Get Bank IFSC & MICR codes here.
IFSC Code – SBIN0062889
MICR Code – WAITING
Bank – State Bank Of India
Branch – Racc Fimm Ratnagiri
Address – Shop No. 1 And 2, Kohinoor Paradise, Arogya Mandir, Ratnagiri – 415639.
Contact – 0 – 7875559748
City – 7875559748
District – Ratnagiri
State – Maharashtra
IFSC Code – SBIN0062888
MICR Code – WAITING
Bank – State Bank Of India
Branch – Dsh Chandrapur Fi Dsh
Address – Vijeet Complex, Chandrapur Nagpur Road, Bapat Nagar, Chandrapur 442401
Contact – 0 – 7875559910
City – 7875559910
District – Chandrapur
State – Maharashtra
IFSC Code – SBIN0062886
MICR Code – WAITING
Bank – State Bank Of India
Branch – Dsh Yavatmal
Address – Pobaru House, Dhamangaon Road, State Bank Square Yavatmal
Contact – 0 – 7875559910
City – 7875559910
District – Yavatmal
State – Maharashtra
IFSC Code – SBIN0062885
MICR Code – WAITING
Bank – State Bank Of India
Branch – Dsh Fimm Nagpur
Address – 2Nd Floor, Sbi Zonal Office, Kingsway Road
Contact – 0 – 7875559910
City – 7875559910
District – Nagpur
State – Maharashtra
IFSC Code – SBIN0062884
MICR Code – WAITING
Bank – State Bank Of India
Branch – Dsh Buldana
Address – Above Sbi Intouch Buldana Branch, Near Dhanwantari Hospital, Chaitanyawadi, Buldana Pin 443001
Contact – 0 – 7875559910
City – 7875559910
District – Buldana
State – Maharashtra
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This is in the context of the article titled ‘Hexaware Delisting: Next steps for shareholders who bid higher than delisting price’ that appeared on BusinessLine website on September 25. Can shareholders of Hexaware, who had bid at a price higher than the exit price tender at the exit price notified by the company?
Gagandeep Gujral
Our response: Yes. Shareholders who had bid higher can tender their shares at the exit price notified by Hexaware. This has to be done by contacting the registrar to the issue — KFintech — within a year from the date of completion of the delisting process. This date will be notified by Hexaware in a public announcement. The registrar will ask for certain procedures to be completed, and also some documents.
Once this is done, the shareholders who had bid at a higher price than the exit price will be paid the amount against the shares they hold.
The podcast on ‘What should investors in multi-cap funds do now?’ that appeared on BusinessLine website on October 2 was informative. Podcasts, in general, are becoming an increasingly popular mode of providing content. Looking forward to hearing more.
Shreela Roy
The article titled ‘Decode your payslip to get more from your salary’ that appeared on BusinessLine website on October 4, is a wonderful topic. It would be of great use, especially, for new graduates getting a job, if BusinessLine could make a video or presentation on the same.
Meera Siva
This is regardingthe article ‘Cement stocks revive despite near-term weakness in demand’ that appeared in BusinessLine on October 5. If cement stocks are buoyant, it is an indication that economic fundamentals are gaining momentum. These are good signs of recovery from Covid-related slowdown.
Amit Kumar
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Alka and Shobhit Mehra, aged 43, live in Mumbai. Shobhit has risen to become the head of the risk solutions group at a consulting firm, while Alka is an acclaimed fiction writer. Their son Rahul (13) and daughter Meera (10) study at a premier international school.
Alka has set her heart on a recently constructed apartment building in the premium Bandra (West) suburb, which has a four-bedroom sea-facing apartment that will cost ₹10 crore. The Mehras can’t expect more than ₹4 crore from the sale of their existing house.
The move will mean wiping clean their accumulated portfolio which is currently worth ₹3 crore (all in equity and balanced funds) and taking a home loan of another ₹3 crore.
Shobhit’s take-home pay after deductions works out to ₹6 lakh per month which pays for their monthly expenses of ₹2 lakh, their annual international vacation that typically costs ₹8 lakh and annual school fees of ₹8 lakh per child per annum.
Until last year, Shobhit was servicing EMIs on their Santacruz apartment, which took up another ₹ 1.5 lakh per month. He finally became debt-free only recently and is uncomfortable about taking on a large home loan at this stage in his career.
