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Showing posts with label Save Money. Show all posts
Showing posts with label Save Money. Show all posts

Why We Need Health Insurance ?

Why-health-insurance-is-very-important-for-everyone?Mostly people asks when a insurance agent offer health insurance policy to a person that why they need health insurance policy for him or their family members.

Here I shall discuss, Why health insurance is very important for everyone even if they are financially strong?

Answer are very simple, every one knows it though they like to ignore, like if we close our eyes, problem can not find us. 

Few points are here : 
  • People are saving money for their Future Goals, 

  • Savings do not happen in a day or in a month, It takes YEARS, 

  • Life is very UNCERTAIN and DISEASES are a part of that uncertainty.


When DISEASE comes, it spoils all FUTURE PLANNING because it COSTS HIGH especially Critical illnesses like,  
  •  Cancer: 5 Lakh and more 

  •  Heart Ailments : 3 Lakh to 8 Lakh or more, 

  • Kidney Issues: 5 Lakh to 15 Lakh or more, 

  • Liver Failure: 5 Lakh to 15 Lakh or more,


These diseases are DANGEROUSLY increasing in India now a days due air pollution, living habits, diet we take are infected. 

Remember every People are not that much FINANCIALLY STRONG to spend 5 Lakh to 15 Lakhs easily at a go...

Mostly during illness people might have to sell their PROPERTY, GOLD and OTHER VALUABLES or dig deep into their savings to meet these medical needs.

People also end up BORROWING money from others, sometime at higher Rate of Interest.

But HEALTH INSURANCE helps to SAVE hard earned money by just paying some REASONABLE PREMIUM,

BUY  HEALTH INSURANCE STAY CONFIDENT and PROTECT YOUR WEALTH.

Because There's nothing more important than a good health. That's our principal Capital Asset.


Doctor Saves Life...... And We (health insurance providers) ....... Saves your Lifestyle.

Understand, Why we need health insurance, then call me @ 9958781151

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Expenses Save Taxes

We incur several regular expenses which make us eligible for tax benefits but we fail to utilize them due to our less knowledge about it. Here we will discuss about some expenses which will help you to save tax.

1) House Rent : IF we are on rental, pay some amount as rent to our landlord, then you will get tax benefit. Some employee gets HRA (House Rent Allowance) which  helps to get income tax deductions. But if you are not getting HRA break-ups then you can also save tax as per provision under Section 80GG.


2) Travel Expenses : Income Tax gives tax rebate on conveyance @ 1600/- per month for office goers as Conveyance Allowances. Apart from this you can also enjoy tax saving benefit on LTA (Leave Travel Allowances) which can be claimed for two journeys in a block of 4 years. Expenses incurred by you & you family on travel for which your employer gives LTA can be claimed as deduction.

3) Medical Expenses : These expenses are a regular part of everybody's life. For this employee can get benefit of medical allowance allowed by their employee. Apart from this tax laws also allows some tax gains towards money spend on medical insurance & preventive health checkup. Limit of deduction is upto Rs.60000/- under Section 80D, if premium amount not make in cash.

4) Tuition Fees : To provide education we give tuition to our kids. IT Laws provides you opportunity to compensate the expenses you incur on your kids tuition fees by reducing your tax liability. This deduction can be claimed under Section 80C of IT Act.


5) Donations : If your kind hearted & God believer and doing some donations than this habit also helps you some in your tax liability. Cash Donation upto Rs.2000/- only and above by cheques/DD/Transfer to charitable Trust / Organisation will help you to save tax under section 80G.


6) Pension Fund : If your employee deduct your salary for pension fund contribution which is good for your future will also help you in tax saving. If your company not register with PF Scheme then you can opt some other Pension Fund Scheme for investment and future return.

7) Repayment of Home Loan : You have taken a home loan and worry about home loan burden and taxes. Then you should be happy that burden of your home loan EMI can reduce the burden of taxes. You can get the benefit on Repayment of both Principal Amount and Interest Amount components of your installments. You can get a deduction on home loan repayment under section 24 of IT Act  and a deduction on Principal amount under section 80C of Income Tax Act.


8) Repayment of Education Loan : Maintaining positions & for promotion higher qualification and up-gradation in it is must. Due to rising costs of educational courses, people often go for education loans when it comes to higher education. Just like deduction available on tuition fees, your education loan EMI also bring tax benefits to you.

