Category: Personal Finance

Covid Insurance Claim Settlement To Be Faster

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Insurance

oi-Sneha Kulkarni

|

Nirmala Sitharaman, Union Finance Minister, held a video conference with the heads of insurance companies today to review the progress made under the Pradhan Mantri Garib Kalyan Package (PMGKP) Insurance Scheme for Health Workers Fighting COVID-19, as well as to speed up the disbursement of pending claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) during the pandemic.

The Finance Minister emphasized the importance of insurance company employees remaining compassionate when providing services to the nominees of deceased policyholders, particularly during pandemics. She also praised insurance firms and banks for their recent efforts to expedite claim processing.

Covid Insurance Claim Settlement To Be Faster

What is Pradhan Mantri Garib Kalyan Package?

Health Workers Fighting COVID-19: Pradhan Mantri Garib Kalyan Package (PMGKP) Insurance Scheme was launched on March 30, 2020, for a 90-day trial period, to provide comprehensive personal accident coverage of Rs. 50 lakh to all healthcare providers, including community health workers and private health workers, drafted by the government for the care of Covid-19 patients, as well as those who may have come into direct contact with COVID-19 patients and were at risk of being impacted by it.

What is Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)?

People between the ages of 18 and 50 who have a bank account and agree to join/allow auto-debit are eligible for the PMJJBY. The primary KYC for the bank account would be Aadhar. The Rs. 2 lakh life insurance policy will be valid for a year, from June 1 to May 31, and will be renewed. This policy provides risk coverage of Rs. 2 lakh in the event of the insured’s death for any reason. The annual premium is Rs. 330, which is auto-debited in one installment from the subscriber’s bank account on or before the 31st May of each annual coverage term under the scheme, as per his option.

She also emphasized the significance of reducing the claims procedure and documentation requirements under the schemes in order to expedite payouts.

During the assessment, the Finance Minister noted that a total of 419 claims have been paid under the PMGKP scheme to date, totaling Rs 209.5 crore disbursed in the accounts of their nominees.

To address the issue of delays caused by states delivering documentation, the Finance Minister announced the implementation of a new system in which a simple certificate from the District Magistrate (DM) and endorsement from the nodal state health authority will suffice to process these claims.

The Finance Minister went on to say that under PMJJBY, a total of 4.65 lakh claims worth Rs. 9,307 crore have been paid, with 1.2 lakh claims worth Rs. 2,403 crore being paid since the start of the pandemic on April 1, 2020, at a disposal rate of 99 percent.

During the review, the Finance Minister took stock of the disposition of claims submitted under the PMSBY scheme, stating that as of May 31, 2021, a total of 82,660 claims worth Rs. 1,629 crore had been paid.

  • Insurers must complete claim processing in seven days rather than thirty.
  • The claim settlement procedure between banks and insurance firms is being digitised from beginning to end.
  • Claim paperwork are sent by email/app, avoiding delays caused by paper transmission.
  • By June 2021, public sector insurance companies will have implemented an API-based app for claim transmission.
  • In lieu of a death certificate, an attending doctor’s certificate and a certificate issued by a DM/authorized officer will be acceptable.
  • Soon, rationalised paperwork and a simpler claims process will be available.

Story first published: Saturday, June 5, 2021, 18:15 [IST]



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PPF Account On Behalf Of A Minor: Here Are The 6 Things You Need To Know About

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Eligibility and documents required

Resident legal guardians can open and manage a minor PPF account. A person can only open just one account on behalf of each minor or person of unsound mind over whom he or she has guardianship. The grandparents of a minor child cannot manage a PPF account if they are legal guardians following the demise of the parents. Along with the completed form KYC documents of the guardian, a photograph of the minor kid, age proof (Aadhaar card or birth certificate) of the minor child, and a cheque for the initial contribution to the PPF account is also required. A minor’s PPF account, on the other hand, can only be managed on his or her behalf by a parent or guardian until the account holder reaches the age of 18.

Contribution limit

Contribution limit

In a fiscal year, the minimum contribution is Rs 500 and the highest contribution is Rs 1.5 lakh. The yearly contribution to your and your minor child’s PPF accounts should not be more than Rs 1.50 lakh. The account can be started with a minimum initial deposit of 500 rupees, followed by deposits of any amount in multiples of 50 rupees. Any account in which the account holder fails to deposit the required amount in subsequent years after depositing five hundred rupees in the initial year would be considered discontinued. The subscriber of a discontinued account is not eligible to open a new account until the discontinued account is closed after maturity. However, loan and partial withdrawal facilities are not permitted in such an account, and the account holder shall be banned from opening another account in his name under PPF until the permanent closure of such account.

