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  1. 1. HOME Tax Savings Options Available With SIBSNO PRODUCTS TAX RELAXATIONS1 • SIB Tax Gain Deposit Section 80C of IT Act2 • Mutual Fund Section 80C of IT Act3 • Life Insurance tie-up with LIC Section 80C of IT Act4 • Health Insurance Policies Section 80D of IT Act5 • Rajiv Gandhi Equity Savings Scheme Section 80CCG of IT Act6 • NPS (National Pension Scheme) Section 80CCD of IT Act7 • SIB- Home Loan Section 80C of IT Act8 • Capital Gain Bonds Section 54EC of IT ActOther Tax related services• TAX PAYMENT FACILITY (Click to know more)• PAN Service Agency (PSA) (Click to know more)SIB Tax Gain Deposit:The salient features of the scheme are given below:
  2. 2. • An amount up to Rs.1 lac (Minimum Rs.100/- and maximum Rs.1 lac in multiples ofRs.100/-) deposited in the bank as Fixed / under Compound interest scheme for a period of5 years is eligible to be exempted from Income Tax under Section 80C of IT Act, 1961.• Amount deposited in the name of individual, joint (first name holder) or HUF (Karta) notexceeding Rs.1 lac in a financial year is eligible for tax exemption.• Though nomination can be registered, NO nomination shall be made in respect of a termdeposit applied for and held by or on behalf of a minor.• The rate of interest will be the rate of interest applicable for Fixed deposits with maturity 5years. Additional rate for senior citizens will be applicable to this deposit also.• Deposit can be transferred from branch to branch but not between banks.• This deposit shall not be encashed before the expiry of 5 years from the date of its receipt.• Interest on this deposit shall be liable to Income Tax on the basis of annual accrual orreceipt depending up on the simple interest or compound interest scheme and tax on suchinterest shall be deducted as usual.Interest Rate:DEPOSIT SCHEME GENERAL SENIOR CITIZEN NROSIB-TAX GAIN DEPOSIT 8.75% 9.25% 8.75%[HOME]Mutual Fund:One of the preferred investment options for all those who want to play safe, yet save more thanwhat traditional saving avenues offer. South Indian Bank has tied-up with the leading MutualFunds, so that you may pick and choose, as per your investment goals.Tax Benefits:Investments in ELSS (Equity Linked Savings Scheme) upto Rs.1 lakh are eligible for tax exemptionas per Sec.80C. Dividends from equity funds are tax free. Long term capital gains are free fromcapital gain tax. Tax saving funds of the following companies are available at SIB branches.• LIC Nomura Mutual Fund• ICICI Prudential AMC• Franklin Templeton• TATA Mutual Fund• Sundaram Mutual Funds• UTI Mutual Funds• Reliance Mutual Funds
  3. 3. • HSBC Investments• HDFC Mutual Fund• L & T Investment Management Limited.• Principal Mutual Funds• Birla Sun Life Asset Management Company Ltd.• DSP BlackRock Mutual FundsClick here for more details[HOME]Life Insurance tie-up with LICThe South Indian Bank Ltd. has entered into a tie up with the Giant in the Life Insurance Sector - LICof India for soliciting Life Insurance policies for our customers. LIC is the only insurance companywhose policy proceeds are guaranteed by the Government. Through this tie up, the bankingexpertise of The South Indian Bank Ltd. and the Risk Management expertise of LIC of India will becombined to provide excellent life cover policies and investment option to our customers. All theproducts of LIC will now be available through our branches. It opens up a reliable and trustworthyinvestment avenue, making SIB a one stop shop for all financial requirement.Tax Relief:Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This isavailable for amounts paid by way of premium for life insurance subject to income tax rates inforce. Assessees can also avail of provisions in the law for tax relief. In such cases the assured ineffect pays a lower premium for insurance than otherwise.[HOME]Health Insurance PoliciesArrangement with Bajaj Allianz GIC (Exclusive products for SIB Customers)Hospitalization expenses / medical treatment have now increased considerably. Once you are sickand hospitalized, then you have no other choice, but to avail the best health services, spending yourhard earned savings. Realizing this eventuality, we now offer an excellent health insurance productfrom M/s. Bajaj Allianz General Insurance Company. This product is available to our SB / CDcustomers, including NRIs (for expenses incurred in hospitals in India) exclusively through theSouth Indian Bank branches.
  4. 4. Income tax benefit on the premium paid as per section 80-D of the Income Tax Act.[HOME]Rajiv Gandhi Equity Savings SchemeDeduction in respect of Rajiv Gandhi Equity Savings Scheme (RGESS) (Sec 80CCG)Finance bill 2012 inserted a new investment scheme under section 80CCG with effect from AY2013-14. This scheme is called Rajiv Gandhi Equity Savings Scheme. This Scheme shall apply forclaiming deduction in the computation of total income of the assessment year relevant to a previousyear on account of investment in eligible securities under sub-section (1) of section 80CCG of theIncome-tax Act, 1961.FAQ on Rajiv Gandhi Equity Savings Scheme1) What is Rajiv Gandhi Equity Savings Scheme and how does it offer tax benefits?With an objective to encourage flow of savings of the small investors in domestic capitalmarket, the Government of India announced a scheme named Rajiv Gandhi Equity SavingsScheme. Tax benefit is given to a ‘New Retail Investor’ who invest up to Rs 50,000 in‘Eligible Securities’ and have gross total annual income less than or equal to Rs.10 Lakhs2) Who is a ‘New Retail Investor’?A ‘New Retail Investor’ is any resident Individual• Who has not opened a Demat account and has not made any transactions in the equity orderivative segment as on the date of notification of the scheme i.e., November 23,2012.OR• Who has opened a Demat account as a first holder, but has not transacted in the equity orderivate segment till November 23, 2012.OR• Who has a Demat account as a joint holder.3) What are eligible securities?Eligible securities mean any of the following:-• Equity shares, on the day of purchase, falling in the list of equity declared as “BSE-100” or“CNX-100” by the Bombay Stock Exchange and the National Stock Exchange• Equity shares of public sector enterprises which are categorized as Maharatna, Navratna orMiniratna by the Central Government;4) How much tax deduction is available for a new retail investor under RGESS?
