The Max Life Smart Wealth Income Plan is a non-linked participating individual life insurance savings plan. It’s a comprehensive solution that ensures your pleasure for the rest of your life by giving an additional income stream when you need it most. It is a participating product that provides you with the financial means to meet your family’s needs while ensuring that you and your loved ones live comfortably.
Main features of Smart Wealth Income Plan
1) Policyholders can pick from three options: ‘Early Income,’ ‘Early Income with Guaranteed Money Back,’ or ‘Deferred Income.’ Under all versions, all of these alternatives provide built-in assurances in the form of guaranteed income/guaranteed money-back.
2) Survival benefits (‘Cash Bonus’ and ‘Guaranteed Income’) can be accumulated at any moment during the insurance period, according on the need. The policyholder can also take partial or total withdrawals of the accrued ‘Cash Bonuses/Guaranteed Income’ at any time during the policy period.
3) If the policyholder does not use the unpaid survival benefits throughout the policy term, they will be paid along with the plan benefits when the policy is closed due to death, maturity, or surrender. The accrued survival benefits will be accumulated at an annual interest rate equal to the RBI reverse repo rate, which is published on the RBI’s website. 4) By paying a tiny additional fee, one may also tailor their protection insurance by adding riders. In the event of the Life Insured’s death, policy continuation benefits ensure that survival and maturity payments are paid as and when due, without the need to pay a premium.
5) The plan also includes discounts for current Max Life customers (first year), female lives (all due premiums), and high sum assured on maturity refunds.
Under the ‘Max Life Smart Wealth Income Plan,’ riders such as the Max Life Waiver of Premium Plus Rider, Max Life Accidental Death and Dismemberment Rider, Max Life Term Plus Rider, and Max Life Critical Illness and Disability Rider can be added to the base policy.
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Story first published: Wednesday, November 10, 2021, 14:40 [IST]
After record gains on the first day of Nykaa listing, investors’ interest in the flourishing IPO market would have increased bountifully. So, here we provide a take on the latest Latent View Analytics IPO that has opened for public subscription today:
Brokerages Recommend Subscribing To Latent View Analytics IPO
About Latent View:
The new age business primarily offering data and analytics consulting, business analytics, advanced predictive analytics, data engineering and digital solutions. The company’s clientele include bluechip enterprises in the area of technology, banking, insurance and financial services, consumer packaged goods and retail as well as other industries.
Issue details:
The Rs. 600 crore IPO includes fresh equity issuance worth Rs. 474 crore together with an OFS of Rs. 126 crore. The company plans to use the proceeds of the IPO for financing inorganic growth initiatives, working capital requirements of the subsidiary as well as increase investment in subsidiaries to augment their capital base. The company has fixed a price band of Rs 190-197 per share for this IPO.
Analysts’ give thumbs up to the issue of Latent View Analytics
The issue will serve as a good bet both for good listing gains as well as for long term prospects.”Good track record of promoters with no litigations, new age business with a strong growth outlook and strong financial and profitability works well for this IPO,” market veteran shares his view on the IPO. The negative though is the small company size with revenue of just Rs. 300 crore.
“We feel in future there will be a great demand for pure play analytics company like Latent View, which is engaged in providing analytics services, offering an in-depth understanding of solving complex customer problems and assists business entities in making an informed decision. Thus considering the bright future and attractive valuations, we assign a “SUBSCRIBE” rating for the issue,” said Choice Broking in a report.
Various brokerages’ take on Latent View Analytics IPO
Brokerage
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Choice Broking
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Reliance Securities
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TopShare Brokers
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Religare
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Story first published: Wednesday, November 10, 2021, 13:53 [IST]
LIC is the public insurer Corporation of India, which is offering the Bhagya Lakshmi Plan. It is a non-linked, non-participating, micro-insurance policy. Micro-insurance is known as insurances that offer “coverage to low-income households or to individuals who have little savings”.
Policy Returns and Benefits
LIC Bhagya Lakshmi, the limited premium paying term plan offers a return of 110% of the total amount of premiums payable on maturity, on Life Assured surviving to the end of the policy term. The premium referred above shall not include any taxes and extra premium if any. On the policy holder’s death before maturity, ‘Sum Assured on Death’ will be paid; where ‘Sum Assured on Death’ is defined as the highest of 7 times of annualized premium or 105% of total premiums paid up to the date of death or Sum Assured. The premiums, however, will not include any taxes.
