Author name: Varsha

nps tax benefits and schemes

NPS Tax Benefits and Sections: Check National Pension Scheme Benefits

Leave a Comment / Saving Schemes / By /

NPS Tax Benefits and Schemes: The full form of NPS is National Pension Scheme. The main objective of this scheme is to encourage individuals to invest in the National Pension Scheme launched by government officials of India. Before investing in the National Pension Scheme, one must be aware of the NPS schemes and the benefits in order to choose the right scheme before investing. Also, NPS Schemes helps individuals in the term of tax benefits.

To help you understand all the details of NPS Tax Benefits and Schemes here is a detailed article on what are things which one must consider before investing in NPS and what are the NPS Tax Benefit for Government or Private employees. Read on to find out more.

What Are The Types Of NPS Accounts?

Under the NPS Scheme, there are two types of accounts. Tier I & Tier II accounts.

  1. NPS Tier I Account: Any individual who would like to invest under NPS Scheme will have to register for a Tier I account.
  2. NPS Tier II Account: The tier II account is completely optional. An individual can either register for a Tier II account else can ignore it. However in order to register under a Tier II account, one will have to mandatorily register under a Tier I account.

 NPS Tier 1 Tax Benefits

The main objective of the NPS Tier 1 scheme is to invest and save enough money for their retirement period. Thus any individuals wouldn’t be able to withdraw the money from the NPS Tier I account. However, when it comes to the NPS Tier II account, the officials are not offering any tax benefits but one will able to withdraw funds as and when required from the Tier II account, unlike the Tier I account.

NPS Tax Benefits – Tier 1 Account

The investments which are made under Tier 1 NPS accounts are eligible for tax exemption under the following 3 schemes of NPS.

  1. Section 80 CCD (1) or Section 80 C
  2. Section 80 CCD (1b)
  3. Section 80 CCD (2)

Tax Saving Benefits in NPS Tier 1 Account

  1. Section 80CCD(1)(section 80C): This section of income tax supports various tax deductions to the investors. When it comes to a salaried employee, he/she claim 10% of salary i.e., up to 1,50,000. On the other hand, self-employed individuals can claim up to 10% of gross income.
  2. Section 80CCD(1b): As per this scheme, one can avail of the tax benefit up to Rs. 200000. This benefit can be availed after the deduction offered under Section 80C.
  3. Section 80 CCD (2): Section 80 CCD (2) of the Income Tax act supports tax deduction on the employer contributions which can be availed by both private and government employees. Under Section 80 CCD (2) government employees can avail of tax benefits up to 14% on salary whereas private employees can avail the tax benefits up to 10% on salary.

Overview of Tax Deductions Offered By NPS

The highlights of Tax benefits offered by the NPS scheme are tabulated below:

Section Name Tax Deduction Source Maximum Limit
Section 80C The deductions are directly made from salary towards retirement Rs.1,50,000
Section 80CCD Deductions are made over and above after Section 80C Rs. 2,00,000
Section 80CCD (2) The deductions are made on the employer’s contribution. 14% of Gross Salary for Govt employees

10% of Gross Salary for Private employees

NPS Tax Benefits: Difference Between Tier I and Tier II

The difference between Tier I and Tier II account under NPS for Tax benefits are tabulated below:

NPS Tier I Account NPS Tier II Account
NPS Tier I account is otherwise called a Pension account. NPS Tier II account is otherwise called an investment account.
A minimum of Rs.6000 should be contributed annually for NPS Tier I account. A minimum of Rs.12,000 should be contributed annually to the Tier II account.
Funds from NPS Tier I account cannot be withdrawn. Funds from NPS Tier II accounts can be withdrawn as and when required.

NPS Income Tax Benefits

The NPS Income Tax benefits for salaried and self-employed individuals are explained in details below:

NPS Income Tax Benefit for Self-employed Individuals

Self-employed individuals can claim up to 20% tax exemption by contributing their Gross Income which includes basic and dearness allowance under the NPS Section 80 CCD (1). The maximum limit of gross income is up to Rs. 1,50,000.

NPS Income Tax Benefit to Salaried Employees

Under section 80CCD(1), any salaried employee can claim up to 10% of tax exemption by contributing their salary to NPS. The salary which they are contribution will include Basic & Dearness allowance.

Additional Tax Benefits by NPS

The additional Tax benefits by National Pension Scheme are given below:

  1. Any individual, let’s say salaried or self-employed investing up to 50,000 in NPS (National Pension Scheme) will be eligible for additional tax deduction under Income Tax Act –  Section 80CCD (1B). This exemption can also be applied in addition to Section 80C.
  2. Any person voluntarily contributing towards the NPS scheme will get an additional benefit of Rs.500000 under the 80CCD (1B) which would be over and above the cover limit of Rs. 1,50,000 under 80CCE.
  3. Any salaried employee can opt-out of investing in EPF and choose National Pension Scheme.
  4. Any private employee can exit from NPS once they reach the age of 60.
  5. For taxpayers in the tax bracket of 30% can avail of an additional deduction of 50,000. Whereas for the lower tax brackets of 20% to 10%, can save up to 10000 to 5000 under NPS schemes.
  6. Since the NPS investments made in Tier-1 cannot be withdrawn, tax benefits are provided.
  7. Under the NPS scheme, any individual can find a range of investment options. Any individual can also switch from one investment to another.

FAQs on NPS Tax Benefits & Schemes

The frequently asked questions on NPS Tax Benefits and Schemes are given below:

Q. How much should I invest in NPS for tax benefit?
A. Investing in NPS completely depends on the individual. Check out the NPS Scheme tax benefits provided on this page to understand which scheme is suitable for you and invest accordingly.

Q. Can I invest in both NPS and PPF?
A. Yes, any individual can invest in both NPS and PPF.

Q. What is the NPS Tier 2 Tax Benefit? 
A. The NPS Tier 2 tax benefit is applicable only to government employees. Government employees can avail of income tax deduction under Section 80C annually if they have lock in period of 3 years.  However, Private employees cannot avail of any tax benefits under NPS Tier 2 account.

Q. What is the minimum investment that one should make in NPS?
A. Any individual will have to make a minimum investment of Rs.1000 per year in an NPS account.

Now that you are provided with all the necessary information about NPS Contribution Tax Benefit and we hope this detailed article is helpful to you. If you have any queries about NPS Employee Contribution Tax Benefit or in general about this page, ping us through the comment box below and we will get back to you as soon as possible.

NPS Tax Benefits and Sections: Check National Pension Scheme Benefits Read More »

2 uan numbers

2 UAN Numbers: How To Merge Two UAN EPF Accounts Online?

Leave a Comment / EPF / By /

2 UAN Numbers: The full form of UAN is Universal Account Number. As the name suggests, UAN is a 12 digit number allocated to EPFO members for a lifetime to track their PF accounts. The main objective of the UAN number is to provide all the information about Provident Fund in one place irrespective of the organization he/she works. Any EPF member must have only one UAN number whose all EPF accounts are linked to it. Having two UAN numbers is against the EPFO rules. Thus, any employee with 2 UAN numbers will have to merge them to one of the UAN numbers. The steps to deactivate two UAN Numbers and merge them into one single UAN number online have been discussed in detail in this post. Read on to find out more about how to combine 2 UAN numbers online.

Reasons Why Two UAN Numbers Allotted For Same Person

In recent times, many people have witnessed the allotment of 2 UAN numbers to one single person. The reasons why 2 UAN numbers are allotted to one person are given below:

  1. Not Disclosing the Previous UAN Number: It is quite common for one employee to switch multiple jobs. So whenever an employee joins a new company, he/she should disclose his/her UAN and EPF Member ID number to the employer. Failing to provide this information to the employer will make an employer create a new UAN Number under UAN Registration. If an employer creates a new UAN number, then the employee will end up having 2 UAN numbers.
  2. Failed To Update Date of Exit by the Previous Employer: The previous employer will have to mention the date of exit in the ECR – Electronic Challan and Return. If the employer fails to provide this information, then the new organization allocates a new UAN to the employee.

