Tax benefit on Payment and Maturity of Life Insurance Premium

People are using Life insurance policies as tax planning tool as premium paid on Insurance Policies are eligible for tax