Finance

Qualified Assessee is– HUF and Individual

The maximum amount of Deduction – Under sections 80C, 80CCC, 80CCD(1), a maximum of Rs. 1,50,000 is allowed as a deduction aggregately.

The deduction is permitted whether the payment is executed out of income liable to tax or not.

• Repayment of Housing loan and related expenses
• Unit Trust of India/LIC Mutual Fund and its Unit Linked Insurance Plan (ULIP)
• Deductions allowed
• Life Insurance Premium (LIP)

Repayment of Housing Loan and Related Expenses

1. The deduction is permitted for payment executed for the purpose of construction or purchase of a residential house property. If payment is made by way of, is incorporated under head House Property.
2. any part payment or instalment of the amount due under any other schemes or self-financing of any development authority, housing board or another authority involved in the sale and construction of house property on the basis of ownership
3. any part payment or instalment of the amount due to any co-operative society or company of which the assessee is a member towards the cost of the house property or shareholder allotted to them
4. the amount borrowed and the repayment by the assessee—
   1. any State Government or the Central Government
   2. any bank, including a co-operative bank
5. the Life Insurance Corporation
6. the National Housing Bank
7. any public company established and registered in India with the principal object of bearing on the business of giving long-term finance for purchase or construction of houses in India for residential prospects, which is eligible for deduction under section 36- clause (viii) of sub-section (1)
8. any company in which the public are considerably engaged or any co-operative society, where such co-operative society or company is interested in the construction or financing the business of houses, or
9. the assessee’s agent where such agent is an authority a board or a corporation or any other body constituted or established under a State or Central Act,
10. the assessee’s agent where such employer is a university established by law or a college affiliated to such university or a local authority or a co-operative society or a public company or a public sector company
11. registration fee, stamp duty and other expenses for the purpose of acquisition of such house property by the assessee, but shall not constitute any payment towards or by way of
12. the admission fee, initial deposit and cost of share which a member of a co-operative society or a shareholder of a company has to pay for becoming such member or shareholder
13. the cost of any alteration or addition to, or a repair or renovation of, the house property which is brought out in respect of the house property after the issue of the completion certificate by the authority competent to issue such certificate or any part thereof or after the house property has either been occupied by the assessee or any other person on their behalf or been let out
14. any expenditure in regard to which deduction is permissible under the prerequisites of section 24

If the assessee before the expiry of five years from the end of the financial year transfers such house property in which possession of such property is obtained by the individual or receives back, whether by means of refund or otherwise, any amount specified in that clause, then no deduction is permitted for any amount paid in that financial year. The sum which was approved as a deduction in the years prior to this is taxable in the year of refund, transfer or otherwise.

Unit Trust of India/LIC Mutual Fund and its Unit Linked Insurance Plan (ULIP)

Suppose the assessee’s participation ceases or terminates the participation to be in force by cause of failure to pay any contribution before contributions have been paid for five years. In that case, no deduction is permitted for any contribution paid in that financial year. The contribution, which was acknowledged as a deduction in earlier years, is also added to the taxable income in the year of termination.

Deductions Allowed

1. Premium paid for Life insurance.
2. Contribution by an agent to a recognized provident fund or an approved superannuation fund
3. Contribution towards PPF-Public provident fund
4. National Saving Certificate of the assessee (VIII issue)
5. Unit Trust of India or LIC Mutual Fund’s certified ULIP -Unit Linked Insurance Plan.
6. Notified units of UTI or Mutual fund
7. The notified pension fund of UTI or Mutual fund
8. Purchase of units of any mutual fund which comes under the clauses of (23D) of section 10 and approved by the Board.
9. Tuition fees(not including any payment towards donation/development fees/payment of similar nature) whether at the time of admission or otherwise to any college/university/educational institution in India for full-time education of any two children of a person
10. Repayment of housing loan and related investments
11. a Fixed Deposit (FD) of the amount deposited for 5 years or more with a scheduled bank.
12. ‘Sukanya Samriddhi Yojna’
13. getting subscribed to any such deposit scheme as that Government or any such security of the Central Government may specify, on the person behalf and get notified in the Official Gazette
14. Annuity plan of any other insurer or the Life Insurance Corporation as the Central Government may specify, by notification in the Official Gazette.
15. As clause (23D) of section 10 states which referred as the contribution by an individual to any pension fund set up by any Mutual Fund
16. Rural and Agriculture Development under the National Bank subscribed bond, as the Central Government may, by information in the Official Gazette.
17. Under Savings Scheme Rules of the Senior Citizens, 2004, deposit in an account specified on this behalf
18. Under Time Deposit Rules of the Post Office, 1981 deposits a five-year time deposit in an account.

Life Insurance Premium (LIP)

In the matter of an individual – policy should be considered on own life, or the life of a spouse or any child (Independent or Dependent, unmarried or married)

In the matter of HUF – Policy should be conducted on the life of any member of such HUF

Limit on deduction – Maximum deduction permitted for Life insurance premium is 10% of the actual sum secured. For policies issued before or on 31st March 2012 maximum deduction permitted is 20% of the exact sum secured.

Given that where the policy, published after or on the 1st day of April 2013, is for insurance on the life of any individual, who is—

Somebody with a disability or a person with a critical disability as mentioned in section 80U, or

Suffering from ailment or disease as specified in the provision made under section 80DDB,

maximum deduction permitted for insurance premium is 15% of the actual sum secured.

The actual sum guaranteed is the minimum amount secured under the policy on the incident of the insured event. The value of any benefit by way of bonus or any premium agreed to be returned or otherwise over and above the sum actually guaranteed which is to be or may be collected under the policy by any individual is not to be driven into account while calculating actual sum secured.

If the contract of the assessee ceases or the assessee terminates the contract or to be in force by cause of failure to pay any premium.

• within two years following the date of commencement of insurance, in the event of any single premium policy; or
• ere premiums have been paid for two years in any other case, and then in that financial year, no deduction is permitted for any premium paid. The premium, which was approved as a deduction for such insurance policy in the preceding years, is taxable in the year in which the insurance policy ceases or is terminated to be in force.

Sweat Equity Shares: In economics, sweat equity shares share a company’s issues with its directors or employees at a discounted or reduced price.

Under the Companies Act, a company cannot issue its shares at a discounted or reduced price to anyone. If a company does so, the claims are considered null or void. However, there are some special provisions under which a company can issue shares at a discounted price.

To better understand Sweat Equity Shares, this article presents you with a compilation of the basics that will help you understand the topic.

• What are Sweat Equity Shares?
• When Can You Tax Sweat Equity Shares?
• What is Security?
• How to Calculate the Taxable Amount of Sweat Equity Shares?

What are Sweat Equity Shares?

Sweat Equity Shares are shares which a company issues to its directors or employees. These shares are given to the personnel of the company at a reduced or discounted price.

There are many employees and directors of the organisation who work overtime to help the organisation grow. The company needs to recognise this hard work and effort put in by the director or employee. They do this by issuing the person sweat equity shares.

When Can You Tax Sweat Equity Shares?

There are certain conditions under which you can be taxed by the government for your sweat equity shares. Given below is a list of occasions for when you can be taxed on the sweat equity shares. These conditions can happen in the year that the employee or director is issued the sweat equity share, or it can happen whenever these conditions are fulfilled.

• The security that is mentioned is specific security, or it is a sweat equity share.
• The security mentioned is allocated to the person or transferred in their name after 1st April 2009.
• The security is allowed or issued to an employee, directly or indirectly. It can either at a reduced or concessional amount or free of cost.

What is Security?

Security is an important document given in exchange for something. It’s essential that the security which is provided is acceptable and has value.

Here are some exams of what security can be:

• Security can be shares of a company, stock, bonds, or any other document, marketable security of nature or form of any corporate body or an incorporated firm.
• Units or any other financial instrument issued by a collective investment scheme to the investor in these kinds of techniques.
• Derivatives.
• Government securities.
• Rights or interest earned from security.
• Financial instruments are declared as security by the Central Government of India.
• Debentures and debenture stocks are in a marketable form of security.

Sweat equity shares are equity shares issued by the company to its directors or employees. These shares are issued at a discounted rate. There’s no provision to give cash or cash consideration for the how-know provided or providing available rights like intellectual property rights or any additional value in sweat equity shares.

How to Calculate the Taxable Amount of Sweat Equity Shares?

Calculating the amount of taxes you need to file for the sweat equity shares is straightforward. You need to be aware of one thing before you start calculating your taxes on the shares. You need to know if your sweat equity shares are quoted or unquoted. You need to know this important thing before you start the calculation because there’s a different process for quoted shares and unquoted shares.

There’s another thing you need to know about when you are calculating the value of sweat equity shares. Under quoted shares, you need to know about the fair market value of the claims. You will find more information about the proper market value concept below.