Some Expenses are good. Above these expenses helps you to fulfill your dreams and reduce your tax burden, so don't worry about this. 
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How to Avoid Insurance Claim Rejection ?

Life insurance is not just a tax saving tool, it is a serious financial product which if used correctly can be a bless for your family and dependents. We people take life insurance to safe our future from any mishappen.      
How-to-Avoid-Insurance-Claim-Rejection ?
But it will be only if it get paid to our nominee on time without hassle. There are so many clauses, conditions and exceptions in insurance policies. Failure to meet any of these conditions would result in no insurance benefit being pay out. Most often, insurers rely on legal loopholes and clauses in their policy documents to avoid making payments of sums assured, but surprisingly a large number of times, the fault and blame belongs to the customers themselves.
Here are some points to ensure yourself as a customer that you always get paid.
1. Don't Conceal Information:- While taking a life insurance policy any information pertaining to your health/habits which can put an impact should disclose. Any pre-existing disease or condition or smoking/drinking habits or anything that can be linked as being as cause to your hospitalization or death will be investigated and if you have not disclosed to the company about it then sum assured & other benefits will not be given to you or your dependents/nominee. Remember your premiums are decided on this information. If there is nothing that can be held against you then the insurer will have to honor the insurance claim.
2. Accept Medical Examination: After certain age, life insurer ask for sponsored medical examination and test to get better understanding of your medical condition. These test may also help you detect diseases early, and treat them accordingly. These test will decide acceptance/rejection of policy or clear your doubts about any future rejection of claims due to concealing health information. 
3. Pay Insurance Premium On-Time: Remember Insurance company only settle claims on Active Insurance Policies. But there are number of people who do not understand that delaying premium payments result in lapsed policies. Once your policy get lapse, you are no longer covered and all your premiums paid that far will be rendered useless. Your nominee may lost their legal validity to get sum assured on death from the company. In some cases delaying your insurance premium payments lead to Late Payment Surcharge for re-reinstatement of the policy.
4. Nominee Information: Nominee is the person who will receive any and all benefits that come out of your insurance policy in your absence. Nominee should be generally that person whose livelihoods are directly depends on you being alive and well. So nominate some one is more important. If you are single than nominate your parents, if married then spouse or children. Whatever your present relationship status is, always keep nominee name update so that some benefits will to some dependents of yours. If there is no nominee then death benefits may be freeze/rejected.
5. Scrutinize the Policy Documents: Merely telling the insurance agent everything about your medical history will not qualify him to understand and explain all on the form about your medical history. Insurers decide your premium payment amount, overall coverage, and even some exclusions based on whats' filled out in your forms. No one knows better that you, and you need to make sure the insurance provider knows too. You need to take the time out of your busy schedule and check the form that all details are filled in order and truthfully. Check Clauses such as the exception list that indemnifies the insurer from any kind of liability towards you exist all over your policy documents. 

Keep  yourself informed about all developments with your insurer. Keep yourself informed about the details in your policy documents. Stay well informed about the conditions under which you will be eligible for a claim. 
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Personal Loan - How To Avail it !

