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UAN Help desk

UAN HelpDesk | Solution to Lost Password, Mobile Number, Wrong DOB, Name

UAN Helpdesk: UAN is the Universal Account Number consisting of 12 digits provided to each individual that opts in for the Employee Provident Fund programme provided by companies to their employees in India. This UAN can be used to check the accumulated balance in your EPF till the present date, and also for seeing employer and employee details relating to your EPF accounts. An online UAN help desk, especially at a time where the Coronavirus has taken over the offline world, is very important for all Provident Fund holders. In this article, we will solve the common problems that can arise with the UAN system.

How to Register for the UAN Unified Member Portal?

You need not register for the UAN by yourself as there are two ways to do it and this is only one of the ways. It is generally your employer that allocates you a UAN number that you can use to check all the details of your Employee Provident Fund. The employer should give this number to you while he or she offers you the EPF and you take it. If this does not happen for some reason, such as if you start working in a new company and choose to opt out of the EPF at that company, you will not receive the UAN number from your employer. In this case, you can generate the UAN number yourself using Aadhar.

Here are the steps you need to follow to generate a UAN number for yourself using the details on your Aadhar card:

  1. First, go on to the UAN Unified Member Portal (this is the new UAN portal which is in use as of 28th December 2016).
  2. On the bottom of the page, towards the right-hand side, you will find that there is a link there to attain an Aadhard-verified allotment of a UAN 12-digit number, click on that link.
  3. Enter your Aadhar card number where it requires you to, after which the portal will send you an OTP on the mobile number which is registered with your Aadhard card.*
  4. Enter the OTP once you receive it on your mobile phone or the registered mobile phone.
  5. Once your Aadhar ID has been verified via OTP, your details will auto-fill (please make sure your Aadhar details are correct before you do all this. If not, please get the details updated by applying for Aadhar Card Correction at the nearest Aadhar verification centre).
  6. You will receive the UAN number allotted to you via SMS, or after clicking on ‘submit’.

*Note: If the mobile number linked to your Aadhar is not your own and is someone else’s, please make sure that you have access to it when you are carrying out this process, otherwise it’ll only be a problem for you.

What to Do When You Forget Your UAN Password and Lose Access to Your Registered Phone Number

Before 28th December 2016, the process to change your UAN password required going through the UAN helpdesk. Now, all you need to do is go through the unified portal for UAN offered by the Employee Provident Fund Organisation (EPFO). You can easily change the password using an OTP that you can receive on your mobile phone on the registered number. If you don’t have access to that phone number anymore, you can follow the steps mentioned below.

Here are the steps required to change your password:

  1. Get to the Unified Portal for UAN provided by EPFO and where it asks for your login credentials, select ‘forgot password.
  2. The next page will ask for your UAN number and a captcha. Enter both and remember that the captcha is case-sensitive.
  3. Next, you will see your name, date of birth and gender, which you are required to verify via your linked Aadhar card or PAN card.**
  4. Once verified, you can set a new mobile number for your account. Make sure that it is the correct number and that you have access to it. You will receive an OTP on this number to allow you to set a new password.
  5. When you see the sign that says “password successfully changed” you can use your new password to log into your UAN account.

**Note: If it says “incorrect details” then kindly check with your employer which Aadhar card or PAN card is linked with your UAN to get the correct number for verification.

What to Do When Your Details on UAN Are Wrong

The most inconvenient situation arises when we know our correct details, but they’re fed into the system in the wrong manner and you do not know how to change this and correct it. Don’t worry, we’re here to help you out with just that.

Given below are the steps that you are required to follow when trying to change your details on the UAN unified portal:

  1. Log into your UAN account and look for the ‘manage’ tab.
  2. Under the manage tab, there will be three options: contact details, KYC and modify basic details. Please click on “modify basic details.”
  3. Once you arrive at the page, there will be an option for you to fill out your Aadhar card number. Enter the 12-digit number of your Aadhar card in the required space, and allow the system to do its work. It will auto-fill in your details based on the information on your Aadhard card.***
  4. Once this is done, simply click on “update details” at the bottom of the page, and your details will be sent to the employer for approval.
  5. If and when approved by the employer, the application will then go to the Dealing Assistant, Section Supervisor at the EPFO Field Office. From here on, the final approval lies with the Assistant Provident Fund Commissioner (APFC) or the Regional Provident Fund Commissioner (RPFC).

***Note: Please make sure that all the details on your Aadhar card are correct. If they are not, they will go on your UAN account linked to your provident fund, and this may become a problem later on. Sometimes your name can be spelled incorrectly on the Aadhar card, or even gender – make sure to get all these errors corrected in the Aadhar before correcting on the UAN portal.

What to Do if I’m Not Being Able to View My EPF Passbook?

Most of the time, new things, especially new technology, can end up confusing us more than helping us. You may be facing some difficulties in trying to view your EPF passbook on the new UAN portal. However, this is not a problem, because we shall help you figure this problem out.

Here are the steps you need to follow to view your EPF passbook on the new UAN portal:

  1. Make sure that you are registered on the UAN portal. If you aren’t registered, please register yourself referring to the first section mentioned above.****
  2. Go to the EPF website (http://www.epfindia.gov.in).
  3. Find the section which is labelled “Our Services” and click on it.
  4. Under this, there will be four sections: for employers, for employees, for international workers, and for pensioners. Please click on “for employees”.
  5. The second option upon clicking “for employees” will be “Member Passbook” so click on that option, which will take you to a login page.
  6. Enter your UAN account credentials and it will, by default, open to the passbook page.

****Note: If you have registered yourself on the UAN portal very recently, you might have to wait before you can view your passbook. The e-passbook for your EPF becomes available only six hours after you register yourself on the UAN portal.

UAN Helpdesk

Conclusion on UAN Helpdesk

All in all, the problems that may arise on the UAN portal are very easy to resolve, and you just need to find the right guidance to help you through it. Checking your EPF balance has never been easier seeing as how it has simply cut the red tapes in its by moving online. Even the processes to get your details changed have become very simple and easy to understand. If you’re having any more trouble with your UAN account, you will be able to find more articles written by us to help you through them.

 

 

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Donations Eligible Under Section 80G

Donations Eligible Under Section 80G

Donations Eligible Under Section 80G: For promoting the concept of charity towards the poor and needy, the government of India has been regularly encouraging citizens to donate, and this donation could also be claimed as a deduction under Section 80G.

There are many government organisations, including NGO’s which are working for the upliftment of the poor, and one can choose to make donations to these designated organisations, which will, in turn, ensure that the money is being used for the right purposes.

