How to save tax with SBI Bank

State Bank of India offers a variety of products that helps the common man to save tax. Customer of SBI can save tax through the various sections of the Income Tax Act, 1961.

The following are the products that offers tax benefits:

1. SBI Tax Saving Scheme, 2006:This scheme is offered to the resident Indian as an individual or in the capacity if the Karta of the HUF who have a PAN card. The minimum deposit allowed is Rs.1,000 and the maximum is Rs.1,50,000 in a year. The minimum tenure for the deposit is 5 years and the maximum tenure is 10 years. Loan facility is not available. Nomination facility is available with this scheme. Premature withdrawals are not allowed. You can avail tax benefits under the Section 80C of the Income Tax Act, 1961.
2. SBI Equity Linked Savings Scheme:Equity Linked Savings Scheme is a simple way to avail tax benefits as well as gain from the Indian equity markets. ELSS has the shortest lock-in period and is offered for a tenure of 3 years and the minimum amount of investment is Rs.500 there is no maximum cap set on the investment. The amount eligible for deduction under Section 80C is Rs.1,50,000. The dividends and capital gain earned are tax free.
3. SBI Public Provident Fund:Public Provident Fund Scheme, 2014 was introduced to mobilise small savings. The account can be opened by individuals and on behalf of minors. The minimum investment allowed is Rs.500 the maximum amount that can be invested is Rs.1,50,000. The scheme duration is 15 years. Loans and withdrawals are permitted on the scheme. You can nominate one or more people and the shares can be defined by the subscriber. The account can be easily transferred to other branches. The subscriber can avail tax benefits under Section 88 of the Income Tax Act, 1961. Interest earned is totally exempt from tax and the amount outstanding to credit is fully exempt from wealth tax.
4. >Tax Advantage Fund:SBI Mutual Fund offers SBI Tax Advantage Fund Series II which is a close ended ELSS to help investors plan their tax and to create wealth. The lock in period is of 3 years. The individuals and HUFs can avail tax benefits under Section 80C of the Income Tax Act, 1961 under which investments up to Rs.1 lakh is deductible from taxable income.
5. Health Insurance:Health insurance lets you have control over your medical expenses and ensure your family’s health quality. State Bank of India offers health insurance with a coverage range of Rs.50,000 to Rs.5 lakh. Family Floater options are also offered to provide comprehensive protection to yourself and your family. The premiums that you pay towards the health insurance is exempt from Income Tax under Section 80D. Products offered by SBI are – Hospital Daily Cash Policy, Critical Illness Policy, Loan Insurance, Travel Insurance, Long term home, Motor Two wheeler insurance, Individual Personal Accident Policy and Motor Private Car insurance.
6. Education Loan:The interest paid on the educational loan is qualified for deductions under Section 80E of the Income Tax Act, 1961. This deduction is available for 8 years from the financial year that you start paying the interest. Educational loans offered by SBI are SBI Skill Loan Scheme, SBI Scholar Loan Scheme and SBI Student Loan Scheme.
7. Home Loan:The interest payment of up to Rs.1,50,000 per annum is eligible for deduction under Section 24 of the IT Act, 1961.
8. Life Insurance:If you are surrendering your life insurance or your life insurance has matured, then the amount is eligible for deductions under Section 10(10D) of the IT Act, 1961. The amount must not exceed 10% of the sum assured in any 5 years during the term of the policy. Death benefits received under the life insurance is not taxable.
9. Pension Policies:Tax benefit for the pension policies are available under Section 80CCC of the IT Act, 1961. 1/3^rd of the vesting is exempted from tax under Section 10(10A) of the Act. Pension plans offered by SBI are SBI Annuity Plan, SBI Life Retire Smart and SBI Life Saral Pension.
10. Riders or Other In-Built Benefits:The riders paid towards the health insurance are eligible for deductions under Section 80D of the Income Tax Act, 1961.
11. Savings Bank Account:Interest earned on the savings account up to Rs.10,000 is eligible for deductions under Section 80TTA.