Here’s the process to calculate the taxes on the quoted shares. It’s a simple and easy process that will help you file the correct amount when you file your taxes.

Taxable amount = Fair market value of the securities held by the employee on the date of exercising the option and the less amount paid by the employee.

This is the process of calculating the amount of the taxable shares of the sweat equity shares.

Calculation of Sweat Equity Shares in the Fair Market Value Way

Under Fair market value, your calculations of the taxable amount will be based on if the shares are quoted shares or unquoted shares.

Here is the way to calculate the quoted shares

Quoted amount in one exchange – the average of opening price and closing price of the share.

Quoted amount in more than one exchange – the average opening price and closing price in the stock exchange in which the highest volume of shares is traded.

If the sweat equity share is not a part of the stock exchange on the day of exercising this option, then there’s another way of calculating the taxable amount. It would be best to take the closing price on any of the stock exchange markets that the share is on. The date needs to be closest to the day when the taxable amount is calculated.

Here is the way to calculate the unquoted shares

The fair market value of the sweat equity shares will be determined or set by a merchant banker on the date of exercising an option of calculating your taxable amount. However, it can be on an earlier day too or within the time frame of 180 days. You can’t take the value of the shares beyond the time frame of 180 days.

Capital Gain Exemption Section 54F: If you invest short-term and long-term capital gains in a new home, you may be able to claim a tax exemption. The residence can be purchased one year before the sale of your long-term asset or two years following the sale of your long-term investment.

When you sell a capital item, such as a house or a plot of land, or stocks/shares/bonds, you earn capital gains for a higher price than you paid for it. In a nutshell, it’s the profit you make on a property transaction. This profit, often known as capital gains, is taxed. The tax amount is determined by whether the property is a short-term or long-term investment.

Short-term capital gains are added to an individual’s income and taxed according to the tax bracket they fall into. Long-term capital gains (LTCG) are taxed at 20% plus a surcharge and a cess. However, if you invest the capital gains from selling a home or stocks and bonds in another home, you can claim an exemption from this tax under Sections 54 and 54F. This house can be purchased one year before the sale of your long-term asset or two years following the sale of your long-term investment.

If you use the gains from the sale to buy notified government bonds, you can avoid paying LTCG tax under Section 54EC. We shall, however, explore the circumstances surrounding Sections 54F in this article.

• What are the Purposes of Sections 54 and 54F?
• Eligible Assessee
• Eligible Capital Gain
• Condition for Exemption
• Exemption Isn’t Available In These Situations
• Amount Of Exemption
• Lock-In Period
• Case Laws

What are the Purposes of Sections 54 and 54F?

The primary goal of giving exemptions under Sections 54 and 54F is to encourage people to build or purchase homes. One of the sub-clauses in each of these sections is that if the residence purchased with capital gains is to be made or is in the process of being built, the building must be completed within three years of the purchase. This applies to both a house you’re building on a plot and a flat you’re buying that’s still being made when you buy it.

Due to this condition, many people have lost their capital gains exemption after three years and have had to pay the LTCG tax to the IRS because the house had not been built even after three years.

Eligible Assessee

Individuals and HUFs are the only ones who qualify for an exemption under this clause.

Eligible Capital Gain

Gain from the sale of a long-term capital asset that is not a residential housing property. If the property being sold is a house, the exemption is offered under Section 54 rather than this section.

Condition for Exemption

The assessee might claim an exemption under this section if he:

1. purchased a residential house within one year of the transferor’s date within two years of the date of the transfer.
2. Erected a residential residence within three years after the date of the transfer.

Such a residential property should be bought or built-in India (Applicable from the assessment year 2015-16)

Exemption Isn’t Available In These Situations

If the assessee is a corporation, the exemption under this section is not applicable.

1. owns more than one residential house other than the new asset on the date of transfer of the original asset; or
2. purchases any residential house other than the new asset within one year of the date of transfer of the original asset; or
3. Within three years of the transfer of the original asset, any residential house other than the new asset is built.

If the assessee violates condition (II) or (III), the capital gain that was previously exempt becomes taxed as Capital Gains in the year in which the condition is violated.

Amount Of Exemption

The amount of exemption will be the lesser of the two options.

1. The entire capital gain is exempted if the cost of the new asset is equal to or more than the net consideration obtained on the prior asset.
2. Suppose the cost of the new asset is less than the net consideration received on the original asset; in that case, the exemption will be calculated as (Capital Gain*Cost of the new asset)/Net Consideration.

Expenditure incurred entirely and exclusively in connection with such transfer – Net consideration of original asset – Sale price of a capital asset.

Lock-In Period

Suppose a new residential home property is sold within three years of its acquisition or construction. In that case, the capital gain that was previously exempt will be taxable as long-term capital gains in the year the property is sold.

This clause provides the benefit of the Capital Gains Account Scheme of 1988.

Case Laws

The assessee’s wife owns a home, and the income from that home is combined in the assessee’s hands under sections 22, 27 and 64. To refuse exemption under section 54F, such property cannot be recognised as possessed by the assessee. Maya Ajwani vs CIT (2012 Chennai), CIT vs S. Krishna Kumar ITO vs (2015)

Even if the assessee purchased or built the residential house in the name of a minor son/daughter or spouse or jointly with these, an exemption under section 54F is allowed. N. Ram Kumar vs CIT (2012 Hyderabad) Kamal Wahal vs CIT (2013 Delhi)

The deduction under section 54F is available even if the house is not entirely finished but is substantially finished. Sambandam vs. CIT (2012 Karnataka)

Whether the residential house is built on agricultural or non-agricultural land, section 54F provides an exemption. Om Prakash Goyal vs CIT (2012 Jaipur)

It was decided that the assessee could not be said to be the sole owner of a joint property to deny him the benefit of section 54F, which allows him to claim ownership of multiple properties that are jointly owned by another co-owner and cannot be sold without the consent of the other co-owners. ITO 98 ITD 335 Mum V. Rasiklal N. Satra

Link Aadhaar Card Income Tax PAN Number: Income Tax Department implements a new law under Section 139 AA, and according to the judgement of the Supreme Court on 9th June 2017, these are the following things applied for the person paying return from 1st July 2017:-

Every taxpayer who wants to File an Income Tax Return or intends to apply for PAN Card shall require their Aadhaar Card Number. However, suppose the taxpayer does not have their Aadhaar Number or issue their Aadhaar until now. In that case, they need to enrol for Aadhaar Card, and the enrolment ID of the Aadhaar application form will be applicable for their Aadhaar Number till the time Aadhaar is not ready.

The taxpayers who have their Aadhaar Card and PAN Card need to submit them to the Income Tax Department authorities for the purpose of linking their Aadhaar.

• The Person Who Has To Link Their Aadhaar Number with PAN Number Under Section 139 AA
• What is The Last To Link the Aadhaar with PAN Card?
• What are the Penalties for Not Linking Your Aadhaar With Your Pan Card Before The Last Date?
• What if the Taxpayer Does not have Aadhaar Card?
• What if the Details of your Aadhaar and your PAN Card is Different?

The Person Who Has To Link Their Aadhaar Number with PAN Number Under Section 139 AA

The linking for the Aadhaar Number with the PAN Number is only applicable to the individual. It is not applicable for Companies, HUF, LLP, Partnership as they can not get the Aadhaar Number.
Individuals that are having waive from linking their Aadhaar Number under Section 139 AA  are:-

1. People belong to the state of Assam, Meghalaya, and Jammu and Kashmir.
2. Non-residential are free to not link their Aadhaar Number as per the Income Tax Act 1961.
3. The person is having age 80 years or more.
4. They are living outside India that is they are not a citizen of India.

What is The Last To Link the Aadhaar with PAN Card?

Central Government has not announced any last date to link your Aadhaar with your PAN Card. The taxpayer can still link their Aadhaar Number with their PAN Card. Linking of Aadhaar is mandatory for returns. Linking of the Aadhaar Number is announced on 1st July 2017, and you can still link your Aadhaar Number to your PAN Card.

What are the Penalties for Not Linking Your Aadhaar With Your Pan Card Before The Last Date?

According to Central Government Law under Section 139 AA, your PAN Card becomes invalid if you will not link your Aahaar with your PAN Card. In addition, other consequences from Income Tax Department will be acted upon to your return and PAN Card according to the Income Tax Act if you will not apply for the allotment of PAN.

How to Link Your Aadhaar Number With Your PAN Number?