Section 80G

Contributions that are made to certain relief funds and charitable institutions could be claimed as a deduction under Section 80G of the Income Tax Act. However, all donations are not eligible for this deduction under section 80G. Only the donations made to suggested funds qualify as a deduction. This deduction could be claimed by any taxpayer – company, individual, firm or any other entity.

What is the Mode of Payment?

The deduction could be claimed only if the contribution has been made through a cheque, draft or in cash. However, the deduction is not allowed for donations that are made in cash exceeding the amount of Rs 10,000.

In-kind contributions like food, material, clothes, medicines, etc., don’t qualify for deduction under section 80G. From Financial Year 2017-2018 onwards: Any donations made in cash exceeding the amount of Rs 2,000 will not be permitted as a deduction.

The donations above the amount of Rs 2,000 must be made in any mode apart from cash to qualify as a deduction under section 80G. Donation Amount: The different donations specified in section 80G are eligible to determine up to either 100% or 50% with or without any restriction, as provided in section 80G.

Conditions for Claiming the Deduction for Donation under the Section 80G

Donations made are eligible for claiming as a deduction under Section 80G in all cases except in cases when the donation has been made of any kind (e.g., food, clothes, medicine etc.). For claiming this deduction, the donor also has to provide proof of payment. A receipt that is stamped is issued by the recipient trust in this regard. Details of that should be mentioned by the taxpayer when filing their Income Tax Return.

The receipt should surely mention the following details

  • Name of the trust
  • Address of trust
  • Name of the donor
  • The donated amount (mention in words and figures)
  • The trust’s registration number, as given by the income tax department u/s 80G, along with its validity.

How to Claim for the Deduction?

To claim the deduction, the following details need to be submitted in one’s Income Tax Return

  • Name of the recipient
  • PAN of the recipient
  • Address of the recipient
  • Contribution Amount

Donations that are Eligible for 100% Deduction Without any Qualifying Limit

  • The government’s set up National Defence Fund
  • National Relief Fund set up by the Prime Minister.
  • National Foundation established for Communal Harmony.
  • An approved educational institution or university of National prominence
  • The Zila Saksharta Samiti constituted in any of the districts under the chairmanship of the Collector of this district.
  • Fund established by a State Government offering medical relief for the poor
  • The National Illness Assistance Fund
  • The National Blood Transfusion Council
  • Any State Blood Transfusion Council
  • National Trust for Welfare of Individuals with Autism, Mental Retardation, Cerebral Palsy, and Multiple Disabilities
  • National Cultural Fund
  • National Sports Fund\Fund for Application and Technology Development
  • National Children’s Fund
  • Lieutenant Governor’s Relief Fund or Chief Minister’s Relief Fund regarding any State or Union Territory
  • Army Central Welfare Fund or the Air Force Central Welfare Fund or the Indian Naval Benevolent Fund, Chief Minister’s Cyclone Relief Fund Andhra Pradesh, 1996
  • Maharashtra Chief Minister’s Relief Fund established between October 1st and 6th, 1993.
  • Earthquake Relief Fund established by the Cheif Minister, Maharashtra
  • Any fund established by the State Government of Gujarat exclusively in order to provide relief to the earthquake victims in Gujarat
  • Any institution, trust or fund to which Section 80G(5C) applies to provide relief to earthquake victims in Gujarat (contribution given during January 26, 2001, and September 30, 2001) or
  • Armenia Earthquake Relief Fund established by the Prime Minister
  • Africa (Public Contributions – India) Fund
  • Swachh Bharat Kosh (applicable from FY 2014-15)
  • Clean Ganga Fund (suitable from FY 2014-15)
  • The National Fund for Control of the Drug Abuse (suitable from FY 2015-16)

Donations that are Eligible for 50% Deduction Without any Qualifying Limit

  • The Jawaharlal Nehru Memorial Fund
  • The Prime Minister’s Drought Relief Fund
  • The Indira Gandhi Memorial Trust
  • The Rajiv Gandhi Foundation

Donations that are Eligible for 100% Deduction Subject to 10% of Adjusted Gross Total Income

  • Contributions made to the government or any other approved local authority or institution to be utilised for promoting family planning.
  • Donation made by any Company to the Indian Olympic Association or any other notified association or institution established in India to develop infrastructure for games and sports in India or the sponsorship for sports and games in India.
  • Donations that are Eligible for 50% Deduction Subject to the 10% of the Adjusted Gross Total Income
  • Any other fund or institution satisfying the conditions mentioned in the Section 80G(5)
  • The government or any local authority is to be utilised for any charitable purpose apart from the purpose of promoting family planning.
  • Any authority constituted in India to deal with and satisfy the need for housing accommodation or the purpose of planning, development of towns, cities, villages or both.
  • Any corporation that has been referred to in Section 10(26BB) for promoting the interest of the minority communities.
  • For repairing or renovation of any notified temple, mosque, gurudwara, church or other religious places.

Claiming Deduction under the Section 80G in Form 16

When paying salary to an employee, the employer needs to deduct the TDS on the employee’s salary and then pay salary after deducting income tax. The amount reduced as TDS by the employer is reflected in Form 16.

For the computation of the income tax, deductions claimed by the employee under the various sections of the income tax act must be informed to the employer. However, if an employee is claiming deduction under section 80G, the benefit of this deduction could only be claimed through the employer if the donation is made only to the funds whose names have been mentioned above (i.e., all funds deductions from which it is allowed without any maximum limit)

If the donation is made to funds that have a maximum limit of 10% of Gross Total Income, reductions in such cases can’t be claimed by the employer. Deductions for these donations can only be claimed during the time of filing income tax returns.

Donations Deducted by the Employer from the Employee’s Salary

An employee has paid for a donation from their salary, and the amount has been deducted from their salary by the employer. Deduction under section 80G could still be claimed. In such scenarios, although the donation receipt is in the employer’s name, the employer will have to issue a certificate stating that the contribution had been made from the employee’s salary account.

