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Indusind Bank launches tax saver scheme

Indusind Bank has launched its tax saver term deposit scheme targeting the tax conscious investors.

india Updated: Aug 20, 2006 12:37 IST
United News of India
United News of India

Targeting the tax conscious investors, the Indusind Bank has launched its tax saver term deposit scheme that offers tax exemptions up to Rs one lakh per year to the depositors.

Under this new scheme, an individual or a Hindu Undivided Family can invest any amount ranging from a minimum of Rs 100 up to Rs one lakh a year in tax-saving term deposits with maturities not less than five years and get exemption under Section 80 C of IT Act to the extent of Rs one lakh per year.

"This term deposit scheme has been designed keeping in view the contents of government's notification and aims at providing tax benefits to depositors. The rate of interest on term deposits under this scheme will be 8.50 per cent per annum at present. Senior Citizens will be offered an additional interest rate of 0.5 per cent at nine per cent per annum," bank's Chief Managing Director Bhaskar Ghose said.

The deposits, as per the scheme, can be held either in an individual capacity, on behalf of minors, or jointly with other applicants. However, for deposits made in joint names, the deduction under Section 80 C of the IT Act shall be available only to the first applicant of the deposit.

However, no term deposit under this scheme can be encashed before the expiry of five years from the date of deposit.

Indusind Bank has 146 branches and 83 ATMs spread over 116 geographical locations in 24 states and Union Territories. It also has two representative offices in Dubai and London. It has five more licences in hand and has applied for more.

The bank recently announced two alliances with Union National Bank, Abu Dbabi in the UAE, and Doha Bank in Qatar.

These strategic alliances will encompass a wide range of banking services, including deposit accounts, remittance business, loans, wealth management advisory, distribution of third party products, trade finance, global banking, and investment banking including corporate finance to the NRIs.

As per the partnership, the bank and its allies will treat each other as preferred partners, with reciprocity of business flows and promotion of each other's banking services.

First Published: Aug 20, 2006 12:37 IST