Category: Personal Finance

SBI FD Vs Post Office FD: Which Can Be A Good Bet For Conservative Investors?

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SBI Fixed Deposit For Regular Citizens

SBI FDs with a maturity period of 7 to 45 days will yield 2.9 per cent. Term deposits with a maturity period of 46 to 179 days will yield 3.9 per cent. FDs with maturity ranging from 180 days to less than one year will yield 4.4 per cent. Deposits with a maturity period of one year or less than two years will now offer 10 basis points more. The interest rate on these deposits will be 5% instead of 4.9 per cent. FDs maturing in two to three years will yield 5.1 per cent. FDs with a maturity period of three to five years will offer 5.3 per cent, while term deposits maturing in five to ten years will offer 5.4 per cent. These rates are in effect from January 2021. Below are the SBI FD rates for the general public for a deposit amount of less than Rs 2 Cr.

Tenure Rate of interest
7 days – 45 days 2.90%
46 days – 179 days 3.90%
180 days – 210 days 4.40%
211 days – 364 days 4.40%
1 year – 1 year 364 days 4.90%
2 years – 2 years 364 days 5.10%
3 years – 4 years 364 days 5.30%
5 years – 10 years 5.40%

SBI Fixed Deposit For Senior Citizens

SBI Fixed Deposit For Senior Citizens

The State Bank of India (SBI), India’s largest lender, has recently extended its SBI WeCare FD for senior citizens for the third time, until June 30. During the coronavirus pandemic, SBI FD for senior citizens was introduced to offer a higher interest rate to senior citizens. In the Retail TD category, a special SBI Wecare Deposit for Senior Citizens was introduced, in which an additional premium of 30 basis points (over and above the current 50 basis points) will be provided to Senior Citizens on their retail TD for tenors of ‘5 Years and Over’ only. The interest rate on SBI’s special FD scheme for senior citizens will be 80 basis points (bps) higher than the general public rate. SBI currently offers a 5.4 per cent interest rate on five-year fixed deposits to the general public. The interest rate applied to a fixed deposit made by a senior citizen under the special FD scheme is now 6.20 per cent respectively.

Tenure Rate of interest
7 days – 45 days 3.40%
46 days – 179 days 4.40%
180 days – 210 days 4.90%
211 days – 364 days 4.90%
1 year – 1 year 364 days 5.40%
2 years – 2 years 364 days 5.60%
3 years – 4 years 364 days 5.80%
5 years – 10 years 6.20%

Post Office Time Deposit

Post Office Time Deposit

The post office time deposit scheme is identical to those offered by banks. Term deposits are available at post offices for one to five years. On April 1, 2021, the interest rate on Post Office deposits was modified. The Government of India has withdrawn the previously declared lower rate of interest on Small Savings Schemes, and the rate of interest on these will now remain unchanged, and it will provide the same interest rate as it was in the last quarter of 2020-2021. As a result, it gives a 5.5 per cent interest rate on a one-year or three-year time deposit. The Post Office provides a 6.7 per cent interest rate for a five-year time deposit account.

Why Small Saving Schemes Is Important For Your Personal Finance?

Key benefits of post office time deposit

Key benefits of post office time deposit

The major advantages of the post office time deposit scheme are listed below:

  • Deposits in post office time deposit schemes can be made for one, two, three, or five years, with only one deposit allowed per account.
  • Transferring time deposit accounts from one post office to another can be done.
  • Time deposit accounts can be opened and managed individually or jointly.
  • When a time deposit account matures, account holders have the option of extending its term.
  • One can open a post office fixed deposit account by depositing a minimum amount of Rs 1000 and in multiple of Rs 100 with no upper limit.
  • This account can be opened and managed by a minor who is 10 years old or older. A parent or guardian can also open a Post Office Time Deposit account for a minor.
  • As it is backed by the government of India, it provides guaranteed returns.
  • Section 80C of the Income Tax Act allows for a tax exemption on 5-year time deposits.
  • Since the principal amount invested and the interest received are covered by a sovereign guarantee, POTD is considered better than FDs.

Post Office Time Deposit Interest Rates

Post Office Time Deposit Interest Rates

The below are the post office time deposit account interest rates for the period of April 1, 2021, to June 30, 2021.

Tenure ROI
1 Year 5.50%
2 Years 5.50%
3 Years 5.50%
5 Years 6.70%

Taxation

Taxation

The SBI Tax Saving Fixed Deposit Scheme enables deposits to gain a reasonable interest rate on lump-sum deposits up to Rs.1.5 lakh and also provide tax deductions of up to Rs.1.5 lakh under section 80C of the Income Tax Act. On their fixed deposit, senior citizens will earn an extra 0.50 per cent interest. Because of the tax incentives, there is a 5-year lock-in period. For a lock-in period of 5-year, the general public can earn an interest rate of 5.4% whereas senior citizens can earn an interest rate of 6.2% on tax-saving FD of SBI. This scheme allows you to deposit a minimum of Rs.1,000 and a limit of Rs.1.5 lakh. Income tax benefits, on the other hand, are only valid on a 5-year post office time deposit account. Depositors will be entitled to claim up to Rs.1.5 lakh of income tax deduction under Section 80C of the Income Tax Act, 1961.

