Under various Sections of the Income Tax Act, 1961, the government has made it possible to claim certain amounts as deductions from total income, making said amounts tax-free. Certain expenditures, investments, etc. if made at the right time, and in the right avenues, could help save you a lot on tax.
Saving Tax with Nainital Bank:
Under Section 80C:
Under Section 80C of the Income Tax Act, amounts invested up to Rs.1,50,000 can be claimed for income tax deduction. Nainital Bank offers the following investments for Section 80C deductions:
- Naini Tax Saver FD: A minimum 5 year deposit with excellent interest rates and guaranteed appreciation – this investment also helps investors utilize the Section 80C deduction.
- Recurring Deposit Account: The Nainital Bank Recurring Deposit account offers investors the chance to save on taxes through Section 80C. There is no TDS on investments in recurring deposits.
- Naini Life Insurance: A group insurance policy which is non-linked, non-participating, and renewable on a yearly basis.
Under Section 80D:
As per the Income Tax Act, premiums paid towards medical insurance can be claimed as a deduction. Nainital Bank offers the following insurance products:
- Naini Life Line: An insurance policy with a sum assured of Rs.1,00,000 – this plan is for existing bank customers. The premium rates differ based on the age of the customer.
- Naini Tatkal Bima Yojana: A customized group insurance policy offered by Bajaj Allianz Life Insurance.
Under Section 24:
Under Section 24 of the Income Tax Act, 1961, interest payments on home loans are eligible for income tax deduction – up to Rs.1,50,000 in a year.
- Apna Ashiana For Home: Nainital Bank’s home loan is called Apna Ashiana for Home, and interest payments on this loan can be claimed for income tax deduction under Section 24.
Under Section 80E:
Indians seeking education in India or abroad and who have taken an education loan for the same can claim the interest paid on these loans as deductions under Section 80E.
- Naini Shiksha For Education: Nainital Bank’s education loan offers up to Rs.20,00,000 in funding for educational purposes.
Under Section 10(10D):
The Income Tax Act provision under Section 10(10D) is for deductions that can be claimed on income in the form of surrendering the life insurance policy.
Under Section 80TTA:
This section of the Income Tax Act, 1961, states that interest earned (up to Rs.10,000) in any savings bank account can be claimed as deductions. Under the category of Savings Bank Accounts, Nainital Bank offers:
- Regular Savings Account: A basic savings bank account that can be opened and operated by any Indian citizen. It has its own fees and charges, and rate of interest. Interest earned in a savings bank account is tax free and can be claimed as a deduction under Section 80TTA.
- Small Account: This savings account requires less documentation and is generally opened by low income groups to inculcate the habit of saving and earning interest income.
- No Frill Account: This account offers all the benefits of a regular savings bank account without any requirement for a minimum balance to be maintained at all times. It should be noted if the total amount of credits in a year are over Rs.1,00,000 – the account will be deactivated and reactivated as a Regular Savings Account.
There are a number of ways that a person can save tax with Nainital Bank, although there are many more Sections (other than the ones mentioned above) in the Income Tax Act, 1961, where one can save on taxes.