Canara Tax Saver Scheme
This is a term deposit scheme available under the general fixed deposit scheme as well as the Kamadhenu Deposit scheme.
The plan is ideal for professionals, businessmen and salaried people who are active tax payers and hope to benefit on the income tax front through tax saver fixed deposits.
Table of Contents
Eligibility criteria for Canara Tax Saver Scheme
The account is available as both individual account and joint account.
- Individual account - An individual or a Karta of a Hindu Undivided Family (HUF)
- Joint Account - Two adults or a guardian and a minor, with proceeds payable to either of holders or any survivor.
Features of Canara Tax Saver Scheme
Account Type | Single/Joint/HUF |
Amount | Min - Rs.10. Subsequent deposits in multiples of Rs.100. Max - Rs.1.5 lakhs |
Rate of Interest | 6.70% p.a. (general public) |
Period/Tenure | 5 years fixed |
TDS | TDS applicable as per regulations from the Income Tax department. |
Loan against Canara Tax Saver Scheme | Loans are not granted against this account |
Nomination | Nomination facility available for all accounts except for those held on behalf of a minor |
Auto Renewal | Info unavailable |
Canara Tax Saver Scheme interest rates
The scheme offers a competitive rate of interest of 6.70% p.a. for the general public compounded monthly or quarterly for deposits under the general fixed deposit scheme. This interest will be compounded quarterly for those under the Kamadhenu Deposit scheme.
Documents Required for Canara Bank Tax Saver FD Scheme
You may be required to submit the following documents while opening the account:
Identity proof:
- PAN (permanent account number) card
- Voter ID card
- Driving license
- Passport
- Government ID card
- Senior citizen ID card
Address proof
- Telephone bill
- Electricity bill
- Passport
- Bank statement with cheque
- ID card issued by post office
Along with the above-mentioned documents, you may be required to submit two passport-sized photographs.
FAQs on Canara Tax Saver Scheme
- What are the guidelines for premature withdrawal?
Premature withdrawal is not allowed on deposits under this scheme.
- What are the tax benefits associated with this scheme?
Tax deductions up to Rs.1.5 lakhs per year can be claimed under the Section 80C of the Income Tax Act, 1961. In essence, all deposits made under this scheme are liable for tax deductions as the maximum limit on deposits is Rs.1.5 lakhs.
- How will the interest be calculated on my deposits?
Your interest will be paid out on monthly (discounted) or quarterly basis on fixed deposits. Quarterly compounding will be done on Kamadhenu Deposits.
- Do I have to pay tax on income through interests from the fixed deposit?
Yes, TDS will be applicable on the accrued interests on these deposits, however the principal is tax free.
- What are the documents I need to submit to avail this scheme?
You need to submit the following when applying for the Canara Tax Saver Scheme:
- Application form
- Copy of PAN card
- Photograph
- Identity and address proof as per KYC norms
- Related documents for an HUF account
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