Jammu & Kashmir Bank Tax Saving FD

What is a Jammu & Kashmir Bank Tax Saving FD?

Tax Saving Fixed Deposit Jammu & Kashmir Bank offers investors dual benefits, tax savings under Section 80C of the Income Tax Act, and assured interest income. The scheme requires a minimum deposit of ₹1,000, with a maximum investment cap of ₹1.5 lakh in a financial year, making it convenient for individuals to claim deductions. It comes with a mandatory lock-in period of 5 years, during which premature withdrawals and loans against the FD are not allowed. Interest rates vary for senior citizens and general depositors and are subject to revision by the bank from time to time. Currently, these Tax Saving FDs provide interest rates at 6.50% for regular and 7% per annum for senior citizens.

How Does a Jammu & Kashmir Bank Tax Saving FD Work?

The points below explain how the Tax Saving Fixed Deposit at Jammu & Kashmir Bank functions:

• Opening of an FD Account: Visit the nearest branch or complete the application online. Use the JKB mPay Delight+ app or internet banking to open a Jammu & Kashmir Bank Tax Saver FD account. 
• Deposit the Amount: Once the account is opened, an investor can deposit as low as ₹1,000 up to ₹1.5 lakh in a particular financial year. The corresponding investments are eligible for tax deduction under Section 80C of the Income Tax Act.
• Know the Lock-In Period: Remember that the deposited funds stay locked for 5 years. During this period, the loan facility and premature closure are not supported.
• Calculation of the Interest: Jammu & Kashmir Bank provides competitive FD interest rates that let interest grow. Interest is compounded quarterly and paid at maturity.
• Maturity: Upon the termination of the tenure, the principal deposit amount, as well as the earned interest, gets credited to the linked savings account in this bank.

Jammu & Kashmir Bank Tax Saving FD Highlights

For a quick reference, the table below includes key information about the Jammu & Kashmir Bank Tax Saver Fixed Deposit scheme:

How to Open a Jammu & Kashmir Bank Tax Saving FD

Completing the application process for a Tax Saving FD Jammu & Kashmir Bank is possible online and offline; the choice relies on the investor’s preference. 

1. Online Application

   To complete the Tax Saving FDs application online, the underlying steps are: 

   • Visit the Official Website: Go to the Jammu & Kashmir Bank’s official website to start the application.
   • Log In or Register: Existing users can sign in with their net banking credentials, while new users must create an account.
   • Select Fixed Deposit Option: From the menu, choose the “Fixed Deposit” section.
   • Choose Tax Saver FD: Under Fixed Deposit, select the “Tax Saver FD” scheme.
   • Enter Required Details: Fill in the deposit amount, tenure (5 years), and interest payout preference.
   • Verify & Submit: Review the details and confirm. The FD receipt will be sent to your registered email ID.

2. Offline Application

   Implementing these steps can help investors in opening a Jammu & Kashmir Bank Tax Saving FD account offline:

   • Visit the Nearest Branch: Approach any nearby Jammu & Kashmir Bank branch.
   • Request the Application Form: Ask for the Tax Saver FD form from the bank official.
   • Fill the Form Carefully: Enter personal, deposit, and scheme-related details as required.
   • Attach KYC Documents: Submit the filled form along with PAN card, ID proof, and address proof.
   • Deposit the Amount: Make payment via account transfer, cheque, or cash.
   • Collect FD Receipt: Receive the FD receipt as confirmation; interest will accrue in your linked savings account.

Who Should Consider the Jammu & Kashmir Bank Tax Saving FD?

Various types of investors can benefit from this scheme, including: 

• Tax-Saver Investors: Investors who want to claim deductions under Section 80C and simultaneously earn fixed returns can opt for this scheme.
• Income-focused Investors: This FD saving scheme is appropriate for individuals focused on generating guaranteed income and avoiding market risks. 
• HUFs: By investing in this scheme, Hindu Undivided Families (HUFs) can ensure their financial security. 
• Salaried Employees: The scheme is highly suitable for professionals expecting to save tax as well as build wealth consistently.
• Novice Depositors: Depositors new to this FD scheme can benefit from reliable investment, free from market risks.

TDS on Jammu & Kashmir Bank Tax Saving FD

Up to 1.5 lakh of tax deduction (in any financial year) is provided as a tax deduction benefit (as per Section 80C) if an investor chooses the Jammu & Kashmir Bank Tax Saving FD scheme. The earnings of interest are taxable as per the income. Tax Deducted at Source (TDS) will be considered valid if the annual interest surpasses ₹50,000 for regular investors and ₹1,00,000 for senior citizens. 

Customers may avoid TDS deduction if they submit the Form 15G or Form 15H, provided their income is lower than the taxable threshold. Under Section 206AA of the Income Tax Act, failure to furnish a valid PAN results in TDS being deducted at 20% or higher. Submission of PAN, as required under Section 139A(5A), ensures the correct credit of TDS and issuance of TDS certificates.

Key Takeaways

Earning guaranteed returns and saving on taxes is possible with the Jammu & Kashmir Bank Tax Saving FD scheme. It allows investors to claim up to ₹1.5 lakh deduction amount under Section 80C and comes with a 5-year lock-in period. The applicable interest rate is determined while opening the FD account, and thus ensures guaranteed returns. Although the premature withdrawal facility is not supported, investors can pick a suitable payout option.