Section 80G

Donation Made to any Institution or Fund

Donation made to any institution or fund is allowed only if it is established in India for a charitable purpose and fulfills the stated condition.

where the fund or institution derives any income, such income wouldn’t be liable to be inclusive in its total income under provisions of sections 11 and 12 or the clause (23AA) of the clause (23C) of section 10:

given that where a fund or institution derives any income, be it profits and gains of business, the condition which such income wouldn’t be liable to inclusion in the total income under the provisions of section 11 might not apply concerning such income, in case —

  • the fund or institution maintains separate books of accounts in respect to such business;
  • the donations made to these institutions or fund are not used by it, directly or indirectly, for any such business
  • the institution or fund issues to the person donating a certificate to the effect that it keeps separate books of account related to such business as well as that the donations received by them are not going to be used, directly or indirectly, for such business

The instrument under which these institution or funds are constituted doesn’t, or the rules governing these institutions or funds do not contain any provision for the transferor application at any time of the complete or any part of one’s income or assets of the institutions or funds for any purpose apart from a charitable purpose;

the institutions or funds are not expressed to be for the benefit of any specific religious community. However, a fund or institution incurring expenditure, during any of the former years, which is of a religious nature for any amount not exceeding five percent of its total income in that last year should be considered to be a fund or institution to which the provisions of this section apply to.

This donation to such fund is permitted as a deduction. An institution or fund set up for the benefits of Scheduled Castes (SC), backward classes, Scheduled Tribes (ST) or for women and children shall not be considered to be an institution or fund showcased to be for the benefits of a religious community or caste.

the fund or institution maintains regular accounts of all the receipts and expenditure;

the fund or institution is either constituted as a charitable public trust or has been registered under the Societies Registration Act, from the year 1860 (21 of 1860), or under any law, simultaneously to that Act in force in any part of the subcontinent or under the section 25 of Companies Act, of the year 1956 (1 of 1956), or is a University that has been established by law, or is any other educational institution that can be by the Government or by a University established by the law, or affiliated to any University established by the law, or is an institution financed wholly or in part by the Government or local authority;

concerning donations made after the 31st day of March 1992, the institution or fund is for the time being approved by the Commissioner following the rules made on this behalf; and

A deduction to which the entity is entitled in respect of any of the donations that have been made to a fund or institution to which the sub-section (5) applies should not be denied purely on either or both of the stated grounds, namely:

  • that, after the donation, any part of the income of the fund or the institution has become chargeable to tax due to the non-compliance with any of these provisions of section 11, 12 or 12A
  • that, under the clause (c) of sub-section (1) of section 13, the exemption under section 11 or 12 is denied to the institution or fund concerning any income coming to it from any investment referred to in clause (h) of sub-section (2) of section 13 where the average of the funds invested by it in a examine referred to in the said clause (h) doesn’t exceed five percent of the capital of the concern.

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National Pension Scheme Under Section 80CCD

National Pension Scheme Under Section 80CCD

National Pension Scheme Under Section 80CCD: NPS is the acronym for The National Pension Scheme. It is a pension scheme designed for both private citizens as well as government employees. The NPS is among the most acclaimed options available to individuals who want to create a trust for their retirement that includes a regular monthly income.

It is widely observed to be one of the cheaper investment options invested in a range of investment avenues with exposure to the equity market. The returns being directly related to market performance, no guarantee of any particular amount can be stated.

What is Section 80CCD?

According to the 1961 income tax act, this provision is associated with the deductions offered to individuals who make contributions to the NPS. Until 2015, as per the 80CCD, the claim for tax deduction eligible for an individual was up to 1 Lakhs per annum against the contributions made to the NPS.

Who are Eligible to Join the NPS?

Any citizen of the country within the age of 16 to 65 who comply with KYC norms (know your customer) can opt for NPS accounts. The NPS is opened to everyone in the society, including people in business, self-employed individuals and non-salaried people of the country. NRI (non-resident Indians) are eligible to open an NPS account.

How to Register under the NPS?

Two ways of registering for the NPS account are:

Offline Registration of the Account

Given below are the steps to open your NPS account offline:

  1. First, the candidate needs to visit their nearest office of the point of presence-service provider or POP-SP.
  2. They will be required to submit their registration form in physical format with required documents for compliance with KYC.
  3. Documents proving your identification, date of birth, photograph and address proof has to be submitted.
  4. You need either your Aadhaar or your PAN card to open an account.
  5. You will have to choose any one among two Central Recordkeeping Agencies for your account.
  6. All documents such as address proof, identity proof, electricity bill, water bill, school leaving certificate, PAN card, driving license, rent receipt; will be accepted.
  1. Suppose one fails to provide any of the documents listed above. In that case, the only other way is to submit a copy of their certificates of identity and address with a signature from personnel of the parliament or Member of the Legislative Assembly or Gazetted Officer or a Municipal Councillor can be accepted.

Online Registration of the Account

Given below are the steps to open your NPS account online:

  1. At first, the candidate will have to visit the website of NDSL.
  2. There are two ways of registering; one is Aadhaar based, and the other is through PAN-based verification.
  3. For Aadhaar based verification, you will have to generate your eKYC from the Aadhaar website from the link provided on the NDSL website.
  4. After submitting the eKYC form, personal details concerning name, gender, address, contact details are taken from it.
  5. You will need scanned copies of a cancelled cheque and photograph for online submission, which you will upload.
  6. For PAN registration, you can apply with your PAN number through the Karvy or NDSL website.
  7. You have to provide certain specified details of your bank and your account number for it to be verified.
  8. You will be needed to upload scanned copies of a cancelled cheque, your latest photograph, signatures and most importantly, your PAN card.
  9. It is mandatory to make the minimum contribution of Rs 500 if you want a Tier I account and Rs 1000 for a Tier II account.
  10. Then you will have to e-sign the form. In case of problems with e-signatures, you have to mail a physically attested copy of your CRA within 30 days of PRAN.
  11. In the case of non-resident Indians, additional documents such as passports might be required.

About the NPS Account:

Tier I Account

The most basic NPS account offered by the government is the Tier I account. It is rigid in terms of withdrawal, with an equity exposure that helps plan the future requirements of its subscriber after retirement. There also income tax benefits available on the contributions made in a Tier I account. A minimum contribution of 1000 is necessary.

‌Tier II Account 

The add-on account is called the Tier II account. It is not as rigid as Tier I accounts, with the availability of flexible withdrawal schemes and no limit for the minimum balance required for subscribers. Income tax benefits are not available on contributions made in a Tier II account. There is no need for a minimum annual contribution.

Return Policy

One can expect a 12% to 14% return from the NPS Equity scheme in the long run. The maximum Equity investment can go up to 75%. The returns offered are much higher than most other tax-saving investments such as PPF. The scheme has been in effect for over a decade and has shown annualised returns of 8% to 10%.

For medical emergencies or educational purposes, one can withdraw an amount up to three times. All of these will be partial withdrawal without tax added to them.

How is the NPS Return Calculated?