What Happens If You Have 2 UAN Numbers?

Any EPF member must not have 2 active UAN numbers and having 2 UAN numbers that are active is against the rules of EPFO. According to EPFO, any person should have only one UAN number throughout his lifetime. That is, any member who has an account under EPF must have only a UAN number whose all EPF accounts are linked to it.  Any member having 2 UAN numbers will end up in a problematic situation. Thus it is important to deactivate 1 UAN number and merge the old UAN number to the new UAN number.

How Can I Deactivate My 2 UAN Number?

There are two methods, where one can deactivate and merge them into one UAN Number online. Let’s first go through Method 1 followed by Method 2.

Method 1 To Deactivate 2 UAN Numbers

  1. Once you come to know that you have 2 UAN numbers, immediately report the issue to your employer or EPFO officials.
  2. If you are reporting to the EPFO officials, you can simply write an email to uanepf@epfindia.gov.in.
  3. While writing the email to EPFO officials, you will have to mention your current UAN number and previous UAN number.
  4. Once the mail is sent to the EPFO officials, the EPFO will scrutinize your mail.
  5. Soon after scrutinizing the mail, the previous UAN will be blocked and the current UAN number will be kept active.
  6. Once your old UAN number is blocked, you will have to submit a claim of transfer to the EPF accounts linked with the blocked UAN to the new UAN account.

The above-listed process is time taking and the resolution rate is quite low when compared to Method 2.  Thus members looking for a faster solution can opt for Method 2, where he/she can merge 2 UAN numbers easily in online.

Method 2 To Merge Two UAN Numbers

  1. Employees who end up having two UAN numbers will have to request EPFO officials for the transfer of the EPF amount from the old UAN number to the new UAN number.
  2. Soon after sending the request, the EPFO officials will identify the duplicate UAN number.
  3. Once the identification process is completed, the Old UAN number from where EPF funds are transferred will get deactivated.
  4. Soon after the deactivation of Old UAN number, the old EPF account will be linked to the new UAN number account.
  5. The officials of EPFO will notify the same to the EPF members by sending an SMS.
  6. However, if officials find that the new UAN number is not activated by the EPF member, then he/she will be sent a request to activate the new UAN.
  7. In case if the EPF member has to receive some EPF arrears from their old employer, then the new UAN Number will be auto-populated in the ECR. Once this process is completed, the EPF arrears will be affixed to the EPF account which is linked to the new UAN number.

2 UAN Numbers: How To Transfer EPF Online?

Any EPF member will be able to transfer their EPF funds online from old employer to new employer through e-SEWA portal. Check our article on How To Transfer EPF Account Online to know the detailed process about EPF Transfer online.

FAQs on 2 UAN Numbers

The frequently asked questions on two UAN numbers are given below:

Q. Unfortunately, I got 2 UAN numbers on the same PAN number. What should I do?
A. If you have two UAN Numbers, then you must immediately report to your current employer or also can write a mail to EPFO official to the email ID – uanepf@epfindia.gov.in mentioning your old UAN number and new UAN number.

Q. What happens if you have two UAN numbers?
A. According to the EPFO officials, any EPF member should have only one UAN number throughout his lifetime. If he/she has 2 UAN numbers then they will end up in a problematic situation while withdrawing funds or online EPF transfer. So if any EPF member has 2 UAN numbers, then they will have to report the issue to EPFO officials.

Q. Can I have 2 UAN numbers for same person?
A. No, no EPF member cannot have two active UAN numbers at the same time.

Now that you are provided with all the necessary information about two UAN numbers and we hope this detailed article is helpful to you. If you have any queries about two UAN numbers, ping us through the comment box below and we will get back to you as soon as possible.

2 UAN Numbers: How To Merge Two UAN EPF Accounts Online? Read More »

How To File Income Tax Return Online: Step By Step Procedure To File ITR

Leave a Comment / Income Tax / By /

Income Tax E-filing: Filing Income Tax is a mandatory thing for all the citizens of India whose annual earnings exceed more than a certain amount. The process of filing the Income Tax Return (ITR) electronically is known as Income Tax Return E-filing. With the help of ITR E-filing, any individual will be able to process the ITR Online gathering anywhere. On this page, we have provided the detailed step-by-step procedure on how to file Income Tax Return online for salaried employees, individuals. Also, check out the documents which are required to process the ITR E-filing. Read on to find out more.

Income Tax E-Filing Important Dates

It is to be noted that individual who is E-filing the ITR online will have to file the same within the time frame specified by the officials. The important  dates of Income Tax Online Return and ITR date extensions notified by the officials are tabulated below:

Taxpayer Categories ITR Last Date Extended Till
For Individuals 31st July 2021
Body of Individuals – BOI 31st July 2021
Hindu Undivided Family – HUF 31st July 2021
Association of Persons – AOP 31st July 2021
For Businesses Requiring Audit 31st September 2021
For Businesses Requiring TP Report 30th November 2021

Income Tax Due Date Extension

The individual taxpayer’s due date to file Income Tax Returns is on 31st July 2021 for the Financial Year of 2020-21 which nothing but for the Annual Year of 2021-22.

Who Can File Income Tax Return Online?

According to the Tax Law, individuals meeting the following criteria will have to file the Income Tax Returns Online.

  1. Any organization which is taxable
  2. Individuals wishing to claim a refund from the Income Tax Department
  3. Individuals earning income from house property
  4. If individuals are investing or earning from foreign assets
  5. If the individual’s gross annual income is exceeding more than:
Individuals Age Gross Annual Income In Rupees
 Age Below 60 Years 250,000 Lakhs
Age Above 60 Years But Below 80 Years 300,000 Lakhs
Age Above 80 Years 500,000 Lakhs

However, if you find that your income is not taxable then you don’t have to file for the Income Tax Returns.

Documents Required For Income Tax E-filing

In order to file the Income Tax Returns (ITR) online, one will have to keep certain documents handy. The list of documents that one must have to file the ITR online are given below:

  • PAN Number
  • Aadhaar Number
  • Bank Account Details

1. In case, if the individuals are filing ITR based on their salary income, then they will have to keep the following documents:

  • Form 16
  • House Rent Slips
  • Salary or Pay Slips

2. In case, if individuals wish to claim deductions, they will have to keep the following documents:

  1. Proof of Income
  2. Investment details
  3. Home Loan details
  4. Insurance Details
  5. Deposit or Savings account details

If any of the above details are applicable, then individuals will have to submit them while E-Filing the ITR.

How To File Income Tax Return Online Step by Step Process?

The step by step procedure to file the Income Tax Return Online are given below:

  • Step 1: Visit the official website of E-Filing: Click Here
  • Step 2: If you are a new user then click on “Register Yourself“.
  • Step 3: If you are not a new user click on the “Registered User – Login Here” button. And move to the heading after step 9 on “how to e-file income tax returns on the portal“.

itr online

  • Step 4: Once you click on “Register Yourself“, a new page will open. Here select “Individual” from the drop-down menu and click on the “Continue” button.
  • Step 5: Enter the necessary details such as PAN No, Surname Verification, DOB, Residential Address, etc.,
  • Step 6: Now click on “Continue“.
  • Step 7: Now your PAN & transaction ID will be verified. And a new page  “Registration Form” will be opened on the screen. Here enter all the necessary details.
  • Step 8: Click on “Continue“. The officials will send a link to registered mobile and email id. Upon validating the link, your registration will be successful.
  • Step 9: Now login with the help of your credentials and follow the steps listed below to file the Income Tax Return Online.

How To e-file Income Tax Returns On The Portal?

