How to Save Tax with IndusInd Bank

We end up worrying at the end of every financial year that we have to show our investment proofs and wonder which bank offers the best products. The Income Tax Act of India allows deductions that can be claimed to save tax while filing your Income Tax Return. IndusInd Bank offers a wide range of products that can help you save tax. You make either make deposits or invest in pension plan or insurance and claim deduction on the interest that you pay towards your loans.

Save Tax with IndusInd Bank:

IndusInd Bank lets you save tax under the following Sections of the Income Tax Act, 1961:

1. Section 80C:

The following are the deposit scheme that are offered by IndusInd bank. Up to Rs.1,50,000 can be claimed as deductions. You can claim deductions deposits made in the following schemes:

• IndusInd Bank Fixed Deposit:

You get flexible range of tenure. You get to choose the interest payable and to which account it has to be paid to. Nomination facility and partial withdrawals are allowed. Senior citizens get special rates. You can do the booking through Indus Net or phone banking.

• Sweep-in or Out Deposit:

This scheme is most suitable to the corporates and individuals. The amount will float between current and savings account. The amount will be transferred to term deposit for a specified period. If there is insufficient balance, the required amount will be transferred by breaking the deposits. The tenure offered ranges from 30 days to 24 months. Nomination facility is available. The account cannot be closed prematurely.

• Regular Recurring Deposit:

This encourages regular savings as you will have to invest a fixed amount each month for a fixed period. Opening balance starts at Rs.500. The tenure ranges from 12 months to 120 months. Nomination facility and premature closure is allowed.

• Senior Citizen Scheme:

This scheme offers a higher interest rate to people above the ages of 60. Joint deposits can also be opened. The minimum deposit amount allowed is Rs.10,000. The tenure ranges from 7 days to 120 days. Account holder can nominate and also prematurely close the account.

• Young Saver Deposit:

This scheme was introduced to inculcate saving habit among children. It links savings account with flexi recurring deposit account that is to be opened and operated by the guardian of the minor. The account can be opened with Rs.11 and the tenure ranges from 6 months to 120 months. Nomination facility is available and the account can be prematurely closed as well.

• Deposit Plus:

It offers high returns through investing in market linked instruments. Since the amount invested and interest earned is invested in Mutual Fund through SIP, the capital is protected. You have multiple SIP schemes to choose from and overdraft facility is available. Premature encashment is also permitted.

2. Section 80CCD:

The investments made under the notified Pension Schemes will be eligible for deduction under Section 80CCD. IndusInd Bank has tied up PFRDA to offer:

• Atal Pension Yojana:

Defined pension will be provided depending on the contribution and its period. This scheme focuses on the citizens in the unorganised sector. Subscribers under this scheme will receive a fixed Rs.1,000 or Rs.2,000 or Rs.3,000 or Rs.4,000 or Rs.5,000 as pension per month depending on the contribution made. The joining age for this scheme is 18 years and the maximum age to join this scheme is 40 years. Minimum contribution period is 20 years.

3. Section 80D:

The premium that you pay towards your medical insurance is eligible for tax benefits under the Section 80D. The products offered by IndusInd Bank for health insurance are as follows:

1. 1. • Enhance:

You get cashless treatment at more than 4100 hospitals. Regular health check-ups are offered to adult members. Treatment can be availed anywhere in the world. It has a lifetime renewability. There is a floater cover and organ donor medical expenses are covered. On 2 year policy you can get 7.5% discount and 10% discount on a 3 year policy.

1. 1. • Care:

Sum assured is up to Rs.60 lakh. The policy is auto recharged at no extra cost. Treatment can be availed anywhere in the world. You get cashless treatment at 4100 hospitals. Over 170 day care procedures are covered. There is lifetime renewability. You get up to 150% increase in the sum insured with the no claim bonus. Domiciliary hospitalisation is also covered.

1. 1. • Secure:

Your nominee will receive compensation in the event you die. Permanent total disablement and partial disablement is covered. You also get child education cover and add on benefits like accidental hospitalisation covering daily allowance, hospitalisation expenses and compassionate visit.

1. 1. • Travel:

With this you can worry less when you are on your dream vacation. Since it is region specific plan, it is low cost and double sum insured if hospitalised due to an accident. There is no ailment limit or age limit. Cashless claim settlement is allowed.