Our take

Since the features of a Time Deposit Scheme are ideal for short-term investment and come with the assurance of assured returns which makes it a good bet for conservative investors. Investors seeking an option to bank fixed deposits should consider investing in Post Office Time Deposit Schemes, which pay better interest rates than fixed deposits for both the general public and senior citizens. You can also opt to invest in these schemes if you are an ultra-conservative investor with a low-risk appetite and a need for guaranteed returns. SBI Fixed Deposits, on the other hand, provide the highest level of security as well as consistent returns. SBI FD is perfect for you if you want complete security for your investments as well as a low but assured interest income. If you’re trying to save up a certain amount for potential use or just want to optimize your returns, go with the cumulative interest payment option. If you’re looking for a regular stream of interest, the non-cumulative alternative is the better bet. If you’re 60 years old or older, we recommend investing in a Post Office Time Deposit or a Senior Citizen Savings Scheme rather than the SBI ‘WeCare’ scheme, which is a special senior citizen FD with a 5-year term. You will, without a doubt, get a 0.80 per cent higher rate of interest than the regular rate under this deposit scheme. However, the interest rate on a post office time deposit is 6.7 per cent for a 5-year term, which is slightly higher than the rate on SBI’s special FD scheme, which is just 6.2 per cent until June.



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Why First 4 Days Of April Hold Significance For PPF?

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Personal Finance

oi-Roshni Agarwal

|

PPF is a famous tax saving investment that enjoys EEE tax exempt status in respect of contribution made, interest earned and on maturity proceeds. And now as the fresh financial year has just begun and you may be tempted to lock current high rates after a sudden rate cut move which was later reversed. Here we will tell you why April 1-4 hold significance for PPF:

Why First 4 Days Of April Hold Significance For PPF?

Why First 4 Days Of April Hold Significance For PPF?

Say your PPF investment as at the end of March 31, 2021 was Rs. 10 lakh and you invest the maximum allowed Rs. 1.5 lakh into it again as a fresh contribution on April 3 then PPF balance as on April 3 shall be Rs. 11.5 lakh. And accordingly as per the rule, the minimum balance between April 5 and April 30 shall be Rs. 11.5 lakh. So for the April month the current 7.1% interest rate shall be payable on this amount of Rs. 11.5 lakh i.e Rs. 6804.

And now considering that you make contribution after April 5 say on April 7 then even though the balance on April 7 shall be Rs. 11.5 lakh, the minimum balance between 5th April and 30th April shall be Rs. 10 lakh, so interest earning in such a case shall be on Rs. 10 lakh even though you made a contribution in the first week of April and it will amount to Rs. 5917. So, here you lost out an interest of almost Rs. 900 just by delaying the contribution into the instrument by few days time.

Here note that PPF interest is calculated monthly but is credited only once at the financial year ending. Hence there is no monthly compounding of interest for PPF. Furthermore after you have exhausted your annual contribution to PPF at the start of the FY only, the minimum balance per month would remain the same.

But in a case if your pocket does not allows contribution to PPF all at one go that is even fine. But then your interest earnings shall be slightly lower.

GoodReturns.in



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Why Small Saving Schemes Are Important For Your Personal Finance?

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Investment

oi-Vipul Das

|

The government of India has introduced a range of investment vehicles widely known as small savings schemes of the post office. The PPF, the National Savings Certificate (NSC), the Senior Citizens Savings Scheme (SCSS), Post Office Recurring Deposit, 5-Year Time Deposit and the Sukanya Samriddhi Scheme are among them. The funds contributed by individuals in these schemes is forwarded to the Centre and deposited in the National Small Savings Fund (NSSF). Since the government collects the funds for these savings schemes they are backed by the government. For the first quarter of 2021-22, the government revoked its order cutting interest rates on small savings schemes such as National Savings Certificates (NSC) and Public Provident Fund (PPF). The Finance Ministry declared a 50-110 basis point reduction in interest rates for small savings schemes on Wednesday. Small savings scheme interest rates are calculated on a quarterly basis. Union Finance Minister Nirmala Sitharaman stated in a tweet on Thursday that the interest rates of the Government of India’s small savings schemes will stay the same as they were in the last quarter (January-March) of the fiscal year 2020-21. Here, we will discuss why small savings schemes should be a must for your personal finance.

Why Small Saving Schemes Are Important For Your Personal Finance?