His annual bonus (₹25-30 lakh pre-tax in the last two years) is what he has been investing in recent years.
Alka’s earnings as a writer have been erratic. Her income-tax returns in recent years show a wide range of professional income — from ₹21 lakh to ₹1.08 crore per annum.
Shobhit’s view is that they should be saving up for their children’s overseas higher education and wedding expenses, and for their own retirement.
Alka’s view is that Shobhit is denying his family the lifestyle that she believes they deserve and can afford. He still has a good 20 years of work left in him and so does she.
On her part, Alka is willing to be less erratic with her writing commitments — if it means extra income to pay down a home loan for a house she yearns for. Shobhit believes that hoping for a mercurial income stream to suddenly become steady and strong borders on wishful thinking.
Here’s the advice we gave Shobhit and Alka.
But first the assumptions. The rate of inflation is 10 per cent per annum for education, wedding expenses and cost of living.
The rate of return per annum is 15 per cent from equity, 7 per cent from debt, 5 per cent from gold and 10 per cent from real estate. The retirement age of Shobhit and Alka is 60 years and their life expectancy is 85 years.
The higher education fees is ₹30 lakh each year for graduation (four years) and ₹60 lakh each year for post-graduation (two years). The wedding expense is ₹50 lakh per child. Shobhit’s and Alka’s incomes are assumed to increase annually by 10 per cent and 6 per cent, respectively.
Based on the above assumptions, the likely expenses towards various goals are as given in the accompanying table.
So, here’s what we recommended based on the two case scenarios — one, don’t buy the new house, and two, buy the new house.
Their current portfolio is 100 per cent in equity. It is recommended to diversify the portfolio by investing in different asset classes so that risk may be minimised. The recommended portfolio is 70 per cent equity, 20 per cent debt, 5 per cent gold and 5 per cent real estate. The expected weighted average return from recommended portfolio is 12 per cent per annum with the deviation of +/- 9.45 per cent, assuming 10+ years of holding period. The expected weighted average returns on a more conservative corpus post-retirement is 9 per cent per annum.
Three years before the occurrence of any financial goal, the pre-decided amount will be shifted from the recommended portfolio to a liquid/short-term debt fund. Seventy per cent of the yearly savings will be invested in the diversified portfolio.
Shobhit should purchase a term insurance cover of ₹7 crore and Alka should purchase a cover of ₹3 crore. They should also purchase a health insurance cover of ₹20 lakh with a critical illness rider of ₹20 lakh.
They should also maintain an emergency corpus of ₹25 lakh at all times. This emergency fund is recommended to be invested in either liquid or ultra-short term debt funds and can be used for any unplanned expenses. Given the above, all the financial goals of the family can be met.
The EMI for the new flat will be ₹2,93,344. Annual savings will come down by almost 50 per cent. Since the existing mutual funds will be used to finance the house, the available provisions will come down to nil. The revised insurance cover required will be ₹16 crore. In this case, Shobit has to either depend on his employee for extra insurance cover or take an additional life insurance cover.
Unlike in the previous case, the emergency corpus can be reserved only for either medical emergencies or EMIs in case of job loss or unplanned events.
It is assumed that 70 per cent of annual savings are invested in the recommended portfolio every year till Shobhit and Alka turn 60.
If the couple purchases the house by taking a loan, there is a high probability that they may run out of their retirement corpus by the time they turn 70 year of age. Excluding retirement planning, all other financial goals of the Mehra family are achievable even if the couple decides to buy the property.
If all the goals are to be met, Alka is required to increase her annual post tax income to ₹81 lakh, maintaining a constant increment of at least 6 per cent per annum. If Alka’s increase in income does not increase to this level, the new property could be used to get regular income by opting for reverse mortgage when they turn 65 years of age. This should cover the deficit in the retirement corpus.
The writer is CEO and MD of TrustPlutus Wealth Managers (India)
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I am a regular subscriber of The Hindu BusinessLine . I have query regarding ITR-2 Excel form provided by the government for AY2020-21. Although I am not a owner or a co-owner of any property, ITR-2 pops up with the message, ‘House Property Details Mandatory in Schedule HP’. And when we mention the property details owned completely by spouse or others, the form displays the field value for ‘your percentage of share in the property’ as 100 per cent. Why has it been made mandatory to mention property details in Shedule HP of ITR-2 even though the property is not co-owned or not in any of my relatives’ name ? How to deal with this? Is this a bug in ITR-2 of AY 2020-21.
