Saving Schemes

TDS from Insurance Commission – Section 194 D: Insurance policies are not only for oneself but also for the ones who are dependent on you. So, it is advisable to take that insurance policy that helps you after retirement, medical emergencies, and help your dependent ones after some accidentals or deceased of the major. The ways a person can choose the policies are through agents, brokers, some websites, etc. By choosing the insurance from agents or brokers etc., they are subjected to TDS (Tax Deducted at Source) as mentioned under Section 194 D of the Income Tax Act.

Who is/are Eligible for Deduction Under Section 194 D?

The taxes were deducted by the organizations that make the payment to the resident person, as remuneration or rewards, by the course of action of commission or for the following purposes:-

1. Seek or obtained insurance business as central.
2. They are carrying on or reviving or renewal the policies of the insurance.

When the TDS Deduct under Insurance Commission of Section 194 D?

The Tax was deducted earlier to the following events under the Section 194 D of Income Tax Act on Insurance Commission:-

1. When the commission credited to the account of the payee.
2. When the payment is made through cash, cheque or any in kind.

What is the Rate of TDS (Tax Deducted at Source) Under Section 194 D?

• TDS, Tax Deducted at Source under the Section 194 D on Insurance Commission, is made to the resident, irrespective of the individual, company, or other persons category. They are deducted at the rate of 5 % (3.75 % w.e.f. 14/05/2020 to 31/05/2021)
• The Tax would not deduct the surcharge and H&E Cess. So the Tax will be deducted at the source at the introductory rates as mentioned above.
• If you do not have quoted PAN, then the rate of the TDS will be 20 %.

Detail of the payee	Rate of the TDS
Individual (Not includes Company)	5 %
Domestic Companies	10 %

What are the Conditions when the TDS is not Liable to be Deducted under Section 194 D?

There are two conditions in which TDS is not deducted under the Income Tax Section 194 D:

1. If the commission you get is not exceeded by Rs. 15000, and
2. Self Declaration Form of 15G and 15H.

Is there any Provision for non-deduction of the Tax or Lowered Rate of a Tax Deduction?

Anyone who receives commission can fill a form name Form 13 and apply to the Assessing Officer for a certificate authorizing the payer not to deduct Tax or decrease the tax rate.

If you do not provide the PAN of the applicant, then in accordance with Section 206AA (4), no certificates Under Section 197 will be given for the non-deduction or lower rate of deduction.

For Issuing TDS (Tax Deducted at Source) Certificates, Due Dates

For the financial year 2020-21, the TDS return date was extended from the 31st of March 2021 to the 15th of April 2021 due to the pandemic or other financial conditions. (Only for quarter one and quarter 2 of Financial Year 2021)

1. From April to June, the certificate will be issued before the 15th of August.
2. From July to September, the certificate will be issued before the 15th of November.
3. From October to December, the certificate will be issued before the 15th of February.
4. From January to March, the certificate will be issued before the 15th of June.

Reinsurance is not Covered by the Section 194 D

From insurance to insurance, reinsurance differs in a number of ways. There is no contractual relationship between the direct insured and reinsured; this is essential to remember in reinsurance.

There are separate contracts between the insured and the insurer and between the insurer and reinsurer. Insured gets all the valid claims from the insurer after the insurer pays to the insured, irrespective of whether the insurer can recover the same from the reinsurer.

The “Commission” is not coming under the TDS Section 194 D when a reinsurance company gets business from an insurance company at a premium less “Commission.” The commission is not payable to the agent for acquiring the insurance business.

Similarly, there will be no claim during the operation of the reinsurance treaty after the expiry of the term of insurance, and Profit Commission is payable to an insurance company by the reinsurance company after the expiry of the period of insurance. Therefore, Section 194 D TDS (Tax Deducted by Source) is not applicable or required for this.

Section 194 D of Income Tax Act, 1961 Extract

Any person responsible for paying resident any income from any source of remuneration or rewards does not matter if that person provides the pay in the form of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) shall at the time of the credit of such income to the account of the payee or during the time of the payment by cash or by issuing the cheque or by publishing the draft or by any of the other mode of payment, whichever is more accessible, deducts the income tax at whatsoever the rates in forces.

We have provided that there is no income tax deduction shall be made under this Section 194 D from any such income credited or paid before the 1st day of June 1973.

We are further provided that there is also no deduction shall be made under Section 194 D, in a case where the amount of such income or as the case may be the total sum of the amounts of such income credited or paid or likely to be credited during the financial year to the account of the payee does not exceed fifteen thousand rupees.

Example:-

If Ajay and Ram got 12000 and 21000 commission respectively then Ajay does not need to pay for the TDS as the commission is less than 15000 but Ram will pay 21000 * 3.75 % of his commission in his TDS.

LIC Bonus Rates: LIC announced its bonus in 2016-17 calendars on LIC’s One Time Diamond Jubilee. LIC releases a bonus every September along with LIC Diamond Jubilee. In LIC bonus is a part of the return which is guaranteed to the LIC holders. In this article, we are going to discuss the LIC bonus and its overview. Bonus which we are going to cover in this article is:-LIC One’s Diamond Jubilee Bonus.

• What is the Meaning of a Bonus?
• What are the Types of Bonuses?
• How to Calculate The Bonus Returns?
• How to compare The Diamond Jubilee Bonus with other LIC bonuses or with any other privacy policies company?

What is LIC Bonus, An Overview?

The Actuarial department does an evaluation, and the bonus rates will declare in September every year. There are so many types of bonuses are states in Sept by the Actuarial department:-

1. SRB (Simple Reversionary Bonus)
2. FAB (Final Additional Bonus)
3. LA (Loyalty Bonus)

LIC has a LIC Act in which it shares its 95% of its profit to their policyholders and the remaining 5% with the government as its owner. In the year 2014-15, the regular Bonus of the LIC given to their policyholder is Rs. 34283 crores. And in 2015-16, LIC has paid Rs. 2502 as a surplus to the government up from Rs. 1803 crore.

In 2019-20 Life Insurance Corporation (LIC) has allocated a dividend of Rs. 2697.74 crore to the government for 2019-20 financial years. In those 2019-20 financial years, LIC generates a total surplus of approx Rs. 53955 crore, according to the sources. In 2019-20, Rs. 51257 crore surplus is reserved for the policyholders.

Life Insurance Corporation (LIC) of India, on their 60th anniversary, declared a bonus name as “One Time Diamond Jubilee Bonus.”

The new LIC policies, which open between 01/04/2015 to 31/03/2016, are relevant for the One Time Diamond Jubilee Bonus bonus rates. One Time Diamond Jubilee Bonus is also applicable for the claims by deaths or the claims which maturity period is over (including those discounted within one year of maturity) or surrendered on or after 01/01/2016.

Note: The Bonus is paid according to the policy rules and conditions and depends on the sum assured and policy term. The premium will be added to the account and paid when the maturity period will over.

LIC One Time Diamond Jubilee Bonus (60th Anniversary Bonus)

One-time additional bonus to the simple reversionary bonus, final additional bonus, and loyalty bonus is added on the occasion of LIC 60th Anniversary celebration named Life Insurance Corporation (LIC) of India’s “One Time Diamond Jubilee Bonus.” As per the Life Insurance Corporation of India declaration, they will pay Rs. 5 to Rs. 60 per Rs. 1000 sum assured, depending on the tenor of the policy. The older the policyholder is, the more the jubilee bonus will be offered to them compared to the new policyholders.

Some points to be considered by the LIC of India while offering the Jubilee Bonus to their policyholders:-

1. Policies from 31st March 2016 are eligible for the jubilee bonus and exist on or after the procedures of 1st September 2016.
2. This jubilee bonus will be paid over the regular annual bonus or its profit-sharing annual payout. The holders of money back get the profit of whole life from these profit plans.
3. Diamond Jubilee Bonus can revive the old policies.
4. Policies that lapse as of 31st March 2016 can also revive the eligibility of the Diamond Jubilee Bonus and can get the profit from the bonus offer.
5. Diamond Jubilee Bonus on the 60th Anniversary of LIC benefits over 29 crore individual policyholders and 12 lakhs group policyholders.
6. Depends on the duration of the policy, Diamond Jubilee Bonus can be Rs. 500 for a policyholder with the assured sum of Rs. 100000 to Rs. 6000. It means that older policyholders can get more profits as compared to the new policyholders. And also, the closer the maturity date, the maximum the profit.
7. The bonus will automatically increase by Rs. 500 each for every five-year gap in older policies. E.g., an approach that started in April 2008 will get Rs. 1,000 for every Rs. 1 lakh of the assured sum from 1st April 2008 to 31st March 2016.

LIC Special Bonus

As LIC announced its Diamond Jubilee Bonus on the 60th anniversary, it announces LIC Special Bonus on its 50th anniversary on 1st September 2005. In this bonus, a policyholder can get Rs. 5 to Rs. 50 per thousand sums assured.

The Life Insurance Corporation of India declares seven bonus plans for its 55th-anniversary celebration:-

1. Jeevan Anand,
2. Child Future Plan,
3. Jeevan Tarang,
4. Jeevan Madhur,
5. Jeevan Pramukh,
6. Jeevan Bharti I and
7. Jeevan Shree I.

All these bonus plans range between Rs. 1 to Rs. 6 per thousand sums assured.

These seven bonus plans were declared in 2011-12 under seven of its ‘With Profit Plans’ and Loyalty Additional Bonus (LAB) on the 55th-anniversary celebration.

