How to Fill NACH Form in LIC ?

What is NACH : The National Payment Corporation of India (NPCI) has implemented an electronic payment service termed as National Automated Clearing House (NACH) for banks, financial institutions, corporate and  Govt. Department. 

NACH is a funds clearing platform set up by NPCI similar to the existing ECS of RBI.

Important Points : 
NACH has both Debit and Credit Variants and it aims at facilitating inter bank high volume debit/credit transactions, which are bulk and repetitive in nature.

The Primary move of NACH is to handle low value, high-volume transactions based on electronic files

Ideally implementing this mandate will allow transactions to be cleared n real-time mode rather than batch mode.

The NACH platform will have national footprint wich will cover 82000+ bank branches

The centralized ACH or NACH is expected to consolidate the current multiple ECS Systems and provide a framework for removal of local barriers/inhibitors and harmonization of standards and practice.

What is Difference between NACH And ECS ?

The prevalent Electronic Clearing Services (ECS) in India is available at around 89 centers in the country while it is operated by the RBI at 15 Centers, it is operated by commercial banks at the remaining centers. The ECS model lacks a standardized operating model users manual processes and has other inherent challenges such as inconsistent timelines around post transnational query management and servicing.

	ECS		NACH
1	Mandate verification is done based on physical resulting in verification issues and delayed timelines.		A robust mandate management system that will include a standardized mandate format and a defined workflow for mandate verification.
2	No such concept of a unique mandate registration reference number.		Unique mandate registration reference number will be available, which will allow for better tracking.
3	Higher number of rejection observed on account of mandate related issues		Provision to capture destination banks unique mandate registration in the transaction file resulting in lesser rejections.
4	Presentation and settlement is spread over 3-4 day period.		Same day presentation and settlement including returns processing.
5	Dispute management is left to the discretion of the Destination Bank		Well defined Dispute Management System electronic platform to raise and resolve issues, Oversight by the NPCI.

How to Fill NACH Form in LIC ?

There are some precautions require to fill NACH Form to save it from rejections.

There are some points which need to have attentions and act as per guidance given below :

* UMRN = Leave it blank.

* DATE = Write date of registration (Current Date)

* To Debit = Tick account type

* Bank Account Number = Write Complete Account Number from Left to end

* With Bank = Name of Customers Bank

* IFSC = IFSC Code

* Amount = is the maximum account printed in the mandate acknowledgement                   letter printed after the policy number is allotted.

* Amount in Words =Do not write "Only" after writing in words)

* Amount in Figure = In figure  don't put slash or dash.

* Frequency = Tick As and When presented

* Debit Type = Tick Maximum amount 

* Policy Number = Write Policy Number

* Mobile Number = Mobile number given in the bank.

* E-mail ID =  If given useful for future reference.

* Period = 

               From = Registration date (the date on which policy is keyed in and                                completed)

               To     = Need Not be entered

               TICK  Until Cancelled

* Signature = 

Single Account Holder = Only one Sign

Joint Account Holder =  Sign of all account holders.

Due to some reason some time it get cancel. To understand proper reason for cancellation are some here given below :

NACH Rejection codes & Reasons : -

MO03 = Drawer signature differs

MO 36 = Invalid payer account number

MO79 = Data mismatch & debit type & sign

MO38 = No such account

MO72 = Data mismatch with mandate

MO73 = Mandate incomplete

NOEX = Turn around time expired

MO40 = Title account wrong , incomplete

MO42 = Account description does not tally

MO32 = Period of validity not mentioned

MO78 = Date mismatch, period & signature

MO57 = Payer name mismatch

MO43 = Nature of debit not allowed

MO07 = Alteration requires authentication. 

Still have confusion about how to fill properly NACH Mandate Form ... watch here 

Suggestion:To know more visit here

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Change Of Nomination in LIC Policy

    The Insurance Act allows the holder of a life insurance policy to nominate, on his own, a person or persons to whom the money shall be paid in the event of his death while effecting the policy or any time before it matures.
    
    A policy holder can do nomination at the time of proposal by given the details of nominee in the proposal form. If nomination can not be done at the time of proposal, it can be done later also. If nomination is done later, it has to be effected by giving notice in a prescribed form of LIC and it has to be done on the back of the policy document. A nomination is not required to be stamped.
    
    Remember Cancellation or Change in Nomination in insurance policies now comes at a cost as regulator IRDA has allowed life insurance company to charge upto Rs.100/- for offline issued policies and Rs.50/- Online (Electronic form) issued policies.