Lock-in period and withdrawal rules

Lock-in period and withdrawal rules

A PPF account is locked in for a term of 15 years. This implies that you cannot withdraw funds from your PPF account before 15 years have passed from the end of the fiscal year in which you made your initial contribution into your PPF account. In the case of an account created on behalf of a minor or a person of unsound mind, the guardian may request to the concerned post office or bank for a withdrawal for the benefit of the minor or person of unsound mind by submitting a certificate. The account holder must exercise the option to extend the account before one year from the account’s maturity date. A guardian may request at the account-office that an account opened on behalf of a minor or a person of unsound mind be extended. In the event of a life-threatening disease, higher education, or a change in the account holder’s residence status. On an application to the account-office in Form-5, an account holder can request the premature closure of his account or the account of a minor or person of unsound mind for whom he is the guardian.

Tax benefits

Tax benefits

An account holder can deposit up to Rs 1.50 lakh to both his or her own PPF account and the minor’s one. The same limit is also capped for a single PPF account. As a reason, your deposit to your minor child’s PPF account, made jointly by you and your spouse, should not exceed Rs 1.50 lakh. The interest earned in the minor PPF account, as well as the maturity amount, are tax-free for the account holder. The limit of Rs 1.50 lakh applies to contributions made to your minor child’s PPF account if you want to claim the tax benefit under Section 80C.

Loan facility against minor account

Loan facility against minor account

The account-owner may submit Form 2 for obtaining a loan to either the bank in concern or the post office, at any time after the period of one year from the end of the year in which the initial subscription was made, but before the expiry of five years from the end of the year in which the initial subscription took place. The loan amount should not surpass 25% of the amount on his account at the end of the second year immediately preceding the year in which the loan is authorized.

Extension of PPF account on behalf of a minor

Extension of PPF account on behalf of a minor

On the expiry of fifteen years from the end of the year in which the account was opened, the account holder can extend his or her account and continue to make deposits for a further block term of five years by submitting Form-4 to the account-office. A guardian may request for an account extension opened on behalf of a minor or a person of unsound mind. If the account holder does not indicate his option to continue the account within one year of its maturity date, no contributions can be made.



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ITR Filing For FY 2020-21: Changes In ITR Forms You Should Know

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1. ITR 1 cannot be filed if TDS credit in relation to Section 194N is being claimed:

Section 194N of the Income Tax Act specifies deduction of TDS in case a person withdraws cash over the specified limit given therein. Nonetheless, if a taxpayer goes on to claim TDS credit in respect of Section 194N then he or she cannot file his/ her income tax return in form 1 or ITR1.

Also, it is pertinent to note that the TDS deducted under section 194N cannot be carried forward to any other assessment year. The excess tax, if any, needs to be claimed in the same year of deduction as refund amount.

2. Disclosure of Marginal Relief:

2. Disclosure of Marginal Relief:

For “Surcharge computed before marginal relief” and “Surcharge computed after marginal relief”, ITR forms require the disclosure of marginal relief amount. This will produce the impact of marginal relief in the ITR form itself.

3. Inclusion of modifications in the dividend regime:

3. Inclusion of modifications in the dividend regime:

As per the Finance Act 2020, dividend regime saw a complete overhaul with Dividend Distribution tax being total abolished. Likewise, Schedule OS or Other source has been modified to include dividend income i.e. taxable in the hands of the shareholders.

Also, in all of the ITR forms a quarterly summary of dividend income would have to be provided that would help in the calculation of interest liability under section 234C.

Schedule EI for exempt income which included dividend amount exemption up to Rs. 10 lakh has also been changed accordingly. In an earlier regime, the company paid DDT on dividends and shareholders were taxed only in cases where dividend amount exceeded the threshold value of Rs. 10 lakhs.

4. Calculation of cost of acquisition u/s 112A and 115AD:

4. Calculation of cost of acquisition u/s 112A and 115AD:

The form has also been changed to let the taxpayer include all such fields such as sale price, cost of acquisition and FMC or fair market value in order to properly compute capital gain. For all security sales including equity share, equity oriented mutual funds or units of business trust, the cost of acquisition is calculated after factoring the FMV as on 31st January, 2018.