The Indian calculation for the National Pension Scheme uses the formula:

A = P (1+r/n) ^ Nt

  • P= The principal sum
  • r/n= The Rate of Interest offered per annum
  • N/n= The number of times the interest compounds
  • T/t= The total tenure

Assets for Fund Investment Scheme 

The sets of considered assets for the investment of the NPS funds are categorised on the basis of return characteristics.

  • Asset Class E – The maximum investment considered in this class is 50% of the total stated contribution. The investments are made predominantly in the legal equity market.
  • Asset Class C – Investment is in fixed instruments apart from Government securities such as Debentures, Corporate Bonds, etc.
  • Asset Class G – investments directly in government securities.
  • Asset Class A – The alternative investment schemes include instruments such as MBS, AIFs, CMBS, etc.

Scheme Preference

Scheme Preference is referred to the Pension fund scheme chosen by a subscriber for investing in the pension contribution amount.

There are two methods available to invest in the account:

  1. Active Choice: Among the E, C and G Asset classes, the subscriber is given the task of selecting a Fund manager and sorting the Pension Ratio that is to be invested among the individual funds. The subscriber can specify the desired percentage in which their money will be invested among the class assets in active choice. However, the allocation in the Equity market cannot cross 50%.
  2. Auto Choice: The subscriber has the task of selecting a Fund manager. According to the Lifecycle Fund, their funds will be invested according to the Lifecycle matrix based on the age of the concerned subscriber. In auto choice, the system will begin to automatically calculate the percentages in asset allocation on the basis of the subscriber’s age.

About Pension Fund Manager

The Fund Manager is the one responsible for the implementation of a fund’s investment tactic and handling its activities professionally and with efficiency. They make crucial investment decisions, manage analysis, conduct researches, develop policies and also benefits packages.

About Annuity Service Providers 

The Annuity Service Provider is responsible for managing the funds, payments and providing for their subscribers, Annuity Services at the tie of their exit from the NPS system.

Charges Applicable for NPS

Although the NPS has the lowest fund management charges of about 0.01%, the fees and charges should not be ignored.

POPs Charges

POPs stand for Points of Presence, such as banks that are appointed by the PFRDA. The POPs provide services through their network of branches known as POP-SP. POPs ensure that all the jobs that are related to NPS are met in time. Their charges are stated below:

  1. Initial Contribution
  2. Initial Subscriber Registration
  3. All Non-financial Transactions
  4. eNPS
  5. Persistency Fee

CRA Charges

CRA is Central Recordkeeping Agency. They are in charge of recordkeeping, customer service, administration and functions for all its NPS subscribers. Their fees are:

  1. PRA Opening Charge
  2. Charge per transaction
  3. Annual Maintenance Charge

Investment Management Fee: The fees that Fund Managing companies like ICICI, LIC get for managing pension funds of its clients are Investment Management Fees. The investment management fee is about 0.01% currently (Rs 100) to manage Rs 10 lakhs.

Custodian Fee: The Stock Holding Corporation of India, also called the SCHIL, is accountable for the custody of all assets. The fees required for their maintenance is called Custodian Fee.

NPS Trust Fee: The NPS Trust has the responsibility of taking care of the funds under NPS. The trust holds a legal account with Axis Bank and is designated as the Trustee Bank.

Tax Benefits Under National Pension Scheme

Under subsection 80CCD (1B), an exclusive tax benefit is offered to all NPS subscribers. Additional deduction for a Tier I account may be up to Rs. 50,000. The Tax benefits of under corporate division are:

  1. Corporate Subscriber: NPS Contribution up to 10% of the salary (basic + DA), subtractable from the taxable income except for any monetary limit.
  2. Corporates: The employer’s contribution for NPS to 10% of the salary (basic + DA) can be subtractable from the account’s profit and loss.

What is Meant by Net Asset Value? 

Net Asset Value or the NAV is the cost of one unit of a fund. It is calculated at the end of each and every working day that lies between Monday and Friday. The calculation is done by the addition of all securities and cash in the said fund’s portfolio, from which the liabilities are subtracted, and the result is divided by the number of units issued by the fund.

About Exiting the NPS

The different categories of withdrawal from NPS according to the Regulations of 2015 are stated below.

Normal Superannuation

The least of 40% of the total accumulated pension of a subscriber has to be put to use for purchasing an Annuity providing for the monthly pension to the subscriber, and the amount is paid to the subscriber as a lump sum.

Upon Death

The least of 80% of the total accumulated pension of a subscriber has to be put to use for purchasing an Annuity to provide for the surviving spouse, and the amount is paid in one single payment to the subscriber.

Note: For both these cases, if the total corpus balance is less than or equals Rs. 2 lakhs on the date of retirement, the complete withdrawal option can be availed by the subscriber or the legal nominee (in case of death of subscriber).

Pre-mature Exit

The least of 80% of the total accumulated pension of a subscriber has to be put to use for purchasing an Annuity to provide a monthly pension. If the total corpus balance is less than or equals Rs. 1 lakh, on the date of resignation, the complete withdrawal option can be availed by the subscriber.

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term deposits

What Is Term Deposits? Meaning, Features, Types

Term Deposits: Term Deposits are otherwise known as Fixed Deposits are an investment vehicle in which a lump-sum sum amount is deposited for a fixed length of time, ranging from one month to five years, at an agreed rate of interest. Organisations such as Banks, NBFCs (Non-banking financial companies), Credit unions, Post offices, and other financial organisations will have the options of Term Deposits. In this article, we have explained all the details of Term Deposits, it’s types. Read on to find out more.

Types of Term Deposits

The types of term deposits are:

  1. Fixed Deposits
  2. Recurring Deposits

Classification of Term Deposits

The term deposits are further classified into several ways which are discussed below:

Senior Citizen Term Deposits

A senior citizen is someone who has reached the age of sixty can enrol for this account. Most banks and financial institutions offer senior citizens a greater interest rate on term deposits. At some banks, senior citizens are also eligible for tax-advantaged term deposits.

Post Office Term Deposits

Certain financial services are also available in post offices. The Post Office Term Deposit is one such service. It can be opened as a single account or as a joint account. Post office term deposit accounts can be transferred from one post office to another, or many accounts can be held at the same post office.

The minimum deposit amount is Rs.200, and the current interest rate is 7.9% for a period of five years. Any deposit with a term of more than five years is eligible for tax benefits under Section 80C of the Income Tax Act of 1961.

Tax Saving Term Deposits

Section 80C of the Income Tax Act allows for a tax deduction of up to Rs 1.5 lakh on tax-saver deposits. These tax-saving term deposits have a 5-year lock-in period, and any earnings beyond Rs 40,000 are taxable. Interest rates typically vary from 5.5 percent to 7.75 percent.

