This is a term deposit scheme available under the general fixed deposit scheme as well as the Kamadhenu Deposit scheme.
The plan is ideal for professionals, businessmen and salaried people who are active tax payers and hope to benefit on the income tax front through tax saver fixed deposits.
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The account is available as both individual account and joint account.
Account Type | Single/Joint/HUF |
Amount | Min - Rs.10. Subsequent deposits in multiples of Rs.100. Max - Rs.1.5 lakhs |
Rate of Interest | 6.70% p.a. (general public) |
Period/Tenure | 5 years fixed |
TDS | TDS applicable as per regulations from the Income Tax department. |
Loan against Canara Tax Saver Scheme | Loans are not granted against this account |
Nomination | Nomination facility available for all accounts except for those held on behalf of a minor |
Auto Renewal | Info unavailable |
The scheme offers a competitive rate of interest of 6.70% p.a. for the general public compounded monthly or quarterly for deposits under the general fixed deposit scheme. This interest will be compounded quarterly for those under the Kamadhenu Deposit scheme.
You may be required to submit the following documents while opening the account:
Identity proof:
Address proof
Along with the above-mentioned documents, you may be required to submit two passport-sized photographs.
Premature withdrawal is not allowed on deposits under this scheme.
Tax deductions up to Rs.1.5 lakhs per year can be claimed under the Section 80C of the Income Tax Act, 1961. In essence, all deposits made under this scheme are liable for tax deductions as the maximum limit on deposits is Rs.1.5 lakhs.
Your interest will be paid out on monthly (discounted) or quarterly basis on fixed deposits. Quarterly compounding will be done on Kamadhenu Deposits.
Yes, TDS will be applicable on the accrued interests on these deposits, however the principal is tax free.
You need to submit the following when applying for the Canara Tax Saver Scheme:
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
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