What is Bonus?

Life insurance companies or organisations distribute their profits to their policyholders in some fixed percentage; this percentage is known as a bonus. Companies distribute various types of bonuses during a financial calendar.

Who is Eligible for the Bonus?

If you think everyone can grab the bonus, then this is not correct, everyone is not eligible for the prize, or you can say that every policyholder is not declared under the dividend. Only those policyholders who come under the eligibility criteria fixed by LIC are eligible for the prize. Types of policies that come under bonus criteria:-

• Participating insurance policies
• Traditional policies
• Endowment policies
• Whole life insurance policies
• Money-back plan policies

Types of Bonuses given by the Insurance Companies

Reversionary Bonus: Percentage rate declaration which applied to the sum assured of the policies. After order, they became a part of the guaranteed benefits of the guidelines. These will be paid at the end of the maturity period only or in case of death. There are three kinds of reversionary bonus:-

1. Simple reversionary bonus: A simple reversionary bonus is calculated on the sum assured and declared on the percentage rate.
2. Compound reversionary bonus: Like a simple reversionary bonus, it is also declared on the percentage rate basis, but they are applied to the sum assured and reversionary bonus already attached to the policy.
3. Special reversionary bonus: A special reversionary bonus is a one-time offer or dividend paid during the term of the policy. This bonus is given if some profit arises and that the same gain is not expected to happen again in the future.

Example: Anniversary bonus like Diamond Jubilee Bonus (2015-16) and Special 50th Anniversary Bonus (2005).

Another bonus added in the special reversionary bonus is called the final additional bonus for its policyholders.

Another kind of bonuses offered:

• Terminal Bonus or Final Bonus: Terminal Bonus is paid at the time of maturity or at the time of claim. After declaring a reversionary Bonus, this is proclaimed as the terminal Bonus or final Bonus if anything is left in profits.
• Loyalty Additional (LA): After completion of the specific period, this one-time payment will be available to the policyholder.
• Guaranteed Addition (GA): There are some plans in which a company is obliged to pay a fixed amount to the policyholder for a set amount of time; this is called a guarantee addition.

Simple Reversionary Bonus

Simple Reversionary Bonus is an assurance bonus declared annually with profits.

It is based on the earnings of the life company’s investment.

It is payable at the end of the maturity period of the policy or after death.

Simple Reversionary Bonus declared based on percentage rate and calculated on the sum assured.

For example, if you hold a policy of Rs 1,00,000 Sum assured and the simple reversionary bonus for the year declared is Rs 50 per thousand sums guaranteed, then your bonus amount is Rs 50 * 1,00,000/1,000, which is Rs 5,000 for this year. Still, you cannot take it annually. This will be finalised at the end of the maturity period or after the death.

Find LIC Bonus by Sending SMS

Type a message: ASKLIC <POLICY NO> BONUS

And send it to 56767855.

* Charges will be applied for the SMS.

How do you find the LIC Bonus Details?

• Visit LIC official website.
• Login to the LIC website
• Select for the policy status

There you can find all the policies and their details accordingly.

How do you Calculate the LIC bonus?

Bonus for the LIC has declared per thousand sums assured.

1. Find your LIC policy by name and table number.
2. Find the row which matches with your term plans and the period of the policy.
3. Bonus rate per thousand corresponds to the term plan.
4. Know your sum assured of the policy you owned.
5. The formula for Bonus Calculation:

Formula = (Sum Assured / 1000)*Bonus Rate

Example: Mr. Sen has taken Jeevan Anand’s plan for 15 years, and the sum assured is Rs. 10 lakhs. Now according to the LIC bonus rate, his bonus rate is 34 per thousand.

Which is Better, LIC Bonus or Private Insurance Company Bonus?

Many companies in the market offer you a bonus, and private companies also declare dividends for with-profit plans.

You can check their plan and compare them with LIC Insurance Plans.

Companies which offers a bonus with profit plans:-

• Kotak Insurance Policies
• ICICI Insurance Policies
• SBI Insurance Policies
• Sahara India Insurance Policies etc.

Reversionary Bonus Rates per 1000 Sum Assured

Group 1

Plan: Whole Life type (Plan 2, 5, 6, 8, 10, 28, 35, 36, 37, 38, 09, 77, 78, 85, 86)

• Term: NA
• 2016-17: 70
• 2015-16:70
• 2014-15:70
• 2013-14:70
• 2012-13:70
• 2011-12:70

Group:2

Plan: Endowment type / Plans 14, 17, 27/

After conversion, 28 after conversion, 34, 39, 40, 41, 42, 50, 79, 80, 81, 84, 87,90,91, 92,95, 101, 102,103, 109, 110 & 121

• Term: <11
• 2016-17:34
• 2015-16:34
• 2014-15:34
• 2013-14:34
• 2012-13:34
• 2011-12:34

Group:2

Plan:Endowment type / Plans 14, 17, 27/

After conversion, 28 after conversion, 34, 39, 40, 41, 42, 50, 79, 80, 81, 84, 87,90,91, 92,95, 101, 102,103, 109, 110 & 121

Term:11 TO 15

2016-17:38

2015-16:38

2014-15:38

2013-14:38

2012-13:38

2011-12:38

Group:2

Plan: Endowment type / Plans 14, 17, 27/

After conversion, 28 after conversion, 34, 39, 40, 41, 42, 50, 79, 80, 81, 84, 87,90,91, 92,95, 101, 102,103, 109, 110 & 121

Term: 16 to 20

2016-17:42

2015-16:42

2014-15:42

2013-14:42

2012-13:42

2011-12:42

Group:2

Plan: Endowment type / Plans 14, 17, 27/

After conversion, 28 after conversion, 34, 39, 40, 41, 42, 50, 79, 80, 81, 84, 87,90,91, 92,95, 101, 102,103, 109, 110 & 121

Term:>20

2016-17:48

2015-16:48

2014-15:48

2013-14:48

2012-13:48

2011-12:48

Group:3

Plan New Endowment Plan814:

Term: 12 to 15

2016-17:38

2015-16:38

2014-15:38

2013-14:NA

2012-13:NA

2011-12:NA

Group:3

Plan New Endowment Plan814

Term:16 to 20

2016-17:42

2015-16:42

2014-15:42

2013-14:NA

2012-13:NA

2011-12:NA

Group:3

Plan: New Endowment Plan814

Term: >20

2016-17:48

2015-16:48

2014-15:48

2013-14:NA

2012-13:NA

2011-12:NA

Group:4

Plan: New Money Back Plans 820 & 821

Term:20

2016-17:39

2015-16:NA

2014-15:39

2013-14:39

2012-13:NA

2011-12:NA

Group:4

Plan: New Money Back Plans 820 & 821

Term:25

2016-17:44

2015-16:NA

2014-15:44

2013-14:44

2012-13:NA

2011-12:NA

Group:5

Plan: New Jeevan Anand Plan 815

Term:

2016-17:

2015-16:

2014-15:

2013-14:

2012-13:

2011-12:

Group:5

Plan: New Jeevan Anand Plan 815

Term:15

2016-17:41

2015-16:41

2014-15:40

2013-14:NA

2012-13:NA

2011-12:NA

Group:5

Plan: New Jeevan Anand Plan 815

Term:16 to 20

2016-17:45

2015-16:45

2014-15:44

2013-14:NA

2012-13:NA

2011-12:NA

Group:5

Plan: New Jeevan Anand Plan 815

Term:>20

2016-17:49

2015-16:49

2014-15:48

2013-14:NA

2012-13:NA

2011-12:NA

Accessing NPS Account and CRA: The National Pension Scheme or NPS is a government scheme to mobilize your earnings to receive a regular income as some pension after you retire. The government launched this scheme under the pension fund regulatory and development authority in 2009. You can use the method by setting up an account.

The government has appointed the NSDL as the central record-keeping agency. They handle all accounts of the new pension scheme. When subscribers open a new PRAN account (Permanent retirement Account), they will get an I-pin and a T-pin.

How to Log in to NPS Online?

• Step 1: Visit the portal of NSDL.
• Step 2: Click on ‘Open your NPS account/ Contribute Online.’
• Step 3: Click on ‘login with PRAN/ I-Pin.’
• Step 4: Click on ‘Password for e NPS.’ Enter the PRAN, DOB, new password, confirm password, and input the captcha.
• Step 5: Click on ‘submit.’
• Step 6: Enter the OTP.
• Step 7: Log in with the new password.

Once you have got a valid PRAN, you can go to the official webpage of NSDL. The first page is the login page. You can go to the separate window they provide if you are an NPS subscriber.

Each customer with a unique PRAN can use it to track their NPS account on the NSDL website through a mobile app or the NPS portal online. The NSDL also gives all the customers a confidential I-pin to maintain the customer’s security. They can use to log in to their NPS account with that number.

Why Should Customers Want to Reset their NPS I-pins?

1. Customers can wish to change their NPS I-pin if they are faced with the following scenarios.
2. Initially, when a person enrolls with the NPS, they will get an I-pin in their registered email account. As soon as they get the mail, they can use the I-pin to log in to their NPS account. As a security measure, the officials want the customers to reset their NPS I-pin in the very beginning.
3. Customers can change their I-pin if they have forgotten the pin.

Steps to Reset NPS I-Pin

As soon as the customer has created an account in the NPS, they will get an I-pin in their registered mail account. They have to log in to their new account using it, and then they can reset it for safety purposes.

