Income Tax Act of India allows certain deductions that can be claimed to save tax while filing your Income Tax Return. HDFC Bank offers various products that can help you save tax. You can either make deposits or invest in mutual funds or even claim deductions on the interest that you pay towards your education loan or on the premium you pay towards life insurance and medical insurance.
Save Tax with HDFC Bank:
HDFC Bank lets you save tax under the following Sections of the Income Tax Act, 1961:
Under Section 80C:
The following are the instruments that are offered by HDFC bank that allow you to claim deduction under this section:
- 5 year Tax Saving Fixed Deposit:
The minimum amount of investment is Rs.100 and the maximum amount allowed is Rs.1.5 lakh for a financial year. Only resident individuals and HUF are eligible to deposit in this product.
- Regular Fixed Deposit:
This is an easy investment that offers high returns and great interest rates along with security. Senior citizens get a higher rate of interest. You can even book the deposit through Net Banking. The amount invested is eligible for tax deduction.
- Super Saver Facility:
Amount invested in this deposit is eligible for deduction under Section 80C. This product allows you to take advantage of the overdraft facility to supplement your household expenses or business expenses.
- HDFC Life Click 2 Retire ULIP:
This is an online ULIP that offers market linked returns. Your retirement is secured with the assured vesting benefit. You get to pay the premium on a regular basis, limited pay or through single pay.
- HDFC Life Assured Pension Plan- ULIP:
This plan offers market linked returns along with loyalty additions to help you achieve your retirement goals. You also get vesting benefits. The options available with this plan limited pay and single pay. Death benefits will be paid to the nominee at the time of death.
- HDFC Unit Linked Young Star
- Money Back Plans
- HDFC SL Crest
Under Section 80CCC:
Contributions made to the pension plans will be eligible for deductions under this section. The pension plans offered by HDFC Bank are as follows:
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- HDFC Life Personal Pension Plus:
The tenure ranges from 10 to 40 years. The plan can be taken on a single life and you get to choose the premium payment frequency. Assured benefits equal to 101 percentage of the regular premiums paid. The death benefits at all time are a minimum of 105% of the premiums paid.
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- HDFC Life Click 2 Retire ULIP:
This is an online ULIP that offers market linked returns. Your retirement is secured with the assured vesting benefit. You get to pay the premium on a regular basis, limited pay or through single pay.
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- HDFC Life Pension Super Plus:
This ULIP is designed to build corpus over the policy term so that you can enjoy your retirement. Additional premium allocation is allowed from the 11th year onwards. You get assured benefits on maturity and flexibility to choose your retirement date and policy term. Guaranteed regular income can be earned on the annuity purchased from HDFC.
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- HDFC Life Single Premium Pension Super Plan:
This is a single premium ULIP that creates corpus over the policy term to generate income for life post your retirement. You can choose the single premium amount and you have the option to invest in top-up premiums. You get guaranteed income on the annuity purchased and also get assured maturity benefit.
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- HDFC Life Assured Pension Plan- ULIP:
This plan offers market linked returns along with loyalty additions to help you achieve your retirement goals. You also get vesting benefits. The options available with this plan limited pay and single pay. Death benefits will be paid to the nominee at the time of death.
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- HDFC Life Click 2 Retire ULIP:
This is an online ULIP that offers market linked returns. Your retirement is secured with the assured vesting benefit. You get to pay the premium on a regular basis, limited pay or through single pay.
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- HDFC Life Guaranteed Pension Plan:
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This is the best pension plan offered that helps you build and secure your retirement fund. You get guaranteed additions of 3% of the sum assured. Premium payment term offered is 5 years, 7 years and 10 years. Policy term ranges from 10 to 20 years. This policy can be taken on single life basis.
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- HDFC Life New Immediate Annuity Plan:
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It is a non-linked traditional annuity plan. You get guaranteed income and a wide range of annuity options to choose from. You also have the flexibility to choose the frequency of the annuity payments.
Under Section 80CCD:
The investments made under the notified Pension Schemes will be eligible for deduction under Section 80CCD. You can invest in NPS for Corporatesoffered by HDFC. It requires equal contribution from corporate and the employees or unequal contribution by the employer or the employee or contribution either from the employer or the employee. HDFC lets you buy the NPS online.
Under Section 80D:
The premium that you pay towards your medical insurance is eligible for tax benefits under the Section 80D. The products offered by HDF for health insurance are as follows:
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- Health Suraksha:
This covers hospitalisation due to sickness and accident and also covers pre and post hospitalisation expenses, organ donor expenses, day care procedures and domiciliary treatment. Renewal bonus is offered for each claim free year. The policy can be bought online.
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- Critical Illness Silver Plan:
Lump sum benefit is provided on the first diagnosis of a critical illness. Coverage against 8 critical illnesses are provided, they are heart attack, coronary artery bypass surgery, stroke, kidney failure, paralysis, cancer, multiple sclerosis and major organ transplantation. The benefit can be used to pay for your care and treatment, to clear off debt, fund for a lifestyle change and for recuperation aids.
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- Critical Illness Platinum Plan:
Lump sum benefit is offered on diagnosis of the critical illness. This plan cover 15 critical illnesses, they are stroke, heart attack, cancer, coronary artery bypass surgery, multiple sclerosis, kidney failure, major organ transplant, paralysis, aorta graft surgery, primary pulmonary arterial hypertension, benign brain tumor, heart valve replacement, Alzheimer’s disease, Parkinson’s disease and end stage liver disease. The lump sum amount can be used to pay off your debts or to take care of the treatment or to fund your lifestyle change.
