Save Tax with Canara Bank

Published On - March 15, 2016

admin Income Tax

The Income Tax Act, under different Sections, allows for individuals, companies, and HUFs to save on some amount of their taxable income by investing in certain avenues, or purchasing certain financial or insurance products.

There are also expenses like interest payments on educational and home loans, which can be claimed as expenses for deductions in income tax.

Under Section 80C:

Under Section 80C, the Income Tax Act allows for a total of Rs.1,50,000 to be shown as investments for the purposes of tax deduction. The Section 80C total can comprise of any proportion of the following from Canara Bank:

  • Canara Bank Tax Saver Fixed Deposit Scheme: Under this scheme, Canara Bank allows investments of up to Rs.1,50,000 which will be locked in for a period of 5 years and gain interest in that time period.
  • Canara Bank PPF Scheme: A maximum amount of Rs.1,50,000 can be invested in the government’s PPF scheme through Canara Bank. The scheme offers excellent returns and has been ranked among the top 5 tax-saving-cum-corpus-generating investments in India.
  • Canara Robeco Equity Tax Saver (ELSS): Equity Linked Savings Schemes or ELSS are a kind of investment in equities which offers a tax deduction under Section 80C.

Under Section 80CCD:

Income Tax Act, 1961, Section 80CCD deals with amounts invested in the New Pension Scheme (NPS) of up to Rs.1,00,000 per annum which can be claimed as a deduction from income tax.

  • Canara Bank NPS: Canara Bank offers the New Pension Scheme to investors, which can build a corpus for retirement and also save the invested amount from being taxed.

Under Section 80D:

Income Tax Act, 1961, Section 80D deals with the insurance premiums paid towards health insurance policies being eligible for income tax deductions. Canara Bank has a tie-up with Apollo Munich Health Insurance Company to provide the following health insurance policies, which also help the policyholder save on tax under Section 80D:

    • Easy Health Insurance Plan:

This plan covers the expenses related to in-patient treatment, pre-hospitalization, post-hospitalization, and day-care procedures, in addition to coverage for organ transplantation, emergency ambulance services, etc. Extra protection for Critical Illnesses and Personal Accident can also be sought.

    • Optima Restore Insurance Plan:

This plan offers the flexibility to choose coverage duration and has lifelong renewability in addition to providing cover for expenses related to in-patient treatment, pre-hospitalization, post-hospitalization, and day-care procedures.

Under Section 10(10D):

Income Tax Act, 1961, Section 10(10D) deals with the amount that is paid to an insurance holder on plan maturity. Canara Bank offers insurance policies through its joint venture company “Canara HSBC Oriental Bank of Commerce Life Insurance” and has the following policies which offer tax benefits under both Sections – Section 80C and Section 10(10D):

  • Canara HSBC Oriental Bank of Commerce Life Insurance Dream Smart Plan: This plan offers flexibility in terms of premium payment term, choosing life insurance cover, choosing investment funds, and even allows switching or redirecting of funds.
  • Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan: This plan also offers the same flexibility as the above plan, and offers up to 5 different funds to choose from.
  • Canara HSBC Oriental Bank of Commerce Life Insurance Future Smart Plan: This plan offers excellent flexibility in terms of how your funds are being handled, and offers facilities like milestone withdrawal, partial withdrawal, etc.
  • Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan: This plan has the option of fund switching, partial withdrawals, etc. and also offers loyalty additions.
  • Canara HSBC Oriental Bank of Commerce Life Insurance Shubh Labh Plan: This plan allows the investor to change the sum assured (from the 6th policy year onwards) in addition to the facilities of fund switching, settlement, partial withdrawal, etc.
  • Canara HSBC Oriental Bank of Commerce Life Insurance Smart Goals Plan: This plan offers excellent liquidity, and gives the investor loyalty additions in addition to the Safety Switch Option, which redirects funds to a low-risk investment towards the end of the plan’s tenure.
  • Canara HSBC Oriental Bank of Commerce Life Insurance Smart LifeLong Plan: This plan offers two premium payment modes – monthly, and annual. The plan also offers the facilities of Switching, Redirection, Auto Funds Rebalancing, etc.

Under Section 24:

Income Tax Act, 1961, Section 24 deals with the interest payments on home loans, which can be claimed as a deduction for income tax for up to a total value of Rs.1,50,000. Canara Bank offers the following home loan products:

  • Canara Bank Housing Loan: This loan is the basic home loan product from Canara Bank and can be used to fund the purchase of a new home, or the construction of a new home.
  • House Improvement Loan: This loan can be taken to renovate or purchase large appliance for the household. The loan is offered under Canara Bank’s housing / home loans product umbrella.
  • Canara Site Loan: This loan product is designed to help the borrower fund the purchase of a construction site, and is offered under Canara Bank’s home loan product umbrella.
  • Canara Home Loan Plus: This is a better version of the Housing Loan, and is offered as a loan overdraft or a loan in itself to customers of the bank who already have a housing loan / cleared a housing loan, and have an acceptable repayment track record / history.

Under Section 80E:

Income Tax Act, 1961, Section 80E deals with the interest paid on educational loan, which can be claimed for deduction from Income Tax. Canara Bank offers the following education loans:

  • Canara Bank Education Loan: This loan can be availed for the purposes of funding the course fees, book purchases, equipment purchases, cost of uniforms, boarding, etc.
  • Canara Bank Vidya Turant: An advanced education loan product specifically designed for students of IIMs / IISCs / ISB / IITs, etc.

Under Section 80TTA:

Income Tax Act, 1961, Section 80TTA deals with the amount of accumulated interest in savings bank accounts that can be claimed as deductions on income tax, for up to amounts of Rs.10,000. Canara Bank has the following savings bank accounts:

  • Canara Bank Savings Bank Account: A feature packed savings bank account that offers interest rates as per industry standards, and is an excellent way to meet the Section 80TTA income tax saving limit.

  • Canara Basic Savings Bank Deposit Account: This is a very basic, no frills-type savings bank account from Canara Bank. It offers the common man an avenue through which savings can be facilitated.