PROCESS OF CHANGE THE NOMINATION IN LIC POLICY :-  A Policy holder can change his nomination during the policy term and it can be changed any number of times. To change the nomination in LIC Policy, the policyholder has to give a notice to LIC of India in a  Form 3750 and nomination has to be endorsed. Further, the policyholder can change nominee without prior inform them. Nomination can be done or changed number of times by paying nominal fee to the insurer.
To process of change of nomination following documents require :- 

• Relation Proof of Life Assured and the person being nominated
• Form No. 3750 *
• Original Policy Bond.

* If you have Joint Life Policy use Form No.3237.

* If you have Minor Nominee use Form No. 3265.

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Income Tax Rate Slab For F. Y. 2017-18 ( A.Y. 2018-19)

As per Budget 2017 proposed by our Fin. Minister  on 01.02.2017 new revised income tax rates in case of every individual (other than those mentioned in (ii) and (iii) below or HUF family or every Association of Persons or Body of Individuals, whether incorporated or not, or every Artificial Judicial person referred to in Sub-clause (VII) of Clause (31) of Section 2 of the Act (not being a case to which any other Paragraph of Part III applies) are as under : -

BUDGET 2017-  PROPOSED
INCOME TAX RATE CHART FOR F.Y. 2017-18
INCOME LIMIT		TAX RATE		SAVE AMOUNT
		F.Y. 2016-17	F.Y. 2017-18
INDIVIDUAL TAX PAYERS     (BELOW 60 YEARS)	UPTO 2.5 LAKH	NIL	NIL	NIL
	2.5 LAKH – 5 LAKH	10%	5%	12500
	5 LAKH – 10 LAKH	20%	20%	12500
	10 LAKH - ABOVE	30%	30%	12500

In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year -

BUDGET 2017-  PROPOSED
INCOME TAX RATE CHART FOR F.Y. 2017-18
INCOME LIMIT		TAX RATE		SAVE AMOUNT
		F.Y. 2016-17	F.Y. 2017-18
INDIVIDUAL TAX PAYERS     (BETWEEN 60 YRS – 80 YRS	UPTO 3.0 LAKH	NIL	NIL	NIL
	3.0 LAKH – 5 LAKH	10%	5%	10000
	5 LAKH – 10 LAKH	20%	20%	10000
	10 LAKH - ABOVE	30%	30%	10000

In the case of every individual, being a resident in India, who is of the age of 80 years or more at anytime during the previous years -

BUDGET 2017-  PROPOSED
INCOME TAX RATE CHART FOR F.Y. 2017-18
INCOME LIMIT		TAX RATE		SAVE AMOUNT
		F.Y. 2016-17	F.Y. 2017-18
INDIVIDUAL TAX PAYERS     (ABOVE 80 YRS	UPTO RS.5 LAKH	NIL	NIL	NIL
	5 LAKH – 10 LAKH	20%	20%	NIL
	10 LAKH - ABOVE	30%	30%	NIL

The amount of income tax computed in accordance with the preceding provisions of he Paragraph shall be increased by a surcharge at the rate of :-

(1) 10% of such Income Tax in case of a person having a total income exceeding Rs.50.00 Lakhs but not exceeding Rs.1.00 Crore.

(2) 15 % of such Income Tax in case of a person having a total income exceeding Rs.1.00 Crore.

*Rebate U/s 87A is applicable as earlier for those whose income is below Rs.5.00 Lakh.

From AY 2018-19, this rebate shall be available only for individuals having income up to Rs. 3,50,000/-

Further up to AY 2016-17, rebate u/s 87A was restricted to Rs. 2,000/- . 

Rebate was later increased to Rs. 5,000/- w.e.f. AY 2017-18. 

Now, w.e.f. AY 2018-19, rebate has been deflated to Rs. 2500/-.

It means, having regard to exemption limit of Rs. 2,50,000/-, tax could have bill NIL for Income up to Rs. 2,70,000/- up to AY 2016-17. 

For AY 2017-18, tax could be NIL on Income up to Rs. 3,00,000/-. 

For AY 2018-19, tax again would be NIL up to 3,00,000/-, because of tax rate being reduced to 5%.

Hence the reduction in tax rate by 5% has been compensated by reducing rebate u/s 87A.

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How To Make Claim in Insurance ?

What is Claim in Insurance?

Let’s talk about claim. Claim is the demand that the insurer (i.e. LIC of India) should redeem the promise made in the contract. Then the insurer settle the claim after satisfying himself that all the conditions and requirements for settlement of claim have been complied with.

