Tax Saving Term Deposit

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Bank Term Deposit Scheme, 2006 *

under sub-section (2) of 80C of the I T Act, 1961 (43 of 1961).

The salient features of the Scheme:

Sr No	Particulars	Details
1	Name of the Scheme	‘Bank Term Deposit ( Amendment Scheme), 2014’ *
2	Eligibility	Individual or HUF.
3	Tenure of the Deposits-	5 Years Tax Saving Sheme.
4	Interest Rate	Click here to view the Interest Rate
5	Types of Deposits	The Deposits can be accepted under the Interest Payment scheme in MIDR/QIDR//FDR/CDR.
6	Investment limits	Minimum of Rs.100/- or in multiple thereof with maximum of Rs.150,000- in one year i.e. from 1st April to 31st March
7	Tax aspect	Interest on these term deposits shall be liable to tax under the Act, on the basis of annual accrual or receipt, depending Interest on these term deposits shall be liable to tax under upon the method of accounting followed by the assessee. The tax on such interest shall be deducted in accordance with the provisions of section 194A or section 195 of the Act.
8	Premature withdrawals	Not allowed. No term deposit shall be encashed before the expiry. But In the event of the death of the holder of a term deposit in respect of which a nomination is in force, the nominee or nominees shall be entitled at any time before or after the maturity of the term deposit to encash the term deposit.
9	Transferability Feature	Can be transferred from one branch to another branch of the BOM but not to any other banks branch.
10	Nomination Facility	Available as per our existing practice in the Bank. But No nomination shall be made in respect of a term deposit applied for and held by or on behalf of a minor.
11	Trading and Pledging	Not allowed. The term deposit shall not be pledged to secure loan or as security to any other asset.
12	Loan Against Deposit	Not allowed in any case
13	Mode of Holding	(1) (a)Single holder type deposits;(b) Joint holder type (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.
14	Replacement of lost or destroyed term deposit receipts-	A duplicate receipt may be issued in case a term deposit receipt is lost, stolen, destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate receipt to the branch of the Bank from where the receipt was issued. Every such application shall be accompanied by a statement showing particulars, such as number, amount and date of the receipt, and the circumstance attending such loss, theft, destruction, mutilation or defacement.