CSB Tax Savings Support
As per Finance Act 2006, deposits made with banks, in terms of Central Government notification (No.203/2006 dated 28.07.2006) are eligible for deduction under Section 80 C for income tax purpose. The scheme has been short titled as â€˜Bank Term Deposit Scheme 2006'. Accordingly, we have renamed the deposit scheme as "CSB Tax Savings Support".
Title and types of deposit
Deposits can be made as ordinary fixed or reinvestment deposits under the following schemes:
The deposits can be opened by:
The single deposits shall be accepted from an individual for himself or in the capacity of the Karta of the Hindu undivided family.
The joint deposits shall be accepted from two adults or from an adult and a minor jointly, and payable to either of the holders or to the survivor. * *
* In the case of joint deposit, the deduction from income under section 80C of the Act will be available only to the first holder of the deposit.
Amount of Investment
The amount of investment shall be Rupees one hundred or multiples thereof, subject to a maximum of Rupees one lakh fifty thousandÂ in a financial year.
Period of Deposit
Deposit shall be for a period of five years.
Rate of interest
Encashment on maturity
The deposit can be encashed only after five years and no premature withdrawal is allowed and shall not be pledged to secure loan or as security to any other asset.
Pledging of term deposit
The deposits under the scheme shall not be pledged to secure loan or as security to any other asset.
The amount invested in the scheme is eligible for tax exemption u/s 80C upto a limit of Rs.1,50,000/- (One LakhÂ Fifty Thousand Only) in a financial year.