National Housing Bank (NHB) Tax Saving Term Deposit Scheme

National Housing Bank (NHB) is a statutory organization that was established on July 9, 1988. It is the apex level financial institution for the housing sector in the country and a wholly owned subsidiary of the Reserve Bank of India.

NHB SUVRIDDHI (Tax Saving) Term Deposit Scheme: It is a tax saving deposit scheme for individuals & HUFs U/S 80 C of Income Tax Act. The minimum deposit in the scheme is Rs. 10,000 and thereafter in multiple of Rs. 10,000 with a fixed maturity of 60 months. Individuals & HUFs can invest maximum Rs. 1,00,000 in the scheme.

The below interest rates are effective from October 31, 2011

• Interest rates offered above are as on date and computed on quarterly compounding basis.
• Deposit Amount: Minimum of Rs. 10,000 and higher in multiples thereof up to maximum of Rs. 1,00,000/- per financial year.
• Who can deposit: Individuals / HUF
• Interest option under the Scheme: Cumulative Interest Option / Non- Cumulative Interest Option.
• Tax Benefit under Section 80C – Notified by CBDT published in Extraordinary Gazette of India dated 5th January, 2009 S.O.21 (E).
• Nomination: Available
• TDS on interest: Deduction of Income-tax at source from interest payments will be governed by the provisions of the Income Tax Act, 1961, as in force from time to time, and the rules frame there under. As per the present provisions U/S 194A of the Income Tax Act, 1961, interest upto Rs. 5000/- in a financial year is exempt from deduction of tax at source.