Note:
1 Tax
benefits:
The amount of Income Tax an individual can save by availing Education Loan. The
amount of rebate
will vary for different income slabs and can be availed as per Income Tax benefits under
Section 80E of
Income Tax Act, 1961. Tax rebate can be availed only if individual opts for Old Tax Regime.
For simplicity
of Tax Benefit calculations we are considering flat Tax Rate as per the income slab selected
by
individual.
2 Effective loan
ROI:
The rate of interest that an individual will effectively pay on the Education Loan as per
the tax savings
on interest paid for education loan at applicable tax rate. User can avail this reduction in
rate of
interest only after opting for the Old Tax Regime.
3 Net
ROI: The
rate of
interest that an individual will effectively pay on the Education Loan if an individual opts
for a Fixed
Deposit (FD) against Education Loan and utilises the FD interest to reduce the total
interest on Education
Loan. (Tenure of Loan and FD are considered to be the same and only Cumulative FD types
considered;
Quarterly/Monthly pay-out variants not considered)
Disclaimer
The tax related information provided herein is
merely for general understanding and reference. The user needs to verify all the facts, law and contents
with the text of the prevailing statutes and seek appropriate professional advice before acting on the
basis of any information contained herein as the tax implications may vary depending upon the facts in
each case/ interpretation by tax authorities. The tax laws are subject to change from time to time. ICICI
Bank disclaims any liability for any losses incurred by you due to use of or due to investment decisions
made by you on the basis of this Tax Calculator. The Tax calculator has been developed based upon
projections determined in good faith and from sources deemed reliable (including public sources). lClCl
Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss
or damage incurred by anyone in reliance on the Tax Calculator. Use/ misuse of any intellectual property,
or other information provided in this Tax Calculator is strictly prohibited. The information provided in
the Tax Calculator is also subject to other product specific terms and conditions and any third party
terms and conditions, as applicable.
The expense calculator is only for the purpose
information and does not amount to an offer, and is not intended to create any rights or obligations. Such
information is subject to updation, completion, amendment without notice and is not intended for
distribution to, or use by, any person in any jurisdiction where such distribution or use would be
contrary to law or would subject lClCl Bank Limited (“ICICI Bank”) or its affiliates to any licensing or
registration requirements. Nothing contained herein is intended to constitute advice or opinion. You may
obtain professional advice before making any investment. ICICI Bank disclaims any liability for any losses
incurred by you due to use of or due to investment decisions made by you on the basis of this Expense
calculator. The Expense calculator has been developed based upon projections determined in good faith and
from sources deemed reliable (including public sources). lClCl Bank disclaims any liability with respect
to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance
on the Expense Calculator. Use/ misuse of any intellectual property, or other information provided in this
Expense Calculator is strictly prohibited. The information provided in the Expense Calculator is also
subject to other product specific terms and conditions and any third party terms and conditions, as
applicable.
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