Personal Loan everybody's prime requirement nowadays. Every persons are in need of some fund to fulfill their desire, enjoy their festivals, or special occasion. But sometimes earlier people thinks taking loan is almost a big sin. Daily you certainly get some calls from bank or financial institution asking you about your willingness to take personal loan. It seems Personal Loan is become your helping hand. Here we shall discuss about your financial companion i.e. Personal Loan. 
Unsecured Loan: Personal Loan comes under Unsecured Loan category. It is unsecured because you do not have to put any thing lien or give guaranty to get it. So, it becomes attractive.
Tenure: You can generally get personal loan for the period of 1-5 years. 
Documentation: First you should know the documents mandatory to apply for personal loan. The list of documents are as follows:
1) PAN Card
2) Aadhar Card (It is mandatory)
3) Passport or Driving License as Identity Proof
4) For Resident Proof you can submit Passport copy, Ration Card Copy, Electricity/Telephone bill, Gas Bill, Bank Statement copy etc.
5) If you are salaried then arrange Salary Slip (latest 3 Months), Form 16 and Six month Bank Statement. If you are self employed then you have to provide 2-3 years account statement and Income Tax Return copy as proof of Income.
Other Charges: Bank charge not only interest on the loan amount for the given tenure but also charges Service Tax / GST (now) on  interest amount and a processing fee with GST. 
  (a) Processing Fee is charged for complete the loan procedure. Sometimes this processing fee is non-refundable depending upon bank/financial institution' policy. It can be 0.5% to 3% of the loan amount or upto a maximum amount.
  (b) Pre-closure charges, is if you repay the entire loan amount before it's sanctioned tenure the bank levy a pre-closure/pre-repayment charges which is upto 2% - 5% with applicable taxes
   (c) Apart from this if you make late to pay EMI then an other charges levy that is Late Fee, Finance charges with applicable taxes.
Interest Rate: Personal Loan is totally unsecured loan so bank try to charges as maximum as possible interest rate. Normally this rate is discussed before the deal. Range of interest is between 12% to 30% per annum. Moreover interest rates are differ from bank to bank. For government employee interest rates may go down further. So, depending upon your repaying capacity and bank's policy to lend you can, negotiate for the better rates. 
You can even offer Mutual Fund, Insurance or Fixed Deposits as security to increase loan amount.
Requirement / Usage of Personal Loan, depends on your financial/social positions. You may require it if you have taken any borrowing at higher interest rate. In such cash take a personal loan and repay it. Personal loan for paying off Credit Card balance which is being rolled over for months and attracting charges. 
So you can take it to fulfill your requirements or pay off dues or liabilities but remember loan is always injurious to your financial health.
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Tax Benefits For Senior Citizens

In this blog we will discuss Income Tax Benefits to Senior Citizen available as per Income Tax Act. A person becomes senior citizen once he attains 60 years of age. Income Tax Department categories Senior citizen into two part. First Senior Citizen is with age bracket of 60 years to 79 years old and Second Senior Citizen is with age bracket of 80 years and above. 
Income-Tax-Exemption-Available-for-Senior-Citizen
There are some tax exemption available for senior citizen. From F. Y. 2011-12 qualifying age limit for senior citizen has been reduced from 65 years to 60 years and from F Y 2015-16 exemption limit for senior citizen has been enhance from 2,50,000/- to 3,00,000/-. 

A new category of Very Senior Citizen has been introduced in F Y. 2011-2012 (A Y 2012-13) with qualifying age 80 years and above with enhance exemption limit of Rs.5,00,000/-.

Senior Citizens and very senior citizen are granted a higher exemption limit as compared to normal tax payers.

EXEMPTION LIMITS
The Exemption Limit of a Senior Citizen for the financial year 2016-17 available to a Resident Senior Citizen is Rs.3,00,000/-. An Additional benefit of Rs.50,000/- in form of higher exemption limit available to Resident Senior Citizen in comparison to non-senior citizen.
The Exemption Limit of a Very Senior Citizen for the financial year 2016-17 available to a Resident Senior Citizen is Rs.5,00,000/-. An Additional benefit of Rs.250,000/- in form of higher exemption limit available to Resident Very Senior Citizen in comparison to non-senior citizen and Rs.2,00,000/- higher than Resident Senior Citizen.

TAX BENEFIT OF MEDICAL INSURANCE
From Financial Year 2015-17 (A Y 2016-17) a Resident Senior Citizen can claim higher deduction of Rs.30,000/- under section 80D on insurance premium paid for Medical Insurance. Earlier it was Rs.20,000/-

HIGHER DEDUCTION U/S 80DDB
Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified ailments. Deduction Limits is Rs.40,000/- for normal patient while deduction limit Rs.60,000/- for a senior citizen patient.
From A Y 2016-17 higher limit of deduction of upto Rs.80,000/- is allowable for the expenditure incurred in respect of the medical treatment of a Very Senior Citizen.

TDS EXEMPTION ON BANK DEPOSITS
Senior Citizen can claim exemption on the Tax Deducted At Source (TDS) on interest income earned on bank deposits. It can be done by submitting Form 15H  under Section  197 of the IT Act.

HIGHER INTEREST RATES
Senior Citizen receives higher interest rates on 5 Year Fixed Deposit which is eligible for deduction from total income under Section 80C.
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Insurance Premium Saving Factors !