5. Other changes:

5. Other changes:

i) JSON utility: For offline filing of ITR, the Income tax department introduced the JSON utility which would ease the burden of taxpayers filing return by themselves. Also, the new and improved e-filing portal due to be launched on June 7 will offer immediate processing of ITRS and will be more interactive and user-friendly.

ii) Schedule 112A and Schedule 115AD in the notified income tax form has required to fillin the details with respect to long term capitals gains arising on transfer of securities which may be equity shares, units of equity mutual funds or units of business trust subject to the STT being levied on such transfer that is transaction happening on stock exchanges. The Taxpayer will now have to clarify and disclose whether such gains or losses are arising due to Share or Units. Such clarification is needful in understanding the nature of transaction clearing and assessing the income in better manner. Also in the budget of 2019 the government announced grandfathered clause for all listed gains till 31st Jan 2018, in terms with section 55 of Income Tax Act, 1961 would be required to be reported in the ITR as well.

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How NRIs Can Open NPS Account Online?

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Pre-requisites

  • Age limit between 18 -60 years
  • Aadhaar or PAN number
  • Mobile number registered with Aadhaar
  • The bank account must have been enabled with an internet banking service.
  • Opening Tier II accounts under eNPS for NRIs is not allowed.
  • Only an individual can open an NPS account
  • The power of attorney (POA) facility is not available.

Steps to open NPS account for NRIs using Aadhaar Card

Steps to open NPS account for NRIs using Aadhaar Card

  • Visit PFRDA/ NPS Trust website and select “eNPS”
  • Click on “Registration” and select the “New Registration” option to initiate the registration process.
  • Now choose ‘Non-Resident Indian (NRI)’ and select type of account “Repatriable” or “Nonrepatriable”.
  • Now select the alternative for registering with as “Aadhaar”.
  • Now enter your Passport number and Aadhaar Number and click on Generate OTP.
  • Click Continue after entering the OTP received on the Aadhaar-registered mobile number.
  • For Repatriable eNPS Account: For bank authentication, choose a bank from the list of empanelled banks and enter your NRE/ NRO account specifics.
  • For Non-Repatriable eNPS account: Fill out your bank account details and submit NRE/ NRO account details on a self-declaration basis.
  • Demographic details and a photograph will be retrieved from the Aadhaar database and uploaded into an online form. Fill in other required details in different sections.
  • Under the ‘Personal Details’ section, enter your name, father’s/mother’s name, Mobile Number and e-mail ID. Aadhaar will be accepted as proof of identity automatically. Specify your date of birth and choose a proof from the drop-down menu.
  • Now click on ‘Generate Acknowledgement No’ and you can either continue or use this Acknowledgement No to enter the details in a different tab later.
  • Under the “Contact Details” section, the address will be retrieved from the Aadhaar database automatically and displayed which you can not edit if required. Once it is done, click on the “Save & Proceed” button to continue.
  • Under the “Bank & Other Details” section, select your occupation and relevant details from the available option. Now enter bank account details correctly. You must choose one of the empanelled banks for authentication and submit details of your NRE/ NRO account for a repatriable eNPS NRI account (list of empanelled banks available on www.enps.nsdl.com). Details of any NRE/NRO account of any bank may be entered on a self-declaration basis in the event of a non-repatriable eNPS NRI Account. Once you are done, click on the “Save & Proceed” button to continue.
  • Under the “Scheme & Nomination Details” section, select the ‘Pension Fund Manger’ and the investment choice (Active or Auto). You need to state the percentage of allocation in different asset classes if you are choosing Active Choice. You have the option of nominating up to three individuals and deciding for their percentage share. Once done, click on the “Save & Proceed” button to continue.
  • Under the “Photo & Signature Details” section, it is allowed to submit any other image in place of the Aadhaar database image. Scanned ‘Signature’ and ‘Photograph’ should be uploaded (must be in .jpg format and the size of the image should be between 4kb and 12 kb). Once done, confirm all the details and click on “Save & Proceed” button to continue.
  • Under the “Payment Details” section, make an initial contribution of Rs 500 and you will be redirected to the payment gateway after providing the payment details.
  • After you make a successful payment, you will be assigned a Permanent Retirement Account Number (PRAN). The subsequent contributions to a Repatriable eNPS NRI account must be made using the account that was specified during the registration procedure.
  • Initial and future contributions to a non-repatriable eNPS NRI account can be made using any mode, including net banking, credit card, and debit card.

Steps to open NPS account for NRIs using PAN Card

Steps to open NPS account for NRIs using PAN Card

Any Non-Resident Indian citizen between the ages of 18 and 60 who has a PAN card and a bank account (with one of the empanelled banks) can enrol in the National Pension System online. You should reiterate that Tier II accounts would not be permitted for NRIs under eNPS.