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- Individual Personal Accident Plan 2:
This policy provides financial security for unforeseen accidents up to the age of 65. You get coverage in India and internationally. Insurance amount can be chosen from a range of Rs.2.5 lakhs to Rs.15 lakhs depending on your requirements.
Under Section 24:
Interest payment of up to Rs.1,50,000 per annum on HDFC home loan is eligible for deduction under the Section 24 of the Income Tax Act, 1961. HDFC home loan can be used to purchase a flat, bungalow, row house or properties from development authorities. Attractive interest rates are offered to make the loan affordable and there repayment options can be customised. There are no hidden charges. Special arrangement is offered for those employed with the Indian Army.
Under Section 80E:
Interest paid on the educational loan is eligible for tax benefits under Section 80E of the Income Tax Act, 1961. HDFC offers up to Rs.10 lakh as study loan. Flexible education loan package can be availed with multiple options of collateral and tenure and repayment term. HDFC offers:
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- Education Loan for Indian Education:
Preferential rates are offered for the top ranked universities. You also get an option to take insurance cover for your loan.
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- Education Loan for Foreign Education:
This loan has a flexible loan term and loans over Rs.20 lakh is available. Up to 100% of the education fee is financed.
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- Central Government Interest Subsidy Scheme:
This scheme can be taken if the annual gross income of the parents is in the upper limit of Rs.4.5 lakhs.
Under Section 80CCG:
Taxpayers whose annual income is below Rs.12 lakh per annum are allowed an additional discount under the Section 80CCG for investing in shares of the specified companies and mutual funds. The deduction is called Rajiv Gandhi Equity Saving Scheme, the schemes offered by HDFC under RGESS are as follows:
- HDFC Focused Equity Fund Plan B
- HDFC Focused Equity Fund Plan A
- HDFC RGESS Series 2
- HDFC RGESS
Under Section 10(10D):
On surrendering the following policies, you can claim deduction under Section 10(10D):
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- HDFC Life Assured Pension Plan- ULIP:
This plan offers market linked returns along with loyalty additions to help you achieve your retirement goals. You also get vesting benefits. The options available with this plan limited pay and single pay. Death benefits will be paid to the nominee at the time of death.
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- HDFC Unit Linked Young Star
This plan gives outstanding investment opportunity. You get flexible benefit combinations as well as payment options. Critical illness cover can also be taken. On maturity the child will receive accumulated value of the funds. In the event the parent dies, sum assured is paid to the child but the policy continues.
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- Money Back Plans:
This plan fulfils your short and long term financial goal. You get wide range of terms and cash benefits. You can take a single or a joint life plan. You also get 4 additional optional benefits. Lump sum amount is paid at regular 5 year interval and on survival up to maturity. Simple reversionary bonus and terminal bonuses are paid.
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- HDFC SL Crest:
This plans allows you to invest for a limited term of 5 years and you can enjoy the cover for 10 years. Financial protection is provided for your loved ones and you can enjoy the option of investing in 4 funds which has varying risk and returns.
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- HDFC Life Super Income Plan:
This is a participating regular income plan which offers guaranteed benefits along with bonuses. You get guaranteed income for a period of 8 – 15 years and is ideal for those who need regular income. You also get maturity benefit with this plan. You get to choose the various combinations of premium payments and policy terms to meet your goal. You get the flexibility to choose the premium payment.
Under Section 10(10A):
The following are the products that are offered by HDFC Bank and under which you can claim tax benefits under Section 10(10A) for the vesting benefits received:
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- HDFC Life Click 2 Retire ULIP:
This is an online ULIP that offers market linked returns. Your retirement is secured with the assured vesting benefit. You get to pay the premium on a regular basis, limited pay or through single pay.
- HDFC Life Single Premium Pension Super Plan
- HDFC Life Personal Pension Plus Plan
- HDFC Life Pension Super Plus
- HDFC Life Guaranteed Pension Plan
- HDFC Life New Immediate Annuity Plan
Under Section 80TTA:
The interest that you earn on your savings account up to Rs.10,000 is eligible for deduction under this section. HDFC offers the following savings accounts:
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- Savings Max account:
Free cash withdrawals and balance enquiries can be made. Primary account holder gets a free lifetime Titanium Royale Debit card. Free cheque book and demand drafts and passbook facility is offered. Lifetime bill pay and insta alerts are offered to the account holder.
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- Regular savings account:
The following benefits are offered: net banking, phone banking, mobile banking, international debit card, personalised cheques, Billpay, safe locker deposits, sweep in and super saver facilities, free cash withdrawals and passbook facilities.
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- Women’s savings account :
Apart from the usual benefits of a savings account, you also get insurance cover, preferential pricing, special offers on loans and special shopping benefits.
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- Kid’s advantage account:
You get free education insurance cover, ATM or international debit card, free cash withdrawals, email statements, net banking, standing instructions, etc.
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- Senior citizen account:
You get preferential rates on FDs, special offers on Demat account, free traveller’s cheques and insurance benefits along with the usual savings account benefits.
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- Family savings group account:
International debit cards to all account holders, 5 free cash withdrawals, free bill payment, locker facility, online trading account, etc.
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- Basic savings bank deposit account:
Free RuPay card, net banking, free cash and cheque deposits, international debit card, safe deposit locker, sweep in and super saver facilities etc. are offered.
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- Institutional savings account:
Online payments like salary payment, vendor payments can be made. You get net banking, phone banking and mobile banking facility as well. You also get free monthly account statements as well. The account can be used to collect donations and fees.
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- BSBDA small account:
This is a zero balance account with free debit card. You get free passbook facility, 5 free cash withdrawals, free cash and cheque deposits.
HDFC Bank has various products that can be used to help you save tax, right from the loans to the deposits and the interest that you pay.