Tax savings through home loan prepayment

Salary class has always been the section that has to bear the ruthless burden either it is the rising food prices or the soaring lending rates and even after all this a large portion of salary is due with the taxation department.

There is not a lot that a working professional can do about it but even he can try to save as much as he can to be paid as Tax. If an individual has borrowed home loan and if he intends to prepay the principle home loan amount then such an individual can claim for Tax deductions of up to 1 Lakh under section 80C.

GES in Deloitte India Mr. Rajesh Srinivasan said "If an individual transfers the property before the expiry of five years from the end of the year in which he gets possession or receives the amount paid, then the deductions allowed earlier will be treated as income in the year of transfer or receipt."

Tax savings through home loan prepayment

Salary class has always been the section that has to bear the ruthless burden either it is the rising food prices or the soaring lending rates and even after all this a large portion of salary is due with the taxation department.

There is not a lot that a working professional can do about it but even he can try to save as much as he can to be paid as Tax. If an individual has borrowed home loan and if he intends to prepay the principle home loan amount then such an individual can claim for Tax deductions of up to 1 Lakh under section 80C.

GES in Deloitte India Mr. Rajesh Srinivasan said "If an individual transfers the property before the expiry of five years from the end of the year in which he gets possession or receives the amount paid, then the deductions allowed earlier will be treated as income in the year of transfer or receipt."

Tax savings through home loan prepayment

Salary class has always been the section that has to bear the ruthless burden either it is the rising food prices or the soaring lending rates and even after all this a large portion of salary is due with the taxation department.

There is not a lot that a working professional can do about it but even he can try to save as much as he can to be paid as Tax. If an individual has borrowed home loan and if he intends to prepay the principle home loan amount then such an individual can claim for Tax deductions of up to 1 Lakh under section 80C.

GES in Deloitte India Mr. Rajesh Srinivasan said "If an individual transfers the property before the expiry of five years from the end of the year in which he gets possession or receives the amount paid, then the deductions allowed earlier will be treated as income in the year of transfer or receipt."

Idea launches mobile banking gateway Idea MyCash with Axis Bank

The consortium of Idea Cellular and leading private sector bank Axis Bank has launched a new service ‘Idea My Cash’ with which the customers will be able to access basic banking services from their mobile phones.

The Director-Operations of Idea Cellular Mr. Amrish Jain said “We have attempted the pilot, with 20 branchless banks operating currently.” The telecom service provider plans to roll-out the service around the country by September this year.

The service will target the urban migrants that falls under the salary bracket of Rs 3000 to Rs 15,000.

Earlier in December last year, the lender appointed Idea cellular as a business correspondent under the Financial Inclusion Plan.

Infosys plans to tap opportunities in rural banking through Finacle

The Financial Inclusion Plan has provided a major growth opportunity to the companies that provide Information Technology solutions. Recently Wipro bagged several major deals with banks to provide them banking solutions; another IT bellwether Infosys is also very keen to tap business opportunities available in this sector.

The IT giant will use its banking product Finacle to provide IT solutions to the banks and to help them achieving their goal of Financial Inclusion.

Fiancle partners with the banks to provide them various advanced banking services and IT Support to achieve greater operational efficiency.

The Global head of Infosys Technologies Mr. Haragopal Mangipudi said “According to conservative estimates, around 145 million people in India have access to banks, so there is a huge untapped market out there.”

The main advantage of this service is that is does not require any special kind of hardware on the mobile platform, Finacle can be operated from the most basic hand sets available.

He also said “While the global figure of $2.3 trillion is based on an international study, nobody has done a similar study for India. However, if you look at a population of a billion in India, and if everybody wants to save at least Rs 100, you have at least Rs 10,000 crore that banks can tap.”

Pay your Income-Tax through ATM

The third largest private sector lender in the country, Axis Bank has launched yet another new facility for its customers. From now the Axis Bank customers can pay their income-tax through the bank ATM. Though, as of now this facility is available only at selected ATM in selected cities but the bank will eventually extend this service to all the ATMs across the country.

M.V. Subramanian the president-business banking at Axis Bank “If you hold an account with Axis Bank and have a debit or an ATM card, you can use this facility to pay your income-tax and other direct taxes at the bank’s ATM, individuals can also pay advance tax, self assessment tax as well as tax deducted at source (TDS) through this facility.”

To avail this service the customers needs to register wit the bank by filling a simple registration form. The process will take a few hours to complete and after that you can visit the ATM that offers this service and you can pay your income–tax very easily.

Though Axis Bank is not the only bank that offers this service to their customers, Corporation Bank was the first bank in India to start this service two years.

Kochhar emphasizes on the role of existing banks in Fin Inclusion

A few days ago Mr. D Subbarao, the Governor of Reserve Bank of India said that if the bank license seekers have to keep their chances open to get the license then they have to prove their commitment towards Financial Inclusion Plan.

The Managing Director and CEO of ICICI Bank Chanda Kochhar expressed her views about the same and said that apart from the new license seekers existing banks also have a very significant role to play for the implementation of Financial Inclusion Plan.

She said "As far as financial inclusion is concerned, not just the new banks but the existing ones (as well) have an important role to play ... Rural India is going to be the market of tomorrow. Therefore, it is important for us to find business models for the rural population."

About ICICI Bank she said "Last year credit growth was much slower, while this year the incremental credit deposit rate has been much higher, which is an indication that going forward the banks have to keep in mind the fact that right kind of funding is necessary for credit growth."