• Step 1: Log on to the NSDL website once you have your PRAN (Permanent Retirement Account Number).
• Step 2: There will be a ‘Set or Reset I-Pin’ option on the bottom right corner of the page. You can click on it to open a new page.
• Step 3: You will see banks where you have to fill in the details such as the PRAN, your name, the date of birth (DOB). All the details you enter into the spaces should match with the ones you have filled in your PRN card.
• Step 4: Enter your password or the I-pin.
• Step 5: Re-enter the password if required.
• Step 6: After entering the password, click on ‘generate OTP.’
• Step 7: You will get an OTP on your registered mobile number.
• Step 8: Enter the OTP you got on the portal and finally click on ‘submit.’

NPS subscribers can also reset their password or the I-pin if they have forgotten it; otherwise, the account can get locked. The authorities have made a rule to block the account if they enter their NPS account number consecutively five times to stop unauthorized access.

If it happens, then they have to reset the password by answering the secret question that you had set at the beginning of the creation of your account. If the user is unable to remember the answer to the question as well, you can submit a request to reissue the I-pin.

Steps to Reset Password for NPS if you have Forgotten It

• Step 1: Visit the welcome page for NPS account login on the official site.
• Step 2: A new window will open. Click on the ‘Forgot Password’ link.
• Step 3: A new tab will initiate where you have to input details such as your DOB, PRAN, etc.
• Step 4: Enter a new password on the space for the new password.
• Step 5: Log in to the account using the new password.

What is a T-pin?

A person with the Permanent Retirement Account or PRAN gets a T-pin from the CRA apart from the I-pin.

Advantages of I-pin

1. All I-pin holders can access the CRA system while checking their account details online, such as an address, bank account details, and nominee details for Tier 1 and Tier 2 NPS accounts.
2. All I-pin holders can generate their statement of holding both the Tier 1 and 2 accounts that give them the latest valuation of their total investments.
3. The I-pin holders can also generate their statement for transactions for the last three financial years as well as the invoice for the current financial years for Tier 1 and 2 accounts.
4. The I-pin holders can track their credit for their monthly contributions into their Tier 1 account.
5. If I-pin holders have any grievances, they can register an official complaint against the CRA or the Nodal Office after logging in to the CRA system. Once their complaint is recorded, the system generates a token number, and they can use it to track the status of the complaint later.

Advantages of T-pin

1. T-pin holders can dial the toll-free helpline number 1800222080 using their T-pin number if they have any queries or complaints.
2. T-pin can be useful if the holders need to speak to the NSDL, i.e., the Central Record Keeping Agency for the NPS.
3. The T-pin holder can access the Interactive Voice Response or the IVR system to avail of the services. These include changing T-pin, checking holding details, checking the status of any fund manager schemes, enquiring the details of the last contribution credit, checking the details of the latest withdrawal request, and requesting the transaction statement for the previous three financial years, and checking account details.

Interest Rates of Post Office Small Savings Schemes: Indian Post is one of the most popular postal chains in the country. It is best known for its postal and courier services nationwide. The India Post controls the overall postal chain of the country, and it also provides various saving schemes for the public. With the rapid advancements in the communication fields and the inventions of the mobile phone, e-mails, and texts, the Indian post saw a downfall in the past years. But, the banking and the depository services of the India post became popular among the public for their attractive interest rates and yields.

In recent times, managing funds and finances have become the most challenging for individuals. Most people do not have any idea about investments and saving schemes, making it difficult for them to save money for their future. To increase investment activities and inculcate saving habits in Indians, the Government of India introduced various saving schemes under the Postal services.

The several savings and depository services available for the public under India Post are called Post Office Saving Schemes. These were introduced to increasing investment activities among the public, thereby providing them with high yields. The depository services are provided by every branch of India post across the country.

This article will discuss various post-saving bank schemes, their interest rates, benefits and other terms related to Post Office Savings Schemes.

What are Saving Schemes?

Savings schemes can be defined as the instruments that help individuals manage their finances and provide investment opportunities to help them achieve their financial goals over a given period. The Government introduced these savings schemes to inculcate saving discipline among individuals and to provide risk-free investment opportunities. The savings earned from these schemes can be used for different purposes such as children’s education, marriage or other emergencies.

Types of Post Office Saving Schemes

The India Post provides various saving schemes as per the requirement of the public, and these schemes are both short-term and long-term. They provide an easy investment opportunity to the public. Presently, the Post Office provides nine different types of Postal Saving Schemes that cater to the needs of every individual. Let us discuss each Post Office Saving Scheme in detail.

• Post Office Savings Account: This is the first and the most common saving scheme under the Post Bank. This account is just like other savings bank accounts, but the only thing that separates it from the regular savings bank account is its holding and operating with a Post Office. Like other savings bank accounts, these accounts can also be transferred from one Post office to another. The interest rate on these savings account is also 4% per annum. The Post Office Savings Account can be opened just by depositing ₹20, but one has to maintain a minimum balance of ₹50 in the account.
• Post Office Monthly Income Scheme: Post Office Monthly Income Scheme or POMIS is another saving scheme offered by the post office that assures a guaranteed monthly income on a small investment made by the investor. Any Indian resident can open an MIS account with the post office. Even a minor can also open an MIS account, and if the minor is above 10 years of age, He/she can even operate the account. One can open an MIS account with a minimum amount of ₹1,500 and a maximum of ₹4,50,000 individually. But, if one opens an MIS account jointly, the maximum amount of deposit becomes 9 lakhs. The Post office offers an interest rate of 6.6% per annum under the POMIS with a maturity period of 5 years. POMIS scheme also offers liquidity of investment within a year. However, the bank charges 2% as a penalty on the investment if it is withdrawn between 1-3 years.
• Post Office Recurring Deposit Account: Recurring Deposit Account is another saving and investment instrument offered by the post office, where a person deposits a certain sum at monthly intervals for over 5 years. A recurring deposit account yields a 5.8% interest per annum that is compounded quarterly. If a person fails to pay the monthly instalment of nay month, he/she can be charged with a late fee of 5 paise for every 5 rupees. Recurring deposit accounts allow a 50% withdrawal after 1 year of investment.
• Post Office Time Deposit Scheme: It is another saving scheme offered by the Post Bank. Under this scheme, a person can invest a lump sum for 1, 2, 3, and 5 years of period. The time deposit yield different rates of interest depending on the tenure of the investment. For 1, 2, and 3 years of time deposit, the interest rate is 5.5%, but for 5 years, it is 6.7%. The minimum investment in a time deposit is ₹200, and there is no upper limit. The best feature of a time deposit is that a person can hold as many time deposit account as he/she wants. If a person invests for 5 years in a time deposit, he/she can claim deduction under section 80C of the Income Tax Act.
• Kisan Vikash Patra: Kisan Vikash Patra is another saving scheme that provides an annual interest rate of 6.9% on investment. Any citizen of India can invest in Kisan Vikash Patra with a minimum investment of ₹1,000. The amount invested under the saving scheme doubles every 10 years and 4 months. The Kisan Vikash Scheme are easily transferrable and can also be endorsed to third parties. The scheme offers the liquidity of cash after 2.5 years, starting from the date of investment.
• Senior Citizen Savings Scheme: The Senior Citizen Saving Scheme or SCSS is an investment scheme under the postal services offered to citizens above the age of 60 years. A person who is 55 years of age can also benefit from the scheme if h/she has taken voluntary retirement. The investment amount under this scheme can be only in multiples of 1000, and the maximum investment can be ₹15 lakhs. The account under the scheme can also be held and operated jointly. The Scheme provides an annual interest of 7.4% payable on the 1 day of each quarter. The scheme also facilitates premature withdrawals after a year and with a penalty of 1.5% of the investment.
• Public Provident Fund: Public Provident Fund is a Long term investment instrument offered by the Post bank. The maturity period of the investment is 15 years. The scheme offers 7.1% interest per annum compounded yearly. The minimum investment for the scheme is ₹500, and the maximum is ₹1.5 lakh per year. The Scheme allows one time or monthly deposit of the investment amount.
• National Savings Certificate: National Savings Certificate or NSC is an investment policy with a maturity period of 5 years and offers a yearly interest of 6.8%. The interest under the scheme is compounded semi-annually. A person can start investing in NSC with a minimum of ₹500, and there is no maximum limit to the investment. The certificates acquired under NSC can be used as security against bank loans.
• Sukanya Samriddhi Scheme: It is one of the most benefitting schemes under the Postal services. It was introduced by the Government of India to help girl children. The saving scheme offers the highest interest rate, which is 7.6% per annum. The minimum investment is ₹1,000, and the maximum investment is ₹1.5 lakhs per year. The investment amount shall be deposited yearly or monthly for 15 years, and after 15 years, the investment will continue to earn interest till maturity. The maturity period of the scheme is 21 years from the date of opening.

Comparison of Interest Rates And Taxability of Post Office Savings Scheme

In the above paragraphs, we discussed savings schemes and the types of saving schemes offered by Post Offices. Now let us compare the interest rates of these saving schemes and discuss their taxability.