Tax-saving benefit

Fixed income options such as tax-saving fixed deposits, National Savings Certificates (NSC), Sukanya Samriddhi Account Scheme, Senior Citizen Savings Scheme, and the Public Provident Fund (PPF) are suitable for those seeking tax-saving investment options with minimal risk and volatility, as well as guaranteed returns. Though several small savings schemes are currently fetching decent returns along with tax incentives under section 80C, 5-year tax-saving fixed deposits are currently offering a low-interest rate of just 5.4 per cent, such as SBI. Here we will compare the post office savings schemes which are providing better returns than bank FDs along with tax benefits. (W.e.f 1.4.2021 to 30.6.21)

Scheme Rate of interest Minimum and maximum deposit Tax benefits
Post Office Time Deposit Account (TD) 1-3 year (5.5%), 5 year-6.7% Rs 1000 and in multiple of Rs 100, no upper limit 5 year TD qualifies for the benefit of section 80C of Income Tax Act, 1961.
Senior Citizen Savings Scheme (SCSS) 7.40% Rs 1000 up to Rs 15 lakhs Qualify for deduction under section 80C of Income Tax Act.
Public Provident Fund Account (PPF) 7.10% Rs 500 to Rs 1.5 lakh Tax deduction under section 80C of Income Tax Act up to rs 1.5 lakh
National Savings Certificates (NSC) 6.80% Rs 1000 and in multiple of Rs 100, no upper limit Qualify for deduction under section 80C of Income Tax Act.
Sukanya Samriddhi Accounts 7.60% Rs 250 to Rs 1.5 lakh Deposit up to Rs 1.5 lakh exempt under Section 80C, interest and amount received on maturity is tax free

Withdrawal facility

The post office, nationalised banks, and several major private lenders operate small savings schemes. By visiting a post office or a bank branch and filling out the necessary paperwork, you can invest in or withdraw from these schemes. Banks such as SBI have made an online process, especially for those who want to contribute to small savings accounts like the PPF, which means you can easily open an account and withdraw funds from your PPF account. Apart from SBI, there are banks like HDFC, Axis and ICICI Bank which allow investors to open a PPF account online. To know the process to open an account with any of these banks, click here. Premature withdrawal of the FD is often subject to more strict criteria. In the first six months, Post Office FDs cannot be prematurely closed. If you withdraw within the first 6 and 12 months, you will only receive the same rate of interest as a Post Office savings account, which is currently capped at 4%.

Better returns than bank FDs

Undoubtedly post office savings schemes provide better returns than bank FDs. If we compare the interest rates on FD of the top 5 leading banks of India such as SBI, ICICI, Axis, HDFC and Kotak Mahindra Bank, they are just providing an interest rate ranging from 2.55 to 5.75% only. Small savings rates, on the other hand, are much better than these banks’ FDs and are updated every quarter. In certain cases, though, if you’ve locked in an interest rate, you’ll continue to benefit from it even though rates fall later. Bank FD rates are comparatively lower than small savings rates and do not offer tax benefits on interest, except senior citizens who can save up to Rs 50,000 a year under Section 80 TTB of the Income Tax Act, 1961. In the five-year pool, the difference between bank FDs and Post Office FDs, which are part of small savings schemes, is higher. SBI FD offers 5.4 per cent, HDFC Bank FD offers 5.5 per cent (for five years and one day), and ICICI Bank FD offers 5.35 per cent. On the other side, a five-year Post Office deposit provides 6.7 per cent, and a five-year National Savings Certificate offers 6.8 per cent. The Public Provident Fund (PPF), which is not purely identical to FDs because of its 15-year term, is yielding 7.1 per cent. Senior citizens get 0.5 per cent higher rates from banks, but they can also reap the benefits of the 5-Year Senior Citizens Savings Scheme (SCSS), which pays 7.4 per cent. The SCSS has a five-year limit that can be extended for three more years. The government guarantees Post Office FDs. The tax status is similar to that of bank FDs. For Post Office accounts, though, you may not be able to get the same standard of net banking and bill payment facilities.

Benefits for senior citizens

Last week two leading banks of India SBI and HDFC extended their special FD schemes for senior citizens until June 2021. The Senior Citizen Care FD scheme, provided by HDFC Bank, is a special fixed deposit (FD) scheme for senior citizens. On these special FDs for senior citizens, the bank proposes higher interest rates. On these deposits, HDFC Bank gives a 75 basis point (bps) higher interest rate. The interest rate on a fixed deposit made by a senior citizen under the HDFC Bank Senior Citizen Care FD will be 6.25 per cent. These rates are in force from Nov 20. In the Retail TD category, a special SBI Wecare Deposit for Senior Citizens is added, in which an additional premium of 30 basis points (over and above the existing 50 basis points) will be provided to Senior Citizens on their retail TD for tenors of ‘5 Years and Over’ only. The deposit scheme “SBI Wecare” has been extended until June 30, 2021. The interest rate on SBI’s special FD scheme for senior citizens will be 80 basis points (bps) higher than the general public rate. SBI presently proposes a 5.4 per cent interest rate on five-year fixed deposits to the general public. If a senior citizen deposits in a fixed account under the special FD scheme, the interest rate will be 6.20 per cent respectively. Though the deadline of special FD schemes of these two banks has been extended until June, there are some post office schemes such as the Senior Citizens Savings Scheme, Post Office Monthly Income Scheme, which are currently providing higher rates of 7.4% and 6.6% respectively.

