the term deposit Tax benefit scheme
In the light of the Notification issued by the Government of India, treating the bank Term Deposit as an approved form of investment to get qualified for benefits U/s.80C of the Income Tax Act 1961, Vijaya Bank now launches a new term deposit scheme called ‘VIJAYA TAX SAVINGS SCHEME’ effective form 18.8.2006.
The highlights of the scheme are as follows :
- Deposits are accepted for a period of 5 years only
- Interest rate as applicable from time to time for 5 years to term deposits. Senior citizens are entitled for addtional interest as applicable.
- Depositor can opt for either cumulative or non-cumulative way of crediting periodical interest.
- Depositor gets benefit U/s.80C of the Income Tax Act. 1961
- Minimum deposit is Rs.100 and in multiples thereof
- Maximum deposit in a Financial Year Rs.1,00,000/- [i.e., 1 st April to 31 st March of the following calendar year]
- Deposits cannot be withdrawn prematurely
- Deposits cannot be pledged to secure loan or as security