Download Deposit Scheme forms [Individuals & Others]
Money does not grow on trees. But by saving and investing wisely one can make money hands over fist. With this intention Bank has come out with a scheme which allows you higher returns compared to other tax savings schemes. Investments under the scheme are exempted under Sec 80C of Income Tax Act.
Madhukar Term Deposit Scheme:
In the Finance Bill of 2006, the government had announced Tax benefits to Bank Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.
Accordingly Bank in order to give its customers maximum benefit came out with the Madhukar scheme by which you can
- Invest minimum Rs 5000 and in multiples of Rs 100. Maximum amount being Rs 100000 during the calendar year.
- Maturity Period of the term deposit is minimum 5 years.
- Deposit can be kept in a single name or in joint names. Tax benefit under Sec 80C shall be available only to the first holder.
- Interest on the term deposit is payable Quarterly.
- The term deposit cannot be pledged to secure loan/overdraft or as security to any other asset neither they can be withdrawn prematurely.
**The tax on interest earned is deductible in accordance with the provisions of section 194A or section 195 of the Income Tax Act 1961.