Majority of banks have been encouraging customers in order to make more investment and save big on taxes. An individual must pay taxes on their income arising from salary and income from other sources to the Income Tax Department. However, the IT department also allows a taxpayer to reduce its taxes by investing its money in various schemes. In this, banks come as a helping hand, which is why, the largest lender State Bank of India (SBI) has given a new tax saving tips, where it is asking its customers to break natural habit of paying taxes. SBI has listed out dos and don’ts for its customers, which if followed will help them save massive on their taxes.
SBI via its twitter account said, “Rise above these tax planning habits! Plan early, invest smartly and you will surely be on the path to optimise your tax savings.”
Here’s what your bank guides you!
1. Do not run for last minute tax saving preparation. Start tax planning early, and to ensure optimal savings.
2. Select a suitable suitable investment platform. Be diligent when selecting the most suited tax instrument.
3. Discontinue the power of compounding. Invest early to counter inflation and earn tax-efficient returns.
4. Limited tax-saving options. Explore beyond section 80-C to optimise tax savings. Currently, under this section, an individual can avail up to Rs 1.5 lakh tax benefit on a host of investments.
Currently, at SBI, 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), can open a term deposit account or Special Term Deposit (STD) account.
A deposit can be made with minimum Rs 1000 and maximum Rs 1.5 lakh.Minimum tenor is 5 years and maximum is 10 years.
Interest rates for term deposit at SBI, begins at 6.40% on investment made for tenure 211 days to less than 1 year. A 6.80% rate if enjoyed on tenures like 1 year to less than 2 year, 2 years to less than 3 years and 3 years to less than 5 years.Also there is 6.85% rate given on deposits made for tenure 5 years and up to 10 years.
No term deposit shall be encashed before the expiry of five years from the date of its receipt. However, loan facility is not available.