Name Of The Scheme	Interest Rates	Taxability
Post Office Savings Account	4.0% per annum, compounded annually	Taxable amount is exempted up to ₹50,000 on the total interest.
Post Office Monthly Income Scheme	6.6% per annum, payable monthly	The interest earned under the scheme is fully taxable.
Post Office Recurring Deposit	5.8% per annum, compounded quarterly	TDS is not applicable on the interest earned under the scheme, But interest is taxable as per an individual’s tax slab.
Post Office Time Deposit Scheme (5 years Tenure)	6.7% per annum	Tax savings up to ₹1.5 lakhs per annum, under section 80 C on a 5-year term deposit.
Kisan Vikash Patra	6.9% per annum, compounded annually	TDS is applicable on the interest earned, and the interest amount is exempted on maturity.
Senior Citizen Savings Scheme	7.4% per annum, compounded annually	Tax savings up to ₹1.5 lakhs per annum under section 80 C and TDS savings up to ₹50,000 on the total interest earned.
Public Provident Fund	7.1% per annum, compounded annually	A maximum deposit of 1.5 lakh is exempted under the Income-tax.
National Savings Certificate	6.8% per annum, compounded half-yearly	Tax relaxation up to ₹1.5 lakhs per annum.
Sukanya Samriddhi Scheme	7.6% per annum, compounded annually	A deposit of up to 1.5 lakhs is exempted. The interest earned on maturity is tax-free.

Importance of Post Office Savings Schemes

Post office savings schemes are essential for an individual as well as the country’s economy for the following reasons:

• The first importance is that these savings schemes are risk-free and reliable as the Government backs them. These savings schemes offer the best and most profitable investment options to an individual to mobilise their funds.
• Secondly, these savings schemes offer the most attractive and reasonable rates of return to the investors. The rates of these schemes are revised every 3 months by the Ministry of Finances.
• The Savings Schemes under India Post are easy to open with very minimal documentation and quick enrolment.
• The savings schemes are designed for every individual across the different economic strata of the country.
• The post office savings scheme offer high tax benefits to the investors, which make it more attractive.

How to Transfer Sukanya Samriddhi Yojna Account?: It is very important to know how to transfer your Sukanya Samriddhi Yojna account. You gain mobility when you transfer your funds from your Sukanya Samriddhi Yojna account. The simple way to transfer funds from the Sukanya Samriddhi Yojna account is to transfer it from your one financial institution to another.

There are several options available for you when you are trying to transfer funds from one account to another. You can transfer funds from a post office to a bank or from one bank to another bank or lastly, from one post office to another post office in India.

It is important to know how to transfer your Sukanya Samriddhi Yojna account. When you don’t have adequate information about the transfer, you will be confused. Therefore, it’s important to know all the information about the Sukanya Samriddhi Yojna account. In this article, you will find helpful information about how you can transfer your Sukanya Samriddhi Yojna account from any of the above options.

What is a Sukanya Samriddhi Yojna Account?

Sukanya Samriddhi Yojna account is an initiative by the Indian government. It is a saving scheme part of the “Beti Bachao, Beti Padhao Yojna”. The scheme is which is helpful for the girl children of India. This scheme will help the girl children save money and use it towards achieving their goals and dreams in life.

The Sukanya Samriddhi Yojna account can be opened by the parents if the girl child is below the age of ten. The maturity or tenure of this account is till the girl child turns twenty-one years old. However, if the child gets married at eighteen, the tenure of the account will reach its maturity. The Indian government increased the amount of interest on this account in April 2020.

According to the new announcements, the interest rate of the Sukanya Samriddhi Yojna account is increased to 7.6% annually. The minimum amount to deposit in the account is Rs. 250 and the maximum amount that a person can deposit is Rs. 1,50,000 per year. The eligibility of tax deductions on this scheme is up to Rs. 1,50,000, under the Section 80C.

Reasons for Transferring the Sukanya Samriddhi Yojna Account

There can be several reasons for the transfer of the Sukanya Samriddhi Yojna account. Some of the reasons are listed below:

• With the digital advancement in banking, it is very easy to deposit money online. However, the post office where you have opened the account may not have online facilities or it may not be connected to the Core Banking Solutions facility.
• If the person is moving to another state or city or a different part of the city, they would want to have the bank or post office near to their house, so they can easily deposit money in the account.
• Lastly, if the financial institution where the person has opened the account, the post office or the bank, isn’t providing you with proper services.

How to Transfer Your Sukanya Samriddhi Yojna Account

If you want to transfer your SSY account from one financial institution to another, you need to pay a sum of hundred rupees. You can transfer your account only once a year. If you are Sukanya Samriddhi Yojna account from one post office to another, it’s free and you don’t need to pay the amount.

If the parents of the child are handling the account, the child doesn’t need to visit the post office or bank. However, if the child is operating the account by herself, she will need to do the transfer process of her account.

Steps To Follow While Transferring Your Account

Here are the steps that you need to follow when you want to transfer your account:

Visit the post office or bank where you have your Sukanya Samriddhi account along with your passbook and KYC documents.

Inform the post office or bank officials that you want to transfer your Sukanya Samriddhi account to another post office or bank.

Then, you will need to fill the Sukanya Samriddhi Yojna account transfer request form.

It’s important that you need to surrender the passbook you received when you opened your account in the post office or bank.

After you submit the form and surrender the passbook, the official will close your account opened in the post office or bank and give you the necessary documents you need to submit to the new bank. The documents will include a certified copy of the account, your account opening application, your specimen signature, among other documents.

The official will give a cheque or a demand draft with the outstanding balance in the Sukanya Samriddhi Yojna account.

You will receive these documents. However, there are some other documents that the bank or post office will send to the new bank or post office where you want to open the account.

After you complete this process at your bank or post office, you can visit the bank or post office where you are opening the account and submit all the documents you received from your old bank or post office.

You will have to fill a Sukanya Samriddhi Yojna account opening form and hand over the KYC documents to complete the transfer procedure.

Documents To Be Submitted in New Bank

Here are some of the documents you will need to submit at the new bank or post office:

• Your Birth certificate ( if you are handling your account) or the birth certificate of the child.
• The address proof of the guardian.
• Guardian’s identity proof
• Your passport size photographs or passport size photographs of the child.

The new bank or post office will open a new account for you. Your new account will be opened on the date your previous account was closed. For example, if your old account was closed and transferred on 02.04.2018, your new Sukanya Samriddhi Yojna account in the new bank or post office will be opened on 02.04.2018. The reason for that is the maturity period of the Sukanya Samriddhi Yojna account cannot be changed. According to the scheme, the date is fixed and transferring your account will not change the maturity date of the account.

The new bank or post office will provide you will a new passbook. This passbook will have your personal details and the carried forward balance from your old account. Along with the details, it will also add the date of interest in your new account. This is so that you don’t lose any interest.

List of Authorized Banks for opening SSY Account

Here are some of the banks where you can open or transfer your Sukanya Samriddhi Yojna account:

• State Bank of India (SBI)
• Bank of India (BOI)
• Canara Bank
• Indian Overseas Bank (IOB)
• Punjab National Bank (PNB)
• Andhra Bank
• Corporation Bank
• UCO Bank
• Central Bank of India
• Syndicate Bank
• Union Bank of India (UBI)
• United Bank of India (UBI)
• Axis Bank Limited
• ICICI Bank
• IDBI Bank Ltd

Gold Savings Schemes: India is one of the most influential consumers of gold in the world. Between the years 2019 and 2020, people saw a 2.6% rise in gold prices in the last quarter of the financial year. Gold prices went to a record price of Rs. 41,124 per 10 grams. Due to the combined effect of surging global demand and the decreasing value of the rupee, gold prices hiked further to Rs. 44,315 per 10 grams. The pandemic has also inflated the prices of everything, including gold. Though the value of the rupee is variable according to the economic situation, gold prices remain almost constant.

There are many precious metals, but people place gold in high regard as an investment. It is because it has high liquidity and inflation-beating capability. People in India prefer gold investments to any other.  With the gold schemes, people can buy not only jewelry but also coins, bars, etc.

Since gold’s value can withstand any major economic upturn, investors consider it to be the primary haven in times of ups and downs. However, since it has substantial pricing, getting hold of large quantities of precious metal is financially challenging. If people want more of it, they get into the gold saving schemes. These schemes are dependent since only the most reliable jewelers offer these. These schemes help you to gain more significant amounts of it simply and affordably.

What is a Gold Saving Scheme?

A gold saving scheme acts as a recurring bank deposit. Just like you keep on depositing money at the end of each month or quarter and get a large sum at the end of the period, you keep investing, and at the end, you get a huge chunk of gold.

Jewelers also provide a bonus to the total sum that you deposited to cover up for the interest deficit you should get to keep your money for a certain period. Typically, the jewellers can offer to pay the last installment as an incentive or provide a discount on the previous installment.

For example, if you chose to invest in a gold savings scheme where you deposit Rs. 6000 per month, then as per the plan’s rules, you will need to make ten total deposits to get a 90% discount on the last installment, i.e. the 10th installment.

Hence, you will have to pay Rs. 60600 or [(6000 X 10) + (6000 X 10%) and you can enjoy a discount of Rs. 5400 at the end. At the last deposit of the tenure, you can purchase gold worth Rs. 66000 while paying for only Rs. 60600. Hence, you can get a significant benefit of a recurring deposit plan while also remaining fixed to your ultimate goal of depositing money and purchasing gold.

What are the Top Gold Investment Schemes?

There are many gold investment schemes available in the market. It is prudent to know about the organisation or the jeweller before signing the checks. Due to the high prices, buying gold in one go can hit your pockets very hard. These schemes are there to help you do the same without having to invest too much at once. We have listed the most popular ones below.