Jeevan Patil
I understand that you are trying to file your tax return for Assessment Year 2020-21, ie, Financial Year (FY) 2019-20 and you do not own any house property during the subject financial year. We would like to mention that house property details have not been made mandatory for the purpose of filing of tax returns. Please use the link: tinyurl.com/itrutilities
The writer is a practising chartered accountant. Send your queries to taxtalk@thehindu.co.in
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There are certain new tax collection at source (TCS) rules that came into force from October 1, 2020 under the Income Tax Act 1961. While many of these provisions relate to goods and services, there are some that directly impact individuals. Before we get into how these provisions impact you, let us understand the ‘what’ and ‘how’ of TCS.
Tax collection at source is the Income Tax Department’s way of sifting out certain high-value transactions under section 206C of the Income Tax Act. Transactions such as purchase of car for an amount exceeding ₹10 lakh, foreign currency remittances, and sale of goods above ₹50 lakh, among others, come under the ambit of TCS provisions.
TCS is calculated on transactions beyond a certain threshold. Once these transactions breach that threshold, TCS is calculated on the value of the transaction. This amount is added to the transaction value and collected from the buyer or service recipient by the seller or service provider.
If the TCS to be collected is 1 per cent of a car purchased worth ₹15 lakh, then the TCS amount would be ₹15,000. You will have to pay ₹15,15,000 to the car dealer you have purchased the vehicle from.
The TCS amount will be recorded against the Permanent Account Number or PAN of the income tax assessee. This amount will be knocked off against the income tax liability of the assessee, if any, for the financial year in which the TCS was collected. Essentially, your tax outgo will reduce by the amount of TCS just like it does with tax deducted at source (TDS).
The new amendments to the TCS provisions are relevant for those who make purchases in foreign currency, foreign currency remittances, purchase of an overseas tour package in foreign currency from a foreign tour operator, and invest in shares abroad. All these come under Reserve Bank of India’s Liberalised Remittance Scheme (LRS) that allows Indians to remit up to $2,50,000 a year abroad.
From October 1, 2020, while making purchases in foreign currency online through your debit card, credit card, or through online banking, tax will be collected at source by your bank or credit card company at 5 per cent of the value of the transaction on amounts exceeding ₹7 lakh a year. This is over and above any transaction fees that might be collected by the bank or credit card company. In case such aggregate purchases in a financial year are above ₹7 lakh, then TCS provisions will apply to the amount in excess of ₹7 lakh. This limit will be applied for transactions undertaken with an individual bank or credit card company.
For example, if you have made purchases online worth ₹15 lakh, then the TCS will not be applicable till the aggregate purchases cross ₹7 lakh. For each purchase above ₹7 lakh, TCS will be applicable. In case you have made three purchases above the threshold of ₹3 lakh, ₹3 lakh, and ₹2 lakh, then TCS on these transactions will be ₹15,000, ₹15,000 and ₹10,000. These TCS amounts will be billed to your account or credit card statement.
Then there is remittance of foreign currency for the purpose of education. The threshold for TCS applicability remains the same (above ₹7 lakh) and the rate of TCS is 5 per cent of the amount exceeding ₹7 lakh. However, there is a difference in the rate of TCS for foreign remittance for education purposes made by obtaining a loan and one made from own funds. TCS on foreign currency remittances above ₹7 lakh made for education by obtaining a loan (proofs will be demanded by the bank) will be at 0.5 per cent.
Investors who make investment in shares abroad by using the LRS will also be covered by the new TCS provisions. While making investments in shares abroad, the aggregate foreign remittance amount exceeding ₹7 lakh will be liable to TCS. The intermediary that allows you to make such investments will charge you the TCS once the total investment exceeds ₹7 lakh in a financial year.
Any other foreign currency remittance made under LRS will also be covered by the TCS provisions and the threshold limits of ₹7 lakh will apply. The TCS will be collected at 5 per cent of the value of remittance above ₹7 lakh.
For financial year 2020-21, the calculation of aggregate foreign currency remittance above ₹7 lakh will be considered from October 1, 2020 onwards only, and not for the entire financial year. From April 1, 2021 onwards, the TCS provisions will apply for the full financial year.
In case of a foreign currency remittance made for purchase of overseas tour package, there is no threshold limit of aggregate remittances of ₹7 lakh. Any such foreign currency remittance for purchase of an overseas tour package will be liable for TCS of 5 per cent.