Friends asks, how to save insurance premium? What are the way to save insurance premium? How I can save insurance premium? What are the factors that affect insurance premiums? Hope many of us always thinking about this. And always ask our Insurance Agent friends. 
A Lower premium paid can yield to a good amount of savings over a period of few years. Life insurance premiums are based on number of factors and it can be quite tedious for few people to understand. Like why insurance premium of  same same are not same? Why premium of same age & same amount not same? etc..
There are some factors that many insurance companies consider when pricing their policies. Those factors can effect your life insurance premium which not in our control but we can.
There are some factors listed below which affect our life insurance premiums are:

Insurance Premium Saving Factors.a) Age Factor: This is factor always affects insurance premium. If you are young the rates will be lower in comparison to someone older. The death possibility or contract to life threatening disease in younger individual are very low. The insurance companies believes that a young can pay many insurance premium installments before they have to write a cheque for your family.

b) Policy Type Factor: Different type of policy charges different types of life insurance premium for the same person for same tenure and same Sum Assured. It differs the bonus amount/ Loyalty Amount payable on that policy. Like Premium of New Jeevan Anand Policy and New Endowment Policy of 21 year old person for 20 years terms are differ.  

c) Policy Tenure Factor: The policy tenure also affects insurance premium. The longer the tenure of the policy the larger the amount of benefit at the time of death as well as lower premium amounts. Short term policy are more expensive than of long term insurance policy.

d) Rider Factors: Some policy offers riders on that particular policy. If someone opt this rider than its premium amount become higher than without rider. So when you opt it think about it.

e) Medical History Factor: Every person who like have an insurance policy need to provide their health records.These records ensures that you don't have any chronic diseases or potential health issues. This keeps a check on your premium amount.  
But if a person has medical history of serious illness like cancer, heart diseases or any other then that makes them susceptible to get these from a hereditary perspective. Which increases the individuals insurance premium by larger margin than.

f) Profession Factor: Your profession/job also plays an important role in the premium you pay for the policy you want to take. Any policy holder working in the mining industry, oil And gas, fisheries or any other dangerous profession increases the premium amount.

g) Hobby Factor: Many insurers have a higher premium for people who love to takes risks for the thrill of it, like speeding cars / car race, climbing treacherous mountains or participates in other high risks activities. Thereby increasing your premium to substantially more than other.

h) Drinking / Smoking: Insurance companies ensure to ask the applicant if they are smoker or drinker. Drinking or smoking is always injurious to health. So if you are a smoker / drinker that raises red flag to insurance companies. Mostly these kind of people pays double the insurance premium than that of non-smoker/drinker. So, avoid it.

i) Gender Factor: Insurance companies ask for your gender. This does not mean insurance companies are against gender equality, But they believes that there is a different life expectancy for different genders. As per studies and statistical findings, women are believed to live 5 years more than men at the minimum resource. Therefor affecting the premium they pay for a larger period of time but at lower rate which is a plus point for the women.
How these factors affect your insurance premium is depends on the insurance company policy about the way they treat these factors and the combination of them. Every insurance policy is based on each individual and premiums are calculated on the insurance company's rules of rating.

Consider these above factors to live a health life and save money.



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How Much Insurance Do I Need !!!

Do all of us require life insurance?? My answer is "YES" Because, Health of elderly parents, Education of Children and life of Spouse are put under a big question mark when bread earner dies. Not only losing the loved ones, most of the times families get into serious financial crisis. Now the question is " How Much Life Insurance Do I Need To Secure My Family?" But first you realize that whether you need any life insurance to take. If so, then here are some parameters on calculating how much life insurance you really need.

1. Earning Power: Life insurance amount must cover at-least the earning power of the person. For Example you earn Rs.50 thousand per month then your expenses ratio would around this amount. Now if something happens, interest income from insurance policy claim proceeds must be around or more than Rs.50 thousand, considering the fluctuation in money value due to inflation.

2. Dependents: If you are young and single you do not worry much about this. Mostly liability started arise once you get married. But after marriage this is must. Your Spouse and your children or your parents requires it more in your absence, because they depends on you.  If you are only earner in the family then you need higher insurance coverage.

3. Having Loan: If you have some loan/debt then the policy coverage must be higher to cover your loan/debt amount. Imagine the situation when the person had a bulk house loan to pay and there is no earner. Remember when you have loans or other debts, consider taking a policy with higher coverage after checking your affordability to pay the premium along with EMI.

Life insurance is not necessary if you do not dependents. Having surplus resources to take care of dependents. No debts/Loan, You are single and just started earnings.