Jos Alukkas Easy Buy Gold Purchase Plan

It is an online gold saving scheme you can avail yourself of. Any individual person who wishes to subscribe to the plan will need to enroll in the project and play the installments online through online payment methods. The investment amount can range from Rs. 1000 to Rs. 1 Lakh as per your choice. Again, the subscriber will need to pay 12 monthly schemes.

After they have completed all the 12 installments, they can get the scheme promotion discount or the incentive for the plan. The scheme promotion discount will be 90% on one month’s installment at the end. It gets added to the aggregate deposits. Hence, they can purchase more for less.

The scheme lasts for 360 days in total. Individuals who want to enroll in it need to purchase the gold either online from the official Jos Alukkas website or offline from their showrooms after 30 days from the payment of their last installment. They need to buy the gold in either method but within 364 days from the date of joining. The subscribers can get the scheme and purchase 22k pure gold items using their matured amount.

Advantages

• The subscriber will get more for the price they deposit.
• Since it is a trusted organisation, there is no fear of getting robbed.

Tanishq Golden Harvest Scheme

The Tanishq Golden Harvest Scheme is one of the best gold buying and saving schemes in India. People can start investing in the plan for as low as Rs. 2000 per month and in multiples of Rs. 1000. They must also note that once they have chosen the installment amount they wish to pay per month, they cannot change it during its course.

Furthermore, potential investors only need to pay their monthly installments for ten months. After that, the scheme will start maturing, and they can reap the benefits. After maturity, Tanishq will add a discount of 75% of one month’s installment. However, if a subscriber wants to withdraw their deposit after 300 days or ten months after the beginning of the investment, then they will be eligible for a discount ranging from 55% to 75%.

For example, if you invest Rs. Four thousand per month in the Tanishq Gold Harvest Scheme and decide to withdraw the aggregate deposit on the 301st day or after ten months, you will be eligible for a 55% discount. Thus, the total value of your redemption will be at Rs. 40,000 + (4000 X 55%) = Rs. 42,200.

Advantages

• There are more benefits you can get. For instance, the individuals with this scheme can club their redemption value with any other ongoing Tanishq offer and compound their benefits.
• In this manner, individuals can purchase up to 22k pure gold or 18k diamond jewellery with the redemption value at the end that is ultimately more than they paid.
• You can buy the gold from any of their outlets across India.
• If you move to another state, your account will move with you.
• You can also enroll in the program online and club the benefits with other offers.
• Anybody above 18 years can join in the systematic purchase with the first installment amount of Rs. 1000, Rs. 2000, or Rs. 5000.
• If you miss paying the installment for one month, you can pay it in the following month as well.

Malabar Gold and Diamond Smart Buy Plan

Malabar Gold and Diamond Smart Buy Plan is also a profitable gold scheme available in the market. With this scheme, individuals can purchase both out-of-stock and in-stock items of jewellery at discounted rates. The out-of-stock pieces will be manufactured and delivered specially to the subscriber at a future date they select.

Advantages

• The few advantages of the scheme are that it offers free maintenance of gold for their lifetime.
• They also get a year’s insurance for free.
• They also get the gold buyback guarantee, meaning that they can sell their gold back and get the entire sum.
• Individuals will only get BIS Hallmarked 916 Gold under this scheme only. Hence, quality will never be an issue.

However, individuals will need to make the payment upfront in advance to get the Smart Buy Option. It is different than the other schemes in this regard. They shall also obtain the pieces of jewellery that do not need resizing. If they want to buy items they have to customise, they will have to pay extra since it will go under the Smart Buy and Customise option.

GRT Golden Eleven Flexi Plan

It is another monthly gold scheme. After enrolling, the customer can select a specific amount as their monthly advance payment starting from as low as Rs. 500. There are schemes that require the investors to pay for 11 months of advance payments. After making the advance deposit for the last month’s payment, they can buy jewellery except for special items without giving any Value addition or VA charges.

Advantages

• They can either opt for the value-based scheme or the gold weight-based option.

The customer must buy the pieces of jewellery within the 12th month from the enrollment date. If they do not, then the company might refund the total advance amount without any benefit to their registered bank account. Furthermore, if they do not make the advance payment for a month, their plan will get cancelled automatically from that month.

GRT Jewellers Golden Seed Plan

It is another gold scheme by GRT jewellers. In this plan, for each monthly installment, your account gets credited with the gold of the current rates. Hence, you can directly buy grams of gold each month at the existing rates instead of buying them at the end of the term when it matures. It helps to protect your investment from fluctuating gold values. It is similar to the regular one in terms of the monthly installments, apart from the fact that you do not get to buy gold only at the end.

The minimum monthly installment starts from Rs. One thousand onwards and in multiples of Rs. 1000 only. The GRT Jewellers Golden Seed plan though has a more extended period of maturity that is 15 months. You can get plain jewellery with no wastage up to 18% and without any making charges. You can also get diamond, platinum, emerald, or ethnic pieces from the plan and the making charges will be applicable. If you do not wish to buy jewellery, you can get the gold coins of 22k or 24k with the accumulated amount.

Advantages

• Your plan is protected from the fluctuation in gold prices.
• You can make the payment by COD, Money order, or by cheques as well. It would help if you paid it before the 10th of each month.
• Even if you miss an installment, your scheme remains valid, only the maturation date gets postponed accordingly.

If you wish to discontinue before the end of the term, you can buy items for the installment amount you accrued. You will lose the benefits of the gold weight accumulation and the no wastage option or the no-making charges option.

Gitanjali Tamanna Monthly Saving Scheme

Gitanjali is one of the world’s largest leading jewellery brands that includes leading stores such as Gili, Nakshatra, D’Adam’s, Diya, Maya Gold, Parineeta, and much more. Their one shop stop outlets across India provide you with exciting options where you get benefited at the end. The minimum amount begins with Rs. One thousand per month and increases in multiple of Rs. 1000 only. After paying 12 months of installment, you get two months’ worth of installment free on diamond jewellery and one month on gold.

You can purchase only jewellery and not coins or bars in this scheme.

Advantages

• You can stand to win surprise gifts each month through a lucky draw they hold
• You can enroll in their scheme through their outlets only.
• You will get a passbook which gets updated each month after you pay the money. It ensures easy tracking of the payments and correct entry.
• You have to make the payments within the 10th of each month by cash or cheque.
• The maturity date will get postponed only if you miss an instalment, but it will not get cancelled.

Tribbhovandas Bhimji Zaveri Kalpavruksha Plan Super

Tribbhovandas Bhimji Zaveri is a famous company based in Mumbai’s Zaveri Bazaar since 1864. They are a trusted company. You can enrol into their monthly scheme of twelve, fifteen, eighteen, or twenty-four months according to your situation and goals. The minimum amount begins from Rs. 1000 and in multiples of Rs. 500. You can buy 22k gold, diamond or platinum jewellery with cash, money order, or post-dated cheques through this plan. You need to pay each month’s instalment before the 15th.

Advantages

• Even if you miss an instalment, your scheme remains valid but gets delayed,
• You can discontinue it before the end of the scheme and buy pieces for the total amount from the installment only without any benefits; though if you wish to discontinue before the 3rd month, you need to pay Rs. 500 as administrative charges.

Comparison of the Different Schemes

When we compare these schemes it becomes clear that most of them have the same benefits, and it comes down to your personal opinion and trust in each of them. But the difference between them is the percentage benefit you get and the company’s contribution at the last month. Some offer one month, and some offer two. Hence people should carefully consider their benefits and invest.

There are many advantages and disadvantages of all the above schemes. Individuals should ideally duly consider their financial situation and affordability as well as their investment goals before jumping on the gold strategies. Since such a scheme might require a hefty investment each month, people should plan their expenses accordingly in those months where they have to make a deposit.

Disadvantages of the Gold Saving Schemes

Even though all the plans are beneficial for you if you wish to buy jewellery, it might not be as helpful since you have to pay for the making charges on them and they are not always 24k. If the ornaments are not of 24k, you will not get the total price. The price you will acquire when you sell it back to them is devoid of the making charges.

If you are an investor and not a collector of ornaments, it is prudent to invest in gold biscuits, coins or bars since they are always 99.99% pure gold with no making charges. You will always get the entire amount back if you sell it or more if the prices have increased.

Furthermore, if you have some emergency, you cannot get cash if you wish to discontinue the scheme, at the best, you can get some money by selling the pieces you can buy with the partially accumulated money. On top of this, you can only avail of the benefits if you complete the entire term of the installments. You will have to forgo the bonus if you stop in between. If you save the same money every month in a fixed deposit, you can probably get more out of the interest.

Another example of the disadvantage you might face is that if the gold prices increase by the end of the tenure, you will definitely have to pay extra for the change in the price at the end. It sometimes can seem unfair, but it is the policy. Only a few companies offer you with buying gold for a specific amount for each month, but most of them do not. Hence, you should be aware of the risk you might end up facing.

But most of all, the jeweler gets the most advantage out of the schemes. Not only can they sell you their products, but they get a guarantee that you will buy from them only at the end. Furthermore, they get some money each month that they either use as they please to maintain their company or put it into fixed deposits. A majority of the time, people end up buying ornaments for a higher price than the amount they invested. Hence, the business interest of the supplier is sealed.

It is wise to go for the short-term schemes of say 12 months if you wish to enroll in one of them. You can nevermore know when you might need the money for an emergency. Hence, you can always keep aside some and then invest some as per your need but never the majority of what you own.

