PROVISIONAL TAX SAVING FIXED DEPOSIT CONFIRMATION ADVICE

Disclaimer: This is a provisionary advice for the deposit booked. Physical Receipt for the Tax saving Fixed Deposit booked is
dispatched to your registered mailing address with the bank which can be used for availing benefit under section 80C.

Type of Deposit : Tax Saving Fixed Deposit

Principal Amount(in Rs.) Deposit Start Date Period of Deposit Rate of Interest(%p.a.) Maturity Date Maturity Amount(in Rs.)
110000 16 Apr 2024 60 months, 0 days 6.3 16 Apr 2029 150361

Maturity Instructions : Redeem Principal + Interest

Thank you for banking with us.

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 Terms & Conditions
Bank computes interest based on the actual number of days’ in a year. In case, the deposit is spread over a leap or a non-leap year,
the interest is calculated based on the number of days .i.e. 366 days in a leap year & 365 days in a non-leap year.
Tax Deduction at Source (TDS)
• As per section 206AA introduced by finance (No.2) Act, 2009 wef 01.4.2010, every person who receives income on
which TDS is deductible shall furnish his pan, failing which TDS shall be deducted at the rate of 20% (as against 10%
which is existing TDS rate, wef 14th May’2020 till 31st March’2021 @ 7.5%) in case of domestic deposits and 30% plus
applicable surcharge and health and Education Cess in case of NRO deposits". Please further note that in the absence of
PAN as per CBDT circular no: 03/11. TDS certificate will not be issued. In absence of PAN, Form 15G/H and other
exemption certificates will be invalid even if submitted and TDS at higher rate will be applicable.
• As per Finance Bill 2021, a new section 206AB is introduced w.e.f 01.07.2021, wherein TDS shall be deducted at higher
rate of 20% in case of non-filers of return of Income as contemplated in the said section.
• TDS rate is applicable from time to time as per the IT Act, 1961 and IT rules. The current rates applicable for TDS would
be displayed on Bank’s website.Today, TDS is recovered when interest payable or reinvested on FD & RD per customer,
across all Branch, exceeds Rs 40,000/- (Rs. 50,000/- for senior citizen) in a Financial Year. Further, TDS is recovered at the
end of the financial year on Interest accruals if applicable.
• If interest amount is insufficient to recover TDS, the same may get recovered from the principal amount of Fixed
Deposit.If customer wishes to have TDS recovered from CASA, same can be availed by filling separate declaration at
branch.
• For renewed deposits, the new deposit amount consists of the original deposit amount plus Interest Less TDS, if any, less
compounding effect on TDS. For reinvestment deposit, the interest reinvested is post TDS recovery and "hence the maturity
amount for reinvestment deposits would vary to the extent of tax and compounding effect on tax for the period subsequent
of deduction till maturity.
• As Per Section 139A(5A) of IT Act, every person receiving any sum of income or amount from which tax has been
deducted under the provisions of IT Act shall provide his PAN to the person responsible for deducting such tax. In case
PAN is not provided as required, the bank shall not be liable for the non availment of the credit of Tax deducted at Source
and
non-issuance of TDS certificate.
• If your PAN is not updated with the Bank or is incorrect; please visit your nearest branch to submit your PAN details.
• No deductions of Tax shall be made from the taxable interest in the case of an individual resident in India, if such
individual furnishes to the Bank, a declaration in writing in the prescribed Format (Form 15G / Form 15H as applicable) to
the effect that the tax on his estimated total income for the year in which such interest income is to be included in
computing his total income will be Nil. This is subject to PAN availability on Bank records.
The interest amount not liable to TDS during the financial year, where form 15 G/H is submitted is as below
• Upto 2, 50,000/- for residents of India below the age of 60 years or a person (not being a company or firm).
• Upto 5,00,000/- for senior citizen residents of India 60 years or above at any time during the FY.
• Form 15G/ H to be submitted by customer in triplicate to the bank, for submitting one copy to IT Department, one copy for
Bank record and third copy to be returned to customer with Branch seal as an acknowledgment. A fresh Form 15G /H needs
to be submitted at the start of every new Financial Year. In case form 15G/H is submitted post interest payout/credit, TDS
exemption shall be effective from the day next to the interest payout /credit immediately preceding the date of submission
of form 15G/H.
• Form 15G/H needs to be submitted for every fixed Deposits booked with bank for TDS exemption.
• The bank shall not be liable for any consequences arising due to delay or non-submission of Form 15G/H.
• To enable us to serve you better kindly submit the Form 15G/H latest by April 1st of the new financial year.

Note: The above guidelines are subject to change as per Income Tax regulations /directives of Finance Ministry Govt of India
prevalent from time to time across all deposits.

