An SBI Interest Certificate is an important document for customers of the State Bank of India (SBI) that provides details of the interest earned or paid during a financial year. It can be obtained online or by visiting the branch. Bank account holders require an interest certificate to check interest benefits on savings, current, and fixed deposits account. Interest certificates for education and home loans can be used to claim tax deductions. For example, the interest paid on a home loan is eligible for a deduction from taxable income, with a limit of INR 1.5 lakh.
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What is an SBI Interest Certificate?
An SBI interest certificate is a document that provides credit and debit details of interest earned and paid during a financial year. The kind of interest certificate depends on what services the account holder uses.
An SBI deposit interest certificate shows the amount of interest earned on savings or fixed deposit accounts. On the other hand, a home loan or education loan interest certificate from SBI provides the details of the interest paid on the loan account for the financial year.
It includes details like the name of the borrower, loan account number, type of loan, interest paid on the loan account, amount of interest proposed to be paid, and the principal amount.
The SBI education loan interest certificate lets borrowers claim income tax rebates on education loans under Section 80E of the Income Tax Act.
| Overview | |
| Types | Includes deposit interest certificates and loan interest certificates. |
| Uses | Essential for filing income tax returns and tracking interest payments. |
| How to Obtain | Available online through SBI’s net banking portal under the ‘My Certificates’ section. |
What Information is Included in an SBI Interest Certificate?
- Financial year details.
- Account holder details (Name, Account Number).
- Type of account (Savings/FD/RD/Loan).
- Total interest earned on deposits.
- Total interest paid on loans (for deduction claims).
Types of SBI Interest Certificate
State Bank of India (SBI) offers a variety of interest certificates to help customers track their earnings and payments across different financial products. These certificates provide a detailed record of interest earned on savings accounts, fixed deposits (FDs), and recurring deposits (RDs), as well as interest paid on loans such as home or personal loans. They are essential for financial planning, tax filings, and claiming deductions under applicable laws.
Here’s an elaboration on the types of interest certificates issued by the State Bank of India (SBI), including their purpose and details, presented in a structured table format for clarity.
| Type of Interest Certificate | Purpose | Details | Use Cases |
|---|---|---|---|
| 1. Savings Account Interest Certificate | To provide details of interest earned on savings accounts. | – Captures the total interest credited to the account during the financial year. – Available for all individual savings accounts. – Issued annually or upon request. | Used for income tax filings to declare interest income under “Income from Other Sources.” |
| 2. Fixed Deposit (FD) Interest Certificate | To summarize interest earned on Fixed Deposits. | – Reflects the total interest accrued and paid for fixed deposits. – Covers multiple FDs if linked to a single customer ID. – Specifies TDS (Tax Deducted at Source), if applicable. | Helps account holders report FD interest in tax filings and verify TDS deductions. |
| 3. Recurring Deposit (RD) Interest Certificate | To detail interest earned on recurring deposit accounts. | – Provides a consolidated view of interest earned during the financial year. – Includes information on TDS, if applicable. – Reflects maturity date and total deposit value. | Useful for tax declarations and tracking RD investment earnings. |
| 4. Interest Paid Certificate (Home/Personal Loans) | To confirm interest paid on loans for tax deduction purposes. | – Specifies total interest paid during the financial year on home loans, personal loans, or education loans. – Includes principal repayment details (for home loans). – Compliant with Sections 24(b) (interest) and 80C (principal) of the Income Tax Act for home loans. | Essential for claiming tax benefits on home loans under Section 24(b) and principal repayment under Section 80C. |
Also Read: Know about the SBI education loan disbursement process and understand the important steps involved for hassle-free education loan disbursal.
Uses of Education Loan Certificate SBI
Students who have opted for the SBI Global Ed-vantage education loan scheme must regularly obtain the education loan interest certificate from the bank. It is used to claim tax benefits on education loans under Section 80E of the Income Tax. It means that the interest paid on an education loan is applicable for deduction from the taxable income.
