Helps customers manage tax payments
THIRUVANANTHAPURAM: The South Indian Bank (SIB) has launched a new product called `Sib Tax Gain 2006' to help its customers manage their tax payments and encourage them to go for savings.
This product is designed to promote life insurance, general insurance and mutual funds available at the SIB branches as well, the bank said in a press release issued here on Monday. Quoting the bank's Chairman and Chief Executive Officer V. A. Joseph, the press release said the SIB was the first Kerala-based bank to come up with such a product.
Bank deposits under this product will be treated like National Savings Certificate, Life Insurance and other specified categories of investments for the purpose of income tax deduction under Section 80C of the Income Tax Act. Customers can deposit in `Sib Tax Gain 2006' amounts in multiples of Rs.100 up to a maximum of Rs.1 lakh for five years under simple interest or compound interest schemes. Senior citizens will get higher rates of interest as in the case of other deposits.
The deposit can be in the name of an individual or in joint names, or in the name of Hindu Undivided Families, the press release said. In the case of joint account, the first holder and, in the case of Hindu Undivided Family, the `karta' will be eligible for tax exemption on the interest. The customer can transfer the deposit from one branch of the bank to the other. The deposit cannot be closed before the five-year-term ends, nor can it be pledged for a loan.