Types of claims:-

An insured person can make claim according to condition complied to contract between Insurer & Policyholder. Claim can be made against Maturity; Death or by Surrendering a policy.

In Money Back Policy, LIC or other Insurance company also pays Survival Benefit Payment before the date of maturity.

How to Make Claims and what are the documents required for?

(A)Maturity Claims:-

When Life Insurance Policy is maturing, the insurance company will usually send intimation prior to due date at least two to three months in advance of the date of maturity with maturity amount payable details.

Policy holder should contact his servicing branch to know about claim procedures & sets of documents required. The Insurance Company asks for following documents:

(          1)Maturity Claim Form No. 3825

(          2)Original Policy Bond

(          3)Discharge Voucher with witness sign

(          4)NEFT Details with cancelled Cheques

(B)Death Claims :-

When a person with life insurance policy dies, claim intimation should be sent to the insurance company as early as possible. The Assignee or the Nominee under the policy can do this with the help of his agent or relative.

The claim intimation should contain information like Date, Place and Cause of Death. The Insurance Agent should help the Insured Person Family or Assignee to deal with the Insurance Company. The Insurance company will respond and ask for the following document :

(       1)Maturity Claim Form No. 3825

(       2)Certificate of Death

(       3)Original Policy Bond

(       4)Discharge Voucher with witness signature

(       5)NEFT Details with cancelled Cheques

*If the policy has been assigned in favour of any other person or entity like any Loan provider company – the claim amount will be paid to the assignee who will give discharge.

(C) Surrender of Policy : - Please visit post How to Surrender LIC Policy?

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Insurance And Tax Savings

Earlier we says for Insurance nowadays we also add Insurance with Tax Savings. Mostly people invest for tax saving purpose. And before taking any insurance plan peoples ask how much tax benefit they may get!

Here highlighting some LIC Plans with tax benefit as per Income Tax Act.

1) Deductions Under Section 80C  

   

    (i) Life insurance premium paid in order to effect or to keep in force an insurance policy on the life of the assessee or on the life of the spouse or any child of assesee and in the case of HUF, Premium paid on the life of any member thereof under an insurance policy, (Other than a contact for a deferred annuity) issued on or before the 31st day of March 2012 shall be eligible for "deduction only to the extent of 20% of the actual capital sum assured or actual  premium paid whichever is less." 

   And issued on or after the 1st day of April 2012 shall be eligible for "deduction only to the extent of 10% of the actual capital Sum Assured or Actual Premium paid  whichever is less".

     Where the policy, issued on or after the 1st day of April 2013, is for insurance on life of any person, who is - 

     (a)a person with disability or a person with sever disability (Section 80U)

     (b) Suffering from disease or ailment as specified in the rules under section              80DDB.

   (ii) Contribution to deferred annuity plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for deduction.

  (iii) Contribution to Annuity Plans like - New Jeevan Dhara, New Jeevan Dhara -I and Jeevan Akshaya -VI.

Under Section 80CCC

 New Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan :- A deduction to an individual for any amount paid or deposited by him from his taxable income in the above annuity plans for receiving pension is allowed.

*The aggregate amount of deductions under U/S 80C, 80CCC & 80CCD (1) shall not in any case exceed Rs.1,50,000/- (Rupees One Lakh Fifty Thousand)*

2) Deductions Under Section 80D

a)    Deduction allowable upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of assessee or his family (i.e Spouse & Dependent children) or any contribution made to the central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or on account of Preventive health check-up of the assessee or his family.

b)    Additional deduction upto Rs.25,000/- if an amount is paid to deep in force an insurance on health of parents or on account of Preventive health checkup of the parent of the assessee, whether dependent or not.

(c) In case of HUF, deduction allowable upto Rs.25,000/- if an amount is paid to deep in force an insurance on health of any member of that HUF.

(d) If the sum specified in (a) or (b) or (c) is paid to effect or keep in force an insurance on the  any person specified therein who is a senior citizen, then the deduction available will be up to Rs.30,000/-. Here senior citizen means the person who is of sixty year or more during the previous year.

(e) In case the amount are paid in (a) or (b) or (c) on account of preventive health check up, the deduction for such amounts shall be allowed to the extent it does not exceed in aggregate Rs.5,000/-

(f) For the purpose of deduction, the payment shall be made by  - any mode, including cash, In respect of any sum paid on account of preventive health check up and Any mode other than cash in all other cases.

(g) the insurance as mentioned above shall be in accordance with the scheme framed by (i) the GIC of India or any other insurer approved by IRDA.

