ITR filing: Here's how to save income tax with this scheme

New Delhi: Every year, when it comes time to save the tax returns, many look for methods to save money on their income taxes. With so many tax-saving investing instruments in the market, individuals must choose a scheme carefully in order to maximize their savings.

The SBI Tax Savings Scheme, 2006 is one such scheme offered by the country's largest public lender, State Bank of India. The plan has a minimum term of 5 years and a maximum tenure of 10 years.

The investor is needed to make a minimum investment of Rs 1,000 or multiples thereof under this scheme. In a year, the maximum deposit should not exceed Rs 1,50,000.

Interest rate offered by SBI Tax Savings Scheme

The interest rate on the SBI Tax Savings Scheme, 2006 is the same as that on fixed deposits. According to the most recent rates, effective February 15, SBI FDs maturing between 5 and 10 years would yield 5.5 percent to regular consumers.

SBI Tax Savings Scheme withdrawal and nomination rules

The account cannot be withdrawn before the plan's required duration of 5 years. Depositors can also nominate themselves under the system.

Benefits

Section 80C of the Income Tax Act of 1961 provides tax breaks.

TDS is levied at a standard rate.

The depositor may submit Form 15G/15H to obtain an exemption from tax deduction under Income Tax Rules..

Eligibility

Any native Indian can open an account for himself/herself as an individual or in the capacity of the Hindu undivided family's Karta. They must have a current Permanent Account Number (PAN).

The joint account must be provided to two people or an adult and a minor.