Premature Encashment
• Premature/Partial withdrawal is not permitted. There is a lock in period of 5 years.
• In case of death of primary holder of the deposit prior to maturity date, premature termination of the tax saving deposit
would be allowed as per the deposit booking terms of contract subject to necessary verifications and submission of death
certificate of the depositor. Such premature withdrawals will not attract any penal charge
• All premature encashment will be governed by rules of Reserve Bank of India Prevalent at the time of encashment
• In the event of death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve
on the surviving joint deposit account holder, unless there is a survivorship clause.
• In case of joint fixed deposits with a survivorship clause, the Bank shall be discharged by paying the Fixed Deposit
proceeds prematurely to survivor/s equally, on request, in the event of one or more Joint Depositor
• In case joint holder mandate submitted to the bank, any of the holders can sign where mode of operation is either or survivor
/ former or survivor.
• As per IT laws, if aggregate amount of the deposit/(s) held by a person with a branch either in his own name or jointly with
any person on the date of repayment together with the interest at payable is equal to or exceeds 20,000/- then the amount
will be paid by bank draft drawn in the name of the deposit holder or by crediting the savings / current account of the
deposit holder.
• The interest rate applicable on premature closure of deposits (all amounts) will be lower of: a) The rate for the
original/contracted tenor for which the deposit has been booked OR b) The base rate applicable for the tenor for which the
deposit has been in force with the Bank. For deposits booked on or after 7th march'19, the base rate is the rate applicable to
deposits of less than Rs.2 Cr as on the date of booking the deposit. Prior to this the base rate is the rate applicable to
deposits of less than Rs.1 Cr as on the date of booking the deposit.

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 Eligibility
Only Individuals & HUF can invest in Five Year Tax Saving FD
Insurance Cover for Deposits
The deposits in the Bank are insured with DICGC for an amount of Rs 5 lakhs (principal + interest) per depositor.
Amount
A minimum amount of Rs 5,000 and in multiples of Rs 100 thereafter, maximum of Rs 1.5 lakhs can be invested per customer in a
Financial Year.
Tenure
The deposit shall be for a period of 5 (five) years commencing from the value date.
Advice
Physical receipt is being sent to the mailing address registered with the Bank. In case of loss, theft, destruction, mutilation or
defacement of this receipt, a duplicate receipt will be issued only on furnishing an Indemnity bond in the prescribed form with one or
more approved sureties or with a bank guarantee.

Important Points
• Senior Citizens (60 years and above) who are Resident Indians are eligible for senior citizen rates for deposits less than 5cr.
• Benefit of additional interest rate on deposits on account of being bank’s own staff or senior citizens shall not be
applicable to NRE and NRO Deposits.
• Please quote the Deposit Account Number in all Communication
• Please record change of maturity instructions with us well in advance to enable us serve you better.
• In case your fixed deposit is booked without nomination details, please visit the Branch to update the same.
• Form 15G/H is not applicable to NRIs
• TDS is not applicable for Interest earned on NRE deposits.
• Fixed Deposits booked with monthly or quarterly interest payout option, TDS recovery will by default happen from
linked current / savings account. Please visit nearest branch / contact RM for further clarification.
• In the case of joint deposits, the Tax benefit under section 80C will be available only to the first holder of the deposit
• The Five Year Tax Saving FD cannot be pledged to secure a loan or as security to any other asset.
• FD OD cannot be availed against Five Year Tax Saving Fixed Deposit.
• Sweep in facility cannot be availed against the Tax Saving Fixed Deposit.
• Nomination will not be allowed in minor Five Year Tax saving Fixed Deposit
• Deposit can be booked for Five Year with monthly/quarterly interest payout option
• When you open a Fixed deposit with the Bank Interest on Term Deposit is calculated as below:
o Cumulative Interest/ re-investment interest is calculated every quarter, and is added to the principal such that Interest is
paid on the Interest earned in the previous quarter as well.
o In case of monthly deposit scheme, the interest shall be calculated for the quarter and paid monthly at discounted rate
over the Standard FD Rate.
• If FD is not booked / renewed as per applicable T & C, Bank reserves the right to rebook the same with correct details.
• Please visit our website / nearest branch / contact Relationship Manager for further clarification.
• In case of Non-filer of income Tax return, TDS shall also be deducted at higher rate as provided by the Finance Bill 2021,
w.e.f 1-Jul-2021
• Income-tax provisions outlined in this document are updated as of the Finance Act, 2020 (the effect of the recent
Finance Bill, 2021 has not been factored as they are subject to approval by Parliament and subsequent assent by the
President of India.

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