In conclusion, the gold schemes are good for you if you have a wedding or an event planned and your need gold jewellery. If you are an investor, though, it might not be the most profitable plan in the market. Please check the cancellation or discontinuation policies for each of them before you jump into them to save yourself from disputes in the future.

Awful And Awesome Helmets: In India, there is a serious accident happening every minute, and approximately 16 people die every hour because of a serious road accident. Among all the road accidents that occur, two-wheelers account for 38% of the total accidents. According to the Ministry of Road Transport data, deaths happening because of not wearing helmet accounts for 30% of the total accidents on the road. In a road accident, motorcyclists are more likely to die than occupants of passenger cars because of better safety equipment. The survival chances improve by 42%, and injuries reduce by 69% if the rider wears an appropriate helmet.

Now safety comes with a price. People prefer cheap helmets that are sold on roadside shops and footpaths to save money. It is often noticed that the pillion is travelling without a helmet which increases the chances of getting seriously injured or even death in an accident. People being aware of the consequences of not wearing a helmet still prefers to ride without a helmet or a cheap one. They are often seen questioning police that a helmet is a helmet and there is no difference between the one they are wearing and ISI helmets.

So people need to understand the significance of the ISI mark, other safety recognitions, and the different types of helmets available in the market and how one can choose their helmets. It is more fun to ride with a helmet as it protects our whole face from insects, dust, wind noise, wind blast and splinters that come flying from other vehicle’s tires. It also reduces a rider’s fatigue.

Myth Vs Facts Of Helmets

• Myth: Injuries to the spinal cord or neck is caused by helmets.
• Fact: Helmets that come with ISI marks and other regulations, when worn correctly doesn’t cause any injury.
• Myth: Impaired hearing and sound due to helmets.
• Fact: Helmets significantly reduces wind and traffic noise but does not affect the rider’s ability to differentiate between sounds.
• Myth: A helmet is a helmet.
• Fact: In an accident, the quality of the helmet will determine the extent of damage the rider will face.
• Myth: Helmets come in fixed sizes.
• Fact: Helmets do have various sizes, and one should check the sizes that perfectly fit before buying.

Reasons To Wear A Helmet

It is often seen that fragile items come with extra packaging so that there is no damage to the product if there is an impact. Well, our heads too are delicate and can get seriously damaged in an unfortunate accident if we don’t take proper safety measures. This is where helmets play a significant role in saving our skull from a severe injury or fracture in a road accident.

When a person at 15-20kmph riding without a helmet falls, and his/her unprotected head collides with a rigid surface, the skull will shatter instantly, including brain hemorrhage and bleeding. The purpose of a helmet is to take up the impact on itself and save our precious head, but the level of impact is up to a certain level. If anyone riding at more than 80-100kmph and directly collides with a rigid surface, there will be damage, but the extent will be less if he is wearing a helmet.

A helmet cushions the impact on the head by absorbing the energy and stops the head more gradually. When the force of impact on the skull decreases, the damage also decreases and saves the person from fatal accidents. Helmets also protect a person’s face from external factors such as dust, insects, wind blast, splinters on-road and rain. Therefore, there are enough reasons as to why one should wear a helmet.

Reasons Why People Reject Helmets

• The young generation finds it cool riding without a helmet and ridiculing other riders who wear helmets.
• Wearing helmets mess up the hair, according to people.
• In Indian weather conditions, people find it uncomfortable.
• A myth among people that helmets are required only for long trips.
• Increased theft or damage to helmets when the owner leaves it with the parked bike or scooter.
• A question on hygiene is also raised when the helmet is of someone else’s.

What Is A Standard Helmet?

It is stated in Section 129 of the Motor Vehicles Act, 1988, that “Every person driving or riding on a motorcycle of any class or description shall wear a protective headgear conforming to the standards of Bureau of Indian Standards.” A standard helmet protects its users from severe brain injuries, brain injury-related deaths, neurological disabilities and skull fractures. As per law, police can impose fines if the ‘Rider is not wearing a helmet’ and ‘Pillion without a helmet’. After wearing helmets was made mandatory, people started wearing them, but most of them were duplicate ISI marked or half-face helmets. Such people are issued a warning only as imposing a fine is not authorized.

Helmets that are certified by the Indian Standards Institute can be called a safe helmet. ISI certification mark is provided to a wide range of products that are sold in India. Bureau of Indian Standards (BIS), a government organization, has set the minimum standard that all industrial goods need to maintain that is to be sold in India. It is an affirmation to the buyer that the concerned product conforms to the regulations set by BIS for safety, performance and quality.

Therefore, ISI-marked helmets sold on small roadside shops and footpaths that costs anything between ₹100 – ₹500 are not at all safe and are fake helmets that come with counterfeit ISI badging. The genuine ISI-marked helmets that confirm the minimum safety regulations are costly and will be above ₹1,000. The law that has made wearing helmets mandatory is a ploy for traffic police to make money.

Different Types Of Helmets

Full-Face Helmets: These types of helmets cover the rider’s whole face and the entire head. It offers maximum protection and will save the rider from severe brain injuries and internal hemorrhage to the head and skull. Full face helmets are also helpful in stopping the wind blast from directly blowing on the face, and reduces wind and traffic noise levels to keep the rider stress-free while riding. It protects the head from sunlight and rain due to the presence of certain materials that seal any gap when worn. A minor drawback in the full-face helmets is their weight which ranges anywhere from 1,500-1,800gms, whereas their counterpart’s weights are less. But full-face helmets are designed in such a way so that the rider does not feel the weight and can continue riding for a long time.

Open Face or Three-quarter Helmet: This type of helmet covers only the rider’s head while the face is open. People wearing these types of helmets at the time of the accident are more prone to facial injuries. Wind blast and noise of wind and traffic will also come into the helmet, creating higher wind resistance. It does not protect the rider’s face from sun and rain. These types of helmets are helpful in short-distance commutes, and it is easier to communicate while riding with these helmets on but also increases the risk of an accident. It is also easier to take a sip of water without opening the helmet or wiping sweat and dust off the face. This helmet is for those who feel uncomfortable in full-face helmets.

Half-Shell Helmets: The other name for these types of helmets is the skull helmet. Riding safety offered by these helmets is minimum. It protects the top, side and back part of the head, leaving the face and jaws open to injuries that can be fatal. These helmets come with a very cheap price tag and comply with the mandatory helmet laws, making them a good option for parents who ride with their children and women. Wearing a half shell helmet is like not wearing one and, therefore, should be banned immediately. There is greater wind resistance while riding, putting a strain on the neck and can sometimes cause injuries too. As the face remains open, it falls prey to dust, heat, rain, wind and splinters from the road. These helmets provide more harm than any good to the rider. People who are opting or are thinking to opt for these helmets, please reconsider your decision.

Modular Or Hybrid Helmets: These types of helmets have an adjustable front that can be moved up like a half-face helmet and can be moved down to become a full-face helmet. It is basically a combination of both the full face as well as half-face helmets. Its weight is a bit more because of the design and builds that make it a hybrid helmet. The cheaper version of these helmets does not provide the required protection, and wind noise, dust, rain can be felt inside the helmet. People opting for these types of helmets need to spend more money so as to meet the required safety and protection.

How Is Protection Offered By Full-Face Helmets?

The protection offered by a full-face helmet is maximum as it not only protects our skull but also save our jaws and chin during impact. Safety provided by full-face helmets is more than half-face helmets, which offers protection only to the skull and leaves the face for injuries. It’s always recommended to wear full-face helmets. But in terms of comfort and convenience, half-face helmets are more common, and it even complies ISI certification.

The essential components of a helmet that work together in providing protection: An outer shell, an inner cushion liner that absorbs impact, the cushion padding that gives comfort, and a fast-release retention system.

• What is visible from the outside is the outer shell. It is usually made up of polycarbonate plastic, Kevlar, or fiberglass. These materials are thin and hard, yet it is designed in such a way to compress when it hits a hard, rigid surface.
• Right after the helmets outer shell lies the inner cushion liner or polypropylene or expanded polystyrene (EPS), which absorbs impact as well as provides comfort. Upon impact, the outer shell compresses, and the EPS liner absorbs the force and distributes it throughout the helmet reducing the direct effect on the head. Some helmet shells lose only the colour and lamination, whereas some crack and break depending on the extent of impact and quality of the helmet.
• Next comes the padding that provides comfort. It is basically a combination of weatherproof soft foam and cloth layer. This padding is responsible for providing comfort while riding and also gives protection from wind blast and noise. Some helmets come with the feature where this layer can be opened for cleaning purposes or for fixing an intercom device.
• The final component of the helmet is the retention system or also called the chin strap. This component is responsible for keeping the helmet over our head during a crash. The strap needs to be appropriately fixed, or else it will come off during a collision and expose our head to fatal injuries. Modern helmets come with different types of retention systems along with a fast-release system to easily open or close the strap when required but won’t open during a crash.

ISI Marked Standard Helmets

The standard mark governed by the regulations of the Bureau Of Indian Standards Act, 1986 is IS 4151 for Indian helmets required for two-wheeler riding. The helmets which are covered under this standard do not comply for high-speed events or moto-sports competition. Several stringent tests are conducted, and after passing those tests, the helmets come to the commercial markets. For example, a load of about 150 kilograms is applied to test the retention system. Non-ISI helmets that are locally made do not come after such stringent testing, and therefore it is inevitable that they will come off the rider’s head during impact. ISI helmets also have to pass impact tests, slide tests and many more to conform to the mandated performance, quality and durability.

