Category: Personal Finance

What is Tax Evasion? How to Report Tax Evasion in India?

Personal Finance

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Taxes

oi-Sneha Kulkarni

|

Paying taxes is a burden for many, individuals often come up with ways to escape or reduce the burden. But do you know that failing to pay taxes accurately can lead to criminal charges? Tax evasion occurs when a person or corporation unlawfully stops paying its tax or pays a partial amount of taxes. Tax evasion is a criminal activity and, as per Chapter XXII of the Income Tax Act, 1961, those who are found evading taxes are liable to face criminal charges and fines.

Tax avoidance includes hiding or fake revenue, without documentation of exaggerated deductions, without disclosing cash transactions, etc.

What is Tax Evasion? How to Report Tax Evasion in India?

Activities considered as Tax Evasion according to the Income Tax Act

Say, for example, a person claims for depreciation when there is no asset in the company or claims for depreciation of properties used for residential purposes. It is simply a dishonest tax obligation avoidance process.

The following are main practices that are deemed to be tax evasion:

1. Concealing the Income

2. Claiming excessive expenditure

3. Falsification of accounts

4. Inaccurate financial Statements

5. Not reporting income

6. Storing wealth outside the country

7. Filing false tax returns

8. Fake documents to claim exemption

How to file complaints regarding tax evasion?

The Central Board of Direct Taxes has introduced an online dedicated e-portal on the Department’s e-filing website to accept and process tax evasion allegations, foreign hidden properties, as well as Benami property complaints.

Step 1 Visit the Income-tax department website

Step 2 Login using the credentials

Step 3 Click “File complaint of tax evasion/undisclosed foreign asset/ benami property”

Step 4 Enter the OTP received on your registered mobile number. After an OTP based validation process

Step 5 File your complaint

In the case of violations of the Income-tax Act, 1961, Black Money, Imposition Taxes Act, and the Benami Dealings Act, in three main forms meant for that purpose. Upon successful submission of the complaint, the Department will assign a specific number to each complaint and the complainant will be able to view the status on the website.

Types of Penalties for different types of Tax Evasion in India:

If a person or a business company is discovered to be attempting to avoid taxation, fines can be levied based on the type of violation.

Not filing Income Tax Returns – Failure to do so would result in a penalty of Rs 5000 or more as determined by the Assessing Officer.

Incorrect Pan details or not providing the PAN details – You would have to pay Rs 10,000 if the PAN information you provided is inaccurate.

Concealing Income – Applicable when someone reports less income than what they receive or covers various sources of income. A penalty will be charged and varies from 50% to 200 % of the amount of tax-deferred.

Not complying with TDS regulations – If TDS has not been filed on or before the due date, the taxpayer must pay the interest for each day that passes after the due date, before the payment is made. If you fail to get the TAN number then you need to pay a penalty of Rs 10,000. Its sum could start from Rs 10,000 and go up to Rs 1, 00,000.

Not Maintaining Compliant Books/Accounts -Assessing officer can impose a penalty of up to Rs 25,000.

Failure to Get Accounts Audited – Failure to make payment in 30 days to the name and department mentioned in the notice, a penalty of Rs 1lakh or more will be applicable. If any document is not furnished or attached, a penalty of 2% of the transaction’s value is levied.

To ensure that tax defaulters and offenders are brought to light, the Income Tax Act works aggressively. So, better to pay the appropriate tax on time.

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What is Tax Evasion? How to Report Tax Evasion in India?

Personal Finance

[ad_1]

Read More/Less


Taxes

oi-Sneha Kulkarni

|

Paying taxes is a burden for many, individuals often come up with ways to escape or reduce the burden. But do you know that failing to pay taxes accurately can lead to criminal charges? Tax evasion occurs when a person or corporation unlawfully stops paying its tax or pays a partial amount of taxes. Tax evasion is a criminal activity and, as per Chapter XXII of the Income Tax Act, 1961, those who are found evading taxes are liable to face criminal charges and fines.

Tax avoidance includes hiding or fake revenue, without documentation of exaggerated deductions, without disclosing cash transactions, etc.

What is Tax Evasion? How to Report Tax Evasion in India?

Activities considered as Tax Evasion according to the Income Tax Act

Say, for example, a person claims for depreciation when there is no asset in the company or claims for depreciation of properties used for residential purposes. It is simply a dishonest tax obligation avoidance process.

The following are main practices that are deemed to be tax evasion:

1. Concealing the Income

2. Claiming excessive expenditure

3. Falsification of accounts

4. Inaccurate financial Statements

5. Not reporting income

6. Storing wealth outside the country

7. Filing false tax returns

8. Fake documents to claim exemption

How to file complaints regarding tax evasion?

The Central Board of Direct Taxes has introduced an online dedicated e-portal on the Department’s e-filing website to accept and process tax evasion allegations, foreign hidden properties, as well as Benami property complaints.

Step 1 Visit the Income-tax department website

Step 2 Login using the credentials

Step 3 Click “File complaint of tax evasion/undisclosed foreign asset/ benami property”

Step 4 Enter the OTP received on your registered mobile number. After an OTP based validation process

Step 5 File your complaint

In the case of violations of the Income-tax Act, 1961, Black Money, Imposition Taxes Act, and the Benami Dealings Act, in three main forms meant for that purpose. Upon successful submission of the complaint, the Department will assign a specific number to each complaint and the complainant will be able to view the status on the website.

Types of Penalties for different types of Tax Evasion in India:

If a person or a business company is discovered to be attempting to avoid taxation, fines can be levied based on the type of violation.

