SBI Tax Savings Scheme Offers Tax Benefits Under Section 80C. 5 Points

If you are looking for options to save on tax, ahead of March 31, the end of the financial year, State Bank of India (SBI) Tax Savings Scheme may be a good bet that offers tax benefits for up to Rs 1.5 lakh under Section 80C of Income Tax Act, stated the country's largest lender on its official twitter handle- @TheOfficialSBI.  This is a type of FD (Fixed Deposit) that comes with a lock-in period of five years and offers a range of other benefits, mentioned SBI on its portal- bank.sbi. Fixed Deposits are used for saving tax as they offers security and a competitive rate of return on investment. 

5 things to know about SBI Tax Savings Scheme:

1. Resident Indians for himself/ herself as an individual or in the capacity of the Karta of the Hindu undivided family, having Income tax Permanent Account Number (PAN) is eligible for opening SBI Tax Savings Scheme, said SBI.

Also read: SBI YONO Mobile App Lets You Open Savings Bank Account With Zero Balance

2. Customers should maintain a Term Deposit (TD) account or Special Term Deposit (STD) account to apply for the savings scheme, as mentioned on State Bank of India's portal.

3. SBI tax savings scheme does not have any specific rate of interest and the interest is similar to that of term or fixed deposits. 

4. Customers using SBI Tax Savings Scheme cannot use TD/STD to secure loan. However, a nomination facility is available, added State Bank of India.

5. Customers cannot encash the term deposit before the expiry of five years from the date of its receipt, mentioned SBI.