Eligibility Criteria
For the LIC Bhagya Lakshmi plan, the minimum entry age is 18 years, while the maximum entry age is 42 years for Premium Paying Term 5 years, and the maximum entry age is 55 years for Premium Paying Term 6 to 13 years, which is subject to Maximum Maturity Age of 65 years. The maximum maturity age for the LIC Bhagya Lakshmi plan is 65 years, which will depend on the Premium Paying Term.
Sum Assured and Premium Paying Term
The Minimum Sum Assured is Rs. 20,000, and the Maximum Sum Assured is Rs. 50,000. The Sum Assured is calculated in multiples of Rs. 1,000. The Minimum Premium Paying Term for the policy is 5 years, while the Maximum Premium Paying Term is 13 years. The Policy Term is counted as Premium Paying Term + 2 years. According to the policy term, “Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode during the premium paying term of the policy”.
Grace period
Additionally, a grace period of 30 days will be allowed for payment of monthly premiums and 60 days for other modes of premium payments from the date of the first unpaid premium. LIC informs, “If less than one year’s premiums have been paid and any subsequent premium be not duly paid, all the benefits under the policy shall cease after the expiry of grace period from the date of first unpaid premium and nothing shall be payable.”
According to the research report of the brokerage “Mahindra & Mahindra’s standalone revenue/adjusted PAT grew 15.5%/31% YoY and 13%/81% QoQ to INR133b/INR16.9b, while EBITDA declined by 17% YoY (+2% QoQ) to INR 16.6b. Revenue/EBITDA/adjusted PAT grew 46%/28%/ 97% in 1HFY22 and volumes grew 3% YoY and 2% QoQ. The net realization grew 12% YoY and 11% QoQ to INR698k/unit (est. INR640.6k), driven by ~13% YoY and 12% QoQ growth in Auto segment realization to ~INR779k/unit and tractor realizations grew by ~8% YoY and 4% QoQ to INR551k/unit.”
Motilal Oswal has said “the gross margin of M&M’s declined by 6pp YoY (-320bp QoQ) to 27.2% (est. 28.5%), impacted by commodity cost and adverse mix (lower Tractor sales) and lower than estimated staff cost (-10% QoQ due to one-off) and other expenses (on account of operating leverage) supported EBITDA margin at 12.5% (est. 12.3%), a decline of 480bp YoY and 140bp QoQ. EBITDA declined by 17% YoY and 2% QoQ to INR16.6b (est. ~INR15b).”
The brokerage has also said in its research report that “PBIT margin for Tractor/Auto segment of MM’s fell 6pp/270bp YoY, but rose 160bp/100bp QoQ to 18.7%/2.7%, higher other income (driven by dividend from subsidiaries) boosted adjusted PAT growth by ~31% YoY and 81% QoQ to ~INR16.9b (est. INR11.2b) and investment in subsidiaries/JVs/associates stood ~INR4.6b in 1HFY22 (v/s INR29.4b in 1HFY21).”
Buy Mahindra & Mahindra with a target price of Rs 1150
According to the research report of Motilal Oswal, the management commented that Mahindra & Mahindra Ltd. is currently consolidating its EV business by merging Mahindra Electric (100% subsidiary) with the standalone entity, bringing the entire EV business under one roof. It plans to have a sizable share in e-3Ws, e-LCVs, and e-PVs.
“In the Farm Machinery business, Mahindra & Mahindra Ltd is targeting to grow its FY27 revenue by 10x to ~INR50b (including ~INR10b from exports), led by strong growth in the domestic industry (to ~INR120b by FY27 from INR50b currently), and driving market share gains to over 30% from sub-10% currently” said Motilal Oswal.
The brokerage has further clarified in its research report that “We expect the Auto business to take over the growth mantle from Tractor, although deterioration in the mix would restrict EBITDA/EPS CAGR to ~17%/~23% over FY21-23E. MM’s valuations are still at a substantial discount to its five-year average, reflecting a weaker Tractor cycle. Implied core P/E for MM stands at 12.3x/9.6x FY22E/FY23E EPS. This implies an over 30% discount (on an FY23E basis) to its five-year average core P/E. We maintain our Buy rating, with a TP of INR1,150/share (Sep’23E SoTP).”