Not filing Income Tax Returns – Failure to do so would result in a penalty of Rs 5000 or more as determined by the Assessing Officer.

Incorrect Pan details or not providing the PAN details – You would have to pay Rs 10,000 if the PAN information you provided is inaccurate.

Concealing Income – Applicable when someone reports less income than what they receive or covers various sources of income. A penalty will be charged and varies from 50% to 200 % of the amount of tax-deferred.

Not complying with TDS regulations – If TDS has not been filed on or before the due date, the taxpayer must pay the interest for each day that passes after the due date, before the payment is made. If you fail to get the TAN number then you need to pay a penalty of Rs 10,000. Its sum could start from Rs 10,000 and go up to Rs 1, 00,000.

Not Maintaining Compliant Books/Accounts -Assessing officer can impose a penalty of up to Rs 25,000.

Failure to Get Accounts Audited – Failure to make payment in 30 days to the name and department mentioned in the notice, a penalty of Rs 1lakh or more will be applicable. If any document is not furnished or attached, a penalty of 2% of the transaction’s value is levied.

To ensure that tax defaulters and offenders are brought to light, the Income Tax Act works aggressively. So, better to pay the appropriate tax on time.

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Macquarie Bets On These 7 Large Caps For Up To 34%, 1 Mid-Cap for 100% Gains

Personal Finance

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Investment

oi-Roshni Agarwal

|

After a stellar rally of over 11 percent on the indices in February itself with Indian indices hitting new highs and then ending the last session of the week to February 12, 2021 on a somber note and there is expectations that after the earnings season and the much awaited Budget 2021 events are behind us, global events will provide fillip to Indian markets, which still has some steam left, with strong outlook for the long term.

And amid it, the global brokerage firm Macquarie has modified weightage in its model portfolio. The weightage has been increased for the stocks in theme ‘value state-owned asset plays’ by 600 bps to 18 percent currently.

Macquarie Bets On These 7 Large Caps For Up To 34%, 1 Mid-Cap for 100% Gains

Now, the firm has provided a strong weight to ‘digitalization’ (around 25 percent), ‘financialisation’ (around 17 percent), ‘building India’ (12 percent), while it has lowered weight in the relatively expensive ‘consumption’ theme by 700 bps to 7 percent.Macquarie still carries a 6-8 percent weight on other themes like ‘Make in India’, ‘gas based economy’, ‘rural & commercial vehicle recovery’.

Also, the firm added weight to country’s largest public run lender SBI. “With the government’s renewed focus on infrastructure and better use of digital channels in onboarding customers, we believe SBI is well poised to grow its loan book at around 1.2x system growth. Well provided on legacy assets,” it reasoned.

Also brokerage has increased weight for L&T to 8 percent now as the company’s core business seems to be up for further re-rating amid strong order backlog, tender prospects, heathly financials as well as infra push in Budget 2021.

Another addition in the brokerage’s portfolio is LIC Housing Finance as it is seen as a value play owing to pick up in home loan demand and builder NPL resolutions.

Further it agreed with global technology giants such as Amazon, Google and the like that India still offers the very best opportunity in the long term in EM market outside of China. “Also, unlike China, India’s business and political climate, while complex, has the backbone of common law, rules and dispersion of power. As a result, the nature of relationship between private and public sectors in India is different to China’s, leaving greater room in India for more traditional private sector. Also unlike ASEAN or Latin America, which are largely cyclical, India has a greater secular capacity while its best corporates are also some of the better ones globally,” the brokerage explained.

The company is of the belief that these 7 largecaps are likely to give over 20 percent return and one mid cap offers 100 percent upside:

1. Infosys: Buy with a target price of Rs. 1680, an upside of 29 percent

Over the period of FY21-23, the brokerage sees Infosys to report the strongest US dollar revenue growth among large cap IT majors on account of large deal wins. The most recent being Vanguard that accelerated company’s growth.

2. HCL: Target price- Rs. 1280, Return- 33.6%

The stock has been witnessing traction of late as imminent from large deal wins. The firm with 8 percent weightage in the portfolio gains from cloud transformation as world over companies’ gear up to cut cost and are on the spree to adopt better technology.

3. Bharti Airtel: (Target: Rs 747 | Return: 25.1 percent)

Since FY22, the company’s earnings are on track with gains in the ARPU and margins, adding Africa business potential is under-appreciated.

4. HDFC Bank (Target: Rs 2,005 | Return: 24.9 percent):

“HDFC Bank’s (with 5 percent weight) performance is simply driven by book value compounding, within our estimates. The bank is offering the highest growth among the private sector banks. Multiple at 4x P/B is supported by sustainable around 18-20 percent return on equity (ROE),” said the brokerage.

5. BPCL (Target: Rs 510 | Return: 21.4 percent)

The brokerage has given 5 percent weight to BPCL in portfolio, saying government’s privatization will unlock SOTP value. “Our base-bull case is Rs 510-690 with 25-75 percent upside.”

6. Dr Reddy’s Laboratories (Target: Rs 6,000 | Return: 23.5 percent)

Dr Reddy’s has 4 percent weight in the model portfolio. Macquarie says “With strong launch momentum across markets, improving productivity and optionality from its COVID-19 vaccine contract, we expect Dr Reddy’s earnings can surprise positively (Macquarie estimates 21 percent EPS CAGR over FY20-23),”

7. HDFC Life Insurance Company (Target: Rs 849 | Return: 24.1 percent)

The brokerage has given a 2 percent weight to HDFC Life in its portfolio, considering likely sustenance in individual premium growth, higher sales of protection products leading to margin expansion and higher absolute VNB (value of new business) growth and long-term growth headroom.

