How to Save Tax with Punjab and Sind Bank

Punjab and Sind Bank Deposit Schemes – Savings Bank:

1. Saral Savings Scheme: Individuals can open a Saral Savings Scheme by depositing just Rs.100, and the account can continue even if the balance is zero. This scheme is mainly designed for artisans / landless labourers in rural areas, daily wage earners / casual labourers in industries / construction etc., students with no proper financial background, and other sections of society that has no permanent residential occupancy and regular employment.

Punjab and Sind Bank Fixed Deposits:

Following are the two fixed deposit schemes that can be availed from Punjab and Sind Bank:

1. Capital Gain Deposit Scheme: Tax benefits from capital gains can only be availed if the net consideration or sum of capital gains is pledged in Public Sector Banks either on or prior to the date on which the filing of income tax returns are due.

2. Punjab and Sind Bank Fixed Deposit Tax Saver Scheme: This scheme can be availed by either Hindu Undivided Families or individuals either singly or jointly. The minimum amount that must be deposited initially to open the account is just Rs.100 and the maximum amount that can be claimed as deductions under Section 80C of the Income Tax Act is Rs.1 lac.

Housing Loan Scheme:

Housing loan from Punjab and Sind Bank can be availed for the purpose of acquisition / construction / purchase / renovation / extension / repair of a property for residential use. The interest rate applicable to this facility is the base rate (9.75%) if the loan amount is below Rs.75 lacs and the base rate + 0.25% (10%) if the loan amount exceeds Rs.75 lacs.

Tax Benefits under Section 80E:

Punjab & Sind Bank Education Loan:

1. Loan for Vocational Education: This loan can be availed for skill development courses that range between two months and three years. The course/s must be organised or affiliated with an organisation / department / ministry of the government or an organisation / society / company affiliated with State Skill Corporations / State Skill Mission National Skill Development Corporation, preferably resulting in the acquisition of a degree / diploma / certificate.

2. Education Loan for Higher Studies in India / Abroad:

Studies in India: Individuals who wish to apply for courses that result in the acquisition of a graduate degree / post-graduate diplomas and post-graduate degrees from universities / colleges affiliated with ICMR / government institutes / AIBMS / UGC / AICTE etc. The quantum of finance for these courses ranges from Rs.20,000 to Rs.1.5 lacs depending on the duration of the course.

Studies abroad: Individuals who wish to undertake technical / professional courses can avail this loan. The courses covered under this scheme include MCA, MS, MBA, etc. (post-graduation); courses offered by CPA – USA, CIMA – London, etc.; diploma / degree courses such as pilot training, shipping, aeronautical training, etc. if they are affiliated by competent regulatory authorities abroad to gain employment abroad or in India. The maximum quantum of finance for these courses is Rs.10 lacs for courses in India and Rs.20 lacs for courses abroad. The interest rate for both schemes is the base rate (9.75%) + 3% / (9.75%) + 3.25% / (9.75%) + 2.50% depending upon the quantum of finance if borrowed by the general public. The interest rate if borrowed by staff as co-borrower is the base rate (9.75%) + 2% / (9.75%) + 2.25% / (9.75%) + 1.50% which again depends on the quantum of finance.

Tax Benefits under Section 80TTA:

Interest Income from Savings Account:

1. Saving Bank Account: Individuals can open this account singly or jointly, as can educational institutions, associations and clubs. The interest rate applicable to this account is 4%, but is subject to change from time to time based on changes made by the Reserve Bank of India.

2. Premier Savings Bank Accounts: A Premier Savings Bank Account can be opened by depositing a minimum of Rs.50,000 if the individual resides in semi-urban and rural areas, and Rs.1 lac if the individual resides in metro and urban areas.