3) Deductions Under Section 80DD

Jeevan Aadhar Plan - Deduction from total income upto Rs.75,000/- allowable on amount deposited with LIC under Jeevan Aadhar Plan, Jeevan Vishwas for maintenance of an handicapped dependent (Rs.1,25,000/- where handicapped dependent is suffering from severe disability)

4) Exemption in respect of commutation of Pension under Jeevan Suraksha & Jeevan Nidhi Plans : 

Under Section  10(10A)(iii) of the Income Tax Act, any payment received by way of commutation of pension out of the Jeevan Suraksha & Jeevan Nidhi Annuity Plans is exempt from Tax.

5) Income Tax Exemption on Maturity / Death Claims proceeds under section 10(10D) :

As per Section 10(10D) of the Income Tax Act, 1961, any sum received under a Life Insurance Policy, Including the sum allocated by way of Bonus on such policy is exempt from tax where the sum s received as a death benefit. However, to get exemption under above section for sum received other than death benefit.

* Policy shall not be issued under Section 80DD(3)  Or

* Policy shall not be issued as Keyman Insurance Policy  Or

* Policy which has been issued on or after April 1, 2003 and the premium paid      in any of the years during the term of the policy not exceeding 20% of the          Actual Capital Sum Assured.

* Policy which has been issued on or after April 1, 2012 and the premium paid      in any of the years during the term of the policy not exceeding 10% of the          Actual Capital Sum Assured.

Where the policy issued on or after the 1st day of April 2013 is for insurance on life of any person, who is - 

(i) a person with disability or a person with severe disability as referred to in section 80U, or 

(ii) Suffering from disease or ailment as specified in the rules made under section 80DDB,

*Exemption under this section shall be available only if the premium payable in any of the years is not more than 15% of the actual Capital Sum Assured.*

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What Is UTR Means !!

UTR is describe as Unique Transaction Reference Number that is generated in RTG/NEFT system for uniquely identifying any transaction. The format of UTR is predefined and is generated by the bank after initiating the transaction.


UTR has 16 unique no. of RTGS /NEFT  denotes in form of :

First 4 digits for Bank : PUNB  ( Bank Code)

Next 1 digit for Server : N or H [(System Identifier) ; "N" stand for
                                        transactions generated in RTGS/NEFT
                                        interface/application and "H" stand for      
                                        transactions generated in Bank's host 
                                        system

Next 2 digit for year : 16 ( for last two digit of year 2016) 


Next 3 digit for Julian Date : 362 (for 27 December)

Next 6 digit  : Unique Reference Number

for example - 
PUNB-H-16-362-XXXXXX for 27.12.2016 dated transaction.

If you have made any RTGS/NEFT transaction to recipient then don't forget to mention  UTR No. to make it enable to track.

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Income Tax Rate Slab for Financial Year 2016-2017 (A Y 2017-18).

It again time to recalculate our Income Tax liability on the basis of our Net Total Taxable Income. Tax is calculated on the basis of Income Tax Rate announce by Government every year in their Annual Union Budget in this month of February.
Government announced Income Tax Rate Slab for Financial Year 2016-2017 ( Assessment Year 2017-2018).

Normal Income Tax Rate applicable to a Resident Individual below the age of 60 years; Non-Resident Individual; Resident/Non-Resident HUF, AOP, BOI, and Artificial Juridical Person.

NET INCOME RANGE	INCOME TAX RATE	EDUCATION CESS	HIGHER SECONDARY EDUCATION CESS
Upto 2,50,000/-	NIL	NIL	NIL
Rs.2,50,001 - to- Rs.5,00,000	10% of (Total Income - Rs.2,50,000/-)	2% of Income Tax	1% of Income Tax
Rs.5,00,001 - to -Rs.10,00,000/-	Rs.25,000/- + 20% of (Total Income - Rs.5,00,000/-)	2% of Income Tax	1% of Income Tax
Rs.10,00,001 - to -Above	Rs.1,25,000/- + 30% of (Total Income - Rs.10,00,000/-)	2% of Income Tax	1% of Income Tax

Normal Tax Rates Applicable to a resident individual of the age of 60 years or above at any time during the year but below the age of 80 years.