There are some basics to check it like Take all your insurance policies and calculate total insurance cover you have. Now analyze and compare it with your earning in your absence and ask yourself "will this amount fulfill / protect family's lifestyle forever in my absence". If your earning does not allow much to take regular insurance cover then go for some Term Insurance.

Calculate and take the right insurance cover for you and protect your family's lifestyle forever. 
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Term Insurance Plan - Good or Bad Decision

Term Insurance is a contract between Insurance Company and insured person that primary provides guaranty to pay insurance amount only in case of demise of secondary to their Nominee, If all term & condition full-filed. If demise incident does not happen then company are not liable to pay. So, before taking Term Insurance Plan, person should think and analyze the utility of it. 
Term Insurance takes your risk at very low premium with certain term & condition. Like other insurance and investment alternatives it is also simple and easy. You know the premium amount you have to pay till the policy term and insurance amount your nominee will get if unfortunate demise will happen. 
For taking term insurance to ensure your family's financial future in your absence there are certain things to know before.
First understand the Term Insurance, it is designed for providing a pay-out only in case of demise. It is not an investment option because it would not give you any return. It is not for you, it is for your family member. Only good things about it that it cover high risk amount with very low premium cost
Analyze your requirement, in case you have any loan outstanding (like home loan) and don't want to forward this burden on your family member's in your absence then it is the only best option for you. Certainly you do not want your family to compromise on their lifestyle or find difficulty in sustaining a good life in your absence. It will be big favour by getting yourself a Term Insurance Cover.

Also Read : Term Insurance Plan Pure Life Insurance

First choose the Insurance Amount you think should be enough for your family to get normal life in your absence. Now second option comes that what will be premium/installment amount. There are lot online site who will help you to compare the premium instantly. It can be vary from company to company. The best thing about term insurance  plans is that these plans  are designed to charge the same premium throughout the policy term, even though the risks increases when you grow old. So, it is better to have it in early age and reassess it in every 5 years and if fills & can able to pay premium, you can increase the cover amount you require.
Secondly before selecting any insurance company check their Claim Settlement Ratio at IRDA website. The insurance company could have rejected few claims but you should check the causes behind such decisions. Insurance company will not process a claim which is fraudulent. Choose the best one. Read Term and Conditions & understand the Exclusions carefully. It is important to know before purchase it so that you don't leave your dependents with various issues relating to your term plan in your absence.
Selecting Nominee is very important & crucial job while purchasing insurance plans. It should be a person who shall need your money the most after your passing. It can be your spouse, your parents or your child. It is advisable to keep your beneficiary informed about the key features of the policy and any changes that you decide to make about.
If you consider the above mentioned things when you are getting term insurance plan, you certainly will find the right plan for yourself.

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Alerts! LIC To Their Policy-Holder

There are billions of people in India who have taken Life Insurance from Life Insurance Corporation of India. People have strong faith on this Corporation. So, there are lot of fraud/cheating happen with LIC policyholder by some cheater. Hence Corporation guides/ alert their policy holder in time to time about these kinds of frauds and ask to be safe with advisory.
This advisory is for all those policy holder who have any kind of policy taken from Corporation or willing to have in future.

1. Corporation always suggest to get register & enroll their policy on their portal www.licindia.in to check status with other information and pay premium online.

2. If you are paying premium thru cheques then issue infavour of "Life Insurance Corporation of India" and make it "Account Payee Only" by drawing two parallel line on top left corner or  above cheques number bar. Do not issue your cheque in other name to pay your LIC premium.

3. Before signing policy document you should read the form properly. Don't sign it in hurry. This will    keep you safe in future.

4. Do not hand over your Original Policy documents to any agent or person. Corporation do not authorise any person to collect Original Policy Document.

5. Beware ! from fictitious offers thru phone calls. It does not guarantee that if any unknown person saying that they calling from LIC then they must be from LIC. Do not entertain online policy payment on their suggestion. Check and be confirm before doing this.

6. Corporation never calls for Bonus or its due installments. They did not hire any recovery agent for collecting this.

7. LIC advice you always your net banking to pay premium thru its web portal.

For any other info please call us at :: 9958781151.