There are various ways to link your Aahaar Number with your PAN Number:-

• You can link to Aadhaar without logging into the Income Tax E-filing portal. It is the simplest way to link the Aadhaar Card with your PAN Card
• Go to the official website of income tax e-filing, and there in the right menu, you can see an option of “Link Aadhaar.” Click on that option.
• Enter your PAN Card details, Aadhaar Number, Name (as exact as written in the Aadhaar Card), Date of Birth and all other required information in the table.
• Enter the captcha and click on the “Link Aadhaar.” You can also request the OTP. The OTP will be sent to the registered mobile number. Fill the OTP in the required box and click on the “Link Aadhaar.”
• If all the details entered by you are correct, a confirmation message will appear on the screen.

NOTE- OTP will only generate when the entered Date of Birth and Gender is precisely matching.

1. Link your Aadhaar after logging into your Income Tax E-filing portal.
   1. Go to the official website of income tax e-filing and log in through your credentials.
   2. Visit your profile settings section and search on the right menu for the “Link Aadhaar” option and click on it.
   3. Click on the “Continue” button if your Aadhar is not linked with your PAN.
   4. Enter your details like Name, Date of Birth, Gender, Aadhaar Number, etc. If your full date of birth is not mentioned in your Aadhaar, click on “I have the only year of Birth in Aadhaar” and proceed by clicking the  Link Aadhaar” button.
   5. If your filled details are correct, then a confirmation message will appear.

NOTE- OTP will only generate when the entered Date of Birth and Gender is precisely matching.

Link your Aadhaar using your registered mobile number.

You can link your Aadhar Card with your PAN Card with a simple SMS. Type UIDPAN<Space> <12digitAadhaar><Space><10digi PAN> and send this SMS to 567678 or 56767 only from your registered mobile number (if you use another mobile number, the Aadhaar will not link)

E.g., UIDPAN 147852369012 7412589630

What if the Taxpayer Does not have Aadhaar Card?

If the taxpayer does not have their Aadhaar Card or does not register to date, then the taxpayer does not fall in the ambit of Section 139 AA. But the Supreme Court judgement on linking of Aadhaar Number with PAN Number on 9th June 2017 gave relaxation on the compulsory norm for linking the Aadhaar Number when PAN Cardholder does not have Aadhaar Number for the time being.

What if the Details of your Aadhaar and your PAN Card is Different?

If the taxpayer has some difference in details mentioned in Aadhar and PAN, they must correct Aadhar according to PAN Card or in PAN Card according to Aadhar Card.

• Correction in your Aadhar Card: File your correction online at ssup.uidai.gov.in/web/guest/ssup-home with your registered mobile number. From this link, you can update the details in your Aadhar Card.
• Correction in your PAN Card: File your correction online at onlineservices.nsld.com/paam/endUserRegisterContact.html with your registered mobile number. From this link, you can update the details in your Aadhar Card.

What If The Taxpayer Has Two Or More Pan Cards?

It is illegal to hold more than PAN cards, and if having more than one PAN Cards then in such case, the holder needs to surrender their extra PAN Cards. The holder can submit their PAN Cards online by visiting the Tax Information Network of Income Tax Department, PAN Cancellation page.

What is a Stamp Paper and Stamp Duty?: Stamp duty is a form of the taxation system, which acts as legal documentation for any sale or purchase of an asset. It is levied under the state government.

Therefore, stamp duty is a government indirect tax, which is levied on all authorised and legal property transactions.

Stamp duty rates are dependent on the state in which the property dealings are being performed. Stamp duty may be paid online, offline, or both ways as deemed suitable by homebuyers.

Stamp papers, which have to be bought in the seller or buyer’s name, are valid for six months, provided the stamp duty is paid.

• How to Pay The Stamp Duty?
• Stamp Duty Charges Ways
• Stamp Duty Act
• Stamp Duty as Related to Property Registration
• Stamp Duty as Related to Property Registration
• Factors Influencing the Level of Stamp Duty Levied
• Stamp Duty Calculation
• Documents Required for Stamp Duty
• Registration Fee

How to Pay The Stamp Duty?

Through a Physical Stamp Paper

This is the most straightforward way to settle the stamp duty. It is possible to purchase stamp paper from any registered seller. The details of all the property transactions are mentioned in this paper. However, if the stamp duty rates applied are very high, it becomes a costly way to avail since the concerned person will have to buy many such papers.

Franking

The concerned needs to visit an authorized franking agent who will stamp the transaction documents indicating that the paper has been duly stamped.

The eligibility criteria to be able to opt for this method are that the question should reach a certain minimum threshold.

Apart from this, there are charges levied by the franking agent as well. This fee is deducted from the overall amount of the stamp duty paper.

Most banks provide this service of franking agents to their clients.

Online Mode

To avail of the services in the online mode, the client must follow the given below steps:

• At first, the client needs to visit the official e-Stamping website.
• In the case of first-time users, the client will have to select the option “Register Now”. This protocol for enrolling in the User Registration is required and completely free of charge.
• In the next step, the client will have to provide a valid e-mail ID and a valid Mobile Number for enrolling on the site.
• The client will have to enter the required credentials to create the User ID and the respective Password.
• After successful registration on the site, an activation link is sent to the e-mail ID provided in the previous steps. The client will then have to click on the activation link to finish the registration procedure.
• Then they have to choose the “STATE” option from the State drop-down list. After that, the client must choose the “Nearest SHCIL Branch” option.
• The client will then have to enter the necessary credential, including the First Party Name, Second Party Name, Article No, Stamp Duty Paid By and Stamp Duty Amount, to name a few. These details help to generate the Online Reference Acknowledgement Number.
• The hard copy of the Online Reference Acknowledgement Number needs to be taken for future reference.
• The client needs to go to the nearest StockHolding Branch to take the final print out of the e-Stamp Certificate as the hardcopy.

Stamp Duty Charges Ways

Any citizen can adjust the stamp duty charges through the following ways-

• Cheque
• Cash
• Pay Order
• Demand Draft
• Pay Order
• RTGS
• NEFT
• Account to Account transfer
• It always a better option to get in touch with the nearest e-Stamping centre before beginning any Electronic fund transfer. The recipient must have proof of the real bank/payment gateway fees.

Stamp Duty Act

Stamp duty is paid according to the guidelines as mentioned under Section 3 of the Indian Stamp Act, 1899.

Stamp duty is issued mainly to raise funds for local governments apart from rendering a document legal.

Stamp Duty as Related to Property Registration

Legal proof of possession or transference of a property is essentially needed. Under maximum circumstances, the person in question who is buying the property and dealing with the transactions needs to register their name in the local body records like the municipality.

At the time of registration, the customer must pay stamp duty.

The rate of the stamp duty levied on any property is dependent on the state in which the Property is located, i.e., the sum of stamp duty varies from state to state.

Stamp duty likewise depends on the age of the property, i.e., whether a given property is new or old.

Factors Influencing the Level of Stamp Duty Levied

Certain considerations play a significant role in determining the stamp duty imposed on a specific property-

• Age of the Property: Since stamp duty is measured based on the complete market worth of the Property, older buildings typically face lower stamp duty charges while newer buildings pull in high demand. This is because of the fact that the market value of old houses has decreased over time.
• Age of the Owner: Similar to the age of the Property, the age of the property owner is also a deciding factor.
• City or location of the Property: In the event that your property is situated in a municipal locality or an affluent urban district, you should always be prepared to pay heavy stamp duty. If your property is located within the Panchayat limits or on the outskirts of town, you can spend a lot lesser as compared to the previous case to get it stamped. Also, the rate differs from state to state.
• Property owner’s gender and age: Similar to senior citizens, women in our nation likewise get a rebate on stamp duty charges if the Property is enrolled in her name. Furthermore, men cost about 2% more to get their land registry papers stamped when contrasted with women.
• Usage of Property: Commercial buildings attract a high stamp duty fee when compared to residential buildings. This is mainly because commercial buildings would need a lot of amenities, floor space, and security features.

Stamp Duty Calculation

The concerned authorities use a variety of metrics to quantify costs, including the sort of building or plot in question.

For instance, in some jurisdictions, the constructed area is used to calculate stamp duty and registration charges for individual buildings. At the same time, the developed region if there should be an occurrence of apartments.

The stamp duty charges can also be amended by states annually in accordance with the state budget.

In certain provinces, women are given the chance of exemption from all stamp duty and registration fees.

Here are specific considerations to bear in mind when it comes to the imposition of stamp duty at the time of land listing.

• The estimate is primarily based on the property’s “Guidance Value,” the base worth at which the property ought to be enrolled. The value is defined by the state government’s concerned competent authority.
• The charges are in a roundabout way corresponding to the market worth of the property and different angles, and other factors such as market efficiency.
• Different imposes, such as state and central, are likewise relevantly levied on registration and stamp duty payments.

