About Axis Bank
Axis Bank, founded in 1993, was the first of the new private banks to begin operations in 1994, after the Government of India permitted the establishment of new private banks. UTI, the country’s largest and best financial institution, has promoted Axis Bank Ltd. The bank was founded with a Rs. 115 crore capital, with UTI investing Rs. 100 crore, LIC contributing Rs. 7.5 crore, and GIC and its four subsidiaries contributing Rs. 1.5 crore each. Axis Bank was among the first new generation private sector banks to open its doors in 1994. The bank was founded in 1993 by Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd., and United India Insurance Company Ltd. The Unit Trust of India’s stake was then transferred to SUUTI, an organisation founded in 2003.
The former Unit Trust of India was established as a corporation under the UTI Act of 1963 to encourage savings and investment. The UTI Act, 1963 was repealed in December 2002 by the enactment of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, setting the way for the division of UTI into two organisations, UTI-I and UTI-II, with effect on February 1, 2003. The Undertaking designated as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes as well as 6.75% US-64 Bonds and 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores, in accordance with the Act.
In order to attain greatness, the bank has strengths in both retail and corporate banking and is committed to implementing best industry practises from throughout the world.
In November 2010, Axis Bank agreed to pay $456 million for Enam Securities’ investment banking and equities operations. Axis Securities, Axis Bank’s equities department, will merge with Enam Securities’ investment banking division. According to the agreement, Enam will demerge its investment banking, institutional equities, retail equities, financial product distribution, and non-banking finance businesses and merge them with Axis Securities.
Axis Bank Tax Saver Fixed Deposit
The Axis Bank Tax Saver FD is a form of fixed deposit that combines the benefits of a fixed deposit with tax advantages. By investing in an Axis Bank Tax Saver FD, you can defer income tax under section 80C of the Income Tax Act of 1961. Section 80C provides a tax deduction of Rs 1.5 lakhs for investments in tax-saving fixed deposits. In contrast to other fixed deposits, the Axis Bank Tax Saver FD has a five-year lock-in term. Before investing in a tax-deferred FD, an investor must thus evaluate the investment’s liquidity. If an investor seeks a tax-saving investment option with guaranteed returns, a tax-saving FDIC is a superior choice. Other tax-saving investment choices, such as PPF, NSC, etc., have a longer lock-in duration than ELSS.
Axis Bank Tax Saver Fixed Deposit Interest Rate
| Type of Investor | Deposits Below RS. 2 Crore | Deposits Of Rs. 2 Crore < RS.4.91 Crores | Deposits Of Rs. 4.91 Crore < Rs.4.92 Crores | Deposits Of Rs. 4.92 Crore < Rs.5 Crores |
| Individual (Less than 60 years of age) | 5.75% | 4.65% | 3% | 4.65% |
| Senior Citizen | 6.50% | 5.40% | 3.75% | 5.40% |
Eligibility Criteria to open Axis Bank Tax Saver FD
Following are the eligibility requirements for the Axis Bank tax saving fixed deposit:
- The person opening the fixed deposit must possess a PAN number.
- Any resident Indian who has reached the age of 18 is eligible to apply either alone or jointly.
- Individual and joint deposits are allowed through this scheme.
- Individuals must be at least 18 years old and have a PAN number to receive individual deposits.
- Either two adults or one adult and a child can get a joint deposit. At the maturity of a joint deposit, the funds will be distributed to either the depositors or the survivor.
- The deduction from income under section 80c of the Act will be made from the first holder who is required to have a PAN number.
Documents Required for Axis Bank Tax Saver FD
The following documents are needed to start an Axis Bank Tax Saver FD account:
- Valid driving licence or valid passport
- Photograph of the depositor
- A six-month introduction from any other bank or from an Axis Bank Savings Account holder.
Axis Bank Tax Saver FD: Features & Benefits:
- The minimum amount for a tax-saving FD is 100 rupees, and multiples of 100 rupees.
- The maximum amount permitted each fiscal year is Rs. 1.5 Lakhs.
- You can choose between quarterly compounding or reinvestment of earned interest. Alternately, you can choose a monthly interest payment. By reinvesting the interest, you will profit from the power of compounding, which will increase the maturity value.
- The duration of exclusivity is 5 Years from the date of deposit.
- The tax saver fixed deposit is non-withdrawable, even if a penalty is paid.
- In the event of the loss, theft, destruction, mutilation, or defacement of the FD receipt, a replacement receipt will only be granted upon submission of an indemnity bond in the required form with one or more authorised sureties or a bank guarantee.
- You can either hold the tax saver FD in your own name or jointly with another person.
- In the case of a joint FD, the tax advantage will be provided to the account’s principal owner. However, the primary account holder must own their PAN for this to be possible.
- After the conclusion of each calendar quarter, TDS tax deducted at source on interest is deducted.