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With Profit And Without Profit Plans

Many people who have their life insurance policy get notice that their plan is may be "With Profit" or "Without Profit". Some time they thought why certain plans are categorized like this. And wiling to ask their agent. Here are the answer.
An Insurance Policy can be "With" or "Without" profit. Life insurance companies from time to time declare bonus (profit share) on their plans. 
An insurance plans in which this bonus/profit share is passed on to the policy holders is called a "with profit" plan. Bonus are allotted after certain periodical valuations to the policy and are payable with the maturity amount.
But  in a "without profit" plan this bonus is not passed on to the policy holders. Therefore, the premium rate charged for a "with profit" plan is little higher than that for a "without profit" plan. 
The percentage of bonus may vary from one policy to another depending on the type, term and the premium of the respective policy, amount other considerations.
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Effect of GST on Insurance Premium

With  a hike in GST rates to 18% from the current 15%, the insurance sector are poised to get more expensive after July 1, 2017. The immediate effect will be the increase in premiums especially for families that own Life Insurance, Health Insurance and Car Insurance.

The existing and new insurance buyers would have to bear the updated prices. The Policy holders stand a chance to be benefited if the insurance providers get a green signal on the input tax credit benefit. Unfortunately, as of yet, it is still unclear since he Center/State GST  structure is very complex. It might create confusions and conformity for the insurance buyers and increase the administrative expenses for the insurance providers. If the insurance buyers remain confused about the GST updates, then irrespective of the increase or decrease in the prices the financial strength will adversely affected. The general insurance sector will be equally impacted. The overall outgo for health, car, and various non-life plans would be increased by 3 percent.

The Insurance policies premium represents two components - Savings and Risk Coverage. The service tax is levied specified only on the premium component. 

What GST (Goods And Service Tax) Rules says, the value of service on which the GST is levied regarding the life insurance sector shall be accordingly;
(i) The gross premium would be reduced by the amount allocated for or savings or investment on policyholders behalf.
(ii) When it comes to the single premium annual policies, ten percent of the single premium would be charged from the policy holder.
(iii) In other cases, 25 percent of the premium for the first year and 12.5% of the premium in the upcoming years will be charged.
(iv) In case the total premium paid by the policy holder is towards the life insurance's risk cover, oly the 18% GST would be levied on the total premium.

There are three types of life insurance;
* Term Insurance Plans - Basic life insurance policy
** ULIP Plans - Insurance and investment under a single integrated plan
*** Endowments Plans (including money back plan) - Life insurance policies that pay a lump sum on maturity/death or a fixed sum every month (like pension)

List of new revised rates on all insurance plans are as follows :
GST RATES : NEW RATES UNDER GST FOR
INSURANCE POLICIES
INSURANCE PRODUCTS
BEFORE GST
AFTER GST
APPLICABILITY
Endowment Plans – 1st Year
3.75%
4.50%
On 25% of Premium
Endowment Plans – Renewal Premium
1.88%
2.25%
On 12.5% of Premium
Health Insurance Premium
15%
18%
On Entire Premium
Rider Premium
15%
18%
On Entire Premium
Annuity: Single Premium
1.50%
1.80%
On 10% of Premium
Term Insurance Premium
15%
18%
On Entire Premium
ULIP (On Charges)
15%
18%
On Premium minus
Investment Amount
Vehicle Insurance
15%
18%
On Entire Premium
Travel Insurance
15%
18%
On Entire Premium

Life and health insurers will not have input tax credit as it is not available for life and health insurances ( as they are for personal purposes). Even corporate policyholders with group life and health insurance for their employees will not enjoy any input tax credit.

Life insurance provided under Government Schemes are exempted from GST;
1) Janashree Bima Yojna (JBY)
2) Aam Aadmi Bima Yojna (AABY)
3) Life Micro-Insurance product (as approved by the IRDA having maximum amount of cover of fifty thousand rupees)
4) Varishtha Pension Bima Yojna (VPBY)
5) Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY)
6) Pradhan Mantri Jan Dhan Yojna
7) Pradhan Mantri Vaya Vandan Yojna 
8) Any other insurance schemes of the State Government as may be notified by Government of India on the the recommendation of GST Centre.

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Documents Require To File IT Return & Claim Deductions

Financial Year is going to close. All Income tax Assesses are in hurry about their tax assessment. Getting sure about done adequate investment (Limit U/s 80C Rs.1,50,000/-) to  claim & save maximum tax rebate. Arranging documents pertaining to investment and tax return. 

