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  • Save Tax with South Indian Bank

    Tax saving is one of the most important aspects of your financial planning. The South Indian Bank offers various financial instruments which offer tax benefits from health insurance policies and life insurance to home loans and National Pension Scheme among others. The products on offer by the South Indian Bank are listed below:

    1. Health Insurance Policies

    2. Capital Gain Bonds

    3. Mutual Funds

    4. Tax Gain Deposit

    5. Life Insurance

    6. National Pension Scheme

    7. Rajiv Gandhi Equity Savings Scheme

    8. SIB - Home Loan

    1.South Indian Bank Health Insurance Policies:

    There are various tax benefits associated with health insurance policies which make them a critical component of your investment portfolio. The South Indian bank has entered into partnerships with Bajaj Allianz General Insurance Company to offer a wide range of Bajaj Allianz GIC health insurance policies such as Star Package, Health Guard, Critical Illness, Premium Personal Guard, Extra Care, Sankat Mochan, Family Floater, Health Assist, Health Ensure, Travel Companion: The said plans cover a wide range of situations such as pre and post-hospitalization expenses, discount in premium, bodily injury, guaranteed amount if diagnosed with critical illness, baggage insurance, add on cover for additional expenses, hospitalization due to accident, death, permanent disability, death and temporary disability among others.

    Tax Benefits of Bajaj Allianz GIC Health Insurance policies:

    A deduction of Rs.15,000 (maximum) is allowed to keep a health insurance policy in force taken on the health of children/spouse. Also, an additional deduction of Rs.15,000 is allowed to keep a health policy in force taken on the health of parents (dependent or not). If any of the insured is a senior citizen, an additional deduction of up to Rs.5000 is allowed. The tax benefit (on premium payment) is available under Section 80D of the Income Tax Act, 1961. It is important to note that the benefit will be above the limits under Section 80C of the IT Act.

    2.South Indian Bank Capital Gain Bonds:

    The South Indian Bank is a channel partner of IFCI for the distribution of tax free bonds and capital gain bonds. If you sell a property, the profit earned on it will attract long term capital gains after three years at 20%. You need not pay long term capital gains tax if you construct/purchase a new house within three years of the sale of your property or invest in capital gain bonds.

    Tax Benefits:

    Tax benefits for capital gains bonds are available under Section 54EC of the Income Tax Act, 1961. As per Section 54EC, no tax is levied on capital gains if you invest the profit earned in bonds within 6 months of the sale of a given property. You can withdraw your money (with interest) from the bonds after 3 years.

    3.South Indian Bank Mutual Funds:

    The South Indian Bank has entered into tie-ups with various asset management companies. You can claim a deduction of up to Rs.1.50 lakh on investments in Equity Linked Savings Scheme under Section 80C of the Income Tax Act, 1961. No tax is levied on dividends from equity mutual funds. The tax saving plans on offer are listed below:

      1. LIC Norma Mutual Fund Tax Plan

      2. HDFC Tax Saver Mutual Fund

      3. Sundaram Tax Saver Mutual Fund

      4. HSBC Tax Saver Equity Fund

      5. BIRLA Sun Life Tax Relief 96

      6. UTI Equity Tax Saving Plan

      7. L&T Tax Advantage Fund

      8. Principal Tax Saving Fund

      9. Franklin India Tax Shield

      10. Birla Sun Life Tax Plan

      11. Reliance Tax Saver Fund

    4.SIB - Tax Gain Deposit 2006:

    Under this term deposit scheme, you can claim deduction for up to Rs.1.50 lakh under Section 80C of IT Act, 1961. This scheme has a maturity period of 5 years. Senior citizens can avail of an additional interest rate under this scheme.

    5.South Indian Bank Life Insurance:

    The South Indian Bank Ltd. has a tie-up with the Life Insurance Corporation of India to offer various kinds of life insurance policies. All branches of the South Indian Bank will sell LIC products. Life insurance is one of the most traditional option opted by millions of Indians to save on income tax. You can avail of deduction on the premium you pay on your policy. The tax exemptions for life insurance policies come under Section 80C of the Income Tax Act, 1961. You can claim up to Rs.1.5 lakh as tax deduction in a fiscal year (subject to the prevailing income tax rates). It is important to note that bonus received under a life insurance policy is tax exempt as per Section 10(10D) of IT Act, 1961.

    6.South Indian Bank National Pension Scheme:

    The South Indian bank is a Point of Presence-Service Provider (POP-SP) for the National Pension Scheme which is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). An investment up to Rs.1.50 lakh in a NPA account can be claimed as deduction under Section 80CCD of the Income Tax Act, 1961. It is important to note that contribution of an employer above 10% of the remuneration cannot will not be taken into consideration for deduction.

    7.SIB - Rajiv Gandhi Equity Savings Scheme:

    You can avail of various tax benefits under the Rajiv Gandhi Equity Savings Scheme (RGESS) if you are a new investor. You can claim deduction on 50% of the amount you invested in RGESS. While you can invest in securities above Rs.50,000, you can claim deduction only up to Rs.50,000 under Sec 80CCG of the Income Tax Act, 1961.

    8.SIB - Home Loan:

    The South Indian Bank offers home loans with flexible repayment options, NRI schemes, and no penalties for prepayment at 10.5%. You can claim deductions on the interest for up to Rs.2 lakh. You can also avail of rebate on income tax for up to Rs.1,50,000 on repayment of principal amount under Section 80C of the Income Tax Act, 1961.

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