Special Term Deposit Schemes For Children

There are a few unique deposit schemes dedicated to children’s welfare. The government’s “Sukanya Samriddhi Account” aims to improve the financial security of girl children over the age of ten. Different banks have different plans aimed at the financial well-being of children, such as Allahabad Bank’s “Sishu Mangal” deposit programme and Punjab National Bank’s “Balika Shiksha” programme. So any individuals can check with banks for children’s term deposit schemes.

Cumulative Term Deposits

Investors who do not require regular monetary income from their investment can choose a cumulative term deposit.  As a result, the interest gained is re-invested in the deposit and paid out in one lump sum at the conclusion of the term.

Non-Cumulative Term Deposits

A non-cumulative term deposit is for investors who want a consistent rate of return. The interest on a non-cumulative term deposit is credited to the investor’s account at regular intervals, such as monthly, quarterly, or annual.

Short Term Deposits

A short-term deposit has a lock-in duration that might be anywhere from one to twelve months. Short-term deposits are appropriate for investors who want to get their money back quickly.

Long Term Deposits

Lock-in periods for long-term deposits range from one to ten years. These deposits provide a greater interest rate than short-term savings accounts.

Features of Term Deposits

The features of characteristics of Term Deposits are discussed below:

  1. Interest Amount: The investor has the choice of receiving interest income at maturity or on a monthly, quarterly, or annual basis.
  2. Economic Growth: The consistent interest received on the investment assures that the investors’ wealth grows even during market downturns.
  3. Rollover: If an investor’s money isn’t needed by the term deposit’s maturity date, the deposit can be rolled over for a new term. The phrase “rollover” refers to the process of reinvesting maturity funds in a new term deposit and increasing the interest rate. As a result, when a term deposit matures, an investor does not have to use their money right away.
  4. Fixed-rate of Interest: The rate of interest on term deposits is fixed and not affected by market changes.
  5. Investment Safety: Since the term deposit interest rates are unaffected by economic fluctuations, it is one of the safest investment options accessible.
  6. Loan Against Deposit: If an investor needs financial liquidity in an emergency, they can borrow up to 60-75 percent of the deposit amount.
  7. Predetermined Investment Period: The investor has the option of choosing the tenor of the investment depending on the financial institution’s goals. The institution’s interest rate will typically be greater for a longer tenor. However, before investing, it’s a good idea to compare interest-to-tenor ratios.
  8. Low Investment Limit: The minimum investment amount varies depending on the financial institution, but it is usually Rs 1000. However, there is no maximum amount that can be placed in term deposits.
  9. Deposit Insurance: Any deposit in a qualified bank is entitled to an insurance cover of up to Rs 1 lakh under the Deposit Insurance and Credit Guarantee Corporation, according to RBI regulations (DICGC).

Drawbacks of Term Deposits

Though bank term deposits seem to be helpful, there are few disadvantages which one will have to consider and they are:

  1. Since term deposits come with a fixed tenor, it is considered ‘locked-in’. If the investor opts to withdraw from the deposit before the lock-in period ends they are liable to pay a penalty to the financial institution along with lowered interest income.
  2. Interest Earned on a deposit is taxable income and can be subject to a Tax Deducted at Source deduction under the Income Tax Act (TDS).

 FAQs on Term Deposits

Q. What are the risks of term deposits?
A. It might be costly to withdraw funds from a term deposit before it has matured. Fees and interest rate reductions apply to early withdrawals. You also won’t be able to add to your deposit with more money. With this in mind, putting your money in a term deposit can be a dangerous option if you need to make any deposits or withdrawals before the term deposit matures.

Q. Is term deposit and fixed deposit the same?
A. Yes, a term deposit is also known as fixed deposit. When a deposit is extended for a certain duration, such as 3 months, 6 months, or more, a term deposit is used, but a fixed deposit, or FD, is used when the deposit is for a period of six months or longer.

Q. What is the penalty for breaking a term deposit?
A. Many banks will refuse to pay interest on a term deposit that is ‘broken’ early, or will pay less. If you want to withdraw money from your term deposit, certain banks will require a 31-day notice. If the term is less than 31 days old, you may not be able to access the money until maturity.

What Is Term Deposits? Meaning, Features, Types Read More »

Benefits in Income Tax for Senior Citizens

Benefits in Income Tax for Senior Citizens – Income Tax Benefits for Senior Citizens

The term “senior citizen” is defined by legislation as a citizen between the ages of 60 and 80 on the penultimate day of the preceding financial year.

IT Returns Must Be Filed

In case a senior citizen or super senior citizen makes even the slightest amount of money through the budget year, they must still report income tax. Regardless of whether the income is not eligible for taxation, a tax return must be essentially filed to receive a tax deduction or provide official documentation of revenue generated during a budget year.

Senior citizens must fully implement the following income tax forms depending on what type of their revenue to file a tax return:

  • ITR 1 should be submitted when the overall income is up to Rs 50 lakhs from wage, one house estate, other alternative sources, or farming produce up to Rs 5,000.
  • ITR 2 should be submitted if the total income exceeds Rs 50 lakhs or if the earnings from two residential properties, capital gains, or agricultural productivity surpasses Rs 5,000.
  • In the case of annual income from a business or profession, the taxpayer must complete ITR 3.
  • ITR 4 extends to presumptive income.

It is mandatory for residents to submit their returns online. However, submitting the form online is not generally required for super senior citizens. They can register their ITR 1 (Sahaj) and ITR 4 (Sugam) either online or in person.

Individuals over the age of 80 as that of at the end of the preceding financial period are specifically referred to as super senior citizens.

What are the Sources Of Revenue for the Senior Citizens?

Senior citizens frequently earn their revenue from the below sources:

  • retirement plans.
  • Savings account returns or fixed deposit programs
  • Rental revenue from the tenancy of a house.
  • Capital Gains are a fundamental consideration.
  • Schemes for senior citizens to focus on saving money.
  • various projects involving reverse mortgages
  • Post office deposit programs that also pay the interest
  • And there are plenty more.

Senior Citizens Income Tax Brackets

  • Both Income tax and the Health and Education Cess are not chargeable to earnings up to INR 3 lakh.
  • Whenever the income is somewhere between INR 3 lakh and INR 5 lakh, the tax rate is 5%, and the Health and Education Cess is 4% of the income tax.
  • When the income is within INR 5 lakh and INR 10 lakh, the tax rate is 20%, and the Health and Education Cess is 4% of the income tax.
  • When income surpasses INR 10 lakh, income tax is collected at a rate of 30%, and the Health and Education Cess is charged at a rate of 4% of income tax.