First, all you need to know about Form 26AS. It is a summary of taxed deducted on your behalf and taxed paid by you. This summary is provided by Income Tax Department. It shows all details of deducted on your behalf by deductors, details of tax deposited by taxpayers and tax refund received in the Financial Year. This form can be accessed from Income Tax Department's Website.

Second, All Salaried Tax Assess needs to get Form 16 issued by their employer to get file their Income Tax Return.

Third, Documents Require for Interest Income, 
> Assesses needs to update his bank statement/pass book for interest on 
   saving bank account.
> Interest Income Statement (accrued or credited) on their Fixed Deposits.
> TDS certificate (Form 16A), if any, issued by banks or other financial 
    institution.
> Interest Accrue Certificate on NSC / Kishan Vikas Patra etc.

Fourth, Proof for Investment in Section 80C, Investment made under PPF, NSC, ULIPS, ELSS, RGESS are qualifies for deductions Under Section 80C.

Last Minutes Checklist to File Your IT Returns :
1. Pan Card
2. Bank Statement 
3. TDS Certificates
4. Tax Payment Challans (Advance Tax or Self Assessment Tax)
5. Form 16 / Salary Certificate received from the Employer.
6. Interest Certificates issued on your deposits
7. Rent Receipts copy (If You Are on Rent)
8. Life and Medical insurance payment receipts.
9. Tuition Fees Receipts.
10. Stock statement in case of trading in shares 
11. PPF Passbook for interest
12. Dividend warrants /amount
13. Interest Certificates on bonds
14. Details of interest accrue on NSC during the year.
15. Sale and Purchase deed of the property including Stamp Valuation of the           property (for land/building)
16. Repayment/Interest Certificate for Interest paid on housing loan and                 Principal amount Paid.
17. Donation Receipts for Section 80G (with PAN details of donnee)
18. Details of Expenses incurred on transfer of Re-Investment in property.
19. Any Other Tax Saving Investment receipts/proof.
20. Aadhar Card Copy (Mandatory for e-filing)

Remember all above documents are proof of income require for ITR filling purposes only does not require to attache along with ITR.
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Service Tax Paid on Insurance Premium U/s.80C

Service-Tax-Paid-on-Insurance-Premium-U/s.80C
Many question arise about "can we take benefit of paying service tax paid on Insurance Premium!" If we check insurance premium receipts properly we get that the we pay three cost heads; Net Premium + Service Tax + E. Cess. On this basis final gross premium is calculated.

Now question is "can we take claim under section 80C of service tax paid along with insurance premium?"

The current tax rules states that "any amount paid to keep in force a life insurance policy qualifies for a tax deduction under section 80C." It is a common perception that Premium Paid all Life Insurance Policies are qualifies for deduction under section 80C of Income Tax Act, 1961. 

As per Section 80C(2) of the Income Tax Act, 1961 any amount paid to an insurer to buy or to keep a life insurance policy in force can be claimed as a deduction from gross total income by the policy holder. This implies that premium paid for a life insurance policy can be deducted from gross total income before arriving at taxable income subject to certain condition.

Section 80C(2) also clarifies that in order to claim the deduction from gross total income for a particular year the gross amount of premium must be paid or deposited in that particular financial year itself.

But when you ask insurance provider to provide Total Insurance Premium Paid Statement then they will provide you only statement of net premium paid

Tax experts interpret this to mean that the entire premium inclusive Service Tax and Cess, qualifies for a tax deduction.

Ideally, you need to mention the entire premium or gross premium for the purpose of availing a tax deduction under section 80C.

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Procedure to Get Duplicate LIC Bonds

LIC Bond is the written contract form between insurer and insured, it is the most important documents from LIC point of view. And it is the main evidence for the policy holder that they are insured from LIC of India. So, keep it safe.

If it is misplaced due to some reason due to Shifting or theft or fire or any other reason you are not able to locate/find it then you can apply for duplicate LIC Insurance Policy bond.      

There are some documents and procedures to arrange and follow to get it from your your LIC Branch.

1. Go to your LIC Home Branch and ask the procedure.
2. Get Form No.3762 get type this details on Non-Judiciary Bond Papers of Rs.100/- as self                      declaration and get it notarize from the notary.