Foreign helmet brands have to comply with global safety agencies that look after the helmet’s safety before they hit the international markets. For example, US helmet brands need to confirm DOT specifications and regulations while European brands are governed under ECE specifications. The level of protection offered by DOT, ECE are comparably the same as ISI. However, Indian police are unaware of these global standards and do not accept helmets complying with DOT and ECE compliant helmets. There is another testing agency whose standards are much higher than ISI, DOT and ECE, called SNELL, whose certification requires more extensive testing. However, SNELL-certified helmets are expensive than other helmets because of their superior safety standards.

Differences Between Real And Fake Helmets

Helmets sold on the small roadside shops and footpaths are made up of cheap plastic, fiber and other cheap, low-quality materials. Fake ISI-mark tends to come off the helmets after a specific time. They are prone to crack or shatter in an accident, and the chances of severe head injuries are very high. During a crash, low-quality helmet’s flawed retention system will fail and eventually, the helmet will come off, leading to brutal skull and brain injuries. As the law has mandated everyone to wear helmets so two-wheeler riders prefer cheap helmets to save themselves from police but, in turn, risking their lives. A person who can afford expensive motorcycles can also spend a little more money on their own safety equipment only if they want to. Several riding communities have taken up the initiative to aware people of the different types of safety standards and the safety provided by the helmets.

Experimental Tests To Differentiate Between Real And Fake Helmets

Several experimental tests on helmets have been conducted by many riding communities, and YouTube channels focused on safety gears and riding communities. The main focus of the trial was to compare the strength of Indian branded helmets with a few local ones. Some of the famous Indian brands, such as Studds, Vega and Steelbird, and some new unbranded locally manufactured helmets, were taken up as test elements. A 7kg weighing sledgehammer was used from a height of seven feet over the helmet. The results that came forward are shocking, and they are as follows:

• The full-face helmet with a fake ISI number also met a similar fate and was shattered to pieces.
• When the sledgehammer collided with the top of the half-face helmet, the hammer crushed through the outer shell exposing its quality.
• The consequences of the third local helmet with the fake ISI print was also the same. The sledgehammer crushed through the outer shell of the helmet, shattering it to pieces.
• Now, when the three branded helmets were tested, the results were significantly different from the local ones. The branded helmets from Vega, Studds and Steelbirds, stood firm and the massive force of impact by the sledgehammer was absorbed during the crash test. The helmets faced three blows from three different sides, and each of the impacts was absorbed by the safety techs present in the helmet. The helmets survived the test with minor scratches, and a paint job will again make them new. This quality test of a helmet indicates clearly whether a helmet will be able to save lives or not during an accident.
• The main motive of these crash tests was to make people aware of the safety standards of different helmets.

According to a study in 2016 by the United Nations, in an accident, two-wheeler riders are the most vulnerable to severe injuries and even death.

According to the data provided by the concerned ministry, deaths accounting for 29.82% of total road accidents happened due to the absence of helmets. Below standard helmets are mostly round plastic cases with foam and cloth that do nothing to protect a rider. Unfortunately, people prefer such helmets over standard helmets to avoid paying fine and, in turn, forget to save their precious heads. Prices of ISI-marked helmets range from ₹ 750 to ₹ 4000. On the other hand, a DOT, ECE certified starts from ₹ 4000, and a SNELL certified helmet starts from ₹15,000 and goes over ₹1 lakh, depending on the build quality, materials used (Carbon fiber helmets are more costly than polycarbonate plastic or Kevlar based helmets) and model.

The Government has played no role to stop the sale of fake helmets. According to a reply received from the Right to Information (RTI) query, between 2004 and 2014, below-standard helmet users have never been fined by the police.

In January 2018, police in Mysore and Bengaluru started imposing fines on riders who were found wearing half-face helmets, and non-ISI helmets. But the crackdown was called off on non-ISI marked helmets because BIS clarified that fake ISI marked helmets cannot be visually identified. They don’t have any possible way to differentiate between them.

The fake helmet manufacturer should at least provide proper padding inside the helmet to prevent concussion, a most common injury, rather than playing with people’s lives.

How To Check The Genuineness Of ISI Certified Helmet?

Genuine ‘ISI‘certified helmets come with a print at their back that one can differentiate from the fake ones after a careful look. Manufacturer’s code (Central Mass and License or CM/L) below the ISI print and IS code IS 4151 above the ISI print will be available at the back of the helmet. The ISI print is laminated and non-removable. The helmets come with other details such as the size of the helmet, the mass of the helmet, year of manufacture and manufacturer’s name or trademark. Several reputed Indian helmet brands are available in India, such as Studds, Steelbird, Vega, Axor, Royal Enfield helmets, TVS helmets and many more. Some of the prominent foreign brands are also available such as LS2, AGV, MT helmets, HJC, Shiro etc. Visit the respective brand’s official website to know more about the brand and its product-related details.

Process To Verify ISI Marks Of The Helmet

Visit BIS official website

Under Product Certification head, visit Online Information and click on Application/License related.

Now go to Know your Product/IS No head

Type the product name, i.e., helmet.

A screen with various ISI standard will appear

• IS 2745: 1983 Identification For Non-Metal Helmet for Firemen and Civil Defence Personnel
• IS 2925: 1984 Identification for Industrial Safety Helmets
• IS 4151: 1993 Identification of Protective helmets for motorcycle riders.
• IS 9562: 1980 Identification of non-metal helmet for police force

Now click on IS 4151, where it will show a complete list of all license holders in the country.

Now press ctrl+f to search the page with CM/L no: 8697816 present below the ISI mark. The manufacturer’s details will be provided.

Understanding Gold Purity, Colour, Hallmark: For Indians, gold is something more than just being a commodity; it is a part of their culture and heritage. India is considered to be the largest consumer of gold even though most of its population is under the poverty line. Many Indians are still unaware of some facts related to gold that one needs to take into consideration while planning to purchase gold. Through this article, we will try to clear some of these doubts by explaining gold purity, different colours of gold and hallmarking of gold.

Karat

The gold content is measured in terms of Karat (‘k’ or ‘kt’). Many people get confused and cannot distinguish between carat and Karat. Carat is related to diamonds and is measured in terms of weight. At the same time, Karat is related to gold and is measured in terms of percentage. Carat is spelled with a C, whereas Karat is spelled with a k.

Hallmark

A hallmark sign on the jewellery indicates that the gold content on the jewellery has been checked and verified; thus, one can take that the gold quality claimed by the jeweller to be genuine. The Hallmark or the standard mark in jewellery is awarded by the Bureau of Indian Standards (BIS). BIS is responsible for embossing the logo of the Hallmark along with the fineness number, hallmarking centre mark, jeweller’s identification mark and the year of marketing which is denoted by a code letter that the BIS decides.

Purity of Gold or Karat

The gold content in jewellery is measured in terms of Karat. When a bar of gold is 100% pure, then it is referred to as 24k. When people say 24k gold jewellery, it means that all the 24 parts of the jewellery are pure gold, and there is no added metal to it.  Some say that 24 k gold means 99.9 percent pure gold.

When a piece of jewellery is made with gold along with some other metals such as silver, copper or nickel, then the gold percentage of the jewellery decreases automatically. This type of jewellery is considered 22k gold jewellery, which means 22 parts of this jewellery are pure gold, whereas the other two parts comprise some ordinary metal.

Similarly, 18k gold jewellery is also not pure because only 18 parts of the jewellery are pure gold, and the rest 6 parts are not. This same theory goes with 14k gold also. This is how the purity of gold is measured by the consumers who are interested in purchasing them.

When the percentage of pure gold decreases and the metal content increases in jewellery, the strength of the jewellery increases; this means 14k gold jewellery is stronger than 18k gold jewellery. Additionally, when the percentage of gold decreases, the price of the jewellery also decreases; thus, 14k gold is cheaper than 18k gold.

24k gold equals 100% pure gold.	Too soft for jewellery.
22k gold equals 91.3% pure gold.	This is very popular in certain parts of the world, such as India.
18k gold equals 75% pure gold.	This type of gold has a good balance of strength and value.
14k gold equals 58.3% pure gold.	This type of gold is durable and valuable for money.
12k gold equals 50% pure gold.	These are not used for jewellery.
10k gold equals 41.7% pure gold.	They have the lowest gold content, which can be legally marked as gold in the United States.

Colour of Gold

When the gold is in its purest form, it looks yellow. Even when the gold is alloyed with nickel or silver in order to make 14k or 18k gold, it still maintains the yellowish colour. The richness of the gold colour depends on the percentage of gold available; 18k gold has a richer gold colour than 14k gold. But there are some metals that have the capability of changing the colour of gold when they are added to it, such as when copper is added to gold, the gold turns red. Let’s discuss various colours that can be seen in gold:

• White gold is considered to be an alloy of gold and at least one white metal such as nickel, manganese or palladium.
• Rose, red and pink gold is considered to be an alloy of gold and copper. Higher the percentage of copper, the stronger the red colouration. An alloy having a rose gold colour is 75% gold and 25% copper.
• Green gold is considered to be a mixture of gold and silver. In this alloy, there is no copper. The actual colour of this alloy is greenish-yellow.
• Grey gold alloy can be created by adding silver, manganese and copper in a specific amount to the gold.