Disclaimer
The above stock is picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
The Department of Posts released clarifications on the operation of post office savings accounts in a circular dated November 5, 2021. The clarifications on different POSB Operations concerns such as the issuing of a new passbook, opening of a joint account, issuing a POSB Cheque to a Savings Joint Account, opening of a Basic Savings Account, and more. Below is a list of all the department’s clarifications on how to operate a post office savings account:
1. Issue of Fresh Passbook in lieu of old passbook in any other CBS PO
The procedure for issue of fresh passbook in lieu of old / used up passbook is prescribed in Rule 44 of POSB CBS Manual. But there is no clarity whether the fresh passbook of accounts standing in CBS Post Offices (PO) can be issued by any other CBS PO. It is clarified that any CBS PO can issue a fresh passbook for the account standing in any other CBS PO in lieu of a used up / old spoiled passbook, following the procedure prescribed in Rule 44 of POSB CBS Manual.
2. Opening of Joint Account by two or more illiterate depositors or Jointly by an illiterate depositor and literate depositor
As per Rule 5(5) of GSPR 2018 which was circulated in SB Order No. 13/2019 dated 18.12.2019, A blind or visually challenged or illiterate depositor may open a joint account with a literate depositor. Further, there is no restriction in any scheme rules for opening of a joint account jointly by two or more illiterate depositors. It is clarified that a joint account may be opened jointly by two or three illiterate depositors or jointly by Illiterate Depositor and Literate Depositor.
3. POSB Cheque to a Savings Joint Account opened jointly by a literate depositor and an illiterate depositor
As per the provisions in POSB CBS Manual and POSB Manual Volume I, for availing Cheque facility, the depositor should be literate and should be able to sign in running hand besides maintaining a balance of Rs. 500/- in the account. Cheque facility is not provided to the accounts operated by the minor himself. There is no clarity on the issue of a cheque for a joint savings account opened by a literate and illiterate depositor. As per the clarification issued by MoF, all types of operations in a Joint B Account can be done by any of the depositors, it is clarified that cheque facility can be extended to the Joint B accounts opened jointly by an illiterate and a literate depositor subject to the conditions that the cheque will be used only by the literate depositor who can sign in running hand and illiterate depositor shall not use cheque facility of the account. Any cheque used by the illiterate depositor of such account shall not be entertained.
4. Opening of a Basic Savings Account by an individual who is already having a Post Office Savings ‘single’ account
Basic Savings Account has been introduced vide GSR No. 257(E) dated 9th April 2021 through amendment in POSA Scheme 2019. As per the notification, this type of account has been inserted below subparagraph (2) of paragraph (3) of POSA Scheme 2019. As per the provisions made below paragraph (3)(e) of POSA Scheme, only one account can be opened by an individual as a single account.
Since Basic Savings Account is a separate type of account and inserted as subparagraph (3) below subparagraph (2) of paragraph (3) of POSA Scheme 2019, it is clarified that an individual may open a PO Savings Single Account in addition to a Basic Savings Account and vice versa.
5. Limit on the amount of deposit in Branch Post Offices when the deposit is made through Withdrawal form (SB-7) or Cheque
Orders for acceptance of cheque and withdrawal form (SB-7) for Account opening and subsequent deposits at Branch Post Office have been issued in SB Order No. 22/2020 dated 18.06.2020 and SB Order No. 32/2020 dated 23.09.2020. The small savings schemes viz. MIS, SCSS, KVP, NSC and PPF were extended to Branch Post Office in SB Order No.27/2020 dated 23.07.2020. Cash acceptance limit at Branch Post Office in an account in a day was raised from Rs. 25,000 to Rs. 50,000/ in SB Order No. 3/2021 dated 05.03.2021.
In this regard, it is clarified that in respect of subsequent deposit/deposit for opening of any type of account, through withdrawal form and Cheque, no such Limit of Rs. 50,000/ in a day in an account is fixed.
6. Change of guardian in any account
As per Rule 10 (4) of GSPR 2018, in the event of death of the guardian, the succeeding guardian shall be eligible to operate the account of the Minor or the person of unsound mind, as the case may be.
In this regard, it is clarified that change of guardian is permissible only on the death of existing guardian and on the orders of any Court. In such cases, the death certificate of the existing guardian or the orders of Hon’ble Court as the case may be should be produced by the new guardian along with a fresh application form (SB-AOF) and KYC documents duly signed by the new guardian.