Our take

Savings Schemes are savings strategies provided by the government and other public sector financial institutions to the risk-averse investors of India. Investors can enable their wealth to cherish at higher interest rates and gain benefits such as tax exemptions by government-backed saving schemes. Savings schemes appeal to a diverse investor base, enabling them to prepare for a range of life pursuits such as retirement, children’s higher education, marriage, and so on. They are perfect for creating long-term capital because they have a fixed lock-in period and have strong returns. To simplify, there are a number of saving schemes available that appeal to a wide range of risk profiles and investors. Since they are all backed by the government, they all pledge capital appreciation and sustainability at competitive rates. To pick the best choice, bear in mind the interest rates, tax advantages, and lock-in period of various schemes. You can also invest in a mix of the best investment strategies for optimum wealth generation.



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New Income Tax Return Forms for AY 2021-22: Check Details Here

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Taxes

oi-Sneha Kulkarni

|

In light of the ongoing COVID pandemic and to make things easier for taxpayers, no significant changes to the ITR Forms have been made in comparison to last year’s ITR Forms. Only the bare minimum changes were made as a result of amendments to the Income-tax Act of 1961. In comparison to last year, there has been no change in the way ITR Forms are filed. The assessment year for income earned in the financial year 2020-21 is 2021-22. The ITR must be filed for income earned from April 1, 2020, to March 31, 2021, in the assessment year 2021-2022, with the last date being July 31 of the relevant assessment year unless extended by the government. The assessment year (AY) follows the fiscal year (FY). This is when the income earned during the fiscal year is assessed and taxed. Both the FY and the AY begin on April 1 and end on March 31.

New Income Tax Return Forms for AY 2021-22: Check Details Here

Who can file ITR 1 Sahaj?

The ITR 1-Sahaj is for individuals who are residents and have a total income of up to Rs 50 lakh from salaries, one house property in single ownership, interest income, family pension income, and agricultural income of up to Rs 5,000.

Who can file ITR Form 4 (Sugam)?

Individuals, HUFs, and Firms (other than LLP) who are residents and have total income up to Rs.50 lakh, one house property (single ownership), income from business and profession computed under sections 44AD, 44ADA, or 44AE or Interest Income, Family Pension, and agricultural income up to Rs.5,000 are eligible for ITR 4-Sugam.

Who can file ITR-2?

Individuals and HUFs without business or professional income and thus not eligible to file Sahaj can file ITR-2. A director of any company, as well as anyone who owns unlisted equity shares of a company, will be required to file ITR-2 returns. Individuals who own more than one house property should also file an ITR-2 income tax return. ITR-2 cannot be used by any individual taxpayer who earns money from a business or profession.

Who can file ITR-3?

Those with income from a business or profession can file Form 3 of the ITR. required to file the ITR 3. Individuals who earn money from the following sources are eligible to file ITR 3:

a. Running a business or practising a profession (both tax audit and non-audit cases)

b. Income from a house, salary/pension, capital gains, and income from other sources may all be included in the return.

Who can file ITR-5?

Firms, LLPs, AOPs (Association of Persons) and BOIs (Body of Individuals), Artificial Juridical Person (AJP), Estate of Deceased, Estate of Insolvent, Business Trust, and Investment Fund are all eligible to file this income tax return. Persons other than individual, HUF and companies i.e. partnership firm, LLP etc. can file ITR Form 5

Who can file ITR-6?

Companies can file ITR Form 6. Companies that are not eligible for an exemption under Section 11 must file their income tax returns in ITR-6 format. Companies that receive income from property held for charitable or religious purposes are exempt under section 11. The Income Tax Department must receive this income tax return electronically and with a digital signature.

Who can file ITR-7?

Trusts, political parties, charitable institutions etc. claiming exempt income under the Act can file ITR-7. When individuals, including companies, fall under section 139(4A), section 139 (4B), section 139 (4C), or section 139 4D, should file an ITR-7 form. It is recommended that taxpayers match the taxes deducted, collected, or paid by or on their behalf with their Tax Credit Statement Form 26AS. The ITR-7 form is divided into two parts with a total of 23 schedules. Part A consists of general information. From the 2019-20 fiscal year onwards, a taxpayer must also provide information on the registration or approval details. Part-B – Outline of total income and tax computations with regard to taxable income.



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Growth, earnings, asset quality to be top priorities for Indian Bank

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Indian Bank MD & CEO Padmaja Chunduru

Chennai-based public sector lender Indian Bank, which has completed one year of amalgamation of Allahabad Bank with itself, on Thursday said the three priorities, going forward for the combined entity, would be growth, earnings and asset quality.

Indian Bank, which has been registering business and profit growth during the last three quarters of FY 21, said the bank has emerged as one of the best banks in the country and would put customer satisfaction on the top of its focus areas.

After launching the bank’s new vision and mission statement, Padmaja Chunduru, MD & CEO, Indian Bank, said the bank’s primary focus will be on customer service and satisfaction. On the bank’s capital adequacy, she said Indian Bank was one of the highest capitalised PSU banks in the country and hence had no requirement to seek fund infusion from the central government, referring to the Centre’s decision to infuse capital into four public sector banks.

Chunduru said the triple A ratings with stable outlook that the bank has received recently from both Crisil and CARE Ratings – the best ratings in the country for a bank – would help the bank to raise funds at cheaper rates and from many more investors. This should also help the bank emerge as a favourite pick for the investors, she said, adding that the team has already been started working towards that direction.

