Paying income tax may be mandatory, but there are various ways in which you could save on the tax by investing in the right schemes. From savings account to fixed deposits and home loan, there are various instruments you can invest in. These investments can help you secure your future without burdening your present, while saving you some money through tax exemptions. DCB Bank, an emerging private sector bank with more than 176 branches in 17 states and 2 union territories, offers some interesting tax-saving products that you can take advantage of.
Save Tax with DCB Bank:
Under the Income Tax Act, there are many provisions and sub-sections that allow tax deductions on many types of your investments. DCB Bank offers some such products that fall under the purview of the Act and allow you to pay less tax and save for your future at the same time. Let us take a look at the schemes and the I-T Act sections that you need to know about.
DCB Bank Tax-Saving Product
The tax-saving products offered by DCB Bank fall under various sections of the Income Tax Act. DCB Bank offers savings account, fixed deposits, insurance policies and home loans – all of which can help you reduce the total amount you pay to the taxman at the end of the financial year.
Under Section 80C:
The following financial products fall under Section 80C:
- Provident Fund contributions
- Investment in debentures and equity stocks
- Home loan EMIs
- Income from delayed savings plans like fixed deposits
- Life insurance premiums
You can invest up to Rs. 1.5 lakh yearly under Section 80C. Here are the DCB Bank products that fall under this section:
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DCB Tax Saver Fixed Deposit:
With a minimum investment of Rs. 10,000, this FD scheme gives you an 8.2% interest rate for a fixed tenure of 5 years. You can choose either quarterly compounding interest or withdraw the interest amount every three months.
- DCB Home Loan: You can borrow money from DCB Bank to build a new house, to buy a flat or ready-to-move house, to buy land, or for home renovation. Up to 90% of the market value of your property can be availed as loan. The minimum loan amount is Rs. 10 lakh and the maximum is Rs. 5 crore. Both fixed and floating interest rates are available.
- DCB Bank Life Insurance: The bank offers life insurance products under both term plans and endowment plans.
Under Section 80D:
Section 80D of the Income Tax Act covers medical insurance premiums and contributions to a Union Government health scheme. DCB Bank offers health insurance policies in collaboration with ICICI Lombard General Insurance.
The following health policies are available at DCB Bank:
- Health Care Plus: This scheme can be availed by individuals between 5 and 65 years. The policy has the same premium amount for individuals of all ages. You can choose either a 1-year tenure or a 2-year tenure, and offers lifetime renewability.
- Complete Health Insurance: This policy can be tailored to your needs and caters to you as well as your family. You can insure any amount between Rs. 3 lakh to Rs. 50 lakh and can be renewed throughout your lifetime.
Under Section 80TTA:
Interest accrued on savings account, up to Rs. 10,000 per year, is deductible from income tax under Section 80TTA.
DCB offers 7 different savings accounts.
- DCB Classic: The minimum balance is Rs. 5,000 and you get an interest of 4%.
- DCB Basic Savings Bank Deposit Account: This zero-balance account gives you the basic banking facilities at a low maintenance cost.
- DCB Elite: This account allows you to choose your account number, alongside several benefits such as cash backs on shopping using debit cards and a 50% rebate on locker fee.
- DCB Family: Savings accounts of at least 2 members and up to 5 members can be brought under the DCB Family Savings Account. Benefits such as cashback on shopping and special interest rates on life insurance and group insurance policies are available. The average total quarterly balance must be Rs. 1 lakh.
- DCB Shubh-Labh: This is a cashback-centred savings account, which gives you a certain percentage of your money back on shopping through debit cards. The maximum amount you can get as cashback differs, depending on your average quarterly balance.
- DCB Privilege: A Privilege account holder is allowed to maintain the average required balance of Rs. 5 lakh cumulatively among any savings of fixed deposit accounts in the bank.
- DCB Cashback: Another money-back focused account, using a debit card of the cashback account gives you up to Rs. 6,000 in a fiscal year.
These tax-saving instruments of DCB Bank can be availed from the nearest branch of the bank or through online sites.