Whether we prefer it to or not, we all care about the consequences and make considerable investment decisions to save and spend funds in order to have a safe and secure future.

Individuals are frequently on the search for investment decisions that will actually offer them a reasonably reliable and consistent source of income during their future post-retirement period.

The majority of senior citizens in India continue to endure financial hardships in old age since the overwhelming bulk of them have been unable to make a decent living. If they have any, their funds are insufficient to meet their day-to-day needs, specifically medical costs.

The Income Tax Act of India gives several incentives to senior citizens in order to significantly reduce their problems and issues and help to alleviate their stress and tension during this point in life.

What Tax Exemptions Do Senior Citizens Have From Income Tax Returns?

The standard exemption ceiling for regular individual taxpayers, up to which they are not actually needed to pay any income tax, is typically priced at Rs. 2.50 lakhs for the current financial year 2020-21.

The baseline exemption amount for Senior Citizens, on the other hand, is set at Rs. Three lakhs, i.e., Rs 50,000 more than usual taxpayers.

What Other Economic Privileges Do Senior Citizens Have In Terms Of Income Tax?

Here are some of the tax breaks and incentives that may help senior citizens with their financial obligations.

Health Insurance Tax Benefits

Section 80 D provides a bonus to senior citizens in exchange for paying their health insurance premiums.

Health insurance payments paid for senior people, or super senior citizens are eligible as a deduction under this provision up to a threshold of INR 50,000.

Furthermore, a deduction of INR 1,000,000 is actually conceivable under section 80DDB for expenditures spent in the medical treatment of a certain ailment. These two deductions have only been legally allowed under the previous tax structure.

The following conditions and related disorders are currently listed in Income Tax Rule 11DD and are allowed for deduction under Section 80DDB:

  1. Dementia, Dystonia Musculorum Deformans, Chorea, Motor Neuron Disease, Ataxia, Aphasia, Parkinson’s Disease, and Hemiballismus are examples of neurological diseases that have been verified by a specialist neurologist and where the severity of impairment has been confirmed to be 40% or above.
  2. Cancer that is malignant.
  3. Acquired Immunodeficiency Syndrome or AIDS
  4. Kidney failure is chronic.
  5. Hematological illnesses such as hemophilia and thalassemia

Interest Income Advantage

Senior persons who are Indian residents would not have to pay income tax on interest earned up to Rs.50,000/- in a budgetary year.

This is due to the changes in the Finance Act of 2018.

This would include revenue from savings accounts, fixed deposit programs, and post office deposit schemes. It also incorporates any profits made on deposits with a Co-operative Society engaged in banking, as defined under section 80 TTA of the Income Tax Act.

TDS is automatically deducted if the interest income surpasses INR 50,000. Citizens above the age of 60, on the other contrary, can file Form 15H to make the claim of exemption from TDS deduction on cash generated by such investments.

There is no Obligation to Pay Advance Tax

The term “advance tax” specifically refers to a sum of money paid in advance to the Indian government that all people are obligated to pay.

Regular citizens must submit an advance tax if their tax burden is Rs.10,000/- or more in a current budget year, whereas senior citizens are entirely exempt from this legal obligation provided they make a decent living through a business or occupation.

They must only actually pay Self-Assessment Tax after evaluating their overall tax burden for the budgetary year.

There is no Taxation Applied Under the Reverse Mortgage Scheme

A senior citizen can indeed reverse mortgage any of his resources to generate monthly revenue.  The senior individual holds possession of the property and enjoys monthly compensation for it. The total sum paid directly to the owner in installments is completely independent of Income Tax.

Reimbursement According to Section 80CCD (1B)

Investments in the National Pension Scheme are authorized as a reduction under this provision, subject to a limit of INR 50,000. This tax deduction is in addition to the amount reduction legally permitted under Sections 80C and 80CCC.

An NPS account can be established when you’re under the age of 65.

Exemption under Section 80G

If senior citizens or super senior citizens contribute to specific humanitarian causes and organizations, they can request a tax exemption for their financial contribution. Tax breaks are permitted by law at either 50% or 100% of the total amount paid, depending, of course, on the charity.

Exemption in compliance with Section 80C

This provision authorizes senior citizens and super senior citizens to exclude up to Rs 1.5 lakhs from their overall total revenue for approved investment and expenditure schemes.

This clause comprises the following investment schemes:

  • Fixed deposits plan to extend for five years
  • Contributing in an Equity-Linked Savings Plan (ELSS).
  • Active participation in the Public Provident Fund (PPF).
  • Paying of life insurance premiums (LIP).
  • Contributing to a Senior Citizen Savings Plan (SCSS).
  • National Savings Certificates and schemes alike

Benefits in Income Tax for Senior Citizens – Income Tax Benefits for Senior Citizens Read More »

overview of fixed deposits

Overview of Fixed Deposit | Interest Rates, Advantages, Types

Overview of Fixed Deposits: Fixed deposits are an investment option that offers stable interest rates, special rates for elderly citizens, a variety of interest payment methods, no market risk, and income tax benefits. In comparison to a typical savings account, a Fixed Deposit (FD) is a more safe investment choice that pays a greater rate of interest.

Fixed Deposit Interest Rates

In simple terms, fixed deposits are nothing but you are lending some money to the bank and in return, the bank pays interest for you. So these fixed deposit interest rates vary from bank to bank and also the Rates of interest are subject to change at any time. The rate of interest on an FD varies depending on the time period and the amount deposited.