  • Visit PFRDA/ NPS Trust website and select “eNPS”
  • Click on “Registration” and select the “New Registration” option to initiate the registration process.
  • Now choose ‘Non-Resident Indian (NRI)’ and select type of account “Repatriable” or “Nonrepatriable”.
  • Now select the alternative for registering with as “PAN”
  • Now enter your Passport number and PAN Number.
  • For Repatriable eNPS A/c OR NonRepatriable eNPS A/c: For bank authentication, choose a bank from the list of empanelled banks and enter your NRE/ NRO account specifics.
  • Now enter your personal details, contact details, bank and other details, scheme and nomination details, photo & signature details and payment details as stated in the above procedure.
  • After you make a successful payment, you will be assigned a Permanent Retirement Account Number (PRAN). The subsequent contributions can be made using any method, including net banking, credit card, and debit card.
  • After finalizing the registration procedure, print the system-generated form, paste your photo, sign and submit it to the CRA within 90 days, otherwise, your account will be frozen.

Exit & Withdrawal Rules for NRIs Under NPS

Exit & Withdrawal Rules for NRIs Under NPS

After reaching the age of 60, annuitisation of at least 40% and a lump sum withdrawal of up to 60% are permitted. Complete withdrawal is permitted if the corpus is less than Rs. 2.00 Lac. Subscribers can invest in the NPS until they reach the age of 70. Fresh contributions are allowed throughout this time of deferment; eligible lump sum withdrawals can be deferred until the age of 70. The purchase of an annuity can also be deferred for a maximum of three years at the time of exit. If you leave the NPS before you reach the age of 60, you must choose an annuity of at least 80%; you can take a lump-sum withdrawal of up to 20% of your initial investment; and if your corpus is less than Rs.1.00 Lac, you can withdraw your entire corpus. A nominee can receive 100% of the NPS pension wealth in a lump amount upon the subscriber’s death.

Partial Withdrawal Rules for NRIs Under NPS

Partial Withdrawal Rules for NRIs Under NPS

A partial withdrawal of the subscriber’s accumulated pension wealth is permitted for the purposes of his or her children’s higher education, marriage, the acquisition or construction of a residential house or flat, and the treatment of specific illnesses. A partial withdrawal of up to 25% of the NRI’s contributions is permitted. To make a partial withdrawal, an NRI must have been a member of the National Pension System for at least ten years. A maximum of three (three) partial withdrawals is permitted during the tenure, with a minimum of five (five) years between consecutive withdrawals.

Pension Funds for NRIs

Pension Funds for NRIs

Any one of the following pension funds can be chosen by NRIs:

SBI Pension Funds Pvt. Limited
LIC Pension Fund Limited
UTI Retirement Solutions Limited
ICICI Prudential Pension Funds Management Company Limited
Kotak Mahindra Pension Fund Limited
Reliance Capital Pension Fund Limited
HDFC Pension Fund Limited
Birla Sun Life Insurance company limited

Tax benefits for NRIs under NPS

Tax benefits for NRIs under NPS

NRI contributions are tax-deductible up to 10% of gross income under section 80 CCD (1) of the Income Tax Act, subject to a limit of Rs. 1.50 lacs under section 80 CCE of the Income Tax Act. Pensions and annuities for NRIs should be paid in local currency, i.e. INR. There are no restrictions on NRIs repatriating their pensions, whether annuity or lump-sum, under the NPS.

List of authorized banks

Sr No. Bank
1 Allahabad Bank
2 Andhra Bank
3 Bank of India
4 Bank of Maharashtra
5 Corporation Bank
6 Dena Bank
7 IDBI Bank
8 Indian Bank
9 Oriental Bank of Commerce
10 State Bank of Bikaner & Jaipur
11 State Bank of Hyderabad
12 State Bank of India
13 State Bank of Patiala
14 State Bank of Travancore
15 Syndicate Bank
16 Tamilnad Mercantile Bank Ltd
17 Karur Vysya Bank
18 Lakshmi Vilas Bank Limited
19 South Indian Bank
20 UCO Bank
21 United Bank of India
22 Vijaya Bank

Note: For any queries, NRI subscriber of NPS can call on 1800-110-708 or they can visit www.npstrust.org.in or www.enps.nsdl.co.in for more details.



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How Elon Musk Tweets Influence Bitcoin and Dogecoin Prices?

