|
1. Name of
the product |
SBT Tax
Saver Term Deposit |
|
2. Period of
Deposit |
5 years only ( Can be
opened either as Term Deposit or Special term deposit) |
|
3.
Eligibility |
(a) Single holder (b) Joint holder (2) (a) The single
holder type deposit receipt shall be issued to an individual for himself or
in the capacity of the Karta of the Hindu undivided family; (b) The joint
holder type deposit receipt may be issued jointly to two adults or jointly to
an adult and a minor, and payable to either of the holders or to the
survivor: Provided
that in the case of joint holder type deposit, the deduction from income
under section 80C of the Act shall be available only to the first holder of
the deposit. |
|
4. Maximum
amount of deposit by an assessee |
Rs.1 lakh in
a year with a minimum of Rs.100 or multiples thereof. |
|
5. Interest |
As
applicable to deposits for 5 years Interest rates (Additional
interest for staff/senior citizens) |
|
6.Payment of
interest |
same as in
the case of regular Term Deposits/Special Term Deposits. Monthly (discounted
rate) / quarterly/ annually/ on maturity |
|
7.
Encashment |
No premature
payment before the expiry of five years from the date of the deposit. |
|
8. Nomination |
1)
Nomination
to be made by the single holder or the joint holders of a term deposit before
its maturity. 2)
No
nomination shall be made in respect of a term deposit applied for and held by
or on behalf of a minor.
(to be manually controlled by the Branch) |
|
9.Right of
nominees |
In the event of the
death of the holder of a term deposit in respect of which a nomination is in
force, the nominee shall be entitled at any time before or after the maturity
of the term deposit to encash the term deposit. |
|
10. Income
tax |
1.
Interest on
these term deposits shall be liable to tax under the Act, on the basis of
annual accrual or receipt, depending upon the method of accounting followed
by the assessee. 2.
The tax on
such interest shall be deducted in accordance with the provisions of section
194A or section 195 of the Act (to bedone at branch level). |
|
11. Other
Conditions |
1.
The Term
Deposit receipt should bear the name, address, Permanent Account Number
(PAN) and signature of the assessee.
2.
The Term
Deposit may be transferred from one branch to another but is not transferable
between banks. 3.
The Term
Deposit shall not be pledged to secure loan or as security to any other
asset. 4.
If a Term
Deposit receipt under the scheme is lost, stolen, destroyed, mutilated or
defaced, a duplicate receipt may be issued after obtaining an indemnity bond
with one or more sureties. 5.
All other
terms and conditions same as for Term deposits. |