Midcap

HPCL (Target: Rs 510 | Return: 121.7 percent)

HPCL, with 5 percent weight (which increased by 100 bps), is a deep value play at 5x FY22 estimated PE, said the brokerage, adding operating environment going from ‘awful’ to ‘less bad’ combined with capacity expansions drives a around 70 percent core earnings expansion by FY23 estimates.

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Macquarie Bets On These 7 Large Caps For Up To 34%, 1 Mid-Cap for 100% Gains

Personal Finance

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Read More/Less


Investment

oi-Roshni Agarwal

|

After a stellar rally of over 11 percent on the indices in February itself with Indian indices hitting new highs and then ending the last session of the week to February 12, 2021 on a somber note and there is expectations that after the earnings season and the much awaited Budget 2021 events are behind us, global events will provide fillip to Indian markets, which still has some steam left, with strong outlook for the long term.

And amid it, the global brokerage firm Macquarie has modified weightage in its model portfolio. The weightage has been increased for the stocks in theme ‘value state-owned asset plays’ by 600 bps to 18 percent currently.

Macquarie Bets On These 7 Large Caps For Up To 34%, 1 Mid-Cap for 100% Gains

Now, the firm has provided a strong weight to ‘digitalization’ (around 25 percent), ‘financialisation’ (around 17 percent), ‘building India’ (12 percent), while it has lowered weight in the relatively expensive ‘consumption’ theme by 700 bps to 7 percent.Macquarie still carries a 6-8 percent weight on other themes like ‘Make in India’, ‘gas based economy’, ‘rural & commercial vehicle recovery’.

Also, the firm added weight to country’s largest public run lender SBI. “With the government’s renewed focus on infrastructure and better use of digital channels in onboarding customers, we believe SBI is well poised to grow its loan book at around 1.2x system growth. Well provided on legacy assets,” it reasoned.

Also brokerage has increased weight for L&T to 8 percent now as the company’s core business seems to be up for further re-rating amid strong order backlog, tender prospects, heathly financials as well as infra push in Budget 2021.

Another addition in the brokerage’s portfolio is LIC Housing Finance as it is seen as a value play owing to pick up in home loan demand and builder NPL resolutions.

Further it agreed with global technology giants such as Amazon, Google and the like that India still offers the very best opportunity in the long term in EM market outside of China. “Also, unlike China, India’s business and political climate, while complex, has the backbone of common law, rules and dispersion of power. As a result, the nature of relationship between private and public sectors in India is different to China’s, leaving greater room in India for more traditional private sector. Also unlike ASEAN or Latin America, which are largely cyclical, India has a greater secular capacity while its best corporates are also some of the better ones globally,” the brokerage explained.

The company is of the belief that these 7 largecaps are likely to give over 20 percent return and one mid cap offers 100 percent upside:

1. Infosys: Buy with a target price of Rs. 1680, an upside of 29 percent

Over the period of FY21-23, the brokerage sees Infosys to report the strongest US dollar revenue growth among large cap IT majors on account of large deal wins. The most recent being Vanguard that accelerated company’s growth.

2. HCL: Target price- Rs. 1280, Return- 33.6%

The stock has been witnessing traction of late as imminent from large deal wins. The firm with 8 percent weightage in the portfolio gains from cloud transformation as world over companies’ gear up to cut cost and are on the spree to adopt better technology.

3. Bharti Airtel: (Target: Rs 747 | Return: 25.1 percent)

Since FY22, the company’s earnings are on track with gains in the ARPU and margins, adding Africa business potential is under-appreciated.

4. HDFC Bank (Target: Rs 2,005 | Return: 24.9 percent):

“HDFC Bank’s (with 5 percent weight) performance is simply driven by book value compounding, within our estimates. The bank is offering the highest growth among the private sector banks. Multiple at 4x P/B is supported by sustainable around 18-20 percent return on equity (ROE),” said the brokerage.

5. BPCL (Target: Rs 510 | Return: 21.4 percent)

The brokerage has given 5 percent weight to BPCL in portfolio, saying government’s privatization will unlock SOTP value. “Our base-bull case is Rs 510-690 with 25-75 percent upside.”

6. Dr Reddy’s Laboratories (Target: Rs 6,000 | Return: 23.5 percent)

Dr Reddy’s has 4 percent weight in the model portfolio. Macquarie says “With strong launch momentum across markets, improving productivity and optionality from its COVID-19 vaccine contract, we expect Dr Reddy’s earnings can surprise positively (Macquarie estimates 21 percent EPS CAGR over FY20-23),”

7. HDFC Life Insurance Company (Target: Rs 849 | Return: 24.1 percent)

The brokerage has given a 2 percent weight to HDFC Life in its portfolio, considering likely sustenance in individual premium growth, higher sales of protection products leading to margin expansion and higher absolute VNB (value of new business) growth and long-term growth headroom.

Midcap

HPCL (Target: Rs 510 | Return: 121.7 percent)

HPCL, with 5 percent weight (which increased by 100 bps), is a deep value play at 5x FY22 estimated PE, said the brokerage, adding operating environment going from ‘awful’ to ‘less bad’ combined with capacity expansions drives a around 70 percent core earnings expansion by FY23 estimates.

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How To Track Contributions Made Towards Atal Pension Yojana?