V VShenoy, executive director, Indian Bank, said employees are the most important and valuable assets in providing insights into customer experience and act as brand ambassadors. Indian Bank commits to foster excellence through a journey of growth, individual development and robust employee experience and Indian Bank’s HR mission aims for this, he said.

K Ramachandran, executive director, Indian Bank, while launching Chatbot named ADYA (Automated Dost for Your Assistance) said that it is a on-premise, artificial intelligence-based tool that facilitates customers to access information instantly from the corporate website.

Imran Amin Siddiqui, executive director, Indian Bank, launched IB – Smart Office which is a platform for employees for processing office notes and letters digitally across all administrative offices and branches. He said that IB – Smart Office is a complete green initiative of the bank which assists in cost-saving on printing and stationery, improved turn around time, increased productivity of employees, better control and compliance through various reports.

On the occasion, the bank’s new tagline “Aapka Apna Bank – Har Kadam Aapke Saath” in Hindi and “Your own Bank – Always with You” in English was also launched.

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HDFC Ltd Hikes Interest Rates On FD By 25bps, Check Details Here

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Investment

oi-Vipul Das

|

HDFC Ltd is a decent choice if you want to place your money in AAA-rated fixed deposits (FDs). Interest rates on FDs maturing between 33 and 99 months have been increased by up to 25 basis points by the mortgage lender. One basis point (bps) is equivalent to 0.01 per cent. The rates are in effect from March 30. The annualised return on the 33-month fixed deposit has risen to 6.2 per cent. The annualised returns on the 66-month and 99-month fixed deposits will be 6.5 per cent and 6.65 per cent, respectively. In turn, senior citizens can earn a 25 basis point rate rise above the regular interest rate. Based on one’s requirements, there are a variety of tenure options ranging from 12 to 120 months.

HDFC Ltd Hikes Interest Rates On FD By 25bps, Check Details Here

There are also different payment choices to select from, such as monthly, quarterly, half-yearly, or yearly, relying on the necessity. Investors can consider company deposits that have the top-rated while having their own risk level in mind. It is preferable to diversify your deposit across multiple high-rated deposits depending on your risk appetite needs i.e. short term or medium term. According to financial advisors, when investing in debt instruments, an investor must first look for security, then liquidity, and finally returns. It is also important to remember that these FDs should not be compared to bank FDs. When it comes to premature closure, these top-rated FDs don’t offer much liquidity. And even corporate fixed deposits are not covered by DICGC insurance of Rs 5 lakhs if compared to bank FDs. Except for HDFC Ltd. Fixed Deposit, there are also some high rated corporate FDs that are currently providing higher returns than bank FDs and small savings schemes. For instance, Hawkins Cooker FD Scheme, Shriram City Union Finance, Shriram Transport Finance, HUDCO and so on are currently providing interest rates ranging from 8.5 to 9%, 7.25 to 8.09%, 7,25 to 8.90%, and 7 to 7.5%. To know more about top-rated company fixed deposits click here.

Meanwhile, the Centre has revoked its move to cut rates on small savings schemes, which was announced last evening. Finance Minister Nirmala Sitharaman made the announcement on Twitter on April 1. She stated that “Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021.”



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5 Financial Tasks To Carry Out As The New Financial Year Begins

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Personal Finance

oi-Roshni Agarwal

|

While in order to continue with some of your investments, filing belated tax return you needed to adhere to the financial year ending timeline, there are certain tasks that need to be attented to at the beginning of the fiscal year. Here we list out all such financial tasks:

5 Financial Tasks To Carry Out As The New Financial Year Begins

5 Financial Tasks To Carry Out As The New Financial Year Begins

1. Submitting form 15G/15H:

In case your income is below the taxable limit and you are not required to pay any taxes then to avoid deduction of TDS by your banker (banks deduct TDS before paying out interest on deposits), you need to submit form 15G or form 15H as applicable. These forms are required to be deposited with the financial institution at the start of the financial year.

2. Taxation regime needs to be decided:

There are now two tax regimes available for a taxpayer to choose from. The latest that taxes taxpayers at a lower slab rate but at the cost of around 70 deductions that he or she cannot avail of. This if done at the start of the year will enable better tax planning. Nonetheless, those who have been more deductions as well as exemption under the Income Tax Act will be better off sticking with the old regime.

3. Plan your taxes now:

You can start with your tax planning exercise right away as many times last-minute efforts do not serve the long term financial goals of the concerned taxpayer. The investment opted for availing deduction or the various exemption might not be in line with investor’s risk-profile or may even carry a longer lock-in period.

4. Take on a proactive approach to file return for FY 20-21:

For any of the financial year, the due date in a usual scenario for most salaried taxpayers is July 31. So, for now you can begin collecting all documents that are required to file the ITR such as investment statements, bank statements, house loan principal repayment certificate, form 26AS to avoid last minute rush.