- In the event of a single account, the person will receive the FD receipt. If the account holder is a HUF then the receipt will be in the name of the Karta of the HUF
- Both the individual or the adult individual and a minor will receive a joint account receipt. In addition, the maturity amount will be distributed to either the account holder or the survivor.
Taxation on Axis Bank Tax Saver FD
- Section 80C of the Income Tax Act of 1961 allows the investor to claim a tax benefit of up to Rs 1.5 lakhs.
- The interest generated is taxed under the head income from other sources.
- Interest income is added to the total gross revenue for the fiscal year. The tax deduction is subtracted from the total gross income. The net taxable income for the fiscal year is taxed at the relevant slab rate.
- TDS shall be deducted at the time of payment or credit of interest income. TDS is deducted in accordance with Section 194A of the Income Tax Act of 1961.
- When the total amount of interest due or reinvested on FDs and RDs per client across all branches reaches Rs 40,000, TDS is deducted. In a fiscal year, this is Rs. 50,000 for senior citizens.
- Every quarter, the bank issues a TDS certificate to the depositor. The TDS certificate will show the amount of TDS deducted as well as the interest income.
- If you have not received the TDS certificate, you can check the TDS deducted using Form 26AS. By entering into your income tax account, you may download Form 26AS.
- Customer is required to provide the depositor’s PAN. Failure to do so will result in a TDS deduction at a rate of 20%. Even if the PAN submitted to the bank is incorrect, it will be handled as if no PAN was provided.
Axis Bank Fixed Deposit: How to Apply
Online
- Select the deposit option while logging in to Axis Bank’s Internet Banking.
- Select the Create Recurring Fixed Deposit button.
- Account and nominee information must be entered as prompted on the screen.
- The requested amount will be deducted from your savings account upon confirmation. Instantaneously, the tax saver fixed deposit will be formed. The bank will give the FD receipt immediately.
- The confirmation of your Tax Saver Fixed Deposit will be sent to your registered email address. The value date for opening the deposit and the appropriate rate will be determined based on the date of the request, i.e. the day the savings account is debited.
- If you are enrolled for electronic statements, a paper statement will be sent to your registered communication address. After one business day, you will also be able to access the Tax Saver Fixed Deposit advise via Internet Banking.
Offline Channel
Alternately, you can open a fixed deposit by visiting the bank branch nearest to you. You must submit the application form together with supporting documentation. These documents consist of your PAN and a proof of address, such as Aadhaar. It is recommended to purchase the FD using internet banking. Performing a transaction online is far more convenient and time-efficient than visiting the bank.
FAQs
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How does the Auto Fixed Deposit scheme facilitate simple liquidation?
The Auto Fixed Deposit plan lets you to withdraw funds from your account using a check or an ATM card. Furthermore, the account includes a reverse sweep option in which funds in the FD account are sent to the linked savings account in multiples of Rs.5,000 anytime the savings account balance falls below Rs.25,000.
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Is it true that the same set of interest rates applies to all schemes?
No, the interest rates varies amongst the many FD plans available. The interest rate for the Fixed Deposit scheme, for example, differs from that of the Fixed Deposit Plus plan. Furthermore, the ones available to native Indians may differ from those available to NRIs.
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Is it possible to withdraw the tax saver fixed deposit early?
No. To give tax benefits, the insurance does not allow early withdrawals and has a 5-year lock-in period.
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What are the prerequisites for opening a tax-saving fixed deposit as an individual?
To open an individual deposit, an individual must be over the age of 18 and have a PAN number. In the event of joint deposits, the first depositor must be an adult above the age of 18, whereas the second or third depositor may be a minor. In the event of joint deposits, only the first depositor, who must have a PAN number, will be eligible for the section 80c deduction.
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Can a loan be secured against the deposit?
No, depositors cannot pledge their term deposits as collateral for a loan.
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How does the automatic roll-over feature work?
The automatic roll-over feature refers to the deposit’s automatic renewal. The bank provides two types of rollover facilities.
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- Only on the principal: In this situation, the FD account’s principal will be rolled over or renewed for another cycle. The interest earned in the previous FD account will be remitted to the consumer or applied to their savings account.
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- On both principal and interest: In this situation, both the principal and interest generated will be combined and utilised as a deposit for the renewed FD account.
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How is the maturity money paid in the event of joint accounts?
The FD certificate is given jointly to two adults or jointly to one adult and a minor in the case of joint accounts. The maturity amount will be paid to the holder who survives.
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What sorts of schemes are available through the tax saver fixed deposit?
The Axis Bank Tax saver fixed deposit offers two types of schemes: TDGRI, which is a reinvestment scheme, and TDGQI, which is a quarterly interest scheme.
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What kind of deposits are accessible in this scheme?
Individual and joint deposits are accepted by the tax saver.
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