  • 1st Step: Firstly fill the Form 26AS to summarize your TDS payment for all the 4 quarters of the assessment year your filing for.
  • 2nd Step: Now visit the official website of e-Filing and download the “IT Return Preparation Software“.

itr online filing form

  • 3rd Step: Choose your assessment year.
  • 4th Step: Now you can download the software either in Java Utility or MS-Excel file.

assessment year for itr filing

  • 5th Step: Once you have downloaded the file, enter all the details in the specified fields.
  •  6th Step: After filling out the form, click on “Validate” in the form itself to check if the necessary fields are filled out.
  • 7th Step: After the validation, click on the “Generate XML” button which converts you to the XML file. Keep this XML saved on your device.
  • 8th Step: Now visit the official website and hit on the “Registered User – Login Here” button to get logged in to the portal.
  • 9th Step: Click on the “e-File” tab and select “Income Tax Return” from the drop-down menu.

income tax return

  • 10th Step: A new page will open. Choose your assessment year and enter other details such as PAN, ITR Form Number, and submission mode.
  • 11th Step: Now move to the “Submission Mode” and select “Upload XML” to upload the XML.
  • 12th Step: After uploading the XML file, click on the “Submit” button.
  • 13th Step: A list verification mode list will be displayed on the screen. Select the verification mode at your convenience.
  • 14th Step: Based on your verification mode, OTP will be sent to the registered device.
  • 15th Step: Validate the OTP  and click on “Submit“.
  • 16th Step: Now your ITR-V will be displayed on the screen. Download the ITR-V and sign it and get it to upload to the website.
  • 17th Step: Once you upload it, your ITR filing process is completed.

Penalty for Late Filing of ITR

Any individual who fails to pay the ITR on or before the deadline is liable to pay Rs.10,000 under Section 234F of the Income Tax Act.

FAQs on ITR E-Filing

The frequently asked questions on how to file Income Tax Return Online are given below:

Q. Can I file my ITR myself?
A. Yes, any individual can file their ITR themselves by registering in the Income Tax Department E-Filing portal.

Q. How to file income tax returns online for salaried employee 2020-21?
A. Any salaried employee will be able to file the Income Tax Returns online by logging into the Income Tax India, the E-Fling website. The steps to file the Income Tax have been discussed in detail in the above section of the article.

Q. Which ITR Form should I choose if I am a salaried employee?
A. If you are a salaried employee then you will have to choose the ITR-1 Form to file the Income Tax Returns online. The ITR-1 Form is otherwise called as SAHAJ Form.

Now that you are provided with all the necessary information on how to file the Income Tax Returns Online and we hope this detailed article is helpful to you. If you have any queries on ITR Online Filing, ping us through the comment box below and we will get back to you as soon as possible.

How To File Income Tax Return Online: Step By Step Procedure To File ITR Read More »

EPFO Mobile App Service: UMANG App For EPF Passbook, Balance, Claim Status

Leave a Comment / EPF / By /

EPFO Mobile App Service: The officials of EPFO provide mobile services to the EPF members through UMANG App. EPFO UMANG App provides various services such as PF Balance checking, Claim Status, Passbook, etc., So any EPF Member who is looking to access the EPF Mobile services can download the UMANG App to perceive the same.

The EPF UMANG Mobile Application can be downloaded either from the Play Store or App store by any individual. Also, the EPFO UMANG Mobile app can be downloaded by giving a missed call to the mobile number – 9718397183. On this page, we will provide you with all the necessary information on how to download the EPF Mobile App and what are the EPF services provided through mobile. Read on to find out more.

Erstwhile EPF Mobile App Service

Earlier the officials of EPFO launched the Erstwhile EPF mobile App to help employees with EPF Passbook, PF Balance, PF Claim, UAN Activation, etc. However, the Indian Government officials came with UMANG App to replace the Erstwhile m-EPF mobile app. Since when the UMANG App was launched, the EPFO officials have decided to discontinue the Erstwhile EPF mobile app and asked all the EPF members to switch to UMANG App.

What is UMANG App?

The full form of the UMANG App is Unified Mobile Application for New-Age Governance. The UMANG App was launched by Indian Prime Minister Mr. Narendra Modi. The main objective of the UMANG app is to provide one-stop access to various government services in India. Among the various services, EPF Services also plays a major role in the UMANG app. The best part of the UMANG App is that users can operate the App in multiple regional languages.

How To Download EPFO Mobile App or UMANG App?

UMANG App is available in both Play Store and App Store. Andriod users can visit the Playstore and type UMANG App whereas the iOS users can visit the APP store and search for the UMANG app and download the same.

Also, any individual can download the UMANG App, by simply giving a miss call to 9718397183.

EPFO Mobile App For Andriod – UMANG APP from Google Play
EPFO Mobile App For iPhone – UMANG App from APP Store

How To Register For EPF in UMANG APP?

The steps to register in the UMANG App to avail of the EPF services are given below:

  • 1st Step: Firstly download the UMANG App from Google Play or App Store.
  • 2nd Step: As soon, as the app is installed, click on the “New User“.
  • 3rd Step: Enter your “Mobile No” and click on “Proceed“.
  • 4th Step: A OTP will be sent to your mobile number. Now enter your OTP to set the MPIN.
  • 5th Step: Type the MPIN number and confirm the same.
  • 6th Step: Link your Aadhaar number by entering your Aadhaar number.
  • 7th Step: Complete your Profile section by entering your profile details.
  • 8th Step: Click on “Save & Proceed“.
  • 9th Step: As soon as the registration process is completed, the user will be redirected to the home screen.

 How To Access EPF Mobile App Services Through UMANG App?

Once the registration process is completed in the EPF mobile APP (UMANG), move to the EPFO section in the UMANG App. Under EPFO there are 3 sections and they are:

  1. Employee Centric Services
  2. Employer Centric Services
  3. General Services

EPF Mobile App – Employee Centric Services

The steps to avail the Employee EPF Mobile services in the EPFO App are given below:

  • Click on the EPF – Employee Centric Services.
  • In the EPFO Employee Centric Services section, you will be able to see the following services such as View Passbook, Raise Claim, Track Claim.

EPF Mobile services

  •  In the Employee Centric Services, an employee will be able to check their passbook, raise the claims and track the claims.

EPF Mobile App – Employer Centric Services

The “Employer Centric Services” under EPFO is specially designed for the employer who is registered under the EPFO. Any employer who is registered under EPFO can track all details about the EPF contributions in any financial year with the help of their “Establishment ID“.

epf mobile services for employer

EPF Mobile App General Services

The EPF Mobile App general services can be accessed by any individual. In the General service section, any employer will be able to check their contributions with the help of the establishment name and code. Also, general services sections, help users to find the EPFO offices nearby in any State or district.

Apart from that, employees will be able to check their EPF account balance, claim details, and more by giving a missed calls or by sending SMS to the concerning number from the registered devices.epf mobile app general services

EPF SMS Services: EPF Balance Check Through Mobile

Any individual will be able to check their EPF balance through mobile by simply sending SMS from the registered mobile number. The EPF SMS Service number to check the EPF balance are given below:

  1. EPF SMS Number: 7738299899
  2. EPF SMS Format: EPFOHO UAN
  3. EPF Languages: English, Hindi and other regional languages are supported

Sample SMS text to check the EPF balance through SMS Service: “SMS EPFOHO <UAN><LAN>” 

Soon after sending the SMS, the users will be able to check their EPFO balance.

EPF Missed Call Services: EPF Missed Call Service Through Mobile

Also, EPF members will be able to check their balance or their EPF account details by giving a missed call to the concerned number. However, EPF members should note that he/she will get the balance details only if they are giving missed call from the registered mobile number.

EPF Account Details & Balance Check Missed Call Service Number – 01122901406

Note: 

  1. As soon as you call the number, the call will automatically disconnect after the two mobile rings.
  2. The EPF officials will not deduct any amount or rupees to provide this service.

FAQs on EPF Mobile Service App

The frequently asked questions on EPFO Mobile App services are given below:

Q1. Is there any app for EPFO?
A. Earlier there were many mobile apps initiated by EPF officials such as M-EPF, Erstwhile EPF Mobile App Service which is now replaced by the UMANG App. Any individual who wants to access the EPF services in the Mobile application can simply download the UMANG App to access the various EPF services.

