Tax Saving Investments FY 2015-16
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Tax Savings Options Available With SIB
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SNO
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PRODUCTS
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TAX RELAXATIONS
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1
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Section 80C of IT Act
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2
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Section 80C of IT Act
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3
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Section 80C of IT Act
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4
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Section 80D of IT Act
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5
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Section 80CCD of IT Act
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6
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Section 80C of IT Act
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7
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Section 54EC of IT Act
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8
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Section 24 (B) of IT Act
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Other Tax related services
SIB Tax Gain Deposit:
The salient features of the scheme are given below:
- An investment up to Rs.1.50 lac (Minimum Rs.100/- and maximum Rs.1.50 lac in multiples of Rs.100/-) deposited in the bank as Fixed / under Compound interest scheme for a period of 5 years under SIB Tax Gain Deposit is eligible to be treated as exemption from Income Tax under Section 80C of IT Act, 1961.
- Amount deposited in the name of individual, joint (first name holder) or HUF (Karta) not exceeding Rs.1.50 lac in a financial year is eligible for tax exemption.
- Though nomination can be registered, NO nomination shall be made in respect of a term deposit applied for and held by or on behalf of a minor.
- The rate of interest will be the rate of interest applicable for Fixed deposits with maturity 5 years. Additional rate for senior citizens will be applicable to this deposit also.
- Deposit can be transferred from branch to branch but not between banks.
- This deposit shall not be encashed before the expiry of 5 years from the date of its receipt.
- Interest on this deposit shall be liable to Income Tax on the basis of annual accrual or receipt depending up on the simple interest or compound interest scheme and tax on such interest shall be deducted as usual.
- The deposit shall not be pledged to secure loan or as security mentioned as per the Term deposit scheme, 2006, issued by the Central Government of India
Mutual Fund:
One of the preferred investment options for all those who want to play safe, yet save more than what traditional saving avenues offer! South Indian Bank has tied-up with the leading Mutual Funds, so that you may pick and choose, as per your investment goals.
Tax Benefits:
Investments in ELSS (Equity Linked Savings Scheme) upto Rs.1.50 lakh are eligible for tax exemption as per Sec.80C. Long term capital gains are exempted subject to the provisions of the Income-tax Act, 1961. Tax saving funds of the following Mutual Fund companies is available at SIB branches.
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Name of the AMC
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Name of the Tax Plan
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Aditya Birla Sun Life Mutual Fund
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Aditya Birla Sun Life Tax Relief 96 Fund
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Axis Mutual Fund
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Axis Long Term Equity Fund
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DSP Mutual Fund
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DSP Tax Saver Fund
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Franklin India Mutual Fund
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Franklin India Taxshield Fund
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HDFC Mutual Fund
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HDFC Taxsaver Fund
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ICICI Prudential Mutual Fund
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ICICI Prudential Long Term Equity Fund (Tax Saving)
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Kotak Mutual Fund
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Kotak Tax Saver Fund
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L&T Mutual Fund
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L&T Tax Advantage Fund
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LIC Mutual Fund
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LIC MF Tax Plan Fund
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Nippon India Mutual Fund
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Nippon India Tax Saver (ELSS) Fund
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Principal Mutual Fund
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Principal Tax Savings Fund
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SBI Mutual Fund
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SBI Long Term Equity Fund
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Sundaram Mutual Fund
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Sundaram Diversified Equity Fund
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Tata Mutual Fund
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Tata India Tax Savings Fund
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UTI Mutual Fund
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UTI Long Term Equity Fund
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Click here for more details
Life Insurance policies
Life Insurance is the best way to enjoy tax deductions on income tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Under section80C the maximum tax deduction that can be gained for premium paid is Rs. 1,50,000/- in a financial year. Any amount received under a Life Insurance Policy including the sum allocated as bonus is exempted under section 10(10D) of the income tax act, 1961 subject to certain exclusions under the section
Health Insurance Policies
In case of an individual, amount of deduction on Medical Insurance premium (Section 80 D) cannot exceed:
a. Rs. 25,000, in aggregate, in respect of medical insurance premium or any payment made for preventive health check-up (*). [This deduction is available if payment is made for benefit of assessee, himself or his/her spouse or dependent children]
b. Rs. 25,000, in aggregate, in respect of medical insurance premium or any payment made for preventive health check-up (*). [This deduction is available if payment is made for benefit of parents of assessee.]
c. Rs 25,000 in aggregate in respect of contribution made to the Central Government Health Scheme or any scheme notified by the Central Government [This deduction is available if payment is made for benefit of assessee, himself, his/her spouse or dependent children]
d. Rs 30,000 in aggregate in respect of medical expenditure incurred on the health of assessee, himself, his/her spouse or dependent children or parents. [This deduction is available if amount is paid for benefit of a very senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person.]
(*) total amount of deduction for the expenditure incurred on preventive health check-up of assessee, his family and parents could not exceed Rs. 5,000.
Note: In aforesaid clauses a, b and c additional deduction of Rs 5,000 is available when medical insurance is taken on the life of senior citizen.