Personal Finance

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Investment

oi-Vipul Das

|

Atal Pension Yojana (APY) is a pension mechanism initiated in 2015 by the government. Even though it was introduced with an emphasis on citizens employed in the unorganized sector, any Indian resident with a bank or post office savings account between the ages of 18 and 40 can make contributions towards APY. In comparison to the National Pension System (NPS), where the pension amount is calculated by the cumulative corpus accrued at the age of 60, the pension benefit is specified in the APY, varying from Rs 1,000 to Rs 5,000 per month, based on the subscriber’s contributions. Under section 80CCD(1) of the Income-tax Act, 1961, you can use the contributions rendered by you towards APY to seek tax benefits for which you will need to disclose the transaction statements as verification.

To check if they are credited to your APY account on schedule, you will also need to check your contributions as there is a liability in the event of delay or failure. Make sure that you have issued the Permanent Retirement Account Number, popularly called as PRAN, before you track for the contributions made by you. Although PRAN is the only you need to log into the app, you will have to specify your bank account number on the NSDL portal. There are two options to electronically validate your contributions: by accessing the NSDL website, or by installing the APY and NPS Lite applications from the app store of your mobile.

Via NSDL

Via NSDL

  • Visit https://www.npscra.nsdl.co.in/scheme-details.php and click on ‘APY e-PRAN/Transaction Statement View’
  • You will be redirected to a new page where you need to select from ‘With PRAN or Without PRAN’
  • You will be required to enter your PRAN and bank account number if you have selected the ‘With PRAN’ method. If you do not have a PRAN, you will be asked to enter the name of the subscriber, bank account number and date of birth.
  • Now select the ‘APY e-PRAN View or Statement of Transaction View’ option and enter the CAPTCHA code correctly.
  • Click on ‘Submit’
  • APY e-PRAN will support you with your APY e-card specifics, along with details such as the launch date of the pension, the amount of pension you have specified, the APY service operator/provider and so on.
  • The transaction statement will allow you to validate the contributions you rendered on a monthly, quarterly or semi-annual basis. Details of the cumulative contributions rendered to the fund up to date and others, such as the name of the nominee, the amount of pension chosen, and so on. In a given financial year, you can even check for every successful transaction.

Via Mobile app

Via Mobile app

  • Download the ‘APY and NPS Lite’ mobile app from the default app store of your mobile.
  • Enter your PRAN and tap on ‘Login’
  • An OTP will be sent to your registered mobile number, enter the OTP on the required space and tap on ‘Submit’
  • In which scheme either NPS or APY your money is contributed, the homepage will reveal to you about the specifics of the same. Using the app, you can also download the transaction statement. Select the alternative to access specifics of your account.

Via offline

Via offline

According to the NPS official site, to know the status of the contributions, an SMS is sent to the subscriber’s registered mobile number. The portal also states that periodic statements will be issued to the holder of the APY account by the Central Recordkeeping Agency, but the time is not specified. To get these specifics, one can also visit his or her nearest bank branch.

APY Contribution Chart

APY Contribution Chart

The following table indicates the monthly, quarterly and half-yearly contribution amount, depending on the age of entry into the fund and the estimated monthly pension amount available after retirement. The calculation of this Atal Pension Yojana is representative and the exact amount you required to contribute may alter at a subsequent time. Your monthly, quarterly, and semi-annual contribution criteria for this pension scheme are summarized in the following table:

Entry age Total Contributions Years Monthly Contribution Amount
Monthly Pension of Rs 1000 Monthly Pension of Rs 2000 Monthly Pension of Rs 3000 Monthly Pension of Rs 4000 Monthly Pension of Rs 5000
18 42 42 84 126 168 210
19 41 46 92 138 183 228
29 40 50 100 150 198 248
21 39 54 108 162 215 269
22 38 59 117 177 234 292
23 37 64 127 192 254 318
24 36 70 139 208 277 346
25 35 76 151 226 301 376
26 34 82 164 246 327 409
27 33 90 178 268 356 446
28 32 97 194 292 388 485
29 31 106 212 318 423 529
30 30 116 231 347 462 577
31 29 126 252 379 504 630
32 28 138 276 414 551 689
33 27 151 302 453 602 752
34 26 165 330 495 659 824
35 26 181 362 543 722 902
36 24 198 396 594 792 990
37 23 218 436 654 870 1087
38 22 240 480 720 957 1196
39 21 264 528 792 1054 1318
40 20 291 582 873 1164 1454
Entry age Total Contributions Years Quarterly Contribution Amount
Monthly Pension of Rs 1000 Monthly Pension of Rs 2000 Monthly Pension of Rs 3000 Monthly Pension of Rs 4000 Monthly Pension of Rs 5000
18 42 125 250 376 501 626
19 41 137 274 411 545 679
29 40 149 298 447 590 739
21 39 161 322 483 641 802
22 38 176 349 527 697 870
23 37 191 378 572 757 948
24 36 209 414 620 826 1031
25 35 226 450 674 897 1121
26 34 244 489 733 975 1219
27 33 268 530 799 1061 1329
28 32 289 578 870 1156 1445
29 31 316 632 948 1261 1577
30 30 346 688 1034 1377 1720
31 29 376 751 1129 1502 1878
32 28 411 823 1234 1642 2053
33 27 450 900 1350 1794 2241
34 26 492 983 1475 1964 2456
35 26 539 1079 1618 2152 2688
36 24 590 1180 1770 2360 2950
37 23 650 1299 1949 2593 3239
38 22 715 1430 2146 2852 3564
39 21 787 1574 2360 3141 3928
40 20 867 1734 2602 3469 4333
Entry age Total Contributions Years Half-yearly Contribution Amount
Monthly Pension of Rs 1000 Monthly Pension of Rs 2000 Monthly Pension of Rs 3000 Monthly Pension of Rs 4000 Monthly Pension of Rs 5000
18 42 248 496 744 991 1239
19 41 271 543 814 1080 1346
29 40 295 590 885 1169 1464
21 39 319 637 956 1269 1588
22 38 348 690 1045 1381 1723
23 37 378 749 1133 1499 1877
24 36 413 820 1228 1635 2042
25 35 449 891 1334 1776 2219
26 34 484 968 1452 1930 2414
27 33 531 1050 1582 2101 2632
28 32 572 1145 1723 2290 2862
29 31 626 1251 1877 2496 3122
30 30 685 1363 2048 2727 3405
31 29 744 1487 2237 2974 3718
32 28 814 1629 2443 3252 4066
33 27 891 1782 2673 3553 4438
34 26 974 1948 2921 3889 4863
35 26 1068 2136 3205 4261 5323
36 24 1169 2337 3506 4674 5843
37 23 1287 2573 3860 5134 6415
38 22 1416 2833 4249 5648 7058
39 21 1558 3116 4674 6220 7778
40 20 1717 3435 5152 6869 8581