Along with above documents with One Photo ID and Address Proof  Submit these documents to your home branch. LIC may charge you some Stamp Charge require to be pay by applicant. The Stamp Charges may differ from Plan to Plan and value to Sum Assured (Sum Assured is the amount that an insurer agrees to pay on the occurrence of an event). Don't forget to take receipts for the same.

These procedure may take normally 5 to 7 working days. If facing any problem and want to know more about all these kindly contact me.
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Which is better Paid-Up or Surrender?

A life insurance policy in which if all the premium payments are complete till some specified period and insured person is free of all payment obligations and the policy stays intact until insured's death or termination by its maturity or Surrender of the policy is called Paid-Up Policy.

Life Insurance Policies usually last the insured person's lifetime or maturity period, but some some policies can be paid up completely till a specified period. Only Traditional Life Insurance Plans can be a Paid Up Policy. 

It is calculated as the ratio of number of premium paid to the total number of premiums payable multiplied by the Sum Assured value.

 i.e. Paid-Up Value = No. of Premium paid /No. Premiums Payable X Sum Assured.


For Example:  Pradip has one traditional Endowment Policy having Sum Assured Value Rs.2,00,000/- and the policy tenure is 16 years. Unfortunately Pradip did not able to continue his policy after continuing is upto 8 years full premium paid. 
Now from very next year he did not paid any due premium to make it continue, hence very next year this policy become automatically a Paid-Up policy.

Which is better Paid-Up or Surrender of Policy?
Now, Pradip has two option either he can go and surrender his policy by providing all necessary documents to the branch or let it become Paid-Up.

Also Read : How To Surrender An LIC Policy ??

A Policy can be paid-up from next premium due. Suppose I continue my policy up-to 8 years and from next year I fail to pay premium then it become automatically Paid-up to its proportionate to its  premium paid ; Payable And Sum Assured.

Every Insurance Plan has it surrender value which can be known from servicing branch. Its is approx 30% of Sum Assured in regular plan and up-to 90% in single premium plan.

If we calculate in both condition then we can make comparison itself and understand which is better. For Example you have S.A.=2,00,000/-; Tenure - 16 Years; Premium - Rs.13000 (Approx); Premium Paid up-to full 8 years.

Surrender Value : Rs.2,00,000 X 30% = Rs.60,000/-  (Immediate Payment)

Paid-Up Value : Rs.2,00,000 X 8/16 = Rs.1,00,000/- + Vested Bonus  (Payment after death or maturity)

You can decide which is better. On Surrender you will get immediate payment while on letting Paid-Up of Policy you will get after death or maturity which ever is earlier)
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Rights With Insurance And Investment

Rights-With-Insurance-And-Investment
Every investment allows you some rights to exercise. Here below i am listing some rights to exercise when you go for insurance or investment. 



1) Right To Have Insurance Policy : - 
    As we know if any misshapen occurs then insurance help to get rid of financial crisis. In some cases it is bound to have insurance i.e if you have bike / car or any other automated vehicle you mus have general insurance. In same way every individual has right to be insure and to protect their family from financial problem, but unfortunately it is not compulsory.


2) Right to Return Insurance Policy : - 
    You don't have to retain a life insurance policy you don't want. You have the right to return it whit in 15 days of receiving policy documents. This is called Free Look Up Period. This free look up period applies to all life insurance policies and health insurance policies with a term of 3 year and more. To return a policy, you need to submit an application. Most insurance companies have a form that can be downloaded from their respective websites or get from their branch office. Submit it yourself.

3) Right to Know Commission Paid on Plans : - 
    If you buy/planning to buy an insurance plan then you have right to know how much commission will be earn by your insurance agent, fund distributor from this financial product. 

A Mutual Fund distributor's commission paid by the fund provider company and it may disclosed in your statement. 

For insurance products, the agent's commission depends on the premium, tenure and plans. You can ask your insurance agent to furnish this information before selling you a policy.

ULIP commission are displayed in the benefit illustration accompanying the proposal form. 

Get in touch with SEBI for Mutual Funds and IRDA for insurance updates if your agent not providing this information.

4) Right to Life Insurance Claim : - 
    An IRDA directives gives you the right to claim the proceeds of a life insurance policy that has completed full 3 years. There are no exceptions to this rule. The Insurance company has this 3- year window to verify the authenticity  of the policyholder, after which the claims have to be settled. This ruling also applies in case a policy holder  expires within 3 years, but the claim is made after 3 years.  

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