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 deposits.
The account is available as both individual account and joint account.
|Amount||Min - Rs.100. Subsequent deposits in multiples of Rs.100. Max – Rs.1.5 lakhs|
|Rate of Interest||7.50% p.a. (fixed)|
|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 7.50% p.a. compounded monthly or quarterly for deposits under the general fixed deposit scheme and compounded quarterly for those under the Kamadhenu Deposit scheme. The interest rates are applicable as on December, 2015 and may change in the future so you are advised to check with the branch before making deposits.
Premature withdrawal is not allowed on deposits under this scheme.
Your interest will be paid out on monthly (discounted) or quarterly basis on fixed deposits. Quarterly compounding will be done on Kamadhenu Deposits.
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.
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:
Useful Information on Canara Bank Fixed Deposit