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Planning

oi-Sneha Kulkarni

|

Elon Musk is the only person who has built sufficient power to impact markets with a single tweet. The celebrity CEO, who has over 55 million followers on Twitter, ‘practically’ rattles the market every time he tweets about cryptocurrencies. The billionaire and Tesla CEO have also been tweeting a lot about cryptocurrency, pushing the price of bitcoin and dogecoin up and down in less than 280 characters. His tweets also raise concerns about the stability of a market that is so quickly affected, especially as retail investors rush to cryptocurrencies in greater numbers.

How Elon Musk’s comments have influenced the bitcoin market in the last month:

How Elon MuskTweets Influenced Bitcoin and Dogecoin Prices?

June 3: He shared a meme about breaking up with bitcoin on June 3. Since then, the price of bitcoin has dropped 5%, marking the latest in Musk’s month-long rout of the cryptocurrency.

May 25: Musk appeared to try to address the problem of bitcoin’s environmental impact a week later, calling the intention of North American bitcoin miners to reveal renewable consumption “quite encouraging.” The price increased by 4% as a result.

On May 17: Musk remarked May 17 that Tesla hasn’t sold bitcoin in a while, which seemed to stem the decline and keep prices around $45,000.

May 16: When Elon Musk posted in response to an unverified Twitter account named @CryptoWhale, which wrote, “Bitcoiners are going to smack themselves next quarter when they find out Tesla liquidated the rest of their #Bitcoin holdings,” Bitcoin plummeted from a high of $65,000 to below $45,000 levels. I wouldn’t blame him, given the amount of vitriol directed at @elonmusk… That tweet made the price of bitcoin drop to its lowest level since February.

May 13: Due to environmental worries about Bitcoin mining, Musk said on May 13 that Tesla would no longer accept Bitcoin payments for its automobiles. Bitcoin plunged by around 17 percent soon after the tweet.

The value of bitcoin surged to about $38,000 from roughly $32,000 when Musk changed his Twitter bio to #bitcoin on January 29, 2021.

Musk Tweets on Dogecoin

Musk’s tweets regarding dogecoin sparked a rally in the digital currency, which began as a joke on social media. According to CoinMarketCap.com, Dogecoin has risen to become the fourth-largest cryptocurrency by market capitalization.

Musk’s cryptocurrency tweets aren’t only about bitcoin. After tweeting that he was working with dogecoin developers to increase the currency’s efficiency, the SpaceX CEO propelled dogecoin values up 30% in May.

Story first published: Saturday, June 5, 2021, 11:17 [IST]



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This Healthcare Stock Is Attracting Attention, What’s Cooking?

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Investment

oi-Sunil Fernandes

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Healthcare stocks have been on a roll since last year, when Covid-19 first broke out. Many stocks soared and most of them today are quoting at their 52-week highs. However, there are some of them that may still have the potential to rally form these levels.

Cadila Healthcare: A solid portfolio

Cadila Healthcare has a very good portfolio comprising active pharmaceutical ingredients, wellness related and also related to animal healthcare.

Recently, broking firm Motilal Oswal has put a “buy” on the stock and sees a pretty decent upside on the stock from current levels.

Target Price Current market price 52-week high price 52-week low price
Cadila Healthcare Rs 730 Rs 634 Rs 673 Rs 347

Covid -vaccine trails

Cadila Healthcare has been conducting trail runs on a three-dose regimen for Covid-19 and the company is targetting affordable pricing.

“The trial includes 1,000 children (12-18 years) and hence could be one of the first to be approved for children. It is also working out a plan to test its vaccine for children aged 5-12 years. CDH would seek emergency use approval for its COVID-19 vaccine in next 2 weeks and would initially begin a vaccine supply rate of 10m doses/month which is expected to increase to 30-40m after 4-6 months, with partnerships/ capacity expansion,” Motilal Oswal has said in a report.

Business in the US to do well

Cadila Healthcare has been able to maintain its market share in the markets across the United States, despite lower offtake of its key product g-Asacol and expects sales to normalize from 2QFY22 onwards.

In fact, the company has 30 abbreviated new drug application in FY21 while new approvals/filings stood at 35/22, Motilal Oswal has stated. The pace of launches are expected to only improve going forward.

This Healthcare Stock Is Attracting Attention, What’s Cooking?

Valuation remain reasonable

Motilal Oswal has said that it remains positive on the stock of Cadila Healthcare on account of a host of reasons. This includes, superior execution in DF segment, a favourable demand for COVID-19 products, innovative/Complex Generic pipeline, and reducing financial leverage.