7. Presence of the depositor at the time of opening of account
As per Rule 4 of GSPR 2018, only Resident citizen of India is eligible to open an account under National (Small) Savings Schemes and as per Rule 5 of GSPR 2018, An Account may be opened by the depositor either by visiting the Accounts Office in person or through permissible electronic modes. including internet or mobile banking application of the respective Government Savings Bank in accordance with the procedure approved by the Reserve Bank of India, from time to time. It is clarified that:
i. In case an account is opened at the post office, presence of the depositor is mandatory at the time of opening of account.
ii. In case an account is opened by a guardian on behalf of a minor or on behalf of a person of unsound mind, the presence of a guardian is mandatory.
iii. Whenever any account under the schemes identified for opening through Authorized Agents (SAS & MPKBY) is opened through Authorized Agents (SAS & MPKBY), presence of the depositor is optional.
iv. Further, if the account opening forms and KYC documents are collected by the Post Office staff and the depositor’s signature is obtained in front of any authorized officials during the POSB account opening drives/melas/doorstep canvassing etc, presence of such depositors is not mandatory.
8. Change of Joint Depositor in a Joint Account
As per the provision in Rule 8 of GSPR 2018, an account opened as a Single Account cannot be subsequently converted into a Joint Account or vice versa. Further, there is no provision in GSPR 2018 for change of any of the depositors in any Joint account. It is clarified that change of the depositor or inclusion of a new depositor in a Joint Account is not allowed. Further, it is clarified that change of order of the depositor (first / second and third) in an account is also not allowed keeping in view of the fact that various returns / statements are filed with the Income Tax authorities based on the PAN Number of the first depositor in an account.
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Story first published: Wednesday, November 10, 2021, 11:14 [IST]
NCC is one of India’s biggest construction businesses, with a presence in a variety of infrastructure verticals including buildings, roads, water, mining, and electrical. ICICI Direct has recommended a buy call on this stock, with a target price of Rs 100 implying a 24% return over the current market price in a year.
Q2FY22 Results:
NCC’s Q2FY22 results were in line with expectations, with good growth on a low base year over year and high order inflows.
Standalone revenue increased 42.7 percent year over year to Rs 2,199 crore, owing to a solid order book position and a turnaround in execution following the second round of disruptions.
EBITDA margin was 10.8%, down 286 basis points year on year (vs. I-direct estimate of 10.5 percent ).
As a result, operational profit increased by 12.8 percent year on year to Rs 236.6 crore.
PAT increased by 78.5 percent year on year to Rs 104.3 crore.
Target and Valuation
“NCC’s share price has grown merely 2% over the past five years. We maintain our BUY rating on the company Target Price and Valuation: We value NCC at Rs 100/share,” the brokerage has said.
Key triggers for future price performance
Strong order book ensures growth; 23 percent revenue CAGR projected during FY21-23E with margins consistent at 11-11.5 percent; continuing momentum in awarding operations to translate into substantial order inflows.
Mahindra and Mahindra
ICICI Direct has recommended a buy call on this stock, with a target price of Rs 1125 implying a 26% return over the current market price in a year.
Q2FY22 Results
The company’s Q2FY22 results were mixed.
Standalone net sales increased 13.1 percent on a quarter-over-quarter basis to Rs 13,305 crore.
EBITDA margins of 12.5 percent were down 140 basis points from the previous quarter.
The resulting standalone PAT for the quarter was Rs 1,432 crore.
“Stock price has grown at ~8% CAGR from Rs 616 levels in November 2016, outperforming the wider Nifty Auto index. We retain BUY rating on pivot towards capital efficiency, EV proactiveness Target Price and Valuation: We revise SOTP-based Target Price to Rs 1,125; 30% hold co. discount to investment; earlier TP Rs 1,000),” the brokerage has said.
Key triggers for future price performance
On the heels of new product releases across automotive divisions, we expect total volume and sales CAGRs of 15.5 percent and 24.2 percent, respectively, in FY21-23E.
Despite operating leverage gains, mix normalisation in favour of autos due to high base effect in tractors will weigh on blended margins.
By FY23E, we forecast EBITDA margins of 12% and return ratios in the double digits.