In case the remitter of foreign exchange does not produce PAN, or the bank account does not have the PAN registered against it, TCS will be calculated at 10 per cent of the remittance amount.
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Taking cues from the systematic investment plans (SIPs) of mutual funds, Bajaj Finance launched a new FD product earlier this year — the Systematic Deposit Plan (SDP).
We reviewed the product in January this year (tinyurl.com/SDPBaj). Bajaj Finance has now launched a variant of SDP, with a ‘Single Maturity’ option.
We take a look at whether this new feature makes the cut as a worthy investment.
The SDP essentially allows a person to make regular investments, a minimum of ₹5,000 every month. Each monthly investment is treated as a separate deposit, with tenures of each deposit being 12-60 months, at the choice of the investor. In addition, investors can opt for the number of monthly deposits, ranging from six to 48.
All deposits under SDP are cumulative deposits, implying that the interest will be paid on maturity only. The SDP essentially helps create a laddering effect due to different FDs under SDP maturing on different dates.
The change is that this product introduced in January is now called ‘Monthly Maturity Scheme’. Alongside,the company has launched a new variant, the ‘Single Maturity Scheme’. Here, customers will receive the maturity proceeds of all the FDs created systematically, as a lump sum, in a single day. Under the Single Maturity Scheme, one can deposit for tenures between 24 and 60 months. The number of deposits (beyond the first deposit) one can opt for varies from six additional deposits to 36, depending on the tenure.
Customers opting for a tenure of 24 months (minimum tenure under Single Maturity Scheme) will be required to make six additional deposits under the SDP (after the initial deposit). For SDP of higher tenure, say, 36 months, customers can opt to pay either six or 12 additional deposits. Similarly, for a 48-month tenure, one can opt to pay six, 12 or 24 additional deposits, and for a 60-month tenure, the options available are six, 12, 24 or 36 additional deposits.
The tenure of each deposit (instalment), after the first deposit, will gradually reduce such that all of them mature on a single date. Say, you opt for a single maturity scheme of 36-month tenure and opt for six additional deposits — your first deposit will have a maturity of 36 months. The second deposit will mature in 35 months, and third/fourth/fifth/sixth/seventh deposit will mature in 34/33/32/31/30 months, respectively.
Under this scheme, every deposit will fetch interest, according to the prevailing rate of interest on the date of deposit and for the respective tenure.
Post the recent revision in rates, Bajaj Finance offers interest rates of 6.9-7.1 per cent for (cumulative) deposits ranging 12-60 months.
Customers who apply online and senior citizens get an additional interest rate of 0.1 per cent and 0.25 per cent, respectively. The company’s deposits are rated AAA.
While the rates offered by Bajaj Finance are higher than most public sector banks, a few private banks —IndusInd Bank and RBL Bank, for instance — offer rates that are 10-15 basis points (bps) higher than those offered by Bajaj Finance currently. Small finance banks offer 10-25 bps higher rates, across tenures.
That said, investing in SDP, whether single maturity or multiple maturities, may make sense only in a rising-rate scenario.
If the company revises its interest rates at regular intervals, successive instalments will be locked into higher rates.
However, if you want to maximise the interest earned, deciding the number of systematic deposits and the tenure of the instalments beforehand can be a difficult task.
The new variant of SDP — single maturity scheme — can be somewhat similar to a recurring deposit (RD). But the difference is that in an RD the interest rate is constant throughout the tenure (flexi RDs may pay out higher interest on the stepped-up amount). Also, in an RD, you are required to contribute every successive month.
Under the single maturity scheme, you don’t contribute for all the months of the tenure. You can choose the number of months you want to contribute.
In a traditional RD, banks generally charge a penalty —in the form of lowered interest rate —in the event of a delay in or non-payment of an instalment.
No such penalty applies in the case of the SDP. Delaying a month’s SDP instalment only alters the tenure of that deposit (in the case of single maturity scheme) or pushes your maturity date for that instalment further (monthly maturity scheme).
You also have the flexibility to stop investing or restart after a gap with a new ECS (electronic clearing service) mandate.
If you have a steady cash inflow which you wish to keep reinvested, this product could be an option apart from RDs.
Otherwise, it is suitable for those who cannot keep a regular watch on interest rates in the market and the rates offered by different entities.
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