“We expect 15% earnings compounded annual growth rate on the back of 7% sales growth in the United States (vis-a-vis 3% YoY growth in FY21), 18% sales compounded in DF (considering muted growth in FY21), 18% sales compounded annual sales growth in emerging markets supported by 180 basis points margin expansion, and reduced financial leverage. Vaccine-related upside is yet to be captured in the earnings. Maintain Buy with target price of Rs 740 (26x FY22E earnings).

Conclusion

It is pertinent to note that pharma stocks like the entire markets are not too far away from their 52-week highs, including Cadila Healthcare. Therefore, caution maybe exercised before investing in stocks now, as the indices are at fresh lifetime peaks.

We advocate very staggered investing and that too with a long term view. Also, investing on declines maybe a better strategy for investors.

Disclaimer:

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles.

Story first published: Saturday, June 5, 2021, 8:28 [IST]



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RBI announces second round of G-SAP to keep yields in check

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In addition, a third round of bond buying has also been announced under G-SAP 1.0. The central bank has decided that another operation under G-SAP 1.0 for purchase of G-Secs of ₹40,000 crore will be conducted on June 17.

In a bid to manage the yield curve and enable the government to borrow at lower rates, Reserve Bank of India governor Shaktikanta Das said on Friday there would be a second round of the Government Securities Acquisition Programme (G-SAP) in the second quarter of the financial year, given that the earlier two auctions had evoked keen interest from market participants with bid cover ratios of 4.1 and 3.5, respectively.

Das said the central bank has decided to undertake G-SAP 2.0 in Q2 of FY22 by conducting secondary market purchase operations of ₹1.20 lakh crore to support the market. In addition, a third round of bond buying has also been announced under G-SAP 1.0. The central bank has decided that another operation under G-SAP 1.0 for purchase of G-Secs of ₹40,000 crore will be conducted on June 17.

While this move will help keep borrowing costs lower for the government, there is good news for the private sector as well. The Confederation of Indian industry welcomed the move. Chandrajit Banerjee, director general of the CII, said: “While keeping the policy rates unchanged, the RBI’s move to continue to use its unconventional tools to keep yields stable amid a large government borrowing programme provides succour to keep borrowing costs contained for the private sector. The G-SAP 2.0 is one such step in this direction.”

The first two auctions conducted by the RBI under the first G-SAP programme helped keep interest rates benign for 91-day T Bills, commercial papers and certificates of deposit. The market was keenly looking out for another round of G-SAP, which the RBI announced on Friday.

Indranil Pan, chief economist at Yes Bank, said: “To enable the government to borrow at attractive rates, another round of bond buying was announced under G-SAP 1.0, while a G-SAP 2.0 was announced. We think that over the current FY, the RBI will not have any leeway to change its interest rates to provide support to the economy. Instead, it will do whatever necessary to push credit and liquidity to the stressed areas of the economy so as to prevent erosion of the supply chains in the economy.”

The central bank has been deploying both conventional and unconventional tools to manage liquidity in the system in consonance with its monetary policy stance. The governor said the timing of the second auction was aimed at replenishing the drainage of liquidity due to the restoration of the cash reserve ratio (CRR) to its pre-pandemic level of 4% of net demand and time liabilities (NDTL), effective May 22, 2021. The redemption of government securities worth around ₹52,000 crore during the last week of May has fully neutralised the CRR restoration.

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Income Tax Return: Important Due Dates In June For Taxpayers

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Taxes

oi-Vipul Das

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In the midst of the COVID-19 pandemic’s current phase, the government stated earlier this month that the deadline for filing income tax returns (ITR) for the fiscal year 2020-21 would be extended by two months, until September 30. The Central Board of Direct Taxes (CBDT) also postponed the deadlines for several tax compliance under the Income-Tax Act of 1961 in order to give respite to taxpayers. According to the official circular, the final deadline to file a TDS return (tax deducted at source) is June 30, 2021. The following are crucial dates according to the Income Tax Department that taxpayers should keep in mind for some tax compliance due this month – June 2021:

Income Tax Return: Important Due Dates In June For Taxpayers

June 7 2021: Deposit of tax deducted/collected for the month of May 2021 is due on this date. All amount deducted/collected by a government office, however, must be paid to the Central Government’s credit on the same day when tax is paid without the issuance of an Income-tax Challan.

June 14 2021: The deadline for the issuance of TDS certificate for tax deducted under Section 194-IA, Section 194-IB and Section 194M in the month of April 2021.