Disclaimer
The above stocks are picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
The profitable beauty segment start up that garnered a huge investor interest is set to list today. Even on mixed global cues, Nykaa stock on the NSE listed at a price of Rs. 2018 per share on the NSE, while on the BSE the stock settled at a price of Rs. 2001 per share.
Nykaa IPO Lists At 79% Premium At Rs. 2018/Share
The start up company with a stock price of Rs. 2001 is now commanding a market capitalisation of Rs. 95,000 crore higher than 9 Nifty stocks. On the tremendous gains, Nykaa has become the 56th largest company in the country.
On the final bidding day, the over Rs. 5000 crore IPO that comprised both fresh issuance and OFS was subscribed 82 times.
In the grey market-the market of unlisted securities, post the allotment of shares, Nykaa was available at a premium price of Rs. 765 as on November 9, 2021. Even on mixed global cues, Nykaa stock on the NSE listed at a price of Rs. 2018 per share on the NSE, while on the BSE the stock settled at a price of Rs. 2001 per share.
The company aims to deploy the funds for expansion, setting new retail stores and warehouses. It also plans to repay its debt, which could bring down interest costs and shore profitability.
As per Elara Securities, the company which has the first mover advantage will help the company grow 25 percent over the next 5 years.
What to do with Nykaa post listing?
Analysts and experts suggests that 1/3 of the alloted stocks can be booked for profit and the rest can be maintained considering the company’s asset light business model as well as other favourables. So, in case you have been allotted 14 shares, it shall be wise to sell 5 shares of the counter.
GoodReturns.in
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Steel Authority of India Limited, situated in New Delhi, India, is a government-owned steel producer. With an annual turnover of INR 66,267 crore for fiscal year 2018-19, it is owned by the Ministry of Steel, Government of India. SAIL was founded on January 24, 1973, and currently employs 64,628 people. Only 3.45 percent of trading sessions in the last 16 years had intraday drops of more than 5%. Annual sales growth of 11.83 percent surpassed the company’s three-year CAGR of 6.4 percent. The stock returned 87.18 percent over three years, compared to 69.27 percent for the Nifty 100.
Nalco
NALCO stands for National Aluminium Corporation Limited, which is a government-owned company with integrated and diversified operations in mining, metals, and power. It is owned by the Ministry of Mines of India. NALCO is currently 51.5 percent owned by the Indian government.
In the fiscal year ended March 31, 2021, the company generated a return on equity of 12.16 percent, surpassing its five-year average of 9.99 percent. Stock returned 45.09 percent over three years, compared to 80.73 percent for the Nifty Midcap 100. Over a three-year period, the stock returned 45.09 percent, while the Nifty Metal returned 68.43 percent to investors.
BHEL
Bharat Heavy Electricals Limited, situated in New Delhi, India, is a government-owned engineering and manufacturing company. It is owned by the Government of India’s Ministry of Heavy Industries and Public Enterprises. For the fourth quarter in a row, the company has lost Rs 45.98 crore. The stock returned 3.0% over the last three years, compared to 80.73 percent for the Nifty Midcap 100.
Oil India Limited
Oil India Limited is the government’s second-largest hydrocarbon exploration and production company. It is owned by the Indian government’s Ministry of Petroleum and Natural Gas, with its operational headquarters in Duliajan, Assam.
In the fiscal year ended March 31, 2021, the company generated a ROE of 14.9 percent, surpassing its five-year average of 11.75 percent. Stock returned 11.29 percent over three years, compared to 80.73 percent for the Nifty Midcap 100. Over a three-year period, the stock returned 11.29 percent, whereas Nifty Energy returned 70.09 percent to investors.
BEL
Bharat Electronics Limited is an aerospace and defence electronics business controlled by the Indian government. It primarily creates complex electronic goods for use on the ground and in space. BEL is one of India’s Ministry of Defence’s nine PSUs. Only 2.26 percent of trading sessions in the last 16 years had intraday gains of more than 5%. The stock returned 123.82 percent over three years, compared to 69.27 percent for the Nifty 100.
Multibagger PSU: 5 Stocks Rose More Than Double In The Last One Year
Company
Last Price (Rs)
One Year Return(%)
SAIL
121
218.84%
Nalco
100.30
196.75%
BHEL
99.90
141.13%
OIL
224
152.39%
BEL
219.90
130.50%
Disclaimer
Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
Motilal Oswal has set a price target of almost 21% over the current market price for the stock of the company and has placed a buy call.