5. Investment in PPF:

If you contribute towards Public provident fund (PPF) at the start of the fiscal year, you can earn interest income for the entire year. This is in contrast to the situation where an investor for tax planning purpose invests in the government backed instrument towards the end of the fiscal year and in such a situation you lose on the interest component. And interestingly if you invest in PPF month on month then it is best to contribute by the 5th of every month as the interest calculation is done on the balance on that day of the month.

GoodReturns.in



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Benchmark indices starts the new financial year on a positive note; financials outperform, BFSI News, ET BFSI

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Market opened with a gap up at 14798.40 following the global peers but could not maintain the higher levels and took the support near the levels of 14700. However, Benchmark indices ended with a percent gain on the first day of the new financial year supported by the metal and financials.

At close, the Sensex was up 520.68 points or 1.05% at 50,029.83, and the Nifty was up 176.70 points or 1.20% at 14,867.40. Except FMCG, all other sectoral indices ended in the green with Nifty metal index rose 5% and PSU bank index added 2.6%.

The Nifty Bank Index ended higher at 33,858 adding a good 1.66%. Amongst the top gainers were- RBL Bank at Rs 216 adding 4.17% followed by Federal Bank at Rs 78 (4.02%), Bandhan Bank at Rs 350 (3.54), AU Small Finance at Rs 1,267 (3.26%), Kotak Mahindra Bank at Rs 1,804 (2.94%), Axis Bank at Rs 713 (2.23%) and ICICI at Rs 594 (2.11%).

Nifty Financial Services ended higher at 15,909 adding over 1.23%. Amongst the biggest gainers were- Indiabulls Hsg at Rs 204 adding 4.15% followed by Bajaj Finance at Rs 5,272 (2.37%), Bajaj Finserv at Rs 9,781 (1.25%), Muthoot Finance at Rs 1,214 (0.70%), Chola Invest. at Rs 562 (0.66%) and Power Finance at Rs 114 (0.57%).

Stock in Talk
Indian Overseas Bank: Indian Overseas Bank in its BSE filing said it has received a capital infusion of Rs 4,100 crore from the government towards the contribution of Central Government in the preferential allotment of equity shares of the bank during the Financial Year 2020-21, as government’s investment

Bank of India: The bank in a BSE filling informed that Government of India has infused capital of Rs 3,000 crore in Bank of India for the purpose of preferential allotment of equity shares after obtention of shareholder’s approval in the extraordinary general meeting and other related regulatory approvals

Other key takeaways

GST collection in March 2021 at record high of Rs 1.23 lakh crore
GST Revenue collection for March’ 21 sets a new record. A new record of Rs 1,23,902 crore in form of Goods and Service Tax (GST) revenue was collected in the month of March 2021, the Ministry of Finance said on April 1.

“The gross GST revenue collected in the month of March 2021 is at a record of Rs 1,23,902 crore of which CGST is Rs 22,973 crore, SGST is Rs 29,329 crore, IGST is Rs 62,842 crore (including Rs 31,097 crore collected on import of goods) and cess is Rs 8,757 crore (including Rs 935 crore collected on import of goods),” an official release stated

Nifty futures lot size cut to 50 from 75,effective from July contracts
All monthly expiry contracts starting from the July expiry contract will have a lot size of 50. July contracts will start trading from April 30, 2021. However, according to a SEBI circular, the April, May, and June contracts will continue to have a lot size of 75. The circular also stated that the lot size of all existing Nifty long term options contracts (having expiry greater than 3 months) shall be revised from 75 to 50 after the expiry of June 2021 contracts.

Govt to infuse Rs 14,500 crore in 4 PSU banks through recapitalisation bonds
The Finance Ministry on Wednesday notified that the government will infuse Rs 14,500 crore through recapitalisation bonds in four public sector banks. The notification issued by the finance ministry said that the government would infuse capital by issuing non-interest-bearing bonds to banks.

Currency market shut today
Indian currency market will remain shut on April 1 on account of annual bank closing. On March 31, Indian rupee ended near the day’s high at 73.11 per dollar versus Tuesday’s close of 73.38.



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Bitcoin’s Best First-Quarter Performance In Eight Years

Personal Finance

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Investment

oi-Sneha Kulkarni

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This financial year, bitcoin, the oldest and biggest crypto-currency in the world, boomed back in the spotlight to strengthen its digital reputation. Bitcoin ends the first quarter twice the year, compared to the S&P 500’s 5.8% profit. Prices doubled in 2021 to date, the best performance of Bitcoin for the first quarter of eight years. Bitcoin (BTC) trading around $58,438 as of 04.52 PM IST. Climbing 0.86% over the previous 24 hours.

Some analysts predicted that prices could jump to $70,000 on a ‘bull flag’ pattern shown in price charts, but opposing analysts criticised the model, saying that the flag was without a pole.

With the March Ides not being realised for hodlers, Bitcoin (BTC) has seen its most successful Q1 in eight years.

Bitcoin's Best First-Quarter Performance In Eight Years

For the financial year 2020-21, the BSE Sensex returned around 75%, while gold was flat.

Bitcoin’s price jumped in absolute dollars over the three month period, well beyond the next-best quarter of cryptocurrency (around $22,000), in its fourth quarter of 2020. in the first quarter.