SBI account holders must obtain an interest certificate from the bank for filing income tax returns. The interest certificate acts as a proof for claiming the tax benefits on education loan interest payments. An individual can also track expenses and monitor the interest payments throughout the year using the loan SBI certificate.
Also Read: SBI Student Credit Card allows students to easily manage their cash while studying abroad. Check out this blog to learn about its features, benefits, rates and how to apply.
How to Obtain an SBI Interest Certificate?
You can visit the nearest SBI bank branch and request an SBI interest certificate. However, to make the banking process smooth and hassle-free, SBI has enabled a feature to obtain interest certificates online. Customers can easily access the new SBI online banking portal and generate interest certificates. This is how you can conveniently obtain the interest certificate from the State Bank of India-
- Online Banking
- Bank Branch Visit
Steps to Apply Online
- Log in to your SBI net banking account.
- Navigate to the ‘My Certificates’ section under ‘e-Services’.
- Select ‘Education Loan Interest Certificate’ and download the PDF.
- The bank will issue the certificate after verification.
Steps to Apply Offline
- Visit your nearest SBI branch.
- Submit a written request for the interest certificate.
- The bank will issue the certificate after verification.
Difference Between SBI Interest Certificate and Form 16
While both SBI Interest Certificates and Form 16 are used for income tax purposes, they are used for very different functions and apply to different types of income. Check out the key major differences in the table provided below:
| Aspect | SBI Interest Certificate | Form 16 |
|---|---|---|
| Purpose | Gives information on the interest earned on the deposits in an SBI account. | Certifies TDS on salary. |
| Applicable Income Type | Interest income from savings accounts, fixed deposits, recurring deposits, etc. | Salary income from employment. |
| Issuer | State Bank of India (SBI) | Issued by the employer |
| Usage for Tax Filing | Helps in reporting interest income for tax purposes and claiming deductions under Section 80TTA or 80TTB. | Serves as proof of TDS deducted |
| Frequency | Can be generated at any time | Issued annually |
| Mandatory for Filing ITR? | Not mandatory | Mandatory |
Also Read: Check out these blogs to learn more about the steps to obtain an ICICI Interest Certificate and Axis Bank Interest Certificate online or through the official mobile application.
This was all about the SBI interest certificate. Understanding how to obtain it is important as it helps the borrowers of education loans to claim income tax rebates under Section 80E of the Income Tax Act and keep track of expenses and interest payments on SBI education loans.
FAQs
It is a document that provides the details on interest earned on savings or fixed deposit accounts with SBI. For an education loan interest certificate, the documents show the principal amount and interest amount paid during the financial year.
The loan certificate SBI for an education loan is a document that provides details on how much interest has been paid during the financial year and how much interest is pending for the remaining repayment tenure.
Customers can easily access the new SBI online banking portal and generate interest certificates online. Simply, log in to the Personal Banking section and navigate to the ‘My Certificates’ tab. Look for the education loan certificate and download the same.
The SBI deposit interest certificate provides detailed information about the interest earned on your deposit accounts (savings and fixed deposits). An education loan interest certificate shows the amount of interest paid on an education loan during the financial year. Both of them help in claiming tax benefits.
SBI account holders must obtain an interest certificate from the bank for filing income tax returns. It helps you claim for the deductions under Section 80E of the Income Tax Act. The certificate acts as proof for claiming the tax benefits on education loan interest payments.
An education loan interest certificate is used to claim income tax rebates for education loans under Section 80E of the Income Tax. It means that the interest paid is deducted from the taxable income.
Yes, SBI allows customers to request interest certificates for previous financial years. You can access these through the online portal or by visiting your local SBI branch. Ensure you specify the financial year while requesting the certificate to get the correct details.
No, SBI does not charge any fee for generating or downloading interest certificates through online banking platforms. However, if you request the certificate offline at a branch, it’s advisable to confirm if any nominal charges apply for document processing.
Yes, NRIs holding NRE or NRO accounts with SBI can obtain interest certificates. These certificates detail the interest earned on NRO accounts, which is taxable in India, while interest on NRE accounts is exempt under certain conditions. NRIs can access their certificates online or request them at their home branch.
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