New Delhi19 minutes ago
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State Bank of India i.e. SBI has started a new Recurring Deposit (RD) scheme. Every house has been named Lakhpati. Under this scheme, you will be able to deposit one lakh rupees or more in your account by depositing small amounts every month. In this, maximum 6.75% annual interest is being given to general citizens and maximum 7.25% annual interest is being given to senior citizens.
First of all understand what is RD? Recurring Deposit or RD can help you in saving big. You can use it like a piggy bank. Meaning, you keep putting a fixed amount in it every month when your salary comes and when it matures, you will have a huge amount in your hand. The maturity period of every household millionaire usually lasts from 3 years to 10 years. That means you can invest for 3 years to 10 years.
Who can invest in it Any Indian citizen can invest in this scheme. Individuals can open a single or joint account. Whereas parents (guardians) can open an account with their child (above 10 years of age and capable of signing clearly).
Tax is levied on interest earned from RD If the interest income from Recurring Deposit (RD) is up to Rs 40 thousand (Rs 50 thousand in case of senior citizens), then you do not have to pay any tax on it. If the income is more than this, 10% TDS is deducted.
If not taxable then submit Form 15H-15G If your annual interest income from RD is more than Rs 40 thousand (Rs 50 thousand in case of senior citizens), but your total annual income (including interest income) is not up to the limit where it is taxable, then the bank does not deduct TDS. Is.
For this, senior citizens have to submit Form 15H and others have to submit Form 15G in the bank. Form 15G or Form 15H is a self-declaration form. In this you state that your income is beyond the tax limit. Click for more information about Har Ghar Lakhpati Scheme