Documents Required for Stamp Duty

Below mentioned are the documents and the certificates that are essential when it comes to the registration of the stamp duty paper

• Transfer instruments
• Deed of partition
• Reconveyance of mortgaged Property
• Mortgage deed
• Certificates of sale
• Gift deed
• Exchange deed
• Tenancy agreement
• Power of attorneys
• License agreement
• Lease deeds

After Paying Stamp Duty, Documents Must Be Registered

After paying the stamp duty, the certificate must be registered with a sub-registrar under the Indian Registration Act. If the sale includes the buying of real estate, the registrar ought to be from the domain in which the land is placed.

The primary goal of registration is to enlist the implementation of the document. Only by registering the paperwork, it becomes legitimate and the ownership, if any, is passed to the rightful proprietor.

Registration Fee

The registration fee is a charge that is levied in addition to the stamp duty. This rate changes from one state to another.

In Karnataka, for example, the registration fee is set at 1% of the transaction amount.

Baba Ramdev’s Patanjali Ayurved Products: Baba Ramdev’s Patanjali Ayurveda, better known by just Patanjali, is an Indian multinational consumer packaged goods company, and is based in Haridwar, Uttarakhand, India and was started by Ramdev and Balkrishna in 2006.

Its headquarters and production units are located in the industrial area of Haridwar; however, the registered office is located in Delhi. The company mainly manufactures herbal and mineral products.

Many families include Patanjali products while making their grocery list as the products are better and reasonably priced compared with other products. The Patanjali products are present in almost every category of personal care and food products, shampoos, balms, biscuits, honey, soaps, ghee, atta, dental care, masala, mustard oil, and many more families like to stick with these products.

This article will want to all the generally asked questions regarding Patanjali Ayurveda products such as: what products Patanjali offers? How the cost of Patanjali products differ from other similar products? Reports of examinations and testing of the Patanjali products.

Whether the Patanjali products are safe to use? From where can someone buy Patanjali products? How did the Patanjali Ayurveda start? How does Patanjali Ayurveda differ from other similar FMCG companies? Does Patanjali Ayurveda make a profit?

• Marketing and Advertisement of Patanjali Products
• Patanjali Products and Contrast of Costs of Patanjali Products
• Are the Patanjali Products Safe for Use?
• Some Information About Patanjali Ayurveda Limited
• The Beginning of Patanjali Ayurveda
• Does Patanjali Ayurveda Limited Make Profits?
• Comparison of Patanjali With Other Similar FMCG Companies
• What is the Future of Patanjali Ayurveda Products?

Marketing and Advertisement of Patanjali Products

At first, Patanjali rejected the conventional distribution network and preferred to rely on its channels like Arogya Kendras (health care centres that sell Ayurvedic remedies) and Chikitsalayas (franchise dispensaries).

However, from 2015, Patanjali tied up with the Future Group to sell its products at Future group stores and Big Bazaar in 245 different cities and towns. Most major retailers such as Big Bazaar, Star Bazaar, Reliance Retail and Hyper City are now stocking Ramdev’s FMCG products.

E-commerce sites such as Amazon. Flipkart, Zopnow and BigBasket and Patanjali’s online side are also available to buy Patanjali’s products.

The prominent tagline of each of Patanjali products advertisement was ‘Patanjali- Prakriti ka Aashirwad’ or ‘Blessing of Nature’). In 2017 Patanjali products displayed 1.14 million advertisements, out of which 84% of the slots were shown during news time. Conventionally, FMCG companies advertised in the movie category and entertainment; therefore, it was a different promotion strategy adopted by Patanjali. The spokesperson of Patanjali, S K Tijarawala, said:

‘We run informative campaigns and not just advertise. Our company runs on the basic three principles set by Ramdev which is world-class quality, lowest cost price and all the profits are to be given away to charity. We do not spend money on celebrities even during our campaigns. The consumers are directly contacted by Swamiji (Ramdev). The entire advertising and marketing spend is about a mere Rs. 300 crore.’

Since the middle of 2017, Patanjali started a digital marketing campaign using search channels like Google and display ads with Facebook.

Patanjali Products and Contrast of Costs of Patanjali Products

Patanjali centres around six significant item portfolios. We are giving an intense battle to unfamiliar organizations in every single section — be it meds, homegrown beautifying agents, or food varieties. Both mass and extremely princely customers are getting Patanjali items, and once you become tied up with the Ayurveda reasoning, it’s not limited to only one object.

Food, a morning meal range including cornflakes, healthy noodles, ghee, The organization, which is going to dispatch oats corn flakes, is wagering enthusiastic about prepared to-eat food items, as well.

Patanjali’s tremendous food range comprises intriguing inventions, for example, an almond blend, a rose sherbet and a gooseberry juice. In Oct 2015, Patanjali dispatched atta noodles. Post sound moment noodles, a lot more new items are in the offing. they are likewise dealing with natural chocolates, rasgulla, idli and dosa blends and a caffeinated drink called Powervita to equal Bournvita, expected to carry out without further ado

• Medical Care ex: Chaywanprash, juices,
• Hair Care ex: Kesh Kanti
• Toiletries: cleansers,
• Beautifiers: face wash, creams
• Dental Products: Dant Kanti

Patanjali items are accessible at lesser expense than other brands, at costs that are 15-30% lower than its rivals. As of Dec 2015, if Kellogg’s is selling drops for Rs 91 and Rs 159 (MRP for 250 gm and 475 gm, individually), Patanjali chips are accessible for Rs 85 for 250 gm and Rs 145 for 500 gm. Maggi sells atta noodles for Rs.25, whereas Patanjali sells them for Rs 15.

Does Patanjali Atta Noodles, Cornflakes fit in with the Indian legacy of the multitude of different items Patanjali offers? Moment noodles, anyway unadulterated the fixings, can’t be supposed to be sound. Is it the initial step to mark the weakening of Patanjali items? Patanjali Ayurved, nonetheless, demands the organization has just obliged well-known interest.

Balkrishna additionally emphatically rejects that Patanjali’s noodles are undesirable. “The wheat content in Maggi noodles is practically nothing, while our own is a wheat-based item,” he says. “We are utilizing rice wheat oil, which is obviously better for wellbeing than the palm oil different noodles producers do”.

Are the Patanjali Products Safe for Use?

Many reports of Patanjali product being examined and sent for testing are present, and we have also included some of these reports in our article:

• According to the accounts of 24 November 2015 and 11 December 2015, Ramdev’s Patanjali is among two firms served by FSSAI notice by the government for violating food safety norms while manufacturing atta noodles.
• Uttarakhand government chose to test two of Patanjali’s food items after media announced that creepy crawlies purportedly were found in Patanjali Atta Noodles’ bundle Hisar Haryana and growth being located in a parcel of Patanjali ghee in Haridwar (10 December 2015).
• The Rajkot Municipal Corporation (RMC) sent examples of certain Patanjali food things, similar to cow ghee, bread rolls, atta noodles, crisp powder and besan for testing (30 December 2015).

Some Information About Patanjali Ayurveda Limited

Patanjali Ayurved Limited, the quickest developing FMCG Company in the nation, is a mineral and homegrown items organization set up in 2006 and settled in the mechanical spaces of Haridwar. The items offered by the organization are in the individual consideration and food varieties portions, including infant care and magnificence items.

It has around 450 various types of items, and it likewise produces more than 300 medications for the treatment of the scope of body illnesses. The organization asserts that every one of its items is made using regular parts and Ayurveda. Patanjali’s Dant Kanti, Ghee, Kesh Kanti, natural shower cleanser and nectar are a portion of its top-line items that have pushed this organization’s development. Patanjali’s noodles were an endeavour to advance a more good dieting propensity in the country’s children.

The explanations behind the accomplishment of the organization are two folds; one is the change in the way of life of the Indian clients towards utilizing more characteristic and Ayurvedic items, the subsequent explanation is that the Patanjali items are fundamentally more affordable than other individual consideration and food items on the lookout. This has made a considerable extent of the Indian working class move towards Patanjali.

The Beginning of Patanjali Ayurveda

Ramdev rose to public popularity as a yoga master through his TV directs Sanskar in 2001 and Aastha from 2003. Before 1995, when Ramdev was still a primarily secret yoga instructor in Haridwar, Acharya Balkrishna set up Divya Pharmacy under the aegis of Ramdev’s master, Swami Shankar Dev’s, ashram – to make Ayurvedic and natural prescriptions.

For the initial three years, till 1998, the prescriptions were circulated free. The drugs demonstrated so famously that Ramdev and Balkrishna tried to scale and broaden into different items. However, that showed troublesome since Divya Pharmacy was enlisted under a trust.

Simultaneously, with Ramdev’s fame taking off, significant assets started to come in, sizeable advances from any semblance of NRIs Sarwan and Sunita Poddar, just as local people like Govind Agarwal, which thus assisted with getting bank credits.

