♦ Type of Deposit: An individual or a Hindu Undivided Family (HUF) who is an Income Tax assessee with Permanent Account Number.
♦ Mode of Holding: Deposits may be of following types:
» Single holder type deposits.
» Joint holder type deposits.
» The single holder type deposit receipt shall be issued to an individual in personal name or in the capacity of the Karta of the Hindu undivided Family.
» 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 U/S 80/C sub section 2(XXI) of the Act shall be available only to the first holder of the deposit.
♦ Tenure of the Deposit: Fixed period of 5 years.
♦ Amount: Minimum: Rs.100/- or multiples thereof. Maximum: Rs.1,00,000/- (Rs. One Lac only) in a financial year.
♦ Rate of Interest:
The rate of interest to be applied to Cent tax Savings Deposit Scheme will be in accordance with the interest rate on domestic term deposits (upto Rs. 15 lacs) applicable to the five-year term. Click Here to view the interest rate on domestic term deposits.
♦ Deposit options: Deposit may be in the form of Monthly Interest Deposit/Quarterly Interest Deposit or Reinvestment Plan (Cumulative).
♦ Nomination facility: Available as per existing nomination rules. However, no nomination shall be made in respect of a Term Deposit applied for and held by or on behalf of a minor.
♦ Term Deposit Receipt: The receipt for such type of Term Deposits will be designed specially, which shall bear the name, address, permanent account number and signature of the depositor(s) etc. in addition to other features.
♦ Income Tax Benefits: Investments under this Scheme are eligible for deduction from Income up to a maximum of Rs.100,000/-U/S 80Cof the Act in a financial year. However, the interest accrued or paid in such deposit is taxable and subject to TDS as per existing rules.
♦ Premature Payment/Loan Facility: Premature payment and Demand Loan/Overdraft facility is not allowed. The deposit receipt cannot be pledged for any type of loan or as a collateral security for any facility.