The Indian Income Tax Act has allowed for deductions under various Sections, and the best way to save your money from the taxman is to invest it. Many investments and expenditures fall under these Sections, and it’s only around the end of the financial new year that we realise how important those investments could have been. Knowing how and where to invest can determine the rate at which you see returns, but knowing how to show income and expenditure under the right Sections can help you save a lot on tax.
Under Section 80C:
Deductions of up to a total of Rs.1,50,000 are allowed under Section 80C, 80CC, and 80CCD. Bank of Baroda has the following investments that can help you fill this category:
- Baroda Tax Savings Term Deposit: Available to all individuals and HUFs, with a minimum investment of Rs.100 and consequent investments in multiples of Rs.100. Section 80C cap is Rs.1,50,000.
- PPF: Bank of Baroda offers the facility to invest in the government’s PPF scheme, which renders the amount invested as tax free (up to the Section limit of Rs.1,50,000) and the interest earned is totally tax free as well.
Under Section 80CCD:
- NPS: Bank of Baroda is a registered Point Of Presence under the PFRDA for the disbursement of National Pension Scheme (NPS) services. Investments under Tier – I are not taxable under Section 80CCD.
Under Section 80CCG:
- Baroda Pioneer Mutual Fund: Investments made in the Baroda Pioneer Mutual Fund will be income tax deductible under Section 80CCG up to a maximum of Rs.50,000.
Under Section 80D:
- Baroda Health Mediclaim Policy: Available only to existing customers of the bank, premium paid towards this Mediclaim policy will be tax exempt under Section 80D.
Under Section 80E:
- Bank of Baroda Vidya Education Loan: An education loan for Indian residents in India, interest payable on the repayment of education loans can be claimed for deduction under Section 80E.
- Bank of Baroda Gyan Education Loan: This education loan is for applicants who wish to fund their post-graduation education or Doctorate courses. The amount of interest payable on the loan can be claimed as income tax deduction under Section 80E.
- Bank of Baroda Scholar Education Loan: This loan can be taken to cover the expenses of any level of education for Indian nationals. Under Section 80E, interest payable on the education loan can be claimed for deduction.
- Bank of Baroda Educational Loan for Vocational Education & Training: This loan is meant for Indian Nationals who have been approved for a course that’s offered or supported by the National Skill Development Corporation, or from any of its affiliated institutions.
Under Section 80TTA:
- Bank of Baroda Savings Bank Account: The savings account from Bank of Baroda offers excellent interest rates with world-class banking facilities. Interest earned on the amount present in the savings account can be claimed for Income Tax deduction under Section 80TTA.
- Bank of Baroda Super Savings Account: This account has superior functionality and is offered to High Net Worth Individuals. Interest earned is also deductible under Section 80TTA.
- Bank of Baroda Basic Savings Account: An account meant solely to be operated without hassle, or hidden charges, etc. A simple and basic savings account, the interest on which can be claimed as a deduction.
- Bank of Baroda Centenary Savings Account: This is an account with superior benefits, and extra value additions. Benefits like auto-sweep, immediate credit of cheques, etc. are available with this account.
Under Section 24:
Interest paid on home loans (loans which have been taken for the purpose of purchase / construction / repair / reconstruction / renewal of a residential house property) can be claimed as a deduction. The Section 24 ceiling is Rs.2,00,000 for self-occupied properties, and there is no ceiling on this section for interest paid on home loans for properties that are not self-occupied.
- Bank of Baroda Home Loan: A convenient home loan product which can be taken on affordable interest rates for a tenure of up to 30 years.
- Bank of Baroda Home Improvement Loan: A loan designed to aid borrowers fund the renovation, repair, extension, etc. of the their existing homes.
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Bank of Baroda Pre Approved Home Loan: A loan that is given to the borrower without the need for first identifying the intended purchase project / property / flat. The borrower can get the loan approved, and then look at properties / flats, etc. to purchase.