Accordingly, was conceived Patanjali Ayurved as a privately owned business in 2006, which has since carried out a scope of items, in medical care, hair care, dental consideration, toiletries, food, and that’s only the tip of the iceberg. Balkrishna holds 92% ownership in the firm, and the leftover 8% is owned by a Scotland-based NRI couple, Sarwan and Sunita Poddar.

Does Patanjali Ayurveda Limited Make Profits?

Baba Ramdev’s brands appear to have increased quickly. Prodded by the prevalence of brand Ramdev, Patanjali Ayurved has come up as one of India’s quickest developing FMCG organizations.

For 2013-14, Patanjali Ayurved timed a turnover of about Rs 1,200 crore, up from about Rs 850 crore a year sooner and Rs 450 crore in monetary 2011-12, organization filings and industry sources said.

What’s more, in the FY 2015-16, Patanjali is relied upon to clock a turnover of Rs 2,000 crore; This denotes a 67% leap from the past monetary. In October, declaring Patanjali’s association with the Kishore Biyani-drove Future Retail Ltd, Ramdev said that Patanjali would close the current financial year, finishing 31 March 2016 Rs.5,000 crore in income.

In 2016-17, it will begin tapping the fare markets, and throughout the following five years, Ramdev said, Patanjali would turn into the biggest buyer bundled products firm in India.

Comparison of Patanjali With Other Similar FMCG Companies

With the Patanjali brand’s developing reach and prevalence, it’s currently being discussed in corporate meeting rooms. Venture banking firm CLSA, in a report named ‘Indian Consumer: Taste of India’, said Patanjali Ayurved, might be the most expanded shopper products firm in India, more significant than Jyothi Labs and Emami, which has brands like Zandubalm, Boroplus, Navratna oil and Fair and Handsome in its portfolio.

Emami revealed a combined income of Rs 2,217 crore with a net benefit of almost Rs 486 crore for FY15. Marico posted a net use of 573.45 crores for FY15, an expansion of 18.44% over 2013-14. Jyothy Labs had recorded a benefit of Rs 121 crore in FY15.

What is the Future of Patanjali Ayurveda Products?

• Is Patanjali losing its edge instead of zeroing in on its differentiator as it is Dispatching non-Indian food sources like noodles, cornflakes, herbal and Ayurvedic products? It appeared to have become more contender centred. On 15 November, it dispatched atta noodles as opposition to Maggi Noodles.
• Food handling: The Food Safety and Standards Authority of India (FSSAI) sent Ramdev a legitimate notification, claiming that he didn’t acquire due authorization preceding the dispatch of his noodles.
• Like its rivals, it accepts the more costly customary publicizing vehicles, television, print media, and so forth, rather than proceeding to fabricate the brand through elective media, which is moderate yet amazingly powerful.

So, what are your thoughts about Patanjali Ayurveda products? Do you use them or want to use them? For any more queries about its products, you can always visit its online site.

Systematic Investment Plan (SIP): Systematic Investment Plan or SIP allows an individual to invest in mutual funds by making small deposits rather than making a big, one-time investment. SIP acts like a recurring deposit account where the individual puts in a small amount monthly, quarterly, or even weekly basis.

A fixed amount (pre-decided) is debited and invested in the individual’s mutual funds from his account automatically. The individual has the power to increase the invested amount or even stop investing in the plan. In this article, we will learn how to cancel and discontinue a SIP, the cancellation form, and duration and how to close NACH to cancel SIP.

• Cancellation of a SIP
• Pause or Temporary Stop of SIP
• The Appropriate Time on How To Stop SIP
• Cancellation of SIP on Zerodha Coin
• How To Cancel A SIP Online – Cancellation of SIP on Groww App
• Obtaining SIP Cancellation form from CAMS
• Obtaining SIP Cancellation form from Karvy
• SIP Cancellation Form
• Closing NACH for SIP Cancellation

Cancellation of a SIP

Although an individual can invest in a SIP for as long as 99 years, there are some cases where he/she would like to discontinue investing in the SIP because of financial problems or poor performance of the SIP. An individual can cancel the SIP at any point in time without bearing any penalties on the discontinuation of the SIP. For the discontinuation of SIP, the individual has to inform the concerned mutual fund and bank about the decision to discontinue the SIP.

• The individual can easily cancel the SIP if he/she has invested in the SIP online, maybe by AMC website, CAMS, ET money, Zerodha, Groww, or any other platform.
• The individual has to fill in a SIP closure form in case of offline investment through a distributor. The Asset Management Company(AMC) issues the form and it has to be submitted straight to them. The date of discontinuation of SIP has to be mentioned and even after form submission, it can take 21 days to discontinue the SIP.
• When the individual has activated the National Automated Clearing House(NACH), he/she can cancel the investment by removing the Asset Management Company(AMC) as a biller from his/her account.
• The AMC can discontinue the SIP in case of an under-funder account or stop-payment instructions given by the individual for two months or more.

Important Facts:

• The SIP stops after the completion of the SIP period.
• An individual may or may not redeem the money after the cancellation of SIP. It’s his/her personal choice.
• There is no tax involved or levied if the individual stops investing.

Pause or Temporary Stop of SIP

The SIP, through some online platforms, can be paused. An individual can give stop payment instructions to the bank in case of discontinuation of SIP temporarily. He/She may even keep the balance low on his/her account so that the cheque gets dishonored and no further investment is made for the time being.

The Appropriate Time on How To Stop SIP

In case of market fluctuation(downwards mostly) and stock market fall, many investors stop investing in the SIP by exiting the mutual funds. The best time for an individual to buy more fund units is when the stock market falls. This reduces the market risk as the investment is made on the SIPs on a long-term basis. Many investors are not aware of this or may not risk their investment and pull out from their SIPs.

Cancellation of SIP on Zerodha Coin

• Step 1- Select the Orders tab from the home page.
• Step 2- Now go to SIP and Conditional.
• Step 3- Select the fund for which the individual decided to cancel the SIP
• Step 4- Select the ‘Round-blue + icon.’
• Step 5- Finally, click on the Delete icon.

This step by step procedure to cancel the SIP on Zerodha Coin is shown in the image below;

How To Cancel A SIP Online – Cancellation of SIP on Groww App

An individual can easily cancel his/her SIP on Groww App by just two simple steps;

• Step 1- Go to ‘My SIP.’
• Step 2- Click on ‘Cancel.’

Obtaining SIP Cancellation form from CAMS

• Step 1- Browse for  https://new.camsonline.com/ and Go to the Investor Services tab.
• Step 2- notice on the left-hand side you will find Service Request Forms, click on them.
• Step 3- Select SIP cancellation request under the tab “Non-Financial Transaction Request.”
• Step 4- Select and tick the SIP cancellation box request and enter the correct details to proceed.
• Step 5- Now, fill in all the details to submit the form with the AMC office or CAMS RTA local office and collect the receipt for the same.

Obtaining SIP Cancellation form from Karvy

• Step 1- Browse for the website;  https://www.karvymfs.com/karvy/
• Step 2- Select the Mutual Fund Investor Services.
• Step 3- Go to the ‘Services’ tab under the ‘Downloads’ section.
• Step 4- Select the SIP cancellation request by scrolling down to the ‘Services’ tab.
• Step 5- Now, download the SIP cancellation form.
• Step 6- Fill the form correctly and submit it to the AMC office or Karvy RTA local office and collect the receipt for the same.

SIP Cancellation Form

An individual has to download the SIP cancellation form and fill it thoroughly by visiting the mutual fund’s website. Folio number and SIP details are required to enter in the SIP cancellation form. The Folio forms are needed to be signed by either of the members in case of joint account holders. The signature depends on the mode of handling of the joint account holders.

Closing NACH for SIP Cancellation

In the case of SIP payments, when an individual has activated NACH or ECS(Electronic Clearing Systems), he/she has to inform the concerned bank through which payments are made to deactivate ECS. After informing the concerned bank, he/she has to inform about the deactivation of ECS to the mutual fund’s house. When the individual hasn’t made any payment for a certain period, the SIP automatically gets terminated.

Let us take into consideration the example of Kotak Mahindra Bank to check the details regarding the activation of NACH or ECS;

• Step 1- Browse and log in to Net banking or Mobile banking whichever method you find suitable.
• Step 2- Now, select the Banking option.
• Step 3- Click on Service Request and then select New Service Request.
• Step 4- Finally, go to Savings and Current Account and then select NACH cancellation where NACH activation will be shown.

How to Change UPI Pin on Google Pay, Phone Pe?: India is in a phase where digitisation is taking control over the traditional ways of paying money; people now prefer virtual payments more than physical payments. The last decade seems to have triggered the digitisation process, with demonisation playing a significant role. E-commerce is one of the key derivatives that had also boosted the digitisation process. Every second new trend is getting introduced in the digital payments industry. Big tech giants are trying out their advanced technologies to make digital payments more effortless in the near future. Cheaper internet is considered to be one of the main reasons that attract netizens towards digital payments.

