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Paying tax is the responsibility of every eligible citizen of India and while it may seem like an additional financial burden, it is essential for the overall growth of the country. Tax saving instruments are extremely popular investment options for a majority of the working community and Indian Bank offers a Tax Savings Certificate specially designed to benefit the common taxpayer. This reinvestment plan deposit can go a long way in planning your finances aiding your lifestyle.
The basic eligibility criteria for Indian Bank Savings Certificate are mentioned below.
Some of the salient features are mentioned below.
|Account Type||Single/Joint Reinvestment Plan Deposit|
|Amount||This account can be opened in 5 denominations, viz.
|Rate of Interest||7 % per annum to 8 % per annum|
|TDS||The interest component is liable for income tax deduction as per the existing laws|
|Loan against IB Tax Savings Certificate||No loan facility available|
The interest rates offered under this scheme vary depending on the age of an individual and his/her association with the bank. The interest rates mentioned below are for December 2015 and are subject to change.
|Tenure||Interest rate for senior citizens||Interest rate for general public||Interest rate for staff members|
|5 years||7.5 % per annum||7 % per annum||8 % per annum|
Note: Interest rates offered by Indian Bank are subject to change at their discretion.
This scheme was launched with the intention of providing tax relief to depositors under Section 80C of the Income Tax Act.
No, only one member can avail tax benefits in a joint account. The first holder of the account can claim the benefits, whereas the second member is not entitled to any deduction.
Under this scheme, an individual is expected to incorporate the PAN details in the CIF. The deposit receipt should also have this information apart from the signature of the person.
The amount one gets at maturity depends on the interest rate one is entitled to, with different individuals eligible for different rates. For example, a sum of Rs 50,000 would amount to Rs 70,739/- if the scheme is utilised by a member of the general public, Rs 72,497/- if a senior citizen opts for this scheme and Rs 74,297/- if it is a staff member. These amounts can be collected at the end of 5 years.
The accrued interest will be liable for tax on an annual basis, with provisions of the Income Tax Act dictating the terms.
Useful Information on Indian Bank Fixed Deposit