Tax saving instruments not only let you save on taxes but can also add value to your financial portfolio if utilised in the right way. The Income Tax Department allows deductions under various acts of the Income Tax Act. Indian Overseas Bank or IOB offers a wide range of financial products that allows you to save on taxes and avail the benefit of the financial products at the same time.
Save Tax with IOB:
Indian Overseas Bank offers products that offer tax deductions under various acts of the Income Tax Act. Most of the tax saving instruments offered by the bank offers deductions under sections 80C and 80E of the Income Tax Act, 1961.
Tax Deductions under Section 80C:
IOB Tax Saver Fixed Deposit Scheme:
The tax saver deposit by Indian Overseas Bank is a fixed deposit scheme that lets the investor invest to a maximum of up to Rs. 1,50,000 and comes with a lock in period of 5 years. The scheme offers tax deductions for the amount invested in the fixed deposit scheme under section 80C of the Income Tax Act, 1961. This is the only kind of fixed deposit account that offers tax deductions.
IOB Public Provident Fund Account:The Provident Fund Account offered by IOB was introduced by the government of India and offers the double benefit of attractive returns along with tax deductions. The minimum amount deposited to the account is Rs.500 and the account comes for a block of 15 years. One can renew the account after 15 years but only in blocks of 5 years. The account qualifies for tax deductions under section 80C of the Indian Income Tax Act, 1961. One can avail tax deductions up to Rs.1,50,000 on their IOB Public Provident Fund Account.
IOB Home Loan:IOB Housing loan not only provides finance required to help you purchase your dream home but it also offers tax benefits.The homeowner can claim tax exemptions once the loan is repaid given that the property is a residential property.
Tax Deductions under Section 80E:
IOB Education Loan:IOB offers education loan of high loan amounts and attractive benefits among which tax deduction is one. The scheme grants loan amount up to Rs.30 lakh and Rs.40 lakh for students studying in India and Abroad respectively. The loan also offers a repayment period of 5-7 years for the scheme. The scheme qualifies for tax deductions under section 80E of the Income Tax Act, 1961.
Though there is no dearth of options when it comes to tax saving instruments in the market, it is very important to analyse each product carefully and choose the one that saves you taxes while helping you create a good portfolio simultaneously.