Digital payments had a lot of options such as net banking, payments through debit or credit card, wallets and UPI. UPI has emerged as one of the simplest and easiest ways of making payments online. In this article, we will discuss some benefits of digital payments, and we will take a detailed overview of UPI.

• Benefits of Digital Payments
• UPI
• Google Pay
• Phonepe

Benefits of Digital Payments

Some important benefits that the people are enjoying by using digital payments are as follows:

• Easy way to make payments: It is easy to make payments in digital mode, and it saves a lot of time. Anyone with a smartphone and a bank account has the capability of making payments in digital mode. This type of payment eliminates the need for hard cash.
• Technology brings transparency: It eliminates the need for physical cash; thus, it makes the system more transparent. It minimises the chances of losing cash because, in digital payments, every transaction gets documented and recorded.
• Opportunities for big tech companies: The rise in digital payments has motivated various tech giants to jump into this space and invent new advanced technologies that can make the user experience better.
• Boost to E-commerce: Digital payments played a key role in the rise of the e-commerce industry in India. The e-commerce sector will witness new achievements in the near future because of digital payments. The e-commerce companies will earn more profit as more people are getting exposed to this sector with the help of smartphones.
• Positive for the entire industry: The digital mode of payments is considered to have a lower operational cost which seems to be a positive indicator for the growth of this industry. The delay that people face with cheques and NEFT gets eliminated when payments are made through digital mode.
• Geographic freedom: The traditional methods of sending money to loved ones and merchants are considered to be hectic and complex. It also takes a lot of time. This is why people started preferring digital payments more because, in digital mode, one can transfer money within seconds even if the person to whom the money is sent lives far away.

UPI

UPI is considered to be the simplest way of sending money from one’s bank account without paying any transaction fees. With the help of UPI, one can send money to anyone within seconds; one can also recharge his/her phone through UPI. Merchants are now accepting UPI payments in their stores, thus making the purchasing process hassle-free and efficient for the customers. People are new to these advanced technologies and sometimes find themselves tangled up with different questions. The most important question that maximum people have in their minds is how to change the UPI pin on different platforms such as Google pay and Phonepe. Let’s discuss the steps that need to be followed for changing the UPI pin in different platforms:

Google Pay

The steps that one should follow for changing the UPI pin in Google Pay are as follows:

Note: If a person puts up the wrong pin more than three times, then the app might not allow to change or reset the in for the next 24 hours.

• Firstly, one needs to open the Google play app which he/she had installed on his/her smartphone.
• Then one needs to click on the photo of himself/herself that is present in the top left.
• Then one will see an option ‘Bank Account’, click on that option.
• Every bank account that is linked to the Google pay id will be shown; select the one that needs editing.
• Tap on the option ‘more’ and then click on the option ‘Change UPI pin’.
• Now, the person must set a new pin in the place of the old one.
• He/she had to re-enter the new pin.

After completing these above steps, the UPI pin of the bank account will get changed with a new one.

Phonepe

In order to change the UPI pin in Phonepe, one has to provide his/her debit card details. After getting the debit card details, the app will send an OTP to the registered mobile number. This OTP is required for changing the UPI pin. Remember, before getting to this; one has to follow certain steps, which are as follows:

• Open the main menu by tapping on the icon that looks like a hamburger, which is present at the top right corner of the mobile screen.
• Then go to the Bank Account section, here one will see all the bank accounts that are linked to the Phonepe app.
• One must select the bank account for which he/she wants to set a UPI pin. One must click on the SET option for doing the same. For changing an existing UPI pin, one must click on the RESET option.
• Enter the last six digits and the expiry date of the debit card. If the expiry date is not mentioned on the debit card, then one can fill the space with 00/49.
• One must receive an OTP in his/her registered phone number. Enter the OTP on the next page and the new UPI pin, then click on submit.

After following all these steps, one can say that he/she had successfully set a UPI pin for his/her bank account. For changing the UPI pin, one must follow the same steps, but he/she must click on RESET instead of SET.

Do you Know Bank Charges on Saving Accounts, QAB, MAB?: Did you know that banks levy excess charges on their customer’s savings bank account? The standard charges include taking DD or demand drafts, online fund transfers, and non-maintenance account balances.

RBI or Reserve Bank of India mandates the banks to disclose their customer’s charges based on the account and the amount. Banks have to update their statement on their websites.

This article will guide you through the bank charges, the revision of bank charges, like, cheque returns, discussion of Average Quarterly Balance and Average Monthly Balance, Debit cards, and ATM withdrawals.

• Revision of Bank Charges
• SBI
• HDFC Bank
• ICICI Bank
• Axis Bank
• Bank Charges
• All About Quarterly Average Balance and Monthly Average Balance
• What is Quarterly Average Balance (QAB)?
• What is Monthly Average Balance  (MAB)?
• What is the Difference Between Quarterly Average Balance and Monthly Average Balance?
• Banks and QAB and MAB
• Quarterly Average Balance or Monthly Average Balance?
• The Minimum Balance and Penalty Applicable for Non-maintenance of QAB or MAB

Revision of Bank Charges

Major Indian banks such as the Axis bank, SBI, HDFC, and ICICI bank have decided to charge customers for cash transactions for a few facilities and above specific limits, free until March 6, 2017.

The list of the banks to entail the suit goes longer. The new bank charges aim to discourage acts of cash transactions even though banks might benefit hugely from the costs.

SBI

On April 1, the State Bank of India permitted SBI account holders to approve savings and to deposit cash three times a month without taxation of the additional amount. Beyond that, the bank charges Rs. 50/- plus service taxes for every transaction made, and in the case of a current account, the tax levy could be as high as Rs. 20,000/-.

The State Bank of India account holders were also given a minimum balance limit in their accounts; failing the limit would result in a fine. However, the fine will be lower for rural areas. At the same time, those in metropolitan cities will be levied a fine of Rs 100 plus service tax if the account holder fails to maintain below 75 percent of the available balance of Rs 5,000.

If the customer’s account falls short of 50 percent or even less, the SBI will charge a fine of Rs. 50+ service tax. SBI has also revised their charges on other bank services that come inclusive of its ATM.

Withdrawal of cash from ATMs will attract a fine of Rs. 20+ tax service. However, this happens only if the number of ATM transactions of other banks exceeds three and Rs 10 for more than five withdrawals from the SBI ATMs.

There is an exception as SBI will not charge a fine on withdrawals from any of its ATMs if the customer’s balance exceeds  Rs 25,000. In withdrawals from other bank ATMs, no charges will be levied if the credit exceeds Rs 1 lakh.

State Bank of India also levies Rs. 15 for SMS alerts per quarter from debit cardholders. This helps them to maintain an average quarterly balance of up to Rs 25,000 for three months. However, the holders will have no charge for UPI or USSD transactions of up to Rs 1,000 cash withdrawals.

HDFC Bank

HDFC Bank levies Rs 150 per transaction if the holder goes beyond four free deposits or/and withdrawals each month. The new charges are also applicable for accounts and savings.

HDFC bank also allows deposits or/and withdrawals of up to Rs 2 lakh for home-branch transactions without any charges at one go per day. However, beyond this, the bank charges Rs 5 per Rs 1,000, or Rs 150.

For non-home branches, the number of transactions beyond Rs 25,000 a day will attract Rs 5 per Rs 1,000, or Rs 150.

ICICI Bank

ICICI bank leverages no charge for its account holders for four transactions a month only at branches in its home city. However, the holders will attract Rs 5 per Rs 1,000 to a minimum of Rs 150 in one month. The third-party limit on the transactions would attract a charge of Rs 50,000 per day.

However, for non-home branches, ICICI Bank offers no tax charges for the first cash withdrawal of a calendar month and a fine of Rs 5 per Rs 1,000 to after that subject to a minimum of Rs 150.

In cash deposits from anywhere, ICICI Bank charges Rs 5 per Rs 1,000 at branches. While for those deposits at cash acceptance machines remain free of charge for the first cash deposit of a calendar month and Rs 5 per Rs 1,000 after that.

Axis Bank

Axis bank account holders are given the choice of five free transactions every month, inclusive of withdrawals and cash deposits. However, beyond the limit, account holders will attract an acceptable fee of Rs 95 per transaction.

For non-home branch transactions, customers will get up to five free transactions, subject to a maximum per-day deposit of Rs 50,000. However, in more significant deposits or the sixth transaction, Axis bank attracts a charge of Rs 2.50 per Rs 1,000, or Rs 95 per transaction, whichever is higher.