According to Motilal Oswal, Procter & Gamble Hygiene and Healthcare delivered strong sales growth in the first half of the decade, with a 20.4% CAGR over FY10-15.
“The company saw a lull period over the next three years due to overhauls such as demonetization and the introduction of GST. However, since FY19, growth seems to have returned strongly (barring a temporary blip in FY20 due to COVID-related disruptions). With 19% sales growth delivered in FY21, PGHH appears to have returned to the growth levels seen in the earlier half of the decade,” the brokerage has said.
Procter & Gamble Hygiene and Healthcare: Rapid growth
The company should see rapid growth over the long term on the back of certain encouraging developments: (a) the increasing pace of distribution expansion, (b) the continuingly strong pace of category development efforts in schools to boost awareness and growth, (c) rising ad spends after a lull in preceding years, (d) a healthy pipeline of new products, (e) accelerated consumer entries into the category through launches at low price points, and (f) the willingness to take price cuts, whenever required, to boost growth.
“We maintain a Buy rating, with a target price of Rs 17,450 (50x Dec’23 EPS),” the brokerage has said.
Buy Britannia Industries, says Motilal Oswal
Brokerage firm, Motilal Oswal also has a buy call on the stock of Britannia Industries, though it has not set a target price on the same.
According to a press release issued by Britannia, the company is witnessing unprecedented levels of inflation in the market prices of palm oil (+54%), industrial fuel (+35%), and packaging materials (+30%), leading to an overall inflation of 14% in 2QFY22.
According to Motilal Oswal, the management was able to partially offset this impact through strategic forward covers and accelerated cost efficiency programs. It has also initiated necessary price hikes across the portfolio.
Consolidated sales rose 5.5% YoY to Rs 36.1 billion (est. INR34.9b) in 2QFY22. Consolidated EBITDA/PBT/adjusted PAT declined by 17.3%/22.1%/23% YoY to INR5.6b/INR5.2b/INR3.8b (est. INR5.8b/INR5.7b/INR4.3b).
“Base business volume growth likely to be between 6% and 7% in 2QFY22 (est. 4%),” Motilal Oswal has said in a press release. The stock of Britannia last closed at Rs 3,611 on the National Stock Exchange.
Disclaimer
The above stocks are picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
The Ministry of Defence under the Controller of Defence Accounts, Guwahati has released a list of Income Tax Savings Documents that must be submitted for the fiscal year 2021-2022. “For the purpose of assessment and regularization of Income Tax for the Financial Year 2021-22 (Assessment Year 2022-23) all the officers and staff are requested to submit the following documents” the Defence Ministry has said in an Official Memorandum (O.M) on dated 2nd November 2021.
As per Annexure I and IL, proof of savings/documents such as insurance premium receipts, NSC, Infrastructure Bond, PPF Bank Statement, Housing Loan Certificate from bank, rent receipt, copy of House Owner’s Pan Card, etc. should be submitted.
According to the OM, any Officers and Staff claiming exemption of Income Tax under IT Act 1961 under section 197 who have not forwarded the Exemption Certificate for FY 2021-22 from Income Tax Department are advised to do so at the earliest; failing which Total Tax Payable will be deducted at source and tax refund if any should be claimed only from IT Department. The Defence Ministry has also clarified that “In this connection, it is also stated that exemption allowed will be limited to the amount of salary and period of exemption mentioned in the Income Tax Exemption Certificate as received from the Income Tax Department. Any amount exceeding the amount mentioned in the Certificate and any salary drawn prior or after the period mentioned will be liable for a tax deduction.”
The Defence Ministry has said that “Those employees who had produced “Self Declaration” earlier, should also submit Proof of savings/documents along with Annexure I and Annexure-II failing which the “Self Declaration” submitted earlier shall be considered null and void and Tax Deduction at source shall be done accordingly.”
Hence, taxpayers are recommended that the above documents (if relevant) duly completed in all regards should be submitted on or before December 15, 2021, in order for the ODO to authorize the income tax deduction at source for the present fiscal year. The Defence Ministry has further stated in its OM that “In absence of receipt of the aforementioned documents from the official, the Income Tax will be deducted based on the available information at this end and any refund, if admissible, may be claimed only from the Income Tax department.”
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