June 15 2021

  • The due date for submitting Form 24G by a government office where TDS/TCS has been paid without the issuance of a challan for the month of May 2021. Circular number. 9/2021, dated 20-05-2021, extended the deadline for submitting Form 24G for the month of May 2021 from June 15, 2021 to June 30, 2021.
  • Issuance of quarterly TDS certificates (in respect of tax deducted for non-salary payments) for the fiscal quarter ending March 31, 2021.
  • The first advance tax installment date for the fiscal year 2022-23.
  • Employees will get a certificate of tax deducted at source for salary paid and tax deducted during the Fiscal Year 2020-21. The final deadline for issuance of TDS certificates in respect of tax deducted from salary received during Fiscal Year 2020-21 has been extended from June 15, 2021 to July 15, 2021 under Circular No. 9/2021, dated 20-05-2021.
  • Deadline for a stock exchange to provide a statement in Form No. 3BB in respect of transactions in which client codes were amended after registration in the system for the month of May 2021.
  • Submitting a statement (in Form No. 64D) of income received or credited to a unit holder by an investment fund for the fiscal year 2020-21. Circular no. 9/2021, dated 20-05-2021, extended the deadline for filing Form 64D statement from June 15, 2021 to June 30, 2021.

June 29, 2021: Due date for an eligible investment fund to e-file a statement (in Form No. 3CEK) under section 9A in terms of its activities in the financial year 2020-21.

June 30, 2021

  • The deadline for submitting a challan-cum-statement for tax deducted under Section 194-IA, Section 194-IB and Section 194M in the month of May 20, 2021.
  • The due date for submitting a return for the financial year 2020-21 in respect of securities transaction tax.
  • The due date for filing a quarterly return of a banking company’s non-deduction of tax at source from interest earned on time deposit for the quarter ending March 31, 2021.
  • Alternative Investment Fund (AIF) will provide a statement (in Form No. 64C) to unit holders regarding income distributed during the previous financial year 2020-21. The deadline for submitting Form 64C statements has been extended from June 30, 2021 to July 15, 2021 under Circular No. 9/2021, dated 20-05-2021.
  • Section 35AC(4)/(5) declaration by an authorised institution/public sector company for the fiscal year ending March 31, 2021.
  • Deadline for providing a statement of income given to unit holders by a business trust for the financial year 2020-21. This declaration must be made by the unit holders in form No. 64B.
  • The deadline for linking an Aadhaar number to a PAN. The deadline for linking an Aadhaar number to a PAN has been pushed up from March 31, 2021 to June 30, 2021, according to Notification S.O. 1432(E) dated March 31, 2021.
  • Filing of tax under the Direct Tax Vivad se Vishwas Act, 2020 is free of charge. The deadline for paying income tax under the Direct Tax Vivad se Vishwas Act, 2020, without penalty has been extended to June 30, 2021 under Notification S.O. 1704 (E), issued on April 27, 2021.
  • Deadline for submitting Form 24G by a government office where TDS/TCS for the month of May 2021 was paid without the issuance of a challan. Circular number. 9/2021, dated 20-05-2021, extended the deadline for submitting Form 24G for the month of May 2021 from June 15, 2021 to June 30, 2021.
  • The deadline for submitting the quarterly TDS statement for the quarter ending March 31, 2021. This date has been pushed up from May 31, 2021 to June 30, 2021, according to Circular No. 9/2021, dated 20-05-2021.
  • Deadline for submitting a statement of financial transactions (in Form No. 61A) as required by sub-section (1) of Section 285BA of the Income Tax Act for the fiscal year 2020-21. Circular number. 9/2021, issued 20-05-2021, extended the deadline for submitting financial transaction statement for the financial year 2020-21 from May 31, 2021 to June 30, 2021.
  • Deadline for reporting financial institutions to e-file annual statement of reportable accounts required under section 285BA(1)(k) (in Form No. 61B) for the calendar year 2020. Circular number. 9/2021, dated 20-05-2021, extended the deadline for submitting a statement of reportable accounts for the calendar year 2020 from May 31, 2021 to June 30, 2021.
  • Filing return of a tax deduction for contributions made by the trustees of an authorized superannuation fund. Circular number. 9/2021, dated 20-05-2021, has extended the deadline for filing tax deduction returns from May 31, 2021 to June 30, 2021.
  • Submitting a declaration (in Form No. 64D) of income received or credited to a unit holder by an investment fund for the previous financial year 2020-21. Circular no. 9/2021, dated 20-05-2021, has extended the deadline for filing Form 64D declaration from June 15, 2021 to June 30, 2021.