NPS (National Pension System)
Pension Fund Regulatory and Development Authority (PFRDA) is established by the Government of India, Ministry of Finance to promote old age income security. The Government authorized PFRDA to extend NPS on a voluntary basis to all citizens of India including workers of the unorganized sector.NPS is now available to all citizens of India with effect from May 1, 2009, other than Central & State Government employees already covered under NPS. The South Indian bank is acting as a Point of Presence- Service Provider (POP-SP) for servicing NPS Accounts.
Benefits of Joining NPS
- Its Voluntary: NPS is open to every Indian Citizen, Including NRI’s & OCIs between the ages of 18-70.
- Its Flexible: One can choose his own Investment option & Pension Fund Manager.
- Its Portable: One can operate the account from anywhere in the Country, even if you change your city, job or pension fund manager.
- Its Regulated: NPS is regulated by PFRDA, with transparent investment norms, & regulated Monitoring & Performance review of Fund Managers by NPS trust.
- NPS Offers tax exemption up to Rs. 1.50 lac for investment under 80CCD & additional tax benefit of Rs 50,000 under 80 CCD (1B) of IT Act.
- On attaining the Normal Retirement Age of 60 years.
Customer can withdraw lump sum amount if the corpus amount in NPS is below 5.00 lacs. Customer is required to compulsorily annuitize minimum 40% of accumulated pension wealth and remaining 60% can be withdrawn as a lump sum or in a phased manner; within the age of 75, if the corpus amount in is above 5.00 lacs.
APY (Atal Pension Yojana)
Atal Pension Yojana is minimum Guaranteed pension scheme introduced by Govt of India in 2015. Under APY ,the subscribers would receive the fixed minimum pension from Rs 1000 to Rs 5000 per month,at the age of 60 years, depending on the their contributions which is fixed according to the age of the subscriber at the time of opening APY. The South Indian bank is acting as a Service provider for Atal Pension Yojana.
Benefits of Joining NPS
- APY is open to every Indian Citizen, Including NRIs between the ages of 18-40.
- Minimum guaranteed pension to the subscriber after the age of 60.
- Minimum guaranteed pension to the spouse upon the death of the subscriber after the age of 60.
- Husband and wife are eligible to open separate APY for higher pension for the family.
- Nominee receives the pension wealth for Rs 1.70 lacs to 8.50 lacs(depends upon the pension opted) upon the death of both subscriber and spouse.
- Income Tax benefits under Section 80CCD (1B) of IT Act.
SIB- HOME LOAN
Own your Dream HOME through SIB HOME Loans Now!!!!! At low interest rate
• Loans Available for Ready built Houses/Flats or for constructing your dream HOME.
• Identify the Property, Approach nearest branch. Rest we will take care.
100% Income Tax benefits for HL interest paid up to Rs 2.00 lakhs in a year.
Income Tax Rebate up to Rs 1,50,000 under 80C for principal repaid
Salient Features
- Simple Documentation procedures
- No prepayment Penalty *
- Flexible repayment options
- Repayment facility up to 20 years or more*
- Special Schemes for NRIs
- Income Tax benefits for interest up to Rs 2.00 lakhs
- Income Tax Rebate up to Rs 1,50,000 under 80C for principal repaid
- Online repayment facility from other bank accounts.
- Low Processing Fees
- No Hidden Charges
- Flexible & Fixed Interest options *
- Repayment holiday for house construction loans
- Life Insurance of borrower can be opted to cover unforeseen happenings
Additional loans for extension/repairs:
Documents Required:
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Identity, Address & income proof of borrower & Guarantor
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Property title deeds
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Encumbrance Certificate& Tax paid Receipt
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Agreement for sale from seller
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Approval from local body & Estimate of the project
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CAPITAL GAIN BONDS
(For getting Capital Gain Tax Exemption)
If the investor sells a house property i.e. house or land appurtenant thereto, after three years time period the profit earned attracts long term capital gains tax at a rate of 20%(after indexation). The assessee can choose to get exemption from this long term capital gain tax in 2 ways:
- Either acquiring a residential house, by investing the amount in buying, either one year before or two year after/constructing a new house within a period 3 years, from the date of sale.
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- Investing in Capital Gain Bonds.
Features:
- Covers “Capital gain arises from the transfer of a long-term capital asset.
- Bonds covering the benefits under Section 54EC of the Income Tax Act.
- Section 54EC exempts tax on capital gains if the capital gain earned by selling the property (the property should have been owned by the investor at least for a period of 3 years termed as long term capital) is invested in specified bonds within six months from the date of sale.
- Lock-in-period is 60 months.
- The face value of these bonds is Rs 10,000/-
- The maximum amount that can be invested from capital gains arising from transfer of one or more original assets during the financial year in which the original asset or original assets are transferred and in the subsequent FY cannot exceed Rs. 50,00,000/-
- Time limit for investment- within 6 months from date of transfer.
- Exemption – Lower of the amount of capital gains or amount invested.
- Bonds of NHAI(National Highway Authority of India) or REC(Rural Electrification corporation Ltd are currently available.
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