Q2. How can I check my EPF balance in App?
A. To check EPF balance in Mobile App, one will have to download UMANG App and get registered. As soon as the registration is done, he/she will have to move to the “Employee Centric Services” and click on the “Passbook“. Once the “Passbook” tab is clicked, you will be able to check your EPF balance.

Q3. What is the EPFO Offical Mobile App?
A. UMANG App is the EPFO official Mobile App.

Now that you are provided with all the necessary information on EPFO Mobile App Services and we hope this detailed article is helpful to you. If you have any questions about EPFO Services through Mobile, reach us through the comment box below and we will get back to you as soon as possible.

EPFO Mobile App Service: UMANG App For EPF Passbook, Balance, Claim Status Read More »

assessment year and financial year

Assessment Year and Financial Year in India: Difference btw AY & FY 2021

Leave a Comment / Income Tax / By /

Assessment Year and Financial Year: We cannot afford to make mistakes while filing the Income Tax Returns. Therefore it is important for one to file the ITR with utmost care because even a small mistake in ITR might lead the person to pay a penalty or fine. However, it’s quite common we get confused with terms such as assessment year, financial year, or previous year while filing the Income Tax Returns and end up making mistakes. And that is the reason, we have to cross-verify when we come across these confusing terms before filing the ITR. So to help you understand the term Assessment Year (AY) and Financial Year (FY), here is a detailed article where the AY & FY  2020-21 ITR terms are explained in detail. Read on to find out.

Difference Between Financial Year & Assessment Year

Before getting into the differences between financial and assessment year, let’s first understand what is Financial Year & Assessment Year:

What is Financial Year 2020-21?

The financial year is the year in which you received or earned the income. Financial Year begins on 1st April 1st of each calendar year and ends on 31st March of the subsequent calendar year. The word “financial year” is often abbreviated as “F.Y.” Financial year is otherwise called Fiscal Year.

Any taxpayer must estimate and plan taxes for the current fiscal year, but the income tax return must be filed the preceding year or Assessment Year.

Example: The income you earned from 1st April 2020 to 31st March 2021 is the income that you have earned in the financial year (FY) 2020-21.

What is Assessment Year 2020-21?

The assessment year commences from 1st April and ends on 31st March of the preceding calendar year. Assessment year is the year in which the income earned by you in a particular financial year is taxed. Any individual will have to file their income tax return to the suitable assessment year. The assessment year is the year that immediately follows the fiscal year and usually abbreviated as “A.Y.”

Example: The income you earned in the financial year (FY) 2020-21 is taxable in the year Assessment year (AY) 2021-22. (1st April 2021 to 31st March 2020).

What is the Previous Year 2020-21?

Another important term that you may come across while filing the ITR is the previous year. The assessment year, as previously stated, is where your income is assessed and taxed. This evaluation and tax assessment are based on your income from the previous year, also known as the fiscal year. Thus Previous year is nothing but the financial year.

Assessment Year and Financial Year For Recent Years

To help you understand the differences between Assessment Year and Financial Year, we’ve compiled a list of AY and FY for recent years. Going through the table will help you surmise the AY and FY in detail.

Period Previous Year Financial Year
Assessment Year
1st April 2020 to 31st March 2021 2020-21 2020-21 2021-22
1st April 2019 to 31st March 2020 2019-20 2019-20 2020-21
1st April 2018 to 31st March 2019 2018-19 2018-19 2019-20
1st April 2017 to 31st March 2019 2017-18 2017-18 2018-19
1st April 2016 to 31st March 2017 2016-17 2016-17 2017-18

Important Things To Keep In Mind While Filing ITR – AY & FY 2021

While filing the ITR, one will have to carefully understand the terms what is AY & FY and fill accordingly. Some of the important fields which one will have to keep in mind while filing an ITR are given below:

  1. One should first understand the term AY and FY are completely two different things before filing and ITR.
  2. The term Assessment Year (AY) will always be used on ITR forms and thus it important for individuals to not confuse with FY.
  3. Taxpayers referring to the documents in ITR forms such as Form 16A, Form 26AS, capital gains statement, TDS must all be for the fiscal year.
  4. The income tax for any financial year will be assessed only when the financial or fiscal year comes to an end.

Assessment Year & Financial Year Example

Let us understand the difference between Assessment Year (AY) and Financial Year (FY) with an example.

Consider, Mr. Kumar wants to file the ITR forms for the financial year 2020-2021. Then the assessment year for which the ITR will be filed by Kumar will be AY 2021-2022. So, here the ITR form will be used for Kumar’s income tax return for the income earned between 1st April 2020 to 31st March 2021 which falls under the Financial Year FY 2020-21 or AY 2021-22.

FAQs on Assessment Year & Financial Year

The frequently asked questions on Assessment and Financial Year (AY & FY) are given below:

Q. What is the assessment year for the financial year 2018-19?
A. The assessment year for the financial or fiscal year of 2018-19 is 2019-2020.

Q. What is the period of the assessment year?
A. The period of the assessment year commences from 1st April 2021 of any calendar year and ends on 31st March of the preceding calendar year.

Q. Is the assessment year and financial year the same?
A. No, the assessment year and financial year are two different things. FY is the fiscal year in which you earn an income for tax purposes. AY is the year following the fiscal year in which you must evaluate and pay taxes on the previous year’s income.

Q. When can I file my ITR for AY 2020-21?
A. You can file the ITR for AY 2020-21 since the financial year of 2019-20 was concluded on 31st March 2020.

Now that you are provided with all the necessary information on the difference between assessment year and financial year and we hope this detailed article is helpful to you. If you have any queries on AY or FY, ping us through the comment box below and we will get back to you as soon as possible.

Assessment Year and Financial Year in India: Difference btw AY & FY 2021 Read More »

rakesh jhunjhunwala

Rakesh Jhunjhunwala: Portfolio, Story, Family, Tips, Company

Leave a Comment / Uncategorized / By /

Rakesh Jhunjhunwala is a business magnate from India. Rakesh Jhunjhunwala is also known as Midas (power of turning everything he touches to gold) businessman and often referred to as India’s Warren Buffet, the Big Bull, the Pied Piper of the Indian stock market, and so on. By profession, he is a chartered accountant and a trader. Though Jhunjhunwala hails from the middle-class Marwari family, he is the 48th richest man in the world, according to Forbes’ Rich List and he has a $4.3 billion net worth. So now the question is “How did Rakesh Jhunjhunwala make this money?” To answer you with this, here is a detailed article on Rakesh Jhunjhunwala’s portfolio and what investment principles he followed to become the big bull of the Indian stock market?

Who Is Rakesh Jhunjhunwala?

Rakesh Jhunjhunwala is an Indian business magnate who was born on 5th July 1960 in Hyderabad, Telangana. However later his family was shifted to Maharashtra. Rakesh was raised in a Marwadi family in Bombay, where his father served as the Commissioner of Income Tax, Bombay. Jhunjhunwala completed his degree from the Institute of Chartered Accountants of India, but after earning his degree, he decided to dive into the Dalal street headfirst.

Currently, Jhunjhunwala is the chairman of Hungama Media and Aptech, as well as a board member of Viceroy Hotels, Concord Biotech, Provogue India, and Geojit Financial Services. As a partner in his wealth management company, Rare Enterprises, he manages his own portfolio.

Rakesh Jhunjhunwala Story

When Jhunjhunwala was in college, he began dabbling in the stock market.  Jhunjhunwala began with a capital investment of Rs 5,000 in 1985. The capital had grown to Rs 11,000 crore by September 2018.

After hearing his father’s discussion about the stock market with his colleagues, Jhunjhunwala developed with an investment in the stock market. Jhunjhunwala quoted that his father advised him to glance at the newspaper on daily basis to check the stock market fluctuations and all the news related to the same. Though Jhunjhunwala’s father encouraged him to indulge in the stock market, he refused to lend money and asked not to borrow money from his friends.

However, Jhunjhunwala was a risk taker from the outset and this made him borrow money from his brother’s clients with the promise of returning the money with better returns than bank fixed deposits.

