How to save tax? This is a question on the mind of every Indian taxpayer, as taxes can burn a serious hole in our bank accounts, testing our financial limits. Tax saving measures have been provided by the government, with the usage of these methods depending on individual taxpayers. Kotak Mahindra Bank offers a unique range of products designed to aid individuals save tax, while adhering to the rules of the land.
Save Tax with Kotak Mahindra Bank:
The Income Tax Act has provisions for certain deductions and exemptions when it comes to taxes, with products designed to help one save tax. Kotak Mahindra Bank offers some of the most popular tax saving products to its customers, thereby helping them save tax through simple means.
Tax Saving Products under Section 80C:
Utilising Section 80C of the Income Tax Act, taxpayers can get exemptions of Rs 1.5 lakh in a financial year by investing in certain products. Kotak Mahindra Bank offers the following products which provide tax benefits under Section 80C.
Tax Saving DepositKotak Mahindra offers a tax saving term deposit with a tenure ranging between 5 and 10 years which is open to individuals (including minors) and HUFs. Investments can be made starting from Rs 100, going to a maximum of Rs 1.5 lakh.
Tax Saving Mutual FundsIn partnership with asset management firms, Kotak Mahindra Bank offers Debt and Equity Mutual Funds which can be used to save tax under the provisions of the Income Tax Act.
Home Loan – Tax exemptions are provided on the interest paid towards loan repayment under certain circumstances. With Kotak Mahindra Bank offering home loans in different ranges, this can be used by borrowers to save tax.
Tax Saving Products under Section 80E:
Kotak Mahindra Bank Education Loan – Individuals can avail loans to the tune of Rs 20 lakh for educational purposes, with a tax deduction available on the interest paid to clear the loan.
Tax Saving Products under Section 80CCD:
National Pension SchemeKotak Mahindra Bank is authorised by the RBI to open accounts under the National Pension Scheme. This scheme, which is open to Indian citizens between the age of 18 and 60 years has special tax saving provisions under Section 80CCD of the Income Tax Act.
Tax Saving Products under Section 80D:
Kotak Mahindra Bank Life InsuranceUnder Section 80D of the IT Act, premiums by a taxpayer towards a life insurance policy are eligible for tax deductions every year. The upper limit stands at Rs 55,000 (as of FY 2015-2016), and one can avail a life insurance policy from Kotak Mahindra Bank through their life insurance wing (Kotak Mahindra Old Mutual Life Insurance Limited).
Tax Saving Products under Section 80TTA:
Section 80TTA of the Income Tax Act can be utilised by taxpayers by opening Savings Accounts. Under this section, interest earned on Savings Accounts can be claimed as tax deductions in a FY (max of Rs 10,000). Kotak Mahindra Bank offers a number of options when it comes to Savings Accounts, as mentioned below.
Edge Savings Account – This is a simple savings account with an interest of 6% per annum and an average monthly balance of Rs 10,000.
JIFI Saver – This account can be opened and handled either as a single account or a joint account and is open to people over the age of 18 years.
Pro Savings Account – This can be opened by HUFs, foreign nationals who stay in India and local residents.
Ace Savings Account – This account offers a 6% interest rate and comes with an average monthly balance requirement of Rs 50,000.
Silk Savings Account – A unique product designed exclusively for women, it caters to the needs of female customers.
Junior Savings Account – This account ensures that children have sufficient funds to pursue their dreams on growing up.
Grand Savings Account – Specially crafted for senior citizens, this is a simple and hassle free account.
Some of the other popular Savings Accounts offered by Kotak Mahindra Bank are My Family, Classic savings account, Nova savings account, Sanman savings account, Platina savings account and Alpha savings account.
Utilising the provisions under the Income Tax Act can help one save considerable taxes, and partnering with Kotak Mahindra Bank to avail their unique products is simple and easy.