Fixed Deposit Intrest Rates of Top 5 Banks

The top 5 interest rates offered by banks for fixed deposits are given below:

Bank Name For General Citizens (p.a.) For Senior Citizens (p.a)
ICICI Bank FD Interest Rate 2.50% to 5.50% 3.00% to 6.30%
HDFC Bank FD Interest Rate 2.50% to 5.50% 3.00% to 6.25%
State Bank of India FD Interest Rate 2.90% to 5.40% 3.40% to 6.20%
Canara Bank FD Interest Rate 2.95% to 5.50% 2.95% to 6.00%
Punjab National Bank FD Interest Rate 3.00% to 5.25% 3.50% to 5.75%

Advantages of Fixed Deposits

One of the safest investing options is fixed deposits. The list of advantages one can avail if he/she opts for Fixed deposits are given below:

  1. Safety Assurance: Most of the Fixed deposits have been assigned the FAA+/Negative rating by CRISIL and the AA/Stable rating by CARE, indicating a high level of safety. So when you are opting for fixed deposits, make sure you are choosing the FAA+/Negative rating by CRISIL and the AA/Stable rating by CARE for security purposes.
  2. High FD Interest Rates for Senior Citizens: Senior citizens get a better FD interest rate when compared to individuals.
  3. Nominations: All fixed deposits have the option of being nominated. In the event of a depositor’s death, the deposit and any interest would be repaid to the nominee, with no regard for the deceased’s heirs or legal representatives.
  4. Auto-Renewal Process: Few banks offer an auto-renewal option. Where customers can opt for auto-renewal of fixed deposits as well as a simple maturity withdrawal process.
  5. Premature Withdrawal: Few banks offer premature withdrawal. After three months from the date of deposit, you can make a premature withdrawal from your fixed deposit account. Individuals who make a premature withdrawal within six months of the deposit will be paid an annual interest rate.
  6. TDS: No TDS is deducted at source on interest earned on fixed deposits up to 5,000 in a fiscal year.
  7. Loan Facility: Up to 75% of the total principal deposit can be borrowed against fixed deposits. The interest rate on this loan is 2% more than the maximum fixed deposit interest rate. However, this depends from bank to bank.

Overview of Fixed Deposit

Factors Affecting Fixed Deposits

The list of factors that affect fixed deposits are given below:

  • Deposit Tenure: The shorter the term, the lower the interest rate; the long or medium term, the higher the interest rate.
  • Deposit Amount: Higher deposit amounts, particularly bulk deposits above Rs.1 crore, will earn you higher interest rates.
  • Depositor Type: Senior citizens often receive 0.25 percent to 0.50 percent more interest on fixed deposits than other depositors.

How To Open a Fixed Deposit Account?

Any individual can simply open a fixed deposit account by simply visiting the bank which offers the option of Fixed Deposits. Also, few banks even provide an online facility where one can create fixed deposit accounts online.

Types of Fixed Deposit Account

The types of fixed deposit accounts are:

  • Cumulative Deposit: The interest received on the fixed deposit is credited annually and paid out along with the principle at maturity. It aids in the accumulation of a corpus because interest is compounded annually.
  • Non-cumulative Deposit: The depositor receives interest on a regular basis.
    Payments can be made monthly, quarterly, half-yearly, or once a year. You can utilise your regular interest payments to cover your daily expenses.

Joint Fixed Deposits

Few banks do have the option of opening fixed deposit accounts jointly. In those cases, banks will allow a joint fixed deposit account with a maximum of three joint holders.

However, only the first listed applicant will be paid the interest on non-cumulative deposits, and their discharge will be binding on the joint holders. Interest is presumed to have accumulated in the name of the first applicant in the case of cumulative deposits. The maturity repayment will be made according to the directions on the FD application form.

Fixed Deposits for Non-Resident Indians (NRIs)

Most banks offer fixed deposit options for NRIs as well. Fixed deposits for NRIs have a maximum term of three years. The depositor’s NRO account will be credited with the repayment of the money as well as any interest received.

Banks accept fixed deposits from NRIs and Persons of Indian Origin on a non-repatriation basis, meaning that the interest and capital received cannot be transferred back to the country of residency or converted to foreign currency, according to RBI regulations. As needed, the tax will be deducted at the source.

FAQ’s on Fixed Deposits

The frequently asked questions on fixed deposits are given below:

Q. How does a fixed deposit work?
A. A Fixed Deposit secures a sum of money for the duration of the deposit. Banks give depositors the option of investing their money for durations ranging from seven days to ten years. The interest rate on a deposit is determined by the length of time the money is kept with the bank. The depositor is not permitted to withdraw funds prior to the deadline. The bank credits the depositor’s bank account with the principal and interest on the maturity date.

Q. Can I get monthly interest on fixed deposit?
A. Yes you can get monthly interest on fixed deposits. For that, you should choose periodic payouts and monthly frequency, you can earn a monthly interest payment.

Q. Is FD a good option?
A. A fixed deposit is a low-risk, low-return investment that is excellent for risk-averse and cautious investors. So, if you’re a cautious investor than, you can obviously go for fixed deposits.

Overview of Fixed Deposit | Interest Rates, Advantages, Types Read More »

LIC Tech Term Plan

LIC Tech Term Plan: LIC E Term Plan Premium Details, Benefits, Brochure

LIC Tech Term Plan: LIC Tech Term Plan is complete online insurance over. The main objective of the LIC Tech Term Policy is to provide financial security to the family members if the life assured or the proposer dies during the policy period. Any individual will be able to avail of the LIC Tech Term Policy only in online mode by processing the online application. On this page, we have provided all the details about LIC Tech Term Plan Premium details, benefits, documents required, and more. Read on to find out more.

Highlights of LIC Tech Term Plan

The highlights of the LIC Tech Term Plan are given below:

  1. There are two types of benefit options available. One can either choose Level Sum Assured or Increased Sum Assured.
  2. Three types of Premium payment methods are available and they are Single-Premium, Regular Premium, and Limited Premium Payment. One can choose any Premium payment method at their convenience.
  3. The life assured has the choice to choose their Policy Term or Premium paying Term.
  4. LIC Tech Term officials offer special rates for Women.
  5. The life assured has the option to receive the death benefits in installments.
  6. There is an option for Life assured to increase their premium cover by opting for accident benefit rider on payment of additional premium.

Eligibility Criteria of LIC Tech Term Plan

The eligibility criteria of LIC Tech Term Plan are tabulated below:

Criteria Details
Minimum Age Required 18 years
Maximum Age Required 65 years
Age of Maturity 80 years (Last Birthday)
Minimum Sum Assured Rs. 50,00,000
Maximum Sum Assured There is no limit for maximum sum assured
Policy Term 10 to 40 Years
Policy Application Only Online
Death Cover Options Level Sum Assured and Increasing Sum Assured
Grace Period 30 Years
Premium Paying Term Single-Premium, Yearly Premium, or Half Yearly Premium

LIC Tech Term Plan – Benefits

As discussed above, the LIC Tech Term Plan is a pure risk insurance cover and only death benefits are payable to the family members of the life assured. The list of benefits

1. LIC Tech Term Plan – Increase in Sum Insured

As discussed above there are two sum insured plans – Level Sum Assured and Increased Sum Assured. In Level Sum Assured, the sum amount to be paid on death remains the same until the policy term ends.