4. Section 24:

Interest payment of up to Rs.1,50,000 per annum on IndusInd home loan is eligible for deduction under the Section 24 of the Income Tax Act, 1961. IndusInd offers home loans through HDFC Bank. The loan can be taken to:

1. 1. • Purchase a new house: Buy or construct a house.
      • Home improvement: To modify an existing house.
      • Home Extension: To expand or add space to an existing house.
      • Top-up housing loans: To borrow against the house to fund your marriage, education or medical expenses.

5. Section 10(10D):

On surrendering the Life insurance policy offered by IndusInd Bank you can claim deduction under Section 10(10D). Following are the insurance that IndusInd Bank has tied up with:

1. 1. • TATA AIA Life Insurance Wealth Maxima
      • TATA AIA Life Insurance Secure 7
      • TATA AIA Life Insurance iRaksha Supreme
      • TATA AIA Life Insurance Fortune Guarantee
      • TATA AIA Life Insurance Fortune Pro
      • TATA AIA Life Insurance MahaLife Supreme
      • TATA AIA Life Insurance iRaksha TROP
      • TATA AIA Life Insurance Saat Saath

6. Section 80TTA:

The interest that you earn on your savings account up to Rs.10,000 is eligible for deduction under this section. INDUSIND offers the following savings accounts:

1. 1. • Indus Exclusive Savings Account:

You will get regular industry updates and monthly statements. Independent team will review your wealth transaction. You get check on cheque service and enhanced protection and emergency card replacement and cash disbursement benefit.

1. 1. • Indus Select Savings Account:

There is a dedicated relationship manager to guide and assist you. You get monthly statements and check on cheque service along with enhanced protection. Rs.30 lakh air accident insurance, Rs.3 lakh if your card is lost or misused, Rs.50,000 on protection against fire and theft on purchases made on card. Family grouping facility is offered.

1. 1. • Indus Maxima Savings Account:

You get a platinum visa debit card and 2 add on accounts for free. You can bank from anywhere in the world. Mobile and internet banking facility is free.

1. 1. • Indus Privilege Savings Account:

You get dual advantage of Free Indus Young Saver account and a transactional account. You get to choose from the 3 debit cards being offered. Internet banking is free. Nomination facility is available.

1. 1. • Indus Privilege Active:

You get to choose your account number. Platinum plus debit card is offered. You can enjoy zero balance facility. Free demand drafts of up to Rs.25,000 per day. Free fund transfer and monthly e-statement.

1. 1. • Indus Diva Savings Account:

This account is crafted for the women. You get 25% discount on the first year fee of a locker. Free add on are available on accounts for your family. You can bank from anywhere in the world. You get free fund transfer and monthly statements.

1. 1. • Indus Senior Savings Account:

This account is especially for the senior citizens. There are two types offered. Privilege and Maxima. Privilege offers free RuPay debit card and higher interest on fixed deposits and insurance and other discounts. Maxima offers free Platinum debit card and free add on accounts for your family along with higher interest on fixed deposit and 20% discount on the locker facility. You also get medical insurance and discount.

1. 1. • Indus 3 in 1 Saving Bank Account:

This account is offered for e-trading. It integrates saving, demat and trading account. It enables you to hassle free trading. The trading account is to be opened with the broking partner Kotak Securities.

1. 1. • Indus Young Saver:

This account can be used for saving for the future need of your children. It also help inculcate the saving habits for the child. Your child will get a gold debit card that can be customised. Child also gets a cheque book and free education insurance cover of Rs.1 lakh.

1. 1. • Indus Classic Savings Account:

You can manage the funds in the account. You get to choose from the 3 debit cards that are being offered. Free internet banking facility and personalised cheque book. Free monthly statements and nomination facility.

1. 1. • Indus Easy Savings Account:

This is a Basic Savings Bank Deposit Account that offers you no minimum balance and complete KYC done. Customer will get a free ATM Card. Direct withdrawal facility, free fund transfer. Nomination is also available as per the guidelines of Reserve Bank of India.

1. 1. • Indus Small Account:

Zero balance facility is offered. Customer gets a free ATM card. Free fund transfer. You also get half yearly statements or monthly statements. Nomination facility is also available.

IndusInd Bank will help you save tax by letting you invest in variety of products and also lets you claim deduction on the interest payment made towards the loans.