How to Save Tax with Axis Bank

You can save tax with Axis Bank by availing its housing loans, tax-saver fixed deposits, mutual funds, insurances, and other products which offer tax deduction benefits under Section 80C, 80D, 80E, 80CCD, 80CCG, and 80TTA of the Income Tax Act.

Individuals can save money on tax by claiming deductions on investments, deposits and interest payments when filing their taxes. The Income Tax Act enables you to save tax through a number of products and services offered by Axis Bank. There are different sections under which each product and service can offer tax benefits, and they are as follow:

Tax Benefits under Section 80C:

Housing Loan: Housing loans from Axis Bank can be availed by both salaried employees as well as self-employed individuals to save tax on the interest payments made towards the sum borrowed. The different kinds of housing loans offered by the bank include Happy Ending Home Loans, Asha Home Loans and Empower Home Loans. The interest rate for salaried employees is the base rate (9.50%) + 0.10% / (9.50%) + 0.15% / (9.50%) + 2.25% depending upon the quantum of finance. The rate for self-employed individuals is (9.50%) + 0.20% / (9.50%) + 0.25% / (9.50%) + 2.25% based on the loan amount.

Public Provident Fund: Axis Bank offers PPFs at 8.70% per annum, and all withdrawals, interest and principal payments are subject to exemption.

Axis Bank Tax Saver Fixed Deposits:

This facility can be availed by making an initial deposit of just Rs.100, and the rate of interest applicable to it is 7.50% if it is opened by a regular depositor (HUF or Individual), and 8% if opened by a senior citizen.

Equity Linked Saving Scheme: Deductions under this equity growth scheme can be claimed to the extent of Rs.1.5 lacs.

Tax Benefits under Section 80CCG:

Rajiv Gandhi Equity Savings Scheme: This scheme can be availed by retail investors who are entering the securities market for the first time. The tax benefit that can be claimed under this scheme is 50% on the amount invested.

Tax Benefits under Section 80CCD:

Atal Pension Yojana: Individuals who subscribe to the Atal Pension Yojana can avail a monthly pension between Rs.1,000 and Rs.5,000 once they have crossed 60 years of age. To subscribe, applicants must be 18-40 years old.

Tax Benefits under Section 80D:

Axis Bank Life Insurance:

Axis Bank offers a number of life insurance packages from which to choose depending upon your requirements. Premium payments towards these schemes qualify for tax benefits. Following are your options:

  1. Max Life Online Term Plan
  2. Max Life Guaranteed Lifetime Income Plan
  3. Max Life Whole Life Plan
  4. Max Life Forever Young Pension Plan
  5. Max Life Life Perfect Partner Super
  6. Max Life Maxis Super
  7. Max Life Fast Track Super Plan
  8. Max Life Life Gain Premier
  9. Max Life Shiksha Plus Super Plan
  10. Max Life Guaranteed Income Plan
  11. Max Life Monthly Income Advantage Plan
  12. Max Life Super Term Plan
  13. Max Life Platinum Wealth Plan
  14. Max Life Riders
  15. Pradhan Mantri Suraksha Bima Yojana
  16. Max Life Pradhan Mantri Jeevan Jyoti Bima Yojana
  17. Bima Uphaar Yojna

Tax Benefits under Section 80E:

Education Loan: Axis Bank provides education loans for technical or higher professional education in India as well as overseas. Students are required to gain admission into a recognised institute for career-oriented courses such as management, engineering, medicine, etc. to qualify for the facility. The maximum amount that can be borrowed against this loan is Rs.10 lacs if the course is offered in India, and Rs.20 lacs if the course is undertaken abroad. The interest rate applicable to this loan is 16.50% for amounts under Rs.4 lacs, 17.50% for amounts between Rs.4 lacs and Rs.7.5 lacs, and 15.50% for amounts in excess of Rs.7.5 lacs. The interest rates for female children are 0.50% lesser in each case.

Tax Benefits under Section 80TTA:

Interest Income from Savings Account:

  1. Prime Savings Account: This account can be opened by depositing a minimum of Rs.25,000, and the interest rate offered is 4%, paid quarterly.

  2. Women’s Savings Account: This product is designed especially for women who are financially independent. The minimum amount you must deposit to open this account is Rs.10,000 and the interest rate applicable is 4%, paid quarterly.

  3. Easy Access Savings Account: This account can be opened by making an initial deposit of Rs.10,000 and the interest rate applicable is 4%, paid quarterly.

  4. Prime Plus Savings Account: This account can be availed at 4% interest on daily balance with a minimum deposit of Rs.1 lac.

  5. Future Stars Savings Account: This account can only be opened by children under 18 years of age with a minimum initial deposit of Rs.2,500.

  6. Pension Savings Account:s This account is tailored for pensioners of Defence Ministry, Civil Departments / Ministries and Central Government. The rate of interest applicable to this account is 4%, calculated on daily balances and paid quarterly.

  7. Basic Savings Account

  8. Small Basic Savings Account

  9. Senior Privilege Savings Account

  10. Trust / NGO Savings Account

  11. 3-in-1 Online Investment Account

  12. Insurance Agent Account

  13. YOUth Account

All the aforementioned products and services can be availed by either visiting the nearest Axis Bank to your home or by visiting the bank’s website. You can also visit to apply for Axis home loan.

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