Bank Charges

Bank charges vary from one bank to another and sometimes within the same bank with differing balance requirements depending on the customer’s account location- whether urban, Rural, or Semi-rural. It can also differ based on the account category- Normal, Privilege, Platinum, etc. A few charges are enlisted below-

• Requests that go beyond the usual monthly or quarterly account statements necessitate charges.
• The first three or five cash deposit or withdrawal transactions each month at other ATMs are usually considered free but are charged after that.
• The cheques that are returned without being paid, either deposited or issued by the account holder, will necessitate a cost.
• If the account holder needs the bank to attest the photograph or signature or even confirm the holder’s address, too, the individual should be ready to pay.
• If the individual requests cheque, books that go beyond the allowed quota also attract charges.
• Several banks also charge an amount for ATM card replacement in case of loss and pin regeneration if the account holder forgets it.
• Standing instructions that debit the holder’s account carry charges too. The holder will have to pay for setting up a standing instruction and each cash withdrawal and deposit transaction.
• Banks have also started charging for their online money transfer to third party accounts.
• Banks made hold charges for creating a Demand Draft.
• Banks often levy a payable amount on those that remain fixed in terms of dormant and closing accounts.
• The current and savings account holders are typically asked to maintain a minimum balance in their bank account. This is not the minimum balance offered daily but works like the average balance in the fund over the month of the quarter. Hence, this process is known as the average quarterly balance (QAB) or Average Monthly Balance (MAB).

All About Quarterly Average Balance and Monthly Average Balance

Savings and current account holders are typically required to maintain a minimum account balance. However, this is not applicable as the minimum balance, which is to be held every day but is considered the average account balance over the quarter or month. Hence, the terms- average quarterly balance or QAB and the Average Monthly Balance or MAB.

What is Quarterly Average Balance (QAB)?

If the Average Quarterly Balance is Rs 10,000, the account holder holds an average of Rs 10,000 that must be maintained daily. However, the individual does not have to maintain a balance of Rs 10,000 every day but on average.

Under the Average Quarterly Balance, the bank computes the average account balance once in three months. For instance, to calculate the Quarterly Average Balance from January to March, the balance at the end of the day in that quarter is totaled and divided by the total number of days present.

What is Monthly Average Balance  (MAB)?

The Average Monthly Balance is similar to that of the Average Quarterly Balance.  For the monthly average balance, the bank adds an account balance by EOD os every day in the month and then, the total is divided by the number of days in the month. So the most significant difference between the QAB balance computation is that the account is calculated for a quarter, that is, for three months at a time, while for MAB, the account computation is done every month.

What is the Difference Between Quarterly Average Balance and Monthly Average Balance?

Though Quarterly Average Balance and Monthly  Average Balance requirements for the same amount might look the same, they differ significantly.  There are chances of acceptable charges for non-maintenance of the minimum balance is much higher under the MAB.

So, when the question pops out, Which is better- the Average Quarterly Balance or Average Monthly Balance. This depends on the individual’s perspective, which answers the question is either the bank or customers.

While the Average Quarterly Balance changes to the Average Monthly Balance is negative for all the retail customers, this change makes significant business sense for all the banks.

The change does not only increase the fees income for the bank in the form of Monthly Average Balance charges, but it is also a deployable CASA or Current Account Savings Account balances leading to an increase.

In simple terms, it can be stated that when the account balance calculation takes place every month, the probability of account holders maintaining a certain minimum balance more consistently is significantly higher.

Conversely, when the calculation is done every quarter, even if the individual maintains a balance of Rs 900,000 for just one day, assuming 90 days in the quarter, theoretically, it is ruled out as a Nil. Credit for the rest of 89 days. This helps the account holders still meet the minimum balance requirement.

Banks gain from the charges levied when the account holders maintain the balances consistently over the fluctuated balance. Credits that are usually carried always enable the banks to deploy the same for longer at higher margins. In contrast, that which fluctuates widely deploys the same for shorter tenors where margins tend to be lower.

Banks and QAB and MAB

Reserve Bank of India has stipulated any minimum balance that needs to be maintained in savings accounts or the charges applicable for the non-maintenance of the credit to any bank.

The Reserve Bank of India guidelines states that account holders should receive a month’s notice detailing the change in the minimum balance limit norm from their respective banks.

Quarterly Average Balance or Monthly Average Balance?

• Some private banks, such as HDFC Bank or ICICI Bank, have switched their process from the Average Quarterly Balance to the Average Monthly Balance. This metastases that account holders will have to keep higher balances, which in turn impacts the small savings account holders, the maximum. However, this change undertaken increases the Fees income for the bank in the form of Monthly Average Balance charges.
• Public Sector Undertaking or PSU banks, such as Allahabad Bank and Bank of India, generally have a lower Quarterly Average Balance maintenance in terms of the saving bank account.
• However, the SBI imposed charges for non-maintenance of minimum balance that now is back and has withdrawn the ordeal to charge anything.

The Minimum Balance and Penalty Applicable for Non-maintenance of QAB or MAB

• ICICI Bank’s minimum monthly average balance requirement is Rs 10,000 at metropolitan branches, while Rs 5,000 at semi-urban branches and Rs 2,000 at rural areas branches.
• Axis Bank and HDFC Bank hold their minimum monthly average balance requirement at metro and urban areas branches to be Rs 10,000, while for semi-urban areas branches, it’s 5000. The rural area branches for HDFC Bank is Rs 5,000, while for Axis Bank is Rs 2,500.
• The applicable charges for HDFC Bank and ICICI Bank typically fluctuate between Rs 250 and Rs 350. While for Axis Bank, the cost is Rs 750, suitable for both metro and semi-urban area branches and Rs 500 in rural area branches.
• For the Union Bank for Savings Bank Account with Cheque facility, the minimum average quarterly minimum balance is Rs. 250 for rural areas Rs. 500 for Semi-urban areas, Rs. 1000 for Urban areas, Rs. One thousand for metropolitan branches, and Rs. 250 for pension accounts. However, the charges for a non-maintenance account is Rs. 110.00 per quarter.

How to Fill FATCA and Additional KYC for Mutual Funds Online or Offline through CAMS, Karvy or Directly: Effective from November 1st, 2015, all new investors who are looking forwards to purchasing units of mutual funds need to provide additional KYC related information, which is required for the Foreign Account Tax Compliance Act (FATCA)/CRS compliance.

Starting from January 1st, 2016, even existing investors who are willing to make new purchases have to complete the additional KYC requirements. In this article, we talk about What is FATCA? How to make FATCA declaration Online? How to fill the FATCA declaration offline? How to do it directly or via CAMS & Karvy.

• What Form Has to be Filled?
• Who Needs to Fill the Form?
• Why Does One Need to fill Supplementary FATCA, KYC, CRS Self-certification form?
• What is FATCA? How to be a FATCA Compliant for Indian Residents?
• FATCA in a Nutshell
• Who are all Covered Under FATCA?
• Where is the Supplementary KYC, FATCA, CRS forms Available?
• What will be Happening If one does not fill the FATCA, Supplementary KYC Form?
• Reporting The Financial Institution (RFI) in India and its Role
• How to Submit FATCA Declaration form Online?
• Filling the FATCA Details Online on CAMS
• Filling the FATCA Details Online on Karvy
• Submit the FATCA Declaration Form Offline

What Form Has to be Filled?

Supplementary KYC, FATCA, CRS self-certification form has to be filled by the investors in order to comply with the additional KYC requirements.

Who Needs to Fill the Form?

• The form has to be filled up by all joint holders, the guardian of a minor, and the power of the attorney holder.
• It is necessary to be provided by all the individual investors, irrespective of whether they are Indian residents or not.
• Non-individual investors need to submit a separate form that provided the ultimate beneficial owner (UBO) information about similar lines.
• You need to do FATCA with all the Mutual Funds you have invested in (AMCs) along with some for each folio. KARVY and CAMS have come out with PAN-based online filling of the FATCA form, which will update all the details in all fund houses they manage. However, for other fund houses such as Franklin Templeton, you need to contact them separately.

Why Does One Need to fill Supplementary FATCA, KYC, CRS Self-certification form?

The Inter-Governmental Agreement (IGA) between the US and India, signed in July of 2015 as part of the FATCA implementation, required the Indian Financial Institutions to provide all the necessary information for Indian tax authorities is then transmitted to the US automatically.

What is FATCA? How to be a FATCA Compliant for Indian Residents?

FATCA is an act that focuses on instances of deliberate tax evasions by US citizens/residents on income generated in overseas locations.

This implies parking funds outside the US using foreign banks or failing to disclose their assets and investments that are owned abroad, including in the countries of origin, avoid paying taxes to the IRS. This is different from tax avoidance that is a legal way of reducing taxes.

In some countries, including India and the United States, their citizens are taxed on the basis of global income. They have double taxation avoidance agreements within each other.