In 1986, he made his first significant profit when he purchased 5,000 shares of Tata Tea for Rs 43, and the stock grew to Rs 143 in three months. He made a return of more than three times his investment. He made between 20 and 25 lakh within three years.

Also, Jhunjhunwala has made many profitable investments in companies such as Titan, CRISIL, Sesa Goa, Praj Industries, Aurobindo Pharma, and NCC over the years.

Rakesh Jhunjhunwala Principles

 Jhunjhunwala principles of investing are given below:

  1. Addressable opportunity
  2. Competitive ability
  3. Operating leverage and scalability, and
  4. The integrity of the management

Rakesh Jhunjhunwalas Top 10 Trading & Investments Commandments

The top 10 trading and investment commandments by Rakesh Jhunjhunwala are given below:

  • Rakesh Jhunjhunwalas Top 10 Trading Commandments
    Source: Twitter
  • Rakesh Jhunjhunwalas Top 10 Investments Commandments
    Source: Twitter

Rakesh Jhunjhunwala Family

Rakesh Jhunjhunwala was married to a stock market investor Rekha Jhunjhunwala in February 1987. The couple has three children: Nishtha, a daughter, and Aryaman and Aryavir, twin sons.

Rakesh Jhunjhunwala Family
Rakesh Jhunjhunwala Family

Rakesh Jhunjhunwala Investments or Company

RARE Enterprises, a privately held stock trading company, is managed by Jhunjhunwala. However few list of companies in which Jhunjhunwala has invested are given below:

  1. Titan
  2. CRISIL
  3. Aurobindo Pharma
  4. Praj Industries
  5. NCC
  6. Aptech Limited
  7. Ion Exchange,
  8. MCX
  9. Fortis Healthcare
  10. Lupin
  11. VIP Industries
  12. Geojit Financial Services
  13. Rallis India
  14. Jubilant Life Sciences and much more.

Rakesh Jhunjhunwala Scam

One of India’s biggest financial disasters was in the 1992 Financial & Securities Scam. As a member of the bear cartel, Rakesh Jhunjhunwala made a lot of money shorting stocks during the Harshad Mehta period.

Developed cartels dominated the market in the 1990s. Manu Manek, also known as the Black Cobra, was the leader of one such bear cartel. Radha Krishan Damani, Rakesh Jhunjhunwala, Ajay Kayan, and others were among his supporters. The Black Cobra cartel and Harshad Mehta fought a bloody war in the 1990s. Harshad Mehta was primarily a Bull who believed in the Market’s bullish logic.

Famous Rakesh Jhunjhunwala Quotes

Few famous quotes quoted by Rakesh Jhunjhunwala are given below:

You do not succeed without obsession

Rakesh Jhunjhunwala

Markets are like women — always commanding, mysterious, unpredictable and volatile

Rakesh Jhunjhunwala

Growth comes out of chaos

Rakesh Jhunjhunwala

Build a fighting spirit — take the bad with the good

Rakesh Jhunjhunwala

 Prepare for losses. Losses are part and parcel of stock market investor life

Rakesh Jhunjhunwala

Always go against tide. Buy when others are selling and sell when others are buying

Rakesh Jhunjhunwala

When opportunities come, they can come through technology, marketing, brands, value protections, capital, etc. You need to be able to spot those

Rakesh Jhunjhunwala

See the world as it is, rather than what you would like it to be

Rakesh Jhunjhunwala

The prettiest part of the stock is that it has to be cheap – the entry point

Rakesh Jhunjhunwala

Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it

Rakesh Jhunjhunwala

FAQs on Rakesh Jhunjhunwala

The frequently asked questions on Rakesh Jhunjhunwala are given below:

Q1. Who is the king of share market in India?
A. Rakesh Jhunjhunwala is known as the king of the share market in India.

Q2. What is the qualification of Rakesh Jhunjhunwala?
A. Jhunjhunwala has completed Chartered Accountant from the Institute of Chartered Accountants of India.

Q3. Where does the Rakesh Jhunjhunwala house locate?
A. Jhunjhunwala’s house is located in South Mumbai, India.

Q4. What is the Rakesh Jhunjhunwala net worth?
A. The net worth of Jhunjhunwala amounts to be 440 crores USD.

Q5. What are the Rakesh Jhunjhunwala stocks?
A. Rakesh Jhunjhunwala owns 37 stocks that have a net worth of Rs. 17,971.4 crore.

We hope this detailed article on Rakesh Jhunjhunwala is helpful. Feel free to share your feedback about this article in the comment box below.

Rakesh Jhunjhunwala: Portfolio, Story, Family, Tips, Company Read More »

What Does Bade Ache Lagte Hain Say About Money?

What Does Bade Ache Lagte Hain Say About Money?

Leave a Comment / Uncategorized / By /

Bade Ache Lagte Hain was a TV serial that aired on Sony TV from the period of 2011 to 2014. The TV show was designed by Ekta Kapoor and produced by her production company, Balaji Telefilms. TV serial Bade Ache Lagte Hain was so famous that it became a huge part of every Indian family that any person can narrate the story.

Thus, when we hear about the TV serial name Bade Ache Lagte Hain, we typically think that “Ram is a business magnate who was compelled to marry a middle-class woman, Priya. They later fall in love, and have overcome many challenges in order to remain together“. However, have you ever wondered what does the TV serial tells about money and how people are lured for it?

Bade Ache Lagte Hain Story In Short

First, let’s glance to through the complete story of Bade Ache Lagte Hain.

Bade Ache Lagte Hain revolves around Ram and Priya, two strangers who marry and fall in love. Ram and Priya are both over the age of marriage. Ram is in his forties, while Priya is in her thirties.

Basically, Priya is a sweet young lady who teaches TOEFL to college students. Aisha, her younger sister, is an aspiring model whereas Karthik, younger brother of Priya is a very pleasant guy. Priya’s belongs to a middle-class family and has a lot to do with money.

Coming to Ram is a successful businessman. His stepmother, stepbrother, and two stepsisters live with him. He spends all of his money on his family’s happiness, but his stepmother only uses him because of her own convenience, and he lacks maternal affection. He is a pudgy man in his forties who is single. He’s given up on marriage, but his best friend-turned-business associate is certain that if he looks hard enough, he’ll find the right person to get married.

Though the whole story revolves around the above-mentioned context, it has a lot to say about money. If we take a deep dig, every part of the serial conveys about money and its importance to keep someone happier.

Bade Ache Lagte Hain Story Says Money Brings Loneliness

Ram Kapoor is a very rich and wealthy man. The cast shows that the Ram has the capability to buy a failing business in order to obtain the company’s airplane in the first episode. Ram also can buy everything he can for his stepfamily with the money he has.

Though he has enough money, he is a very lonely person. Even so, Ram buys everything and makes his stepfamily comfortable, he needs some maternal love from his stepmother. But he always ends with loneliness. This shows no family member has been connected to him emotionally and everyone in the family is just showing artificial feelings to Ram to get things done with his money.

Bade Ache Lagte Hain Tells Money Cannot Buy Happiness

Natasha, Ram’s sister, has it all: she comes from a wealthy family and is a talented designer. But, when her boyfriend, Karthik (Priya’s brother), refuses to meet her, she slits her hand and is brought to the hospital. Most people think that Natasha is stubborn, has madness or petulance, but money couldn’t make her boyfriend fall in love with her. Here the cast conveys, that money couldn’t buy happiness or love which Natasha was looking for.

Bade Ache Lagte Hain Revels Money Makes Man Greedy

Because of the raise and promotion, an employee of who was already married decides to marry Priya. He seems to be the ideal man, allowing Priya to retain her identity. However Ram founds out at the right time he is cheating on Priya. This shows how greedy a person can be for the sake of money. 

Bade Ache Lagte Hain Says Money Cannot Help Jealousness

Can you remember episode 162, in which Ram is jealous of Priya’s entire party being devoted to praising Actor Ronit Roy and his health, thus inevitably mocking Ram?. This makes Ram jealous and his money couldn’t help him overcome this. However, this part of the serial conveys that no matter how much money you have, you will get jealous when you have low self-esteem.

Bade Ache Lagte Hain Says 20+ Is Ready To Marry 40+

Nowadays young girls are ready to marry any person who haves money. This context has been explained in various parts of the serial and we have provided few examples taken from the Bade Ache Lagte Hain serial.

  1. Since Ram is a wealthy guy, even 20-year-old girls are willing to marry a 40-year-old, fat Ram. Young girls believe that marrying a rich man will get them all the luxurious and branded life.
  2. Can you remember Priya’s conversation with her students about the magazine with Ram on the front cover, and how Priya is tempted to pick up the magazine? In that episode, all the young girls praise Ram just because he is rich.
  3. Also in the other episode, Ram meets a model girl at the behest of his best friend. The model initially tries to impress the Ram but when Ram tells her he doesn’t really have any money, the model ignores and decides to leave.
  4. In the other episode of the serial, even Aisha, Priya’s younger sister, decides to marry Ram because she believes that buying a branded purse brings her more joy than talking about sunrise and sunset with a middle-class husband.

Bade Achhe Lagte Hain Story After Leap – Struggle of Money

Now the show has taken 5 years leap. Due to some misunderstandings, Priya leaves Ram and spends five years in Dubai, where she gives birth to Ram’s daughter Pihu. This part of the story shows how Priya as a single parent struggles for money to fulfill her daughter’s needs.

We hope this article on “what does the Sony TV serial Bade Ache Lagte Hain tells about money” is helpful to you. The objective of this post is to feature the money point of view which the serial was trying to convey and not to hurt anyone. If you find this article was helpful to you, then do drop your feedback in the comment box below.

What Does Bade Ache Lagte Hain Say About Money? Read More »

Zerodha coin

Zerodha Coin | Mutual Fund Investment Platform, Login, Charges, Review

Leave a Comment / Finance / By /

Zerodha Coin was introduced by the officials of Zerodha which is an online platform that enables users to buy Mutual funds directly. As it is known that any individual will be able to buy the mutual funds in any of the two ways either via a distributor or directly from AMC (asset management company). When you buy mutual funds with the help of a distributor, then you will have to pay some commission to the distributor. But when you are buying mutual funds through the AMC website, you don’t have to pay any commission but however, you will have to direct to multiple AMC websites to manage your account. To help you overcome this, the officials of Zerodha have introduced the Zerodha coin.

What is Zerodha Coin?

Zerodha Coin is an online platform that is managed by the officials of Zerodha. Zerodha coin helps you to buy direct mutual funds without any commission from AMC companies. Zerodha coin can be either accessed through the web or mobile application. And any investor enrolled for Zerodha coin will be able to invest across 3k+ mutual funds platforms.

Zerodha Coin Charges

Initially, any user making use of the Zerodha platform had to pay Rs.600 which is now cancelled. So that now, any user can access the Zerodha Coin for free of cost.

Description Zerodha Coin Charges
Zerodha Coin Account Opening Fees Free
Zerodha Coin AMC Fees Free
Zerodha Coin Brokerage Free
Zerodha Coin Commission Free
Zerodha Coin DP Charges Free
Other Charges No hidden charges, thus it’s free.

Zerodha Coin Benefits & Features

The features and benefits of the Zerodha coin are discussed below:

  1. The platform can be accessed by anyone for free cost.
  2. There are no commissions charged on direct mutual fund investments made using this platform.
  3. You can invest in up to 3000+ mutual funds from one platform.
  4. Direct Mutual Funds will be DEMAT from a single portfolio that includes stock, mutual fund, and fund investments.
  5. With the help of a single dashboard, you can manage all of your mutual funds in one window.
  6. Profit and loss statement and capital gain statement are combined into a single document.
  7. Easy SIP is a type of SIP service. You can start, stop, and change SIP at any moment with Easy SIP.
  8. Similar to the stock market, you can follow orders and see NAV online. You can buy and redeem funds based on NAV by placing an order.
  9. Using the mobile app, you may create, pause, and modify your SIP at any time.
  10. This platform also offers a portfolio tracking view where you can manage your portfolio.

Zerodha Coin

How To Open Zerodha Coin Account?

If you already have a Zerodha account, then you don’t have to create a separate account in order to open a Zerodha Coin account.  You can just log in to the Zerodha coin account with the help of Zerodha credentials.

How To Buy Mutual Funds In Zerodha Coin?

In order to buy Zerodha Coin, one will have to create an account in Zerodha. Once the account is created, follow the steps listed below to buy the Zerodha Coin online.

  • Step 1: Visit the official web page of Zerodha Coin or Click Here.
  • Step 2: On the homepage, click on the “Login” button.
  • Step 3: Log in with the help of your Zerodha credentials.
  • Step 4: Now in the “Search” tab, just type the fund name which you are looking for.
  • Step 5: As soon as the fund appears, click on the “Buy Direct” option.
  • Step 6: Now you will be redirected to a new window.
  • Step 7: Here enter the amount you would like to invest.
  • Step 8: Click on the “Buy” button.
  • Step 9: Additionally if you want to create a SIP, click on the “Direct SIP” button.
  • Step 10: Enter the “SIP” details and your work is done.

How To Transfer Mutual Funds To Zerodha Coin Account?

Any individual will be able to transfer their regular mutual funds to Zerodha coin easily, even if you have invested your funds in DEMAT or Non-DEMAT form. The steps to transfer the mutual funds to the Zerodha Coin by DEMAT or Non-DEMAT form are given below:

Mutual Funds Transfer: Regular Fund in DEMAT Form

Transferring regular funds from the DEMAT account to Zerodha coin is very simple. All you have to do is just fill out the Delivery Instruction Slip (DIS) which will be available in your stockbroker. While filling the DIS form, you will have to enter the details such as Zerodha DP ID, Mutual Fund units, and other fund details. Once you submit the DIS form, the funds will be transferred within 24 hours.

Mutual Funds Transfer: Regular Fund in Non-DEMAT Form 

If your mutual funds are not in DEMAT form, then the process is a bit difficult. One will have to fill out the de-materialization form. The DRF (Dematerialization Form) can be downloaded from the Zerodha website. Two copies of this form must be filled out and submitted, together with a self-attested PAN copy and a self-attested mutual fund copy. When you submit this form to Zerodha’s headquarters, the De-materialization process begins. For the conversion of this account, you must pay a minimal fee of Rs.150 plus courier charges.

Zerodha Coin Review: Is Zerodha Coin Good?

As of now, we have only 2 methods to buy Zerodha Coin i.e., either through distributor or AMC. Buying through a distributor will cost some commission and buying through AMC portals is time-consuming, since we need to create a different portfolio.

Thus choosing Zerodha Coin is really helpful, since it helps to manage all the portfolios in one place. And making investments in mutual funds is very simple using the Zerodha coin. Also one doesn’t need to pay any money to buy mutual funds using Zerodha Coin. However, there are some drawbacks which one should note if he/she uses Zerodha coin and they are:

However, you should accept the foregoing flaws and make use of this platform. This platform provides a great deal of flexibility and saves time when it comes to paperwork.

If you are already using Zerodha Coin, share your experience and review about Zerodha Coin in the comment box below.

Zerodha Coin | Mutual Fund Investment Platform, Login, Charges, Review Read More »

PM Cares Fund

PM Cares Fund | 80G Tax Deduction, Covid 19, Chief Minister Relief Fund

Leave a Comment / Income Tax / By /

PM CARES Fund 80G: The full form of the PM CARES fund is “Prime Minister’s Citizen Assistance and Relief in Emergency Situations“. PM CARES fund was established on 28th March 2020 and the main objective of this initiative is to deal with economic and health distress caused by the COVID-19. Any individuals or organizations can donate any amount of money to these PM CARES funds and all the funds collected through PM CARES will be used to help the people who are affected with COVID-19.

And to encourage people to donate for PM CARES, the officials of the Income Tax Act have been amended to enable contributions to be tax-deductible under Section 80G. This means that if he/she contributes some amount of money to PM CARES fund, then he/she can claim the tax deduction by submitting the PM CARES fund 80G Certificate of Receipt. In this article, let’s understand how to make donations to PM CARES fund and avail tax exemption. Read on to find more. Know About Income Tax Challan 280

PM Cares Fund Section 80G Tax Deductions

The key points which one will have to keep in mind before making a donation to PM CARES Funds are given below:

  1. All the contributions which are made to PM care funds will be treated similarly to that of contributions made to PMNRF i.e., Prime Minister’s National Relief Fund.
  2. Under Section 80G of the Income Tax Act of 1961, If an individual or organization makes donations to the PM CARES fund, then they will be eligible for 100% tax exemption.
  3. Also one must note that there would be no upper limit on the number of tax deductions available under Section 80G for contributions made to this Fund.
  4. Under the Companies Act of 2013, Donations made to PM CARES fund would be counted as expenses spent for Corporate Social Responsibility (CSR).
  5. Donations that are made by individuals from foreign countries will also be exempted from income tax. If any individual or organization based in foreign wants to avail the tax exemption, then they will have to donate under Foreign Contribution Regulation Act (FCRA).

What is Section 80G of the Income Tax Act?

Any individual or organization can avail of the tax benefits by simply making contributions to fund, trusts, and charitable organizations are discussed in Section 80G of the Income Tax Act. It is to be noted that, an individual will be eligible to claim the tax deductions based on the trust, funds or charity to which he/she donated. However, if an individual makes contributions to some government funds will be eligible for a 100 percent tax deduction. But when it comes to monetary donations to some NGOs then he/she can claim only a 50 percent tax deduction.

In addition to this, under Income Tax Act, section 80G, there is an upper limit of tax deduction. The upper limit resembles 10% of your overall gross income. This means that any individual will not able to claim the tax deduction after reaching the certain limit as mentioned above. However one can claim 100% of tax deductions without any upper limit when he/she contributes to PM CARES funds.

How To Contribute for PM CARES Fund Under Section 80G?

The step by step procedure to contribute to the PM CARES fund has been explained in detail below:

  • Step 1: Visit the official website of PM CARES Funds.
  • Step 2: Now on the homepage, click on the tab “Donate“.
  • Step 3: From the drop-down menu, select the Donation Type you are doing.
  • Step 4: Now a new page will open. Enter all the necessary details.
  • Step 5: Click on the button “Review & Generate OTP“.

PM CARES Fund

  • Step 6: Validate the OTP. Enter the payment method and process your payments.
  • Step 7: The acknowledgment page will be displayed on the screen. Take the screenshot for further reference.

PM CARES Fund 80G Certificate or Receipt

To claim the income tax deductions, one will have to submit the necessary proofs. So to claim the deduction under Section 80G of the income tax act, one will have to submit the PM CARES fund 80G receipt. However, if any individual has missed submitting the receipt, then he/she can download the PM CARES donation receipt from the official website by following the steps listed below:

  1. Visit the official website pmindia.gov.in.
  2. Now click on “Donation” and select the “Donation Type” you have made.
  3. A new page will open. Here click on the tab “Print Receipt“.
  4. Select the medium through which you have donated the funds to PM CARES.
  5. Based on the medium selected a new page will open.
  6. Enter your mobile number and Bank reference number.
  7. Click on the “GET OTP” button.
  8. Validate the OTP and you can simply download the receipt.

How To Claim Tax Deduction Under Section 80G by Donating To PM CARES Fund?

The officials of the income tax government have approved a 100 percent tax deduction for contributions to the PM CARES Fund under section 80G of the Income Tax Act. All the taxpayers can claim the deduction for the fiscal year 2019-20, if contributions are made between April 1, 2020, and June 30, 2020. However, any individual will be able to avail of the tax deduction only once by donating. For example, if you have claimed the income tax deduction in the financial year of 2019-20, then he/she is not eligible to claim tax deductions for the next financial year that is for the fiscal year 2020-21.

PM Cares

FAQ’s on PM CARES Fund 80G Details

The frequently asked questions on PM CARES Fund 80G are given below:

Question 1.
How can I get an 80G certificate from the PM Cares fund?

Answer:
Any individual will be able to download the 80G certificate or receipt either from the official websites of the PM CARES fund or also can get the receipt by sending an email to pmnrf@gov.in with your details and the donation transaction details.

Question 2.
How many deductions are allowed for donation to Prime Minister Relief Fund?

Answer:
Any individual making a donation to the PM CARES fund can avail of 100% tax deductions without any upper limit.

Question 3.
Is PM cares eligible for 80G?

Answer:
Yes, all contributions made to PM CARES are eligible for Section 80G under Income Tax Act.

Question 4.
Contributions made to PM CARES can be refunded?

Answer:
No, once the contributions are processed, they cannot be canceled or refunded.

Question 5.
How much is the 80G exemption?

Answer:
100% tax exemptions are provided to the individuals who donate to the PM CARES fund. For example, If an individual with an annual income of Rs 10 lakh donates Rs 2 lakh to the PM CARES Fund, the entire donation is tax-deductible under Section 80G, and the taxable income is reduced to Rs 8 lakh.

PM Cares Fund | 80G Tax Deduction, Covid 19, Chief Minister Relief Fund Read More »

Reliance My Gold Plan

Reliance My Gold Plan | Know About Reliance Gold Saving Scheme

Leave a Comment / Finance / By /

Reliance My Gold Plan: RMGP which is also known as Reliance my gold plan is a monthly savings plan that allows investors to acquire gold in 20 installments over the course of a month for as little as 50Rs each day. This Reliance My Gold Plan is such a unique product that allows you to build a gold SIP on a daily basis and redeem it for a 24k gold coin or jewelry. Though it seems to be a better solution to invest in gold, one must also know the disadvantages which are discussed in detail below. Read on to find out more about reliance gold policy, reliance gold saving.

What is Reliance My Gold Plan?

Reliance Money Precious Metals Pvt Ltd, a Reliance Capital firm, and the World Gold Council have together initiated the Reliance My Gold Plan (RGMP). For any investor who cannot stay away from gold as an investment, one alternative is to look into the Reliance My Gold Plan, a gold plan that allows you to invest in gold in a methodical manner. This RGMP scheme allows the investor to buy the gold scheme in 20 installments over the course of a month for a specified period of time.

How The Reliance My Gold Saving Plan Works?

Reliance golden year plan login can be purchased for a period of one to fifteen years. The plan allows you to pay monthly, and gold prices from the previous 20 business days are averaged and gold is purchased accordingly. The gold gram given will be 24 carat gold with a purity of 995 and will be rounded to the nearest four decimal points.

When you’ve accumulated enough, you can convert it to Gold Grams of 24 Carat Gold with a purity of 995.  i.e., after paying the making charges and VAT, reliance my gold plan redemption process is possible in the form of a 24K gold coin or jewelry at particular stores and is available as reliance my gold plan redemption form pdf. RMGP competes with jewelers’ Gold Savings Schemes (GSS). Under the system, you can also buy jewelry from empanelled jewelers.

My Gold Plan Reliance Scheme – Overview

Reliance my gold plan

Who Can Buy The Reliance My Gold Plan?

The following people are eligible to but the RMGP scheme:

  1. Indian Resident
  2. Non-Indian Residents -NRI
  3. Minors (where parents / lawful guardians are applying on behalf of Minors), and
  4. Hindu Undivided Family (“HUF”)

Note: One will have to declare the nominee while buying the Reliance My Gold Plan.

How To Buy My Reliance Gold Plan?

One will have to fill out the application process in order to buy the My Reliance Gold Plan. For an application form of Reliance My Gold Plan, one must visit the nearest RMPM Collecting Centres. At RMPM collecting centers, he/she required to provide a fully completed and signed application form, as well as valid approved KYC proof that has been self-attested and the initial payment. The customer must present valid proof of identity and proof of address to satisfy R-KYC MGP’s standards. For the proof of identity and address, the individual can submit any of the following:

  1. Photo Identity Proof such as Aadhaar card, Passport, Driving License, etc.,
  2. Address Identity Proof: Any proof of identity which was Government/Regulatory/Statutory Authorities issue identity cards/documents with addresses.

Gold Saving Scheme

Advantages of Reliance My Gold Plan

The advantages of my Reliance My Gold Plan are discussed below:

  • Surprisingly, you may start with as little as Rs 1000 and work your way up in multiples of 100.
  • It permits systematic gold accumulation by splitting subscriptions into 20 daily purchases, removing the risk of market timing.
  • After paying the making charges and VAT, the customer’s account is credited with 24K gold of 995 fineness up to four decimals of grams.
  • The RMGP gold is housed at Lemuire Secure Logistics Pvt Ltd, and the security trustee is IDBI Trusteeship Services Ltd.

Disadvantages of Reliance My Gold Plan

  • Gold prices are greater than those supplied by other monthly jewel schemes
  • The plan can be purchased for a period of one to fifteen years. There is a six-month lock-in period after which you can claim gold in the form of coins or jewelry, but there are 2.5 percent early termination fees.
  • There will be 1.5 percent administration charges as a mark-up on the daily gold price.
  • It does not provide gold trading. At the end of the semester, you must take physical delivery.
  • There is no way to get your money back in cash. If you do not take delivery of gold within six months of maturity or the receipt of a fulfillment voucher, you will be charged a 0.5 percent safekeeping fee.

FAQ’s on Reliance My Gold Plan

Question 1.
Can I buy gold jewelry online on EMI through Reliance My Gold Plan?

Answer:
No, you cannot buy gold jewelry online. Through Reliance My Gold Plan Online, you can only choose among jewelers who have been equipped by Reliance.

Question 2.
What is the Reliance my gold plan customer care number?

Answer:
The customers can reach out to the officials through the following toll-free number and email ID for inquiries.

  • Customer Care Reliance My Gold Plan Toll-Free Phone Number: 1800 200 2267
  • Email ID: customer.support@mygoldplan.co.in

Question 3.
What is the payment mode of Reliance My Gold Plan?

Answer:
Any individual who has enrolled for Reliance My Gold Plan can process the payments through Cheque / DD / Pay Order / ECS / Direct Debit.

Final Thoughts

There are no unique advantages to investing in the Reliance My Gold Plan.  Investors are generally dissatisfied with gold, and they are more interested in chasing stocks.  Thus we advise you to read the terms and conditions carefully before investing in Reliance My Gold Plan.

Reliance My Gold Plan | Know About Reliance Gold Saving Scheme Read More »

Difference between pan, tan and tin number

Difference Between PAN, TAN, And TIN Number 2021

Leave a Comment / Income Tax / By /

Difference Between TAN and TIN PAN Number: PAN, TAN, and TIN are the common terms which any individual would come across while filing the Income Tax. The term PAN, TAN, and TIN sound more or less similar and this is the reason why most individuals end up confusing themselves. Thus it is important for one to know the meanings of these terms beforehand to simplify the tax filing process. To help you with that, here is a detailed article on what is the difference between TAN, PAN, and TIN. Read on to find out more.

What Is TIN, PAN, and TAN Number?

Before understanding the differences between PAN, TAN, and TIN Numbers, it is important to understand what exactly does the term PAN, TAN, and TIN mean.

What is PAN Number?

PAN Number Full Form: The full form of PAN number is Permanent Account Number. Permanent Account Number comes with a 10 digit alphanumeric unique code. PAN card is issued by the Income Tax Department of India and any taxpayer in India must have the PAN card. PAN card plays a vital role in tax payment, tax returns, tax arrears, and other financial transactions.

What is TAN Number?

TAN Number Full Form: The full form of the TAN number is Tax Deduction and Collection Account Number. TAN Number is a mandatory thing for a tax deduction and collection at source TDS/TCS.  TAN Number is allocated to the individuals by Income Tax departments officials which consists of a 10 digit alphanumeric code. The first four digits of code are alphabets, the next 5 digits will be numbers and the last digit ends with an alphabet.

What is TIN Number in India?

TIN Full Form: The full form of TIN number is Taxpayer Identification Number. The TIN number is issued by the officials of the Commercial Tax Department of their respective state government. The TIN number comes with 11 digits unique numeric number which is mandatory for an entity, traders, or dealers who are registered under VAT (Value Added Tax). Any business person who pays VAT should have a TIN Number, which helps the officials easy to track their payments under a single window.

What Is the Difference Between PAN, TIN, and TAN?

Now you are aware of the meaning of PAN, TAN, and TIN. Now let us understand the difference between PAN TAN and TIN number from the table below:

Description PAN Number TAN Number TIN Number
Who Issues The officials of the Income Tax Department The officials of the Income Tax Department The officials of the Commercial Tax Department of their Respective State Government
Type of the Code Number Consists of 10 digit alphanumeric unique code number Consists of a 10 digit alphanumeric unique code number Consists of 11 digits numeric code where the first 2 digits represent the state code
Code Number Specifications In PAN number, the first 5 digits are alphabets, the next 4 digits or numerical numbers, and an alphabet In TAN number, the first 4 digits are alphabets, followed by 5 numerical values and the last digit is the alphabet In TIN number, all the 11 digits are numerical values. The first 2 numerical values represent the state code
Objective PAN is a universal identification code for tracking income tax and financial transactions The primary purpose of TAN is to process the deduction and collection of taxes at one source TIN is mainly used to track VAT-related activities or payments at one single window
Who Should Have IT Each and every taxpayer or income tax assesse should have PAN Individuals or organizations who are responsible to deduct or collect the tax should have a TAN number Any dealer, trader, or businessman who is responsible for paying VAT should have a TIN number
Account Under Which Law PAN card issued under Section 139 A of the IT Act of 1961 TAN is issued under Section 203A of the Income Tax Act of 1961 Each state has its own act under which the TIN is applicable
Penalty Charges A person who fails to follow the rules will have to pay the penalty fee of Rs 10,000. A person who fails to follow the rules will have to pay the penalty fee of Rs 10,000. The penalty charge varies from state to state.
Application To Be Submitted Under Form No? For PAN Card application, individuals will have to submit Form 49A (Indians) or Form 49AA (Foreigners) For the TAN number application, one will have to fill Form 49B Form No varies from state to state and it is important for one to check with their state before filling the application form
Documents required to apply
  • Valid Photo ID Proof
  • Address ID Proof
  • Photographs in case of individuals
  • Date of Birth Proof
 No proofs are required. However, if you are filling online application form then you will have to submit the acknowledgment form signed
  • Proof of registration
  • PAN Card
  • ID proof of owner
No of Persons Can Own Only One Only One Only One
Application Charges
  • Costs Rs.107 if the address is located inside India
  • Costs Rs.989 if the address is outside India
 Costs Rs.55 plus service tax Cost varies from state to state

FAQs On PAN, TAN, and TIN Number

The frequently asked questions on PAN, TAN, and TIN Number are given below:

Q. How to get a TIN Number in India?
A. Any individual who wants a TIN number will have to signup and process the application in their respective state government VAT portal. Upon submitting the application form and necessary documents, the Commerical Tax department of the concerned state allocates the TIN number.

Q. What is the difference between TAN and PAN?
A. The primary purpose of TAN is related to deduct or collect the tax. Whereas PAN is used to track the income tax and other financial transaction details.

Q. What is PAN tax identification number?
A. PAN tax identification number is nothing but the 10 digits alphanumeric number printed on your PAN Card. The main objective of a PAN card is to track the financial transactions which carry taxable components.

Now that you are provided with all the necessary information about PAN, TAN, and TIN numbers and we hope this detailed article is helpful to you. Feel free to ping us through the comment section below if you have any queries about this article or in general about the difference between TAN and TIN, PAN number.

Difference Between PAN, TAN, And TIN Number 2021 Read More »