Whereas in Increased Sum Assured, after 5 back-to-back renewals, the sum insured will keep on propelling at 10% for ten years without any barrier. For example, if you have enrolled for a LIC Tech Term Plan where the sum insured is 50 Lakhs and have renewed the same for 5 consecutive years, then your sum insured will continually increase at 10% for 10 years.

Refer to the table below to understand the level sum assured and increased sum assured plans.

Sum Assured Type Age Policy Term Premium Payment Term
Premium Payment Rs for Sum Assured of 50 Lakhs
Level Sum Assured 30 30 30 8400
Increased Sum Assured 30 30 30 13900

2. LIC Tech Term Plan – Death Benefit

Every Tech Term policy initiated by LIC India will have the death benefit. If the life assured dies when the policy is in the period, then the nominee will get the sum proposed amount.

3. Death Benefit Options In Instalments

If the life insured dies, then there is an option where the nominee can receive the death benefits in installments. The installment period can be chosen as 5 years, 10 years, or 15 years. The death benefit installments will be paid either annually, half-yearly or quarterly.

4. LIC Tech Term Plan – Health Benefits

While enrolling in the Tech Term policy, the online application asks if the person is a smoker or a non-smoker. Based on the information provided by the life to be assured, the health benefits will be provided to the person. However, if the life assured states that, if he/she consumes toxic substances such as cigarettes, drugs, tobacco, or any other hallucinogenic materials, then the health benefits will not be provided.

5. LIC Tech Term Plan – Offers For Women or Female Proposer

Women enrolling for Tech Term Policy will get a discount on premium under “special privilege for female life insured“. Any women enrolling for Tech Term Policy can avail of a 10% to 20% discount on the premium.

6. LIC Tech Term Plan – Huge Number of Sum Insured Benefits

LIC Tech Term Insurance also provides a discount on premium if the life insured chooses high sum insured under annual or single premium payment. Persons choosing the high sum insured can avail of at least 20% discount on the premium. For example, if a life assured has chosen the sum insured at 1 Crore under annual or single premium payment at the age of 30, then he/she can avail 12% discount on the premium.

7. LIC Tech Term Plan – Rider Benefit

The life to be assured has the option to choose the LIC Accident Benefit Rider. By choosing this option, the life assured will have to pay some extra premium. The purpose of this Rider Benefit is that if the life assured dies in the event of accidental death, then rider sum assured lump-sum amount along with death benefit will be paid to the nominee.

LIC Tech Term Premium Details

The LIC Tech Term premium comes in 3 forms – Regular Premium, Limited Premium, or Single Premium. If he/she chooses Single-Premium, then they will have to pay the premium at one go. Whereas if the Life assured chooses, Regular or Limited Premium, then the proposer can pay the premium on a regular basis annually or half-yearly mode.

The LIC Tech Term Plan Premium depends on the age, policy term, smoking status, gender, premium paying term, and sum assured by the proposer. If the life assured chooses a single premium, then the minimum single premium amount is Rs.30,000. If the life assured chooses regular premium or limited premium, then the minimum premium is Rs.3,000.

How To Buy LIC Tech Term Policy?

Any life assured will be able to purchase the LIC Policy only in online mode. The steps to purchase the LIC policy in Online mode are given below:

  • 1st Step: Visit the official website of LIC – Click Here
  • 2nd Step: On the homepage, under the “Buy Policy Online“, click on the link “Click Here To Buy“.

lic tech term policy

  • 3rd Step: A new page will open. Now click on LIC Tech Term Plan 854. Refer to the image below:

lic tech term policy

  • 4th Step: A new page with instructions will appear on the screen. Hit the button “Click to Buy Online” button.
  • 5th Step: The page will be directed to the “Contact Details” page. Enter all the necessary contact details and solve the “Captcha“.
  • 6th Step: Tick the checkboxes and click on the “Calculate Premium” button.
  • 7th Step: The premium details will be displayed on the screen. Now upload all the necessary documents.
  • 8th Step: Click on “Proceed“.
  • 9th Step: Now a new page will open. Here you can review the proposal, edit the proposal.
  • 10th Step: If all the details are reviewed, click on the button “Pay“.
  • 11th Step: You will be redirected to the Payment Window. Process the premium amount online.
  • 12th Step: After successful payment, you will receive the policy registered details to your registered mobile number and Email ID.

Once the LIC Tech Term Policy  854 is purchased, the proposer or life insured must keep track of premium due dates and pay the premium from time to time to enjoy the benefits from LIC Tech Term Policy.

FAQs on LIC Tech Term Policy

The frequently asked questions on LIC Tech Term Policy 854 are given below:

Q. How is the LIC Tech term plan premium calculated?
A. The LIC Tech Term Insurance Premium is calculated on the basis of the life assured age, sum proposed, gender, policy term, smoking status, premium paying term.

Q. Is a medical test required for the LIC Tech term plan?
A. If you meet the following conditions, then you don’t have to undergo Medical Test.
1. Life Insured must be a non-smoker
2. Life Insured must not have a past medical history
3. Life Insured must belong to the age group 18 to 35 years whose annual income should be greater than 3 Lakhs.

Q. What documents are required for LIC Tech term plan?
A. The list of documents required for LIC Tech Term Plan are given below:
a. Proof of Identity
b. Age Proof
c. Address Proof
d. Income Proof
e. Medical Reports (Applicable only for a few people)
d. Passport Size Photographs

Now that you are provided with all the necessary information on how to buy LIC Tech Term Policy along with benefits. If you have any queries about this article or in general about LIC Tech Term Insurance Policy details, ping us through the comment box below and we will get back to you as soon as possible.

LIC Tech Term Plan: LIC E Term Plan Premium Details, Benefits, Brochure Read More »

Gold Savings Schemes

Gold Savings Schemes – What are the Top Gold Investment Schemes?

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.

Gold Savings Schemes – What are the Top Gold Investment Schemes? Read More »

Awful And Awesome Helmets

Awful And Awesome Helmets | How To Choose?, Difference and Reasons To Wear A Helmet

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.

Awesome Helmets

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 moreSome 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.

Awful And Awesome Helmets | How To Choose?, Difference and Reasons To Wear A Helmet Read More »

Understanding Gold Purity, Color, Hallmark

Understanding Gold Purity, Color, Hallmark

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.

Understanding 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.

Understanding Gold Purity, Color, Hallmark Read More »

LPG Cylinders

LPG Cylinders – Capping & Process To Get LPG Subsidy, Aadhar

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.

LPG Subsidy

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.   

LPG Cylinders – Capping & Process To Get LPG Subsidy, Aadhar Read More »