US citizens who have been reporting income or paying taxes on the income earned in these countries will not be seen as tax evaders under FATCA.

The Act HIRE (Hiring Incentives to Restore Employment) had been enacted in the year 2010 by Unites States legislation has a distinctive chapter 4.

This chapter, known as The Foreign Account Tax Compliance Act (FATCA) and the Section 1360 of the Internal Revenue Service (IRS) code, gives details on the compliance of the rules related to and reporting foreign earnings and assets of the people of the US.

FATCA puts the obligation of reporting on the foreign financial institutions (FFI) that dealing with them. Non-financial foreign companies (NFFE) operating in the US are also expected to report on their holdings.

FATCA in a Nutshell

The FATCA provisions are imposing a 30% withholding tax on the payments to a foreign financial institution (FFI) for not complying with the rules of IRS, which in turn will be placing withhold payments to clients.

US people residing in India will have to continue to report foreign income under the FBAR. They might disclose the previous overseas money under the Overseas Voluntary Disclosure Program (OVDP) 2014.

FATCA doesn’t affect in any way the existing tax rights of the US citizens in India or the Indian tax residents in the United States. Nor does it require the reporting agencies to act as tax collectors for the IRS.

Who are all Covered Under FATCA?

Those whom the United States government considers a ‘US person’ is going to be covered under the act. The following fall under the category of US person.

• A citizen or resident of the US (including a green card holder).
• A corporation, partnership, estate, trust incorporated or created under the US law (US incorporated entity)
• A non-US incorporated entity that has a shareholding of 10% or more or the ownership (Substantial Ownership) held by:
• A person who was born in the United States or is a US citizen or a US resident (including green card holder) or has a US address or US mailing address or US in care of’ or ‘hold mail’ as the sole address.
• The United States incorporated entity as described above.

Where is the Supplementary KYC, FATCA, CRS forms Available?

You can fill this form Online and physically (offline). You don’t need to do both. These forms are also available at the mutual fund house or Registrar and transfer agent (R & R&T) such as CAMS/KARVY branch counters, or you can also download from their offline websites.

Online: The R&T agents like CAMS and KARVY offer the facility of filling up an online form. PAN needs to be submitted to generate the, and an OTP is sent to the registered email ID and the mobile number. It will be updating details in all the fund houses that they manage. However, for the other fund houses, you need to contact them differently.

Offline or Physical submission: The said form, duly signed by the investor, and necessary documents, may be submitted at any of the AMC branch or investor service centre.

What will be Happening If one does not fill the FATCA, Supplementary KYC Form?

If you meet this compliance requirement, then fresh investments (SIP or Lumpsum) will not be accepted from 1st January 2016. One can only redeem their existing mutual fund units.

To lower the reporting burden, few tops and sizeable mutual fund houses like HDFC, ICICI, Birla, Reliance, etc., have stopped accepting fresh investments from US residents and NRIs based in the US. NRIs based on other countries (other than the US/Canada) can invest in all the mutual fund schemes.

Any financial institution that fails to comply will need to pay a 30% penalty on all its United States revenues, including the dividend, fees, interest, and sales. If one is an Indian base in the US and trying to hide the information from the Indian government, then under the new Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, individuals having unaccounted overseas assets were allowed to come clean by declaring that their assets till September 30th, 2015, and paying tax and penalty of 60%.

Those who are unable to declare their unaccounted overseas wealth during the voluntary compliance period will now have to pay tax and penalty of 120 percent and face a jail term that could be extending up to 10 years.

Reporting The Financial Institution (RFI) in India and its Role

RFI involves the custodial and the depository institutions, the specified insurance companies and the investment entities.

This means mutual fund companies, banks, trust companies, brokerage firms, hedge funds, insurance companies, savings and loan associations, credit unions, NBFC, and superannuation and retirement plan administrators.

For the purpose of FATCA reporting, an RFI is either registered or a resident in India and includes its Indian branches. It also covers the Indian branches of foreign financial institutions.

A company that provides trading and investing services on the behalf of one of the particular customer and insurance companies which only deal with general and term life insurance or indemnity reinsurance doesn’t have to report accounts.

No financial institutions are currently exempt by the US authorities. However, this could change in the future.

• Follow particular procedures to confirm the status and identity of a new customer.
• Check the existing accounts for confirming their FATCA status. Ask for the documentation and extra information from the current customers.
• Register themselves with the Indian Tax authorities (CBDT) and the Internal Revenue Service (IRS) portal under the inter-government agreement signed by the United States and India.
• Complete any reporting required that CBDT and RBI specify RBI regarding the FATCA.
• They will review the financial accounts of individuals and entities and will provide information on ones that meet the specific threshold limit for the savings/investment balance.
• Banks need to provide income reports on the highest daily value in U.S. dollars in any year and the transaction details of each such account.
• Corporations that are not listed or any business entity that is registered outside the U.S. but has U.S. Person/s on board with at least 10% stake in ownership have to provide relevant details about them.
• FII must also be required to withhold 30% of certain payments to these account holders who are unable to provide self-certification or submit form 8938 for the foreign income under FATCA.

* The RBI has clarified income reports of the United States persons with Indian assets and income will be in rupees.

How to Submit FATCA Declaration form Online?

You will have to provide information to CAMS once for all funds it services, Karvy, for all its benefits. For example, suppose you have invested in HDFC Balanced Fund, HDFC Equity Fund, Reliance Gold Fund, Franklin Templeton Short Term Fund, ICICI Prudential Blue Chip, then through CAMS.

In that case, you could provide details to the HDFC Fund for HDFC Balanced Fund, HDFC Equity Fund, ICICI Mutual Fund for the ICICI Prudential Blue Chip. Through Karvy, you could update your details to Reliance Mutual Fund and Franklin Templeton Investments to Franklin Mutual Fund.

• Karvy Mutual Fund Services
• CAMS
• Sundaram BNP Paribas Fund Services
• Franklin Templeton Investments

Filling the FATCA Details Online on CAMS

If one has invested in mutual fund schemes that were served by CAMS such as  DSP BlackRock Mutual Fund, HDFC Mutual Fund, HSBC Mutual Fund, JP Morgan Mutual Fund, Kotak Mutual Fund, Birla Sun Life Mutual Fund,  IIFL Mutual Fund, SBI Mutual Fund, IDFC Mutual Fund,  L&T Mutual Fund, ICICI Prudential Mutual Fund, PPFAS Mutual Fund, Shriram Mutual Fund, Tata Mutual Fund, Union KBC Mutual Fund

• Visit the official website of CAMS.
• Select the AMC name, provide your PAN details, Bank Account details and Date of Birth details. You will be receiving OTP (One Time Password) on the registered mobile number.
• For field Country of the Tax Residency apart from India, select No if you are a resident of India. If your selection is ‘YES’, you will have to provide other details.
• On submission at CAMS, you will get the submission details. It mentions clearly that you have to submit FATCA details about the fund CAMS services only once. Acknowledgement is sent to the email id.

Filling the FATCA Details Online on Karvy

If one has invested in mutual fund schemes that are serviced by Karvy, stated below.

Baroda Pioneer Mutual Fund, AXIS Mutual Fund, Deutsche Mutual Fund, BOI AXA Mutual Fund, Edelweiss Mutual Fund, Canara Robeco Mutual Fund, Goldman Sachs Mutual Fund, Indiabulls Mutual Fund,  IDBI Mutual Fund, LIC Nomura Mutual Fund, Sahara Mutual Fund, M Financial Mutual Fund, Motilal Oswal Mutual Fund, Peerless Mutual Fund, Quantum Mutual Fund, Mirae Asset Mutual Fund, DHFL Pramerica Mutual Fund, Reliance Mutual Fund, Principal Mutual Fund, Religare Invesco Mutual Fund, Taurus Mutual Fund, UTI Mutual Fund

• Visit the official website of Karvy
• Enter the PAN Number and click on Generate OTP.
• Enter OTP details and click on submit
• Please submit the details as they have been mentioned earlier

Submit the FATCA Declaration Form Offline

Submitting the declaration of FATCA to CAMS offline: One is able to download the CAMS FATCA Declaration form and submit the finished form at any of the CAMS customer service centres or post it to the address given.

M/s. Computer Age Management Services Pvt. Ltd.

Unit Of – The Central Projects, The Rayala Towers, 158 Anna Salai, Chennai – 600002

Submitting the FATCA declaration to Karvy offline: One can download the Karvy FATCA Declaration Form and post the finished form to the address given.

Karvy Computershare Pvt. Ltd., Karvy Selenium Tower B,

Unit Of – FATCA / CRS / UBO / Supplementary KYC,

Plot Nos. 31 & 32 | Financial District | Nanakramguda,

Serilingampally Mandal | Hyderabad – 500032 | India.