Note

The Income Tax Department announced on its official Twitter account yesterday that the income tax e-filing portal 2.0 (incometax.gov.in) would include an all-new mobile app. According to a report by PTI, the Income Tax Department has stated that the new portal will be simple to use on smartphones and that details on pre-filed income tax records, ITR Form, and Saral Income Tax facilities would be available on the platform. The new e-filing platform will be introduced on June 7, 2021, according to the IT Department’s tweet. On the official website of the Income Tax Department, the benefits of the new e-filing portal 2.0 are also listed. To learn more about the benefits, click here.

Story first published: Friday, June 4, 2021, 16:01 [IST]



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How To Manage PPF Account Upon Maturity?

Personal Finance

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Investment

oi-Vipul Das

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Public Provident Fund (PPF) is a government-backed debt investment vehicle that pays a quarterly adjustable rate of interest set by the government. When it comes to most popular long-term investments such as Equity Mutual Funds, National Pension System, Higher Return Fixed Deposits, Long Term Bonds and so on, the Public Provident Fund (PPF) is among the most popular risk-free options. PPF now has a compounded yearly interest rate of 7.1 per cent, which is much higher than the returns of leading bank FDs. It also has EEE status, which implies that the principal amount invested, the interest earned, and the money you get back at maturity are all free from taxation.

Individuals or minors can open a PPF account by making an initial deposit of Rs 500 up to a ceiling of Rs 1.5 lakh per year. PPF has a 15-year maturity period, but depositors can make withdrawals after 5 years if certain conditions are met, such as the account holder, spouse, or dependent children suffering from serious illness, the account holder or dependent children pursuing higher education, or the account holder changing his or her residency status. You have three alternatives once your PPF account matures. You can choose from one of these three options, which we’ll go through briefly below.

Close your PPF account and withdraw the money

Close your PPF account and withdraw the money

After completing the required 15 years of service, you can simply close your account and withdraw your funds. The amount of your investment, as well as any earned interest, can be withdrawn and the account can be closed by filing Form C and submitting it along with the account passbook at your concerned bank or post office. However, in the event of the account holder’s death, the account will be closed, and the nominee or legal heir(s) will not be permitted to make further contributions. PPF interest will be provided until the end of the preceding month in which the account is closed if it is closed due to death.

Extend your PPF account without making fresh contributions

Extend your PPF account without making fresh contributions

Upon the 15-year of maturity term, the PPF account holder can extend his account for a block of 5 years without making any additional contributions. You do not need to notify the post office or bank by submitting any forms if you decide not to make any fresh contributions to your PPF account once it matures. You can only withdraw once every financial year if you do not want to extend your PPF account. The maximum amount that can be withdrawn is 50% of the balance at the end of the fourth financial year or 50% of the balance at the preceding year, whichever is lower.

Extend your PPF account by making fresh contributions

Extend your PPF account by making fresh contributions

In this case, the depositor should notify the post office or bank that they desire to continue their PPF account with new contributions by filing Form H with a minimum deposit of Rs 500. If the depositor does not file Form H, the PPF account will be considered irregular, and new contributions will not gain interest. The account holder will not be entitled for a tax benefit under section 80C of the Income Tax Act if the form is not submitted and contributions are made. However, in an extended account with contributions, one withdrawal is allowed every fiscal year, up to a maximum of 60% of the balance at the time of maturity in a 5-year block.

What should you do?

What should you do?

One of the myriad reasons why the PPF outperforms alternatives like the 5-year tax-saving bank FD is lock-in with a low-interest rate. Unlike fixed deposits of banks, where the interest rate is guaranteed for the duration of the deposit, the PPF interest rate is flexible and can fluctuate every quarter. This implies that if economic growth rises, the interest rate on PPF will hike as well, and your deposit will begin to provide a good premium. PPF is one of the finest solutions if you are a conservative investor searching for tax savings as well as a guaranteed return as well as the security of your deposit. When most leading banks are now offering 5.5 per cent or lower interest rates on their 5-year tax-saving FDs, the interest rate given on PPF is unquestionably attractive. If you are a long-term investor, a PPF account can help you establish a big tax-free corpus even after multiple extensions of your account. However, investors with a high-risk profile and having a higher tax-slab of 30% may diversify their holdings by keeping some of their money in debt instruments. PPF is a possibility for such investors if the investment is for a long-term objective, as it provides the needed safety, tax-free nature and excellent returns in the debt component.

Story first published: Friday, June 4, 2021, 11:01 [IST]



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