How to Save Tax with ICICI Bank

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Saving tax is something on the minds of every taxpayer, with taxes having the ability to burn a serious hole in their bank accounts. The government has provided certain provisions to save tax, putting the onus of utilisation of concerned taxpayers. ICICI Bank offers a number of such products in the country, ensuring that customers of the bank can plan their resources accordingly.

Save tax with ICICI Bank:

ICICI Bank is a pioneer in banking, offering unique products and services which can help customers save tax. The bank utilises the provisions of the Income Tax Act to offer tax saving products under Sections 80C, 80E, etc.

Tax Saving Products under Section 80C:

Section 80C of the Income Tax Act has provisions for tax exemption to the tune of Rs 1.5 lakh per year, with a number of investments eligible for this deduction. ICICI Bank has the following products which offer tax saving benefits under Section 80C.

• ICICI Tax Saving Fixed Deposit: This product has a term of 5 years and comes with flexible investment options ranging from Rs 10,000 to Rs 1.5 lakh.

• ICICI Tax saving Mutual Funds: Equity and Debt Mutual Funds offered by ICICI Bank are eligible for tax benefits. The equity linked saving scheme offered by ICICI Bank has a 3 year lock-in period and helps investors earn dividend which can be tax free.

• ICICI PPF Scheme: Individuals can open a Public Provident Fund account with ICICI Bank to avail tax benefits every year. The investment can range from Rs 500 to Rs 1.5 lakh, with an interest of 8.7% on the product.

• ICICI Home Loan: Customers of ICICI Home Loan can avail tax benefits on properties occupied by themselves, with a provision to claim tax exemption on the repayment of the loan (only in the case of a residential property).

Tax Saving Products under Section 80E:

• ICICI Bank Education Loan: ICICI Bank offers an education loan titled “Shiksha Sarti”, which can be used by students to fulfil their education dreams. Loans upto Rs 20 lakh can be availed under this plan, with a tax deduction on the interest available under Section 80E of the Income Tax Act.

Tax Saving Products under Section 80CCD:

• National Pension Scheme – Individuals can invest in the National Pension Scheme through ICICI Bank, which is an authorised Point of Presence for this scheme. Taxpayers between the age of 18 and 60 years can use this scheme to save tax by means of deduction.

Tax Saving Products under Section 80D:

• ICICI Health Insurance – ICICI Bank offers a health insurance scheme through ICICI Lombard, investments in which are eligible for tax deductions to the tune of Rs 55,000 per year under Section 80D of the IT Act.

Tax Saving Products under Section 80TTA:

Section 80TTA offers taxpayers a solution to save income tax by investing in Savings Accounts. Interest to the tune of Rs 10,000 can be claimed as deduction in a FY under this provision. ICICI Bank offers the following Savings Accounts to customers.

• Titanium Privilege Savings Account – This is designed for customers who are used to a certain way of life, with a high monthly average balance amount required to be maintained.

• Gold Privilege Savings Account – This can be opened by anyone over the age of 18 years, with an option to have an account for senior citizens and minors as well.

• Silver Savings Account – This account is designed for those who are looking for simplicity and ease of operation and is open to both Indian citizens and foreigners alike.

• Regular Savings Account – Simple and effective, this account offers benefits to all account holders.

• Advantage Woman Savings Account – This account has been designed exclusively for women, offering customised solutions and attractions.

• Senior Citizens Savings Account – An exclusive account for senior citizens, this scheme caters to their unique requirements.

• Young Stars Account – This is a unique account designed for children, with the parents/guardians having the freedom to operate it on behalf of their kids.

• Pocket Savings Account – This works on the concept of a digital bank, offering technology which makes it convenient for modern users.