The surest bet of cryptocurrency in the past week has pushed back to $60,000, which could lead the analysts to an all-time high in breach of this crucial psychological level. The record price of this month is now $61,557.

It also posted its highest price in the history of $61,700, not only with the largest cryptocurrency rise this time around by almost 30%.

Furthermore, Goldman Sachs, BNY Mellon, BlackRock, MasterCard, PayPal, and Visa have all incorporated Bitcoin into their respective ecosystems. PayPal’s US crypto holders will be able to pay in cryptocurrencies at any of the company’s global merchants.

Meanwhile, ethereum, the world’s second-largest cryptocurrency, has increased by 1,272.9% in the last year. As of March 31, the digital asset was trading around $1,828 after hitting a low of $130.



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From PF Tax Rules To LPG: 15 Important Changes That Will Take Effect From Today

Personal Finance

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1. LPG Price

The Indian Oil Corporation Limited reported on Wednesday that the price of domestic LPG cylinders has been lowered by Rs 10 per cylinder. The decision will take effect from April 1st, according to the statement. In order to offer relief to domestic LPG customers, IOCL declared that the price of a domestic LPG cylinder has been lowered by Rs 10 per cylinder in Delhi, from Rs 819 to Rs 809 per cylinder, effective April 1, 2021. In other markets, the same cut has been implemented. In Kolkata, an LPG cylinder will now cost Rs 835.50. LPG cylinders will be available at Rs 825 in Chennai. Whereas the price of an LPG cylinder in Mumbai will cost you the same as in Delhi.

2. Air travel to become expensive

2. Air travel to become expensive

Air travel will become more expensive from this month. The Directorate General of Civil Aviation (DGCA), the aviation authority, has increased the air security fee (ASF). The increase in ASF for domestic passengers is Rs 40, while the increase for overseas passengers is Rs 114.38.

3. Saral Pension Policy

From April, the Insurance Regulatory and Development Authority of India (IRDAI) has mandated that all life insurance firms provide a standard individual immediate annuity plan. Saral Pension is a scheme that will offer a minimum of Rs 1,000 per month, Rs 3,000 per quarter, Rs 6,000 per half-year, and Rs 1,2000 per year. The minimum age to purchase this policy is 40 years old, and the highest age is 80 years old. This will be a non-linked, non-participating immediate annuity policy with a single premium.

4. Standard personal accident insurance policy

4. Standard personal accident insurance policy

Starting from April 1, the insurance regulator has authorized both general and health insurers to provide a standard personal accident insurance policy. Saral Suraksha Bima, as its name suggests, will provide a minimum sum insured of Rs 2.5 lakh. The maximum sum insured under this scheme is Rs 1 crore. IRDAI stated that sum insured offers should be in multiples of Rs 50,000, but that insurers can offer more than that under this scheme. This policy is available to those above the age of 18. The maximum age limit is set at 70 years old.

5. Maturity gains in Unit Linked Investment Plan (ULIPs) to be taxed

The finance minister declared in Budget 2021 that if annual premiums are Rs 2.5 lakh or more, maturity gains in Unit Linked Investment Plan (ULIPs) would be taxed. If the maturity amount is a long-term gain, it will be taxed at a rate of 10%, and if it is a short-term gain, it will be taxed at a rate of 15%. The maturity proceeds of ULIP schemes were formerly tax-free. Only those ULIP policies purchased after February 1, 2021 will be affected. Those that pay annual premiums of less than Rs 2.5 lakh will also be eligible for tax deductions.

6. New deadline for filing the belated ITR or for revising a filed ITR

6. New deadline for filing the belated ITR or for revising a filed ITR

Previously, if you missed the 31 July deadline for filing your ITR, you could still file it by 31 March with a late fee. Likewise, whether you find an error or omission after filing your ITR, you have until March 31 of the same year to correct it. That being said, the Finance Bill for 2021-2022 proposes to shorten this time period by three months, allowing you to file a late ITR or revise your ITR until December 31 of the same fiscal year.

7. New tax rules on PF

Finance Minister Nirmala Sitharaman declared in Budget 2021 that interest on employee contributions to provident fund of over Rs 2.5 lakh per year would be taxed. Later, the Centre raised the deposit limit cap in provident fund to Rs 5 lakh per year, but interest will remain tax-free if no employer contribution is made. This limitation will only apply to contributions made on or after April 1, according to finance minister Nirmala Sitharaman. High-income earners and high-net-worth individuals (HNIs) will be impacted by this decision. Salaried employees who contribute more than the required 12 percent of basic pay in the Voluntary Provident Fund will also be affected.

8. For businesses with a turnover of more than Rs 5 crore, the HSN code is required

8. For businesses with a turnover of more than Rs 5 crore, the HSN code is required

Businesses with a turnover of more than Rs 50 crore will be required to generate an e-invoice starting in April under the Goods and Services Tax (GST). Starting in April, the Harmonised System of Nomenclature, or HSN code, will be required on all tax invoices, according to the finance ministry. On B2B invoices, those with a turnover of up to Rs 5 crore in the preceding financial year must have a four-digit HSN code.