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How To Track Contributions Made Towards Atal Pension Yojana?

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

Atal Pension Yojana (APY) is a pension mechanism initiated in 2015 by the government. Even though it was introduced with an emphasis on citizens employed in the unorganized sector, any Indian resident with a bank or post office savings account between the ages of 18 and 40 can make contributions towards APY. In comparison to the National Pension System (NPS), where the pension amount is calculated by the cumulative corpus accrued at the age of 60, the pension benefit is specified in the APY, varying from Rs 1,000 to Rs 5,000 per month, based on the subscriber’s contributions. Under section 80CCD(1) of the Income-tax Act, 1961, you can use the contributions rendered by you towards APY to seek tax benefits for which you will need to disclose the transaction statements as verification.

To check if they are credited to your APY account on schedule, you will also need to check your contributions as there is a liability in the event of delay or failure. Make sure that you have issued the Permanent Retirement Account Number, popularly called as PRAN, before you track for the contributions made by you. Although PRAN is the only you need to log into the app, you will have to specify your bank account number on the NSDL portal. There are two options to electronically validate your contributions: by accessing the NSDL website, or by installing the APY and NPS Lite applications from the app store of your mobile.

Via NSDL

Via NSDL

  • Visit https://www.npscra.nsdl.co.in/scheme-details.php and click on ‘APY e-PRAN/Transaction Statement View’
  • You will be redirected to a new page where you need to select from ‘With PRAN or Without PRAN’
  • You will be required to enter your PRAN and bank account number if you have selected the ‘With PRAN’ method. If you do not have a PRAN, you will be asked to enter the name of the subscriber, bank account number and date of birth.
  • Now select the ‘APY e-PRAN View or Statement of Transaction View’ option and enter the CAPTCHA code correctly.
  • Click on ‘Submit’
  • APY e-PRAN will support you with your APY e-card specifics, along with details such as the launch date of the pension, the amount of pension you have specified, the APY service operator/provider and so on.
  • The transaction statement will allow you to validate the contributions you rendered on a monthly, quarterly or semi-annual basis. Details of the cumulative contributions rendered to the fund up to date and others, such as the name of the nominee, the amount of pension chosen, and so on. In a given financial year, you can even check for every successful transaction.

Via Mobile app

Via Mobile app

  • Download the ‘APY and NPS Lite’ mobile app from the default app store of your mobile.
  • Enter your PRAN and tap on ‘Login’
  • An OTP will be sent to your registered mobile number, enter the OTP on the required space and tap on ‘Submit’
  • In which scheme either NPS or APY your money is contributed, the homepage will reveal to you about the specifics of the same. Using the app, you can also download the transaction statement. Select the alternative to access specifics of your account.

Via offline

Via offline

According to the NPS official site, to know the status of the contributions, an SMS is sent to the subscriber’s registered mobile number. The portal also states that periodic statements will be issued to the holder of the APY account by the Central Recordkeeping Agency, but the time is not specified. To get these specifics, one can also visit his or her nearest bank branch.

APY Contribution Chart

APY Contribution Chart

The following table indicates the monthly, quarterly and half-yearly contribution amount, depending on the age of entry into the fund and the estimated monthly pension amount available after retirement. The calculation of this Atal Pension Yojana is representative and the exact amount you required to contribute may alter at a subsequent time. Your monthly, quarterly, and semi-annual contribution criteria for this pension scheme are summarized in the following table:

Entry age Total Contributions Years Monthly Contribution Amount
Monthly Pension of Rs 1000 Monthly Pension of Rs 2000 Monthly Pension of Rs 3000 Monthly Pension of Rs 4000 Monthly Pension of Rs 5000
18 42 42 84 126 168 210
19 41 46 92 138 183 228
29 40 50 100 150 198 248
21 39 54 108 162 215 269
22 38 59 117 177 234 292
23 37 64 127 192 254 318
24 36 70 139 208 277 346
25 35 76 151 226 301 376
26 34 82 164 246 327 409
27 33 90 178 268 356 446
28 32 97 194 292 388 485
29 31 106 212 318 423 529
30 30 116 231 347 462 577
31 29 126 252 379 504 630
32 28 138 276 414 551 689
33 27 151 302 453 602 752
34 26 165 330 495 659 824
35 26 181 362 543 722 902
36 24 198 396 594 792 990
37 23 218 436 654 870 1087
38 22 240 480 720 957 1196
39 21 264 528 792 1054 1318
40 20 291 582 873 1164 1454
Entry age Total Contributions Years Quarterly Contribution Amount
Monthly Pension of Rs 1000 Monthly Pension of Rs 2000 Monthly Pension of Rs 3000 Monthly Pension of Rs 4000 Monthly Pension of Rs 5000
18 42 125 250 376 501 626
19 41 137 274 411 545 679
29 40 149 298 447 590 739
21 39 161 322 483 641 802
22 38 176 349 527 697 870
23 37 191 378 572 757 948
24 36 209 414 620 826 1031
25 35 226 450 674 897 1121
26 34 244 489 733 975 1219
27 33 268 530 799 1061 1329
28 32 289 578 870 1156 1445
29 31 316 632 948 1261 1577
30 30 346 688 1034 1377 1720
31 29 376 751 1129 1502 1878
32 28 411 823 1234 1642 2053
33 27 450 900 1350 1794 2241
34 26 492 983 1475 1964 2456
35 26 539 1079 1618 2152 2688
36 24 590 1180 1770 2360 2950
37 23 650 1299 1949 2593 3239
38 22 715 1430 2146 2852 3564
39 21 787 1574 2360 3141 3928
40 20 867 1734 2602 3469 4333
Entry age Total Contributions Years Half-yearly Contribution Amount
Monthly Pension of Rs 1000 Monthly Pension of Rs 2000 Monthly Pension of Rs 3000 Monthly Pension of Rs 4000 Monthly Pension of Rs 5000
18 42 248 496 744 991 1239
19 41 271 543 814 1080 1346
29 40 295 590 885 1169 1464
21 39 319 637 956 1269 1588
22 38 348 690 1045 1381 1723
23 37 378 749 1133 1499 1877
24 36 413 820 1228 1635 2042
25 35 449 891 1334 1776 2219
26 34 484 968 1452 1930 2414
27 33 531 1050 1582 2101 2632
28 32 572 1145 1723 2290 2862
29 31 626 1251 1877 2496 3122
30 30 685 1363 2048 2727 3405
31 29 744 1487 2237 2974 3718
32 28 814 1629 2443 3252 4066
33 27 891 1782 2673 3553 4438
34 26 974 1948 2921 3889 4863
35 26 1068 2136 3205 4261 5323
36 24 1169 2337 3506 4674 5843
37 23 1287 2573 3860 5134 6415
38 22 1416 2833 4249 5648 7058
39 21 1558 3116 4674 6220 7778
40 20 1717 3435 5152 6869 8581



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Why Should Senior Citizens Aged 75 And Above File ITR Despite Exemption?

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Taxes

oi-Roshni Agarwal

|

To relax the compliance burden on senior citizens, the FM in her budget speech announced that pensioners and other senior citizens aged 75 years and above with just interest income shall be exempted from ITR filing provided the paying bank makes the necessary deduction after considering the aggregate of pension and interest income as the case may be. So, here the onus is on the bank to compute the tax and make the necessary deductions for such tax payers.

Know more about the announcement here and how senior citizens can avail the exemption.

Why Should Senior Citizens Aged 75 And Above File ITR Despite Exemption?

Now as is things are easier said than done, to first make the provision clear which had been at first misunderstood by most taxpayers following in the category, it is the relaxation from filing ITR and not filing taxes.

Other points attached to the relaxation that one must know

  • Only senior citizens aged 75 years and above and having just pension and interest income shall be allowed this exemption from ITR filing.
  • Also, there was later put forward another clause that the pension account and FD shall be with the same bank, such that considering the aggregate of the income, paying bank deducts the applicable tax on both the income sources, eliminating the need to do so separately.
  • Now in case the person is having interest income from FDs which are with 2 or more banks or is earning income from other fixed income sources, he or she shall not be entitled for the exemption.
  • Similarly such pensioners with income from mutual funds, insurance, debt securities and the like shall also not be able to avail of the exemption.
  • And also in a case when excess tax has been paid to the government, they will need to claim it by filing the ITR.

As of now more clarity is sought from the CBDT on the provision and Archit Gupta Founder and CEO, ClearTax said “So far it appears that the bank account, bank deposits and pension income must all be in the same ‘specified bank.’ For senior citizens having accounts in different specified banks and seeking exemption from filing income-tax returns will require these banks to be connected with each other to seek information such as total income and corresponding tax liability and TDS thereon”.

the announcement here and how senior citizens can avail the exemption.

And on the Chapter VI deductions, Archit Gupta said, “One way that this can happen is that the senior citizen will intimate the bank about any tax deductions she wants to claim as eligible under chapter VI-A, so that TDS can be adjusted by the ‘specified bank’. All chapter VI-A deductions should be allowed to be claimed. The presumption is not that the senior citizen does not have taxable income, rather all TDS is taken care of and only two types of incomes are earned – interest and pension – and therefore adjustment of TDS towards deductions claimed will be allowed by the specified bank,” Gupta opined.

What may be the case if the senior citizen taxpayer has income from other savings schemes such as SCSS and other post office schemes?

If the SCSS is maintained with the same paying or specified bank, he or she may be able to club that income and get the tax deductions made by the paying bank and if there are other income sources such as from post office schemes than he or she may not be able to apply for ITR filing exemption.

  • And now why despite the relaxation given senior citizens with these 2 above specified income stream should file ITR
  • The ITR form applicable to such taxpayers with income from pension and interest is ITR Sahaj which is a simple form with pre-filled information.
  • And now for claiming exemption and for the bank to deduct the tax on the income source, you would need to provide the documentation for due validation which may turn out to be a cumbersome process, so in comparison e-filing could still be a better way out. And the process of ITR filing has even be made simpler because of the pre-filled ITR returns.

