• Canara Tax Saver Scheme

    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.

    Eligibility criteria for Canara Tax Saver Scheme

    The account is available as both individual account and joint account.

    • Individual account: An individual or a Karta of a Hindu Undivided Family (HUF)
    • Joint Account: Two adults or a guardian and a minor, with proceeds payable to either of holders or any survivor.

    Features of Canara Tax Saver Scheme

    Account Type Single/Joint/HUF
    Amount Min - Rs.10. Subsequent deposits in multiples of Rs.100. Max – Rs.1.5 lakhs
    Rate of Interest

    5.50% p.a. (general public)

    6.00% 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

    Canara Tax Saver Scheme interest rates

    The scheme offers a competitive rate of interest of 5.50% 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 (5.41% for general public and 5.93% for senior citizens).

    Canara Tax Saver Scheme FAQs

    1. What are the guidelines for premature withdrawal?

      Premature withdrawal is not allowed on deposits under this scheme.

    2. How will the interest be calculated on my deposits?

      Your interest will be paid out on monthly (discounted) or quarterly basis on fixed deposits. Quarterly compounding will be done on Kamadhenu Deposits.

    3. What are the tax benefits associated with 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.

    4. Do I have to pay tax on income through interests from the fixed deposit?

      Yes, TDS will be applicable on the accrued interests on these deposits, however the principal is tax free.

    5. What are the documents I need to submit to avail this scheme?

      You need to submit the following when applying for the Canara Tax Saver Scheme:

      • Application form
      • Copy of PAN card
      • Photograph
      • Identity and address proof as per KYC norms
      • Related documents for an HUF account

    Useful Information on Canara Bank Fixed Deposit

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