"IB TAX SAVER SCHEME"
|
| Introduction |
In order to cater to the needs of depositors
( individuals and HUFs) who wants to avail tax benefit under
Section 80C of Income Tax Act, IB Tax Saver Scheme is launched.
The scheme is based on the notification no.203 of 2006 dt 28.7.2006
of Central Government.
The amount invested under Section 80C of the Income Tax Act
will be deducted from the gross income of the assessee/depositor
so that the savings in tax will be upto 30% of taxable income
(Education cess not included )
|
| Eligible persons |
Individuals or HUF.
|
| Minimum amount |
Rs.100 or in further multiples of Rs.100.
|
| Maximum amount |
Rs.1,00,000 in a financial year
|
| Type of account |
Fixed deposit or Reinvestment Plan
|
| Eligibility |
Individuals or HUF having Permanent Account Number (PAN)
Joint holder type deposit may be issued but the deduction from income tax under section 80C of the Income Tax Act shall be available to the first holder only
.
|
| Tenure |
5 years to 10 years
|
| Rate of Interest |
Card rate fixed from time to time as applicable to term deposits of less than Rs. 15 lakhs is payable
Senior Citizens will get 0.50% p.a additionally
|
| Pledge/premature closure |
Certificate shall not be pledged to secure loan
or as security to any other asset for a period of 5 years from
the date of deposit.
No certificate shall be encashed before the expiry of 5 years
from the date of deposit
|
| Nomination facilities |
As provided in the Central Government notification
|
| TDS on deposits |
As per section 194A /195 of the IT Act, interest
payment exceeding Rs.10,000 will attract TDS on deposits.
The rate will be as below:
For Individuals, HUF, payment does not exceed Rs.10 lakhs -
10.30%
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