Moreover, the fine print on the provision is still awaited and as for many of such taxpayers it may not be necessary that both interest and pension is earned in the same bank. Also, it is at present how many banks will figure in the list released by the ministry for the purpose and what documentation banks ask from such taxpayers to validate that they are not hiding income elsewhere. So, without going into too much complexity that the scheme still has because of the details awaited, senior citizens with these 2 income sources shall be better of filing their income tax returns or ITRs.

GoodReturns.in



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Why Should Senior Citizens Aged 75 And Above File ITR Despite Exemption?

Personal Finance

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Read More/Less


Taxes

oi-Roshni Agarwal

|

To relax the compliance burden on senior citizens, the FM in her budget speech announced that pensioners and other senior citizens aged 75 years and above with just interest income shall be exempted from ITR filing provided the paying bank makes the necessary deduction after considering the aggregate of pension and interest income as the case may be. So, here the onus is on the bank to compute the tax and make the necessary deductions for such tax payers.

Know more about the announcement here and how senior citizens can avail the exemption.

Why Should Senior Citizens Aged 75 And Above File ITR Despite Exemption?

Now as is things are easier said than done, to first make the provision clear which had been at first misunderstood by most taxpayers following in the category, it is the relaxation from filing ITR and not filing taxes.

Other points attached to the relaxation that one must know

  • Only senior citizens aged 75 years and above and having just pension and interest income shall be allowed this exemption from ITR filing.
  • Also, there was later put forward another clause that the pension account and FD shall be with the same bank, such that considering the aggregate of the income, paying bank deducts the applicable tax on both the income sources, eliminating the need to do so separately.
  • Now in case the person is having interest income from FDs which are with 2 or more banks or is earning income from other fixed income sources, he or she shall not be entitled for the exemption.
  • Similarly such pensioners with income from mutual funds, insurance, debt securities and the like shall also not be able to avail of the exemption.
  • And also in a case when excess tax has been paid to the government, they will need to claim it by filing the ITR.

As of now more clarity is sought from the CBDT on the provision and Archit Gupta Founder and CEO, ClearTax said “So far it appears that the bank account, bank deposits and pension income must all be in the same ‘specified bank.’ For senior citizens having accounts in different specified banks and seeking exemption from filing income-tax returns will require these banks to be connected with each other to seek information such as total income and corresponding tax liability and TDS thereon”.

the announcement here and how senior citizens can avail the exemption.

And on the Chapter VI deductions, Archit Gupta said, “One way that this can happen is that the senior citizen will intimate the bank about any tax deductions she wants to claim as eligible under chapter VI-A, so that TDS can be adjusted by the ‘specified bank’. All chapter VI-A deductions should be allowed to be claimed. The presumption is not that the senior citizen does not have taxable income, rather all TDS is taken care of and only two types of incomes are earned – interest and pension – and therefore adjustment of TDS towards deductions claimed will be allowed by the specified bank,” Gupta opined.

What may be the case if the senior citizen taxpayer has income from other savings schemes such as SCSS and other post office schemes?

If the SCSS is maintained with the same paying or specified bank, he or she may be able to club that income and get the tax deductions made by the paying bank and if there are other income sources such as from post office schemes than he or she may not be able to apply for ITR filing exemption.

  • And now why despite the relaxation given senior citizens with these 2 above specified income stream should file ITR
  • The ITR form applicable to such taxpayers with income from pension and interest is ITR Sahaj which is a simple form with pre-filled information.
  • And now for claiming exemption and for the bank to deduct the tax on the income source, you would need to provide the documentation for due validation which may turn out to be a cumbersome process, so in comparison e-filing could still be a better way out. And the process of ITR filing has even be made simpler because of the pre-filled ITR returns.

Moreover, the fine print on the provision is still awaited and as for many of such taxpayers it may not be necessary that both interest and pension is earned in the same bank. Also, it is at present how many banks will figure in the list released by the ministry for the purpose and what documentation banks ask from such taxpayers to validate that they are not hiding income elsewhere. So, without going into too much complexity that the scheme still has because of the details awaited, senior citizens with these 2 income sources shall be better of filing their income tax returns or ITRs.

GoodReturns.in



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bitcoin: Canadian regulator clears launch of world’s first bitcoin ETF

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By Fergal Smith and David Randall

TORONTO – Canada’s main securities regulator has cleared the launch of the world’s first bitcoin exchange traded fund, an investment manager said on Friday, providing investors greater access to the cryptocurrency that has sparked an explosion in trading interest.

The Ontario Securities Commission has approved the launch of Purpose Bitcoin ETF, Toronto-based asset management company Purpose Investments Inc. said in a statement. The OSC confirmed the approval in a separate statement to Reuters.

“The ETF will be the first in the world to invest directly in physically settled Bitcoin, not derivatives, allowing investors easy and efficient access to the emerging asset class of cryptocurrency,” Purpose Investments said.

Investors have been able to trade bitcoin using futures contracts on the CME derivatives exchange. They can also buy closed-end investment funds, such as the Bitcoin Fund on the Toronto Stock Exchange.

An ETF could offer some advantages to investors, such as buying at net asset value rather than at a premium, said Arthur Salzer, chief executive officer of Northland Wealth Management

“I think the OSC is doing the right thing allowing for an ETF,” Salzer said. “It gets rid of some of the negatives of the current funds.”