9. Senior citizens above 75 years exempted from filing ITR

Senior citizens above the age of 75 will be exempted from filing income tax returns if their only source of income is a pension or interest. It is important to remember that senior citizens over the age of 75 are not exempt from paying tax, but rather from filing an income tax return (ITR) if they meet certain criteria. Filing income tax returns will not be required for those aged 75 and over who only have pension and interest income starting from April 1.

10. Dividend income to be included in the ITR for the fiscal year ended on March 31, 2021

10. Dividend income to be included in the ITR for the fiscal year ended on March 31, 2021

Dividend received from Indian companies and mutual fund schemes were tax-free in your hands until March 31, 2020, since the tax on the dividend or income distributed was paid by the company or mutual fund.

11. Extension the deadline for linking PAN with Aadhaar

Bearing in mind the problems resulting from the COVID-19 pandemic, the Central government on March 31 (Wednesday) extended the deadline for linking an Aadhaar number to a PAN from March 31, 2021 to June 30, 2021. “Date for issue of notice under section 148 of Income-tax Act,1961, passing of consequential order for direction issued by the Dispute Resolution Panel (DRP) & processing of equalisation levy statements also extended to 30th April, 2021,” the I-T department stated in a recent tweet.

12. Interest rates of small savings schemes shall continue to be at the rates which existed in the last quarter of 2020-2021

12. Interest rates of small savings schemes shall continue to be at the rates which existed in the last quarter of 2020-2021

The government today withdrew last evening’s announcement of significant interest rate cuts on small savings schemes. The turnaround comes on the day of the second phase of state elections in Bengal and Assam. Nirmala Sitharaman, the Union Finance Minister, stated that the rate of interest on these deposits will remain unchanged until the final quarter of 2020-2021. On her recent tweet FM stated that “Interest rates of small savings schemes of government of India shall continue to be at the rates which existed in the last quarter of 2020-2021, i.e., rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn”. Following the reset, here are the most recent small savings scheme interest rates.

  • Post Office Savings Account: 4.1%
  • Sukanya Samriddhi Account: 7.6%
  • Public Provident Fund: 7.1%
  • National Savings Certificate: 6.8%
  • Kisan Vikas Patra: 6.6%
  • Senior Citizen Savings Scheme: 7.6%
  • Five-year recurring deposit: 5.8%
  • Post Office Time Deposit: 5.5 per cent for one-year to three-year deposit and 6.7 per cent for 5-year deposit.

13. New deadline for processing recurring transactions

13. New deadline for processing recurring transactions

The Reserve Bank of India (RBI) on Wednesday extended the deadline for processing recurring online transactions by six months, giving relief to banks and wallets. Banks and financial institutions now have until September 30 to bring the new process in effect. The banking regulator in India implemented Additional Factor of Authentication (AFA) to make digital payments more secure and safe. From April 1, 2021, recurring transactions using debit cards, credit cards, the Unified Payments Interface (UPI), or other prepaid payment instruments (PPIs) will require an additional factor authentication (AFA), according to the central bank. Auto-payment or recurring transactions are commonly used to pay utility bills. Monthly subscription fees for streaming platforms such as Netflix, Amazon Prime, Disney+Hotstar are generally deducted directly from debit or credit cards. Banks will have to notify consumers of recurring payments at least 24 hours before the final debit to the card under the new rules. Users will receive the update via SMS or email. A customer’s permission is needed to complete the transaction for the first time. According to the regulator, this extra step can be prevented for subsequent transactions. The auto-debit cap for cards and wallets has been set at Rs 5,000. An additional one-time password (OTP) will be required for transactions that exceed the cut-off. At any time, the customer will have the option to “opt-out of that particular transaction.” Customers cannot be charged additional fees by banks or wallets for opting in or out to recurring payments. The framework’s main goal, according to RBI, was to shield consumers from fraudulent transactions while also enhancing customer satisfaction.

List of Banks, Insurance Firms & Lenders Who Have Not Dealt With TRAI’s New SMS Rules

14. New deadline for printing of QR code on B2C invoices

14. New deadline for printing of QR code on B2C invoices

The government has postponed the requirement of printing dynamic QR code on B2C (business-to-consumer) invoices generated by businesses for three months, until July 1. Users can verify the details in the digitally signed e-invoice using a quick response code, or QR code. The Central Board of Indirect Taxes and Customs (CBIC) announced that the amount of penalty payable by a registered individual for non-compliance with the provisions of dynamic QR code in B2C invoices will be waived until June 30, 2021, subject to businesses complying with the rules starting from July 1, 2021.

15. New wage code put on hold

New salary rules for India will not take effect on today (April-1), which is positive news for millions of salaried workers. According to a senior Labour Ministry official, Prime Minister Narendra Modi’s government has placed the new wage code, which may affect take-home salary, on hold for now. As a result of the Centre’s decision to place new wage code rules on hold, three other codes, including the social security code, the code on industrial relations, and the code on occupational safety, health, and working conditions, will not be introduced starting from April 1, 2021.



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