How to Save Tax with Allahabad Bank

Tax can be saved by availing Allahabad Bank Tax Benefit Term Deposit Scheme and housing loans under Section 80C. Tax deduction benefits can also be taken against its mutual funds and life insurances under Section 80E and health insurances under 80D.

The Income Tax Act allows individuals to claim deductions during the filing of taxes. Allahabad Bank has made available to its customers several different products and services that can be purchased to not only meet your financial objectives, but also so that you can save money on tax. Investments can be made in the form of deposits or mutual funds, and even premium and interest payments towards educational and housing loans have the potential to save you a considerable amount of money that would otherwise be spent on taxes. Deductions can be claimed under different sections of the Income Tax Act. Following is a brief idea about the products and services that can be availed to save tax.

Tax Benefits under Section 80C:

Allahabad Bank Tax Benefit Term Deposit Scheme:

This scheme can be availed by individuals and Kartas of Hindu Undivided Families by simply depositing a minimum of Rs.100. The rate of interest applicable to this scheme will the same as the current interest rate provided by the bank during the time of opening the account. The tenure of this deposit is five years.

Housing Loans:

Allahabad Bank offers housing loans for the construction of residential property, purchase of flats or houses for residential use, and repair / renovation / improvement of residential property. The interest paid on these loans can be claimed as deductions when filing your returns. Following are the different housing loans that can be availed from Allahabad Bank.

  1. APPL (Allahabad Bank Pre-approved Limit) for Housing Loan:
  2. This scheme approves a loan application from a customer before he / she even starts looking for a house, thereby instilling confidence in them as they hunt for a property. A processing fee of 10% of the loan amount is applicable to this facility and its validity extends to only six months, but customers have the option to increase it by another six months if they pay an additional 10% of the fee. The amount will be disbursed once the customer furnishes the documents pertaining to the proposed property to the bank.

  3. Allahabad Bank Aashiana Scheme:
  4. The interest rate for loans up to Rs.3 lacs will be the base rate as determined by the bank, and the base rate plus 0.25% for loans between Rs.3 lacs and Rs.5 lacs.

  5. Housing Finance Scheme for NRI / PIO:
  6. This loan can be availed by PIOs who hold foreign passports or NRIs who hold Indian passports. The tenure of this loan extends to 10 years and the interest rate for loans up to Rs.3 lacs will be the base rate as set by the bank and the base rate plus 0.25% for loan amounts ranging from Rs.3 lacs to Rs.5 lacs.

  7. Housing Loan for High Net worth Individuals:
  8. Under this loan, individuals can avail amounts up to Rs.25 crores and the tenure of the facility extends to 25 years. The interest rate applicable to this loan is the base rate as determined by the bank plus 0.50%.

  9. Housing Finance Scheme for Furnishing:
  10. Unlike the other loans covered above, this loan can be availed for repairing and / or furnishing new / existing houses / flats. The limit on this facility is Rs.3 lacs and the tenure extends to seven years.

Tax Benefits under Section 80E:

Allahabad Bank Skill Loan Scheme:

Individuals who have gained admissions in courses provided by Polytechnics, Industrial Training Institutes, schools recognised by State or Central Education Boards, Training Partners associated with National Skill Development Corporation, colleges associated with recognised universities, State Skill Mission, Sector Skill Councils, or State Skill Corporation resulting in the acquisition of a degree / diploma / certificate from such organisation / institute as per National Skill Qualification Framework can apply for this loan. The quantum of finance ranges between Rs.5,000 and Rs.150,000.

Allahabad Bank Mutual Funds:

Allahabad Bank has joined forces with a few leading and quickly-growing mutual fund providers, such as UTI Mutual Fund, Peerless Funds Management Co. Ltd., Principal PNB, Reliance Capital Asset Management Limited, Kotak Mahindra Asset Management Co. Ltd. and Franklin Templeton Asset Management (I) Pvt. Ltd. so that customers can avail products from the bank and also claim tax benefits. The minimum cover provided by this scheme is Rs.10,000 and the maximum is Rs.25 lacs.

Allahabad Bank Life Insurance:

Allahabad Bank has collaborated with LIC of India to distribute life insurance products. Here are the two products offered under this category:

  1. Al-Ayushman Bima Yojana: This policy offers coverage to the extent of Rs.1 lac to the fixed deposit / current / savings bank account holders at fairly affordable premiums.

  2. Free Personal Accident Group Insurance: This policy offers life insurance cover to the extent of Rs.5 lacs to platinum card holders and Rs.2 lacs to gold card holders in collaboration with Universal Sompo General Insurance Company Limited.

Tax Benefits under Section 80D:

Allahabad Bank Health Insurance:

  1. Allahabad Bank Health Care Plus: This policy offers health insurance cover to current account / savings bank account holders up to Rs.1 lakhs.

  2. Group Insurance: Individuals who have availed housing loans, retail / MSME credit / overdraft account / general cash credit and educational loans can avail the group insurance policy.

Tax Benefits under Section 80TTA:

Interest Income from Savings Account:

  1. Normal Savings Bank: These accounts can be opened by individuals, both singly as well as jointly, clubs, associations, societies, agencies / institutions permitted by the Reserve Bank of India, and trusts. The rate of interest applicable to these accounts is subject to change from time to time based on the discretion of the bank, and interest is paid on a semi-annual basis.

  2. Allahabad Bank Advantage Salary Premium Account: Salaried individuals who work in State / Central government, corporations, private and public limited companies, PSUs, and educational institutions can open this account to facilitate savings and save money on tax.

  3. Allahabad Bank Mahila Sanchay Account: This account was designed to help empower women and is exclusively meant for the feminine section of society.

  4. Allahabad Bank e-Trading 3-in-1 Account: This account was created to increase the convenience of customers and help them access their finances through the internet, thus saving their time. The three accounts that are present in this scheme include Current / savings account, trading account and DEMAT account.

  5. Vikash Savings Bank Account: This account was tailored to mobilise accounts of different developmental programmes under the guidance of central / state / local government as well as non-government organisations.

  6. Allahabad Bank Saral Savings Account (Basic Savings Bank Account)

  7. Allahabad Bank Saral Savings Account (Small Account)

  8. Savi-fix for Savings Bank Individual Customers

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