NET INCOME RANGE	INCOME TAX RATE	EDUCATION CESS	HIGHER SECONDARY EDUCATION CESS
Upto 3,00,000/-	NIL	NIL	NIL
Rs.3,00,001 - to- Rs.5,00,000	10% of (Total Income - Rs.3,00,000/-)	2% of Income Tax	1% of Income Tax
Rs.5,00,001 - to -Rs.10,00,000/-	Rs.20,000/- + 20% of (Total Income - Rs.5,00,000/-)	2% of Income Tax	1% of Income Tax
Rs.10,00,001 - to -Above	Rs.1,20,000/- + 30% of (Total Income - Rs.10,00,000/-)	2% of Income Tax	1% of Income Tax

Normal Tax Rates applicable to a Resident Individual of the Age of 80 Years or Above at any time during the year.

NET INCOME RANGE	INCOME TAX RATE	EDUCATION CESS	HIGHER SECONDARY EDUCATION CESS
Upto 5,00,000/-	NIL	NIL	NIL
Rs.5,00,001 - to -Rs.10,00,000/-	20% of (Total Income - Rs.5,00,000/-)	2% of Income Tax	1% of Income Tax
Rs.10,00,001 - to -Above	Rs.1,00,000/- + 30% of (Total Income - Rs.10,00,000/-)	2% of Income Tax	1% of Income Tax

After taking the Deductions Under Section 80 (C) to 80 (U), and Rebate 87A(Applicable to those whose Total Income is below Rs.5,00,000/-) 
the tax is payable after adding the Cess and Surcharges (If applicable)
The Surcharge is levied @ 15% on the Amount of Income Tax where Net Income Exceeds to Rs.1 Crore. In case where Surcharges is levied, the Cess will be levied on the Tax Amount plus Surcharge.
Extract of Section 87A is as follows :-
The following section 87A shall be inserted after section 87 by the Finance Act, 2013, w.e.f. 01-04-2014 :
Rebate of income-tax in case of certain individuals:

87A. An assessee, being an individual resident in India, whose Total Income does not exceed Five Hundred Thousand Rupees (Rs.5,00,000/-), shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.

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Do Banking Without Internet !!

Excellent service !!

Dial  * 99# to do basic Banking instantly. One can check balance for accounts, mini statement where the mobile number is registered & no internet required. 

Below are the direct codes for banks::

* 99* 41# -State Bank of India

* 99* 42# -Punjab National Bank

* 99* 43# -HDFC Bank

* 99* 44# -ICICI Bank

* 99* 45# -AXIS Bank

* 99* 46# -Canara Bank

* 99* 47# -Bank Of India

* 99* 48# -Bank of Baroda

* 99* 49# -IDBI Bank

* 99* 50# -Union Bank of India

* 99* 51# -Central Bank of India

* 99* 52# -India Overseas Bank

* 99* 53# -Oriental Bank of Commerce

* 99* 54# -Allahabad Bank

* 99* 55# -Syndicate Bank

* 99* 56# -UCO Bank

* 99* 57# -Corporation Bank

* 99* 58# -Indian Bank

* 99* 59# -Andhra Bank

* 99* 60# -State Bank Of Hyderabad

* 99* 61# -Bank of Maharashtra

* 99* 62# -State Bank of Patiala

* 99* 63# -United Bank of India

* 99* 64# -Vijaya Bank

* 99* 65# -Dena Bank

* 99* 66# -Yes Bank

* 99* 67# -State Bank of Travancore

* 99* 68# -Kotak Mahindra Bank

* 99* 69# -IndusInd Bank

* 99* 70# -State Bank of Bikaner and Jaipur

* 99* 71# -Punjab and Sind Bank

* 99* 72# -Federal Bank

* 99* 73# -State Bank of Mysore

* 99* 74# -South Indian Bank

* 99* 75# -Karur Vysya Bank

* 99* 76# -Karnataka Bank

* 99* 77# -Tamilnad Mercantile Bank

* 99* 78# -DCB Bank

* 99* 79# -Ratnakar Bank

* 99* 80# -Nainital Bank

* 99* 81# -Janata Sahakari Bank

* 99* 82# -Mehsana Urban Co-Operative Bank

* 99* 83# -NKGSB Bank

* 99* 84# -Saraswat Bank

* 99* 85# -Apna Sahakari Bank

* 99* 86# -Bhartiya Mahila Bank

* 99* 87# -Abhyudaya Co-Operative Bank

* 99* 88# -Punjab & Maharashtra Co-operative Bank

* 99* 89# -Hasti Co-Operative Bank

* 99* 90# -Gujarat State Co-Operative Bank

* 99* 91# -Kalupur Commercial Co-Operative Bank

Also you can dial * 99* 99# to know your Aadhaar linking and Over Draft Status. It has been checked it really works.

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