people or an adult and a minor.