Classification of Coloured Gold

Coloured golds can be classified into three groups:-

• Au-Ag-Cu system – Colour variations such as yellow, green and red can be obtained by mixing different ratios of gold(Au) with a silver(Au) and copper(Cu). This is why this system of producing coloured gold is termed as Au-Ag-Cu system.
• Intermetallic compounds – These compounds are used for producing blue and purple coloured golds. These are basically brittle but can sometimes be used as gems and inlays.
• Surface Oxide Layer – These are golds that are black in colour.

Hallmarking of Gold

A hallmark is meant for indicating that the gold content of jewellery has been checked and verified and that the gold adheres to the international standards of purity. So one can take the quality of the gold claimed by the jeweller as genuine. This mark is given by the Bureau of Indian Standards (BIS). BIS Hallmark consists of five parts:

• The first part is the logo of the BIS standard mark.
• The second part is the fineness mark. This refers to the gold caratage and is meant to be represented as the amount of gold in parts out of 1000. For example, if a mark says 916 them, it means that the gold content of the metal is around 91.6%.
• The third part is the mark of the assaying centre, which is responsible for carrying out the certification process. This is represented by a logo. One can find a list of hallmarking centres with their symbols on the BIS website.
• The fourth part is the logo that is assigned to the jeweller.
• The final part is the year of making, which is represented by a code that got decided by the BIS. For example, A denotes the year 2000, B denotes the year 2001 and so on.

Features of Hallmark Gold

A jeweller can obtain a license from the BIS by making the payment of a certain fee. After acquiring the license, they are allowed to hallmark their jewellery with the BIS logo. Some other features are:

• At every outlet, there should be an illustrator who can explain the components of Hallmark.
• A magnifying glass is required to check the Hallmark because it too small to be visible to the naked eyes.
• One can check the purity of a hallmark gold at the assaying centre if he/she still have some doubts regarding the purity. The centre will charge certain money for the services they provide, but if they found that the claim of the purchaser is true and the gold is not pure, then the service fee will be refunded. The jeweller will also be directed to replace the jewellery as soon as possible.
• BIS is responsible for maintaining market surveillance on the jewellers who have been given the hallmark license. They collect gold from these certified jewellers and verify it on a random basis. Deviations in the degree of purity in gold can lead to the cancellation of the license.

LPG Cylinders: LPG stands for Liquified Petroleum Gas, and it is a flammable gas that is mainly used for cooking purposes. LPG cylinders serve as the primary form of cooking gas for most Indian households. As per the records of 2017-18, more than 27 crores of LPG consumers are in India, which forms 20% of the total population. LPG has become an essential part of our lives, and its demand is rising with the increasing population.

In India, LPG cylinders are subsidized, which means a part of the money paid for the cylinder by the consumer is paid back to him/her by the state or central government. To get the subsidy amount, the consumer should have a bank account that is to be linked to his/her Aadhaar card. In the process, the consumer has to buy the LPG cylinder at market price and later, the government deposits the subsidy amount into the consumer’s bank account. The Central Government started the subsidy of LPG cylinder on 1st June 2013. At an initial stage, the consumers were offered 9 subsidized cylinders. But later, in 2014, the Central Government decided to raise the subsidized cylinders from 9 to 12 in quantity.

This article will discuss in detail LPG subsidy, how to link the Aadhaar card, how does LPG subsidy works and more.

Capping & Process To Get LPG Subsidy

LPG subsidy is a scheme of the government to reduce the price of cooking gas and provide it to the consumers at a reasonable price. Each LPG consumer has to link his/her Aadhaar card to the LPG connection to get the amount of subsidy. Earlier in 2012, the Government of India had capped or limited the supply of subsidized cylinders to 6 annually. Later in January 2013, it was increased from 6-9 in quantity. Again in the year 2014, the cabinet decided to increase the supply of subsidized cylinders from 9 to12 annually.

Now a question arises as to how to get LPG subsidy? The answer to this is very simple, and a person can get the subsidy amount directly into his/her bank account if he has the following documents:

• Aadhaar Card.
• Bank Account that is linked to Aadhaar card.
• Bank account with Aadhaar number linked to the LPG consumer number.

The whole process of linking bank account with Aadhaar and LPG consumer number is called seeding of Aadhaar.

Aadhaar And Its Importance

Aadhaar translates to “foundation” in English. It is a unique 12 digit number, which is given to every Indian citizen. Aadhaar serves as the first identity proof of any Indian. In the past few years, Aadhaar has emerged as a vital identification proof almost everywhere. From buying a sim to buying a car everywhere, Aadhaar is a must. The Unique Identification Authority of India or UIDAI is the department responsible for the issue to Aadhaar to the residents of India. The sole purpose of the introduction of Aadhaar was to eliminate fake identities and documents from the government databases. Mentioned below are some key features of Aadhaar:

• The first and the most important thing about Aadhaar is that it is not a smart card, but it is a unique number provided to each of the bearers.
• Under Aadhaar, the uniqueness of each beneficiary is determined with the help of biometrics which includes, fingerprints, retinal scan, and photograph. The Aadhaar also provides address details of a person it makes it easier for identification. Thus make sure you are providing correct information on your Aadhar card. However, if there is any mismatch in your address, then you can apply for an Aadhar card address correction and get the details updated.
• Enrollment under Aadhaar is not age-based, as in voter Id card or PAN card. Any Indian citizen, including infants, can enrol themselves under Aadhaar. Even Non-Residents of India and foreigners residing in India can also enrol themselves under Aadhaar.
• The enrolment of Aadhaar is free, and no fee is charged from the citizens for registration.
• Once registered, Aadhaar remains for a lifetime. It never expires.
• The Aadhaar Number helps a person to get access various services, including banking, mobile network services, and other government and non-government services.

How To Link LPG Consumer Number To Aadhaar Number

To get an LPG subsidy, one has to link the Aadhar number to the LPG consumer number. To link Aadhaar to LPG consumer number, one has to fulfill two main requirements:

• One has to get an Aadhhar Number.
• He/she should have a bank account linked to the Aadhaar number.

There are various ways through which a person can link his/her Aadhaar number to an LPG consumer number. Here, we will discuss each procedure in detail.

Linking Aadhaar to LPG through an Online Portal

One of the easiest and simple ways to link LPG consumer numbers to Aadhaar is through the online portal. Here are the steps that one can follow to do the same:

• Open the website https://rasf.uidai.gov.in/seeding/User/ResidentSelfSeedingpds.aspx and fill in all the required information.
• Select benefit type as “LPG” as you want to link your Aadhaar.
• Now you have to enter your LPG connection name, for example, BPCL for Bharat Gas connection.
• In this step, you have to select your LPG distributor name and enter your consumer number.
• Now, enter your mobile number, e-mail address, and Aadhaar number and click submit.
• Once you have submitted the details, you will receive an OTP on your registered mobile number and e-mail address.
• Enter the OTP and click submit. Once the submission is completed, all your documents will be verified, and you will be notified by the authority.

Linking Aadhaar Through Distributor:  One can also link his/her Aadhaar number with an LPG number with the help of the distributor. For doing the same, one needs to follow the steps mentioned below:

• First, you have to download the subsidy application form from the website of your LPG provider. For example, if you have an LPG connection with Indane, you can download the subsidy form from the Indane website.
• Next, take a printout of the form and fill in all the necessary details such as the Aadhaar number, LPG consumer number, address, mobile number and e-mail address.
• Now, go to the nearest LPG dealer and submit the form, your application will be processed, and you will be notified.

Linking Aadhaar Through IVRS: To help their customers link Aadhaar with their LPG consumer number, most LPG service providers have developed an IVRS or Interactive Voice Response System. Every district and LPG service provider has different IVRS numbers. One can call on the IVRS portal of their respective LPG service provider and link their Aadhaar by following the IVR instructions.

Linking Aadhaar SMS: You can easily link your Aadhaar with your LPG consumer number by sending an SMS. For this, you have to first link your mobile number to your LPG connection with the dealer’s help. After successful registration of your mobile number, you can send an SMS to link your Aadhaar to your LPG connection.

Linking Aadhaar Via Post: One can also link Aadhaar via post. For this, you need to download the form from the official website of your LPG service provider. Once you have downloaded the form, take a printout of it and fill in all the necessary details. After filling in all the details, send the form with the required documents to the address mentioned in the form.

Linking Aadhaar Through Call centres: One can easily link their Aadhaar with their LPG consumer number by calling 18000-2333-555 and following the operator’s instructions.

How Does The LPG Subsidy Work?

LPG has emerged as an important part of many households in India. The Government has taken the initiative of LPG subsidy to provide the consumers with LPG cylinders at a reasonable cost. Following are the points that will help us to understand how LPG subsidy works:

• When a consumer books his/her first subsidized LPG cylinder, he/she is entitled to an advance payment in his/her bank account. It is done to reduce the burden on the consumer to get their first LPG cylinder.
• Once the first cylinder is delivered, the subsidy amount of that cylinder will be credited into the bank account of the consumer to support the purchase of the subsequent cylinder.
• The amount of LPG subsidy is directly credited to the consumer’s bank account by the National Payment Corporation of India or NPCI.

Conclusion on LPG Cylinders

LPG serves as an essential source of cooking gas in every household of India. Buying an LPG cylinder is not possible for everyone. To support and encourage the buying of LPG cylinders among the weaker sections, the government introduced the policy of subsidized LPG cylinders. The subsidy provided on the LPG cylinders helps financially weak consumers to buy the cylinder and avail eco-friendly cooking gas.