Bitcoin notched a record high of $48,975 on Friday. It has gained about 63% so far this year and soared roughly 1,130% since mid-March 2020.

Elon Musk’s Tesla revealed on Monday it had bought $1.5 billion worth of the cryptocurrency and would soon accept it as a form of payment for its cars, while the cryptocurrency has been gaining acceptance among mainstream financial firms.

In the United States, eight firms have tried without success since 2013 to create a bitcoin ETF, according to Todd Rosenbluth, director of ETF and mutual fund research at New York based CFRA.

Among issues the Securities and Exchange Commission appears to be focused on are the potential for market manipulation and the process of custody audits that verify that a fund holds its purported assets.

“While some expect that a Canadian ETF approval sets the stage for a near-term U.S. one, we expect the SEC under new leadership to take their time to review some of the new filings from VanEck and others,” Rosenbluth said.

VanEck is a New York-based investment management firm.

Gary Gensler, former chair of the Commodity Futures Trading Commission, was named chair of the SEC last month by U.S. President Joe Biden.



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How To Make e-Nomination In EPF Account Online?

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Prerequisites to consider while making e-nomination in your EPF account

As per the guideline, those EPF account holders whose Aadhaar number is linked to their EPF account and authenticated on the member’s sewa portal can use this service. You can verify whether your EPF account is linked to Aadhaar or not using the EPFO Member Sewa Portal. Log-in to your EPF account and select the ‘KYC’ option under the ‘Manage’ section for this. Bear in mind that you must activate your UAN (Universal Account Number) on the portal to use the sewa portal. You must also have your photograph displayed on the same portal. Navigating the ‘Profile’ option under the ‘View’ tab you can upload your photograph in case you have not uploaded. Follow the guidelines below before uploading your photograph.

  • Your photograph must have been taken with a digital camera
  • Your photograph must have a size limit of 3.5 cm x 4.5 cm
  • With both ears noticeable, the photograph should have your face clearly visible in 80% of the photo.
  • Your photograph must be in jpeg or jpg or png format.
  • Click the preview icon and select on the ‘Upload Photograph’ option to upload your photograph.
  • In addition, on the member sewa portal, all the personal details such as address, mobile number must be registered. Under the ‘Profile’ tab, you can check your personal specifics.

Steps to update nominee online in EPF account

Steps to update nominee online in EPF account

Step 1: Visit https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and login to your EPF account using UAN number and password.

Step 2: Under the ‘Manage’ tab select the ‘e-nomination’ option in order to make a nomination.

Step 3: Now you will be redirected to a new page where you will get a pop-up message asking ‘Having Family?’ You will be asked to answer this through this Yes or NO. You will be asked to specify the specifics of your nominee if you selected the ‘Yes’ option. And for the same you need to enter the following details of the family member whom you are going to nominate: Aadhaar, Name, Date of birth, Gender, Relation, Address, Bank account details (Optional), Guardian and Photo (not exceeding 100 KB).

Step 4: If you want to add more than one applicant, you can add details of more than one family member by clicking the option ‘Add row’.

Step 5: If you have chosen ‘No’, then you will be required to specify the total amount of contribution you want to grant to the person you are nominating along with the above specifics.

Step 6: Now click on the ‘Save Family Details’ option. For your EPF account, specify the family member you want to nominate and the amount of the share you want to grant him or her. If you have more than one nominee in your EPF account, make sure that the cumulative amount of the nominees’ share is up to 100%.

Step 7: Now click on ‘Save EPF Nomination’

Step 8: Details of EPF nominations will be saved effectively. Likewise, you will also be asked to make an EPS (Employee Pension Scheme) nomination. As mentioned above, you will be asked to enter similar details. Note, you can render different EPF and EPS nominations.

Step 9: Go to the ‘e-nomination’ option under the ‘Manage’ tab once the details are saved successfully. The nominee details that you have saved will be displayed as a pending nomination to you. To complete the process, you are required to ‘e-sign’ the nomination made by you. If you want to see the specifics of your nomination, click on the ‘View’ button.

Step 10: Now you will be redirected to a new page where you need to enter your virtual ID of your Aadhaar. Once you entered the virtual ID of Aadhaar and click on ‘Verify’

Step 11: You will be required to choose the tick box again to give your approval to Aadhaar’s e-KYC services.

Step 12: Now enter your Aadhaar or Virtual ID again and click on ‘Get OTP’. You will get an OTP on your Aadhaar-linked mobile number.

Step 13: Enter the OTP on the required space to authenticate it and click on ‘Submit’

Step 14: Once the OTP has successfully verified the specifics of your nominee will be saved in the database of EPFO. Under the ‘Manage’ tab, you can verify the nomination specifics under the ‘e-nomination’ option.

EPF-EPS nomination rules

EPF-EPS nomination rules

Almost all the privileges of an EPFO member’s account will be applied, if any, to his/her spouse and children after making the nomination. This also covers the Employees’ Pension Scheme (EPS). The statute permits only family members to be nominated for certain benefits as nominees. According to the scheme, the family may be your spouse, children, dependent parents if you are male. It may be a husband, children, dependent parents, dependent in-law wife and children of the deceased son for a female. Given that the individual can, at his convenience, nominate some other person to be a guardian of the minor applicant if there is no major individual in his or her family. If the individual has not nominated one, then upon his/her death, the cumulative corpus of EPF account will be allocated equally among all the family members. If the individual is unmarried, then dependent parents will be granted the same. The nomination or its alteration shall take place to the degree that it is effective on the day on which the Administrator receives it.



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