  5. 5. • A new retail investor can invest any amount up to Rs 50,000/- in eligible securities foravailing tax benefits in RGESS. The amount eligible for tax deduction from the income willbe Rs 25,000/- or 50% of the amount invested. One can invest in eligible securities abovethe limit of Rs 50,000/-, but the benefit under the scheme can be claimed only oninvestment up to Rs. 50,000/-5) How does one invest in eligible securities of RGESS?• Firstly, he/she need to have a Demat account. The Demat account must be designated asRGESS.• For investing in any eligible securities from the secondary market, one can approach anySEBI registered stock broker.• In case anyone is investing in mutual funds through any distributor, he/she need to simplyprovide your Demat account details like Demat Account Number and DP ID for receivingcredit of the mutual fund units into the Demat account.• For investing in any IPO/NFO of the eligible securities, he/she can subscribe for the sameand provide your Demat account number for receiving credit of the eligible securities intothe Demat account.[HOME]NPS (National Pension Scheme)Pension Fund Regulatory and Development Authority (PFRDA) have been established by theGovernment of India, Ministry of Finance to promote old age income security. The Governmentauthorized PFRDA to extend NPS on a voluntary basis to all citizens of India including workers ofthe unorganized sector.NPS is now available to all citizens of India with effect from May 1,2009, other than Government employees already covered under NPS. The South Indian bank isacting as a Point of Presence- Service Provider (POP-SP) for servicing NPS Accounts.Benefits of Joining NPS• Its Voluntary: NPS is open to every Indian Citizen, Including NRI’s.• Its Flexible: One can choose his own Investment option & Pension Fund Manager.• Its Portable: One can operate the account from anywhere in the Country, even if you changeyour city, job or pension fund manager.• Its Regulated: NPS is regulated by PFRDA, with transparent investment norms, & regulatedMonitoring & Performance review of Fund Managers by NPS trust.As per Press Information Bureau, Govt. of India, Under the Swavalamban scheme, Government of India,will contribute Rs. 1000 per year to each NPS account opened in the year 2012-13 for the next 5 years,The benefit will be available only to persons who join the NPS with a minimum contribution of Rs.1,000 and maximum contribution of Rs. 12,000 per annum.
  6. 6. On attaining the Normal Retirement Age (NRA) of 60 years• Customer is required to compulsorily annuitize minimum 40% of accumulated pensionwealth.• Remaining 60% can be withdrawn as a lump sum or in a phased manner; within the age of70.[HOME]SIB- HOME LOANOwn your Dream Home through SIB Home Loans Now !!!!• Loans Available for Ready built Houses/Flats or for constructing your dream home.• Identify the Property, Approach nearest branch. Rest we will take care.Income Tax benefits for interest up to Rs 1.50 lakhsIncome Tax Rebate up to Rs 1,00,000 under 80C for principal repaidClick Here for more details Features• Simple Documentation procedures• No prepayment Penalty *• Flexible repayment options• Repayment facility up to 20 years or more*• Special Schemes for NRIs• Income Tax benefits for interest up to Rs 1.50 lakhs• Income Tax Rebate up to Rs 100000 under 80C for principal repaid• Online repayment facility from other bank accounts.• Low Processing Fees• No Hidden Charges• Flexible & Fixed Interest options *• Repayment holiday for house construction loans• Life Insurance of borrower can be opted to cover unforeseen happeningsAdditional loans for extension/repairs:Documents Required:Identity, Address & income proof of borrower & GuarantorProperty title deeds
  7. 7. Encumbrance Certificate& Tax paid ReceiptAgreement for sale from sellerApproval from local body & Estimate of the project[HOME]CAPITAL GAIN BONDS(For getting Capital Gain Tax Exemption)If the investor sells a property i.e. house or real estate, after three years time period the profitearned attracts long term capital gains tax at a rate of 20%(after indexation). The assessee canchoose to get exemption from this long term capital gain tax in 2 ways:• Either by investing the amount in buying or constructing a new house property within 2/3years of selling the houseOR• Investing in Capital Gain Bonds.Features: Bonds covering the benefits under Section 54EC of the Income Tax Act. Section 54EC exempts tax on capital gains if the profit earned by selling the property (theproperty should have been owned by the investor at least for a period of 3 years termed aslong term capital) is invested in specified bonds within six months from the date of sale. Lock-in-period is 36 months. Guaranteed rate of interest of 6 %. The face value of these bonds is Rs 10,000/- The maximum amount that can be invested in these types of bonds is Rs 50, 00,000/- duringthe financial year.[HOME]