Indian Overseas Bank Tax Saving Scheme

Under the Central Government’s The Nationalized Banks Scheme, 1970, and post consultation with the RBI, the Constitution of the Board of Indian Overseas Bank is administered. Thus, Indian Overseas Bank provides the citizens of India with all the banking solutions they are looking for. With the likes of Tax Saving Scheme and other best products, the bank is still in the competition with other modern banks.

The Section 80C of the Income Tax Act, 1951 was enacted in the Finance Act, 2006 which was to qualify a scheduled bank to act under Section 80C.  The amendment passed introduced a special tax saving scheme for the customers and other value added features.

Indian Overseas Bank Tax Saving Scheme Eligibility Criteria:

  1. Every Indian citizen can avail the benefit of this deposit scheme.
  2. HUFs can open a deposit account under the name of its Katra.
  3. Single Account (single person).
  4. Joint Account (two individuals only). In the case of joint account, it can be two adults or one adult and a minor.

Indian Overseas Bank Tax Saving Scheme Features:

Account Type Single/Joint
Amount Minimum: Rs.10,000/-
Maximum: Rs.1,50,000/- (but only accepted under one individual/deposit account in year)
Rate of Interest For deposits made between Rs.10,000/- to Rs.1 lac, the interest rate is calculated at 7.75%.
For senior citizens, an additional 0.5% interest can be made on the deposits.
Period Minimum: 60 Months
Maximum: 120 Months
TDS The first holder of a joint account or the single account depositor is immune under Section 80C of the Income Tax Act for all of their investments with a minimum deposit of Rs.1.5 lacs.
Loan against IOB Tax Saving Scheme Indian Overseas Bank Tax Saving Scheme doesn’t provide with the facility of loan against the bank. Moreover, the deposit also cannot be accepted as collateral security.
Nomination (if any) The nomination facility is available under the rules for nomination and similarly, under the scheme, the nomination will not be accepted for the deposit held by and held for or held on behalf of a minor.
Repayment of Deposit The depositor has to complete a term of five years under the scheme to avail the benefit of premature withdrawal. And also, the deposit is repayable after or on the maturity date.

Kindly Note: All the rates mentioned are linked with the bank’s base rate and are prone to change on a timely basis without any prior notification.