Special
Savings Account FAQs
Can an unregistered
association, clubs and societies open Special Savings Account?
No, accounts of unregistered Trust, associations, clubs and societies cannot be opened. They have to be necessarily registered under the Societies Act with the Registrar of Societies.
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Is there any specific
notification/guideline from RBI/or any other government organisation
permitting ICICI bank to open accounts of trusts, associations, clubs
and societies?
ICICI Bank is a scheduled commercial bank and any byelaw stating that the entity can open a bank account with a scheduled commercial bank will include us.
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What is the minimum
balance required for opening this account?
There is no minimum balance requirement for this account, but a cheque of Rs.25,000 should accompany the account opening form as an initial deposit.
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What are the features
of the Money Multiplier Facility offered for SSA?
Money Multiplier Facility features are :
- Minimum balance in Special Saving Account should be Rs. 25,000 to generate a linked Fixed Deposit
- Fixed Deposit request will be made in multiples of Rs. 5,000 only.
- You can have more than one Fixed Deposit linked to the same Special Saving Account. You will have to give a specific request for each Fixed Deposit creating and linking.
- All Fixed deposit linked to the account will be enabled for automatic reverse sweep in multiples of Rs. 5,000 when the balance in Special Saving Account falls below Rs. 10,000.
- Fixed Deposit will be broken in Last In First Out (LIFO) basis of reverse sweep.
- Linked Fixed Deposit will be in auto-renewal mode.
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What are the charges
applicable for DDs and Pay orders for this account?
A multi-city chequebook is provided with accounts to facilitate fund transfer on Pan-India basis. However, in the event of request for a DD or a Pay order, the usual charges as per the directory of service charges will be applicable.
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Can a SSA account
be opened for entities not allowed to open a Savings account?
Only Roaming Current Account/made2order(m2o) with at-par cheque books can be offered to such entities. For non-prohibited cases, we also open a Special Savings Account for trusts, clubs, societies and associations, which are non interest bearing. The customer can get the benefits of fixed deposits interest through Money Multiplier Facilty.
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What are the documents that need to be submitted for entities enjoying tax benefit under section 11 for opening of Special Savings account with interest on savings balance?
The following documents needs to be submitted by the entities exempt under section 11 for opening of Special Savings Account:
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Copy of the last acknowledged return of income / IT assessment order verifying that the income is exempt from tax
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Registration certificate from Income Tax establishing that the income of entity is exempt from tax
- Confirmation from the authorised signatory that the income of the entity is exempt under the Income-tax Act [refer in prescribed format]. It should also be confirmed in the letter that the trustee/authorised signatories undertakes to intimate the withdrawal of tax exemption to the Bank. This confirmation should be obtained annually in the month of April to the effect that the entity continues to be exempt from tax.
Note: The above proof of income tax exemption is not needed for list of entities who are eligible for opening a saving account ( refer section on " Elegibility") except , when falling under (f) i.e. "Institutions other than those mentioned in clause (i) and whose entire income is exempt from payment of Income-tax under the Income-Tax Act, 1961"
Also , Provisions of Section 10 of the Income-tax Act, 1961 refers to the entities eligible for tax exemption. All the entities exempt under section 10 do not enjoy blanket tax exemption. Circular no.4/2002-03 dated July 16, 2002 issued by Central Board of Direct Taxes (CBDT), wherein, CBDT has exempted certain specified entities falling under section 10 from the provisions of deduction of tax at source (TDS) which are unconditionally exempt from tax under section 10 and are not required to file the return of income under section 139 of the Income tax Act, 1961.
Such entities are eligible to open a Special Savings Account. Top
Is TDS deductible on the interest earned on savings account and deposits?
No TDS is applicable on savings interest. In case of interest on Money Multiplier/FDs, no TDS is applicable for interest upto Rs. Rs. 5000 under section 194A. Only if the interest received or likely to be received exceeds Rs. 5000 but does not exceed Rs.100,000 during the financial year Form 15G can be submitted for the purpose of exemption from TDS.
Otherwise, the entity must produces a certificate of tax exemption u/s 197 , as issued by the Income Tax Dept. or provide a valid Sec 10 exemption - which permits them unconditional exemption and shows that they are not required to file return of income also. Then no TDS will be deducted. Top
Will multi-city cheques
be available for this account?
Yes. With this facility, all cheques issued by you will be payable at par at various ICICI Bank branches across the country. This is a unique facility, which gives you the power to issue cheques that are treated as local cheques at all ICICI Bank locations across India.
(Option of local and/or multi-city cheque book is available.)
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Can multi-city cheque
be issued for local clearing in the centre where the account is held?
Yes
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Can credits be routed
in the account from any of our branches?
Yes, anywhere banking is offered to SSA clients.
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Can any fund based / non-fund based credit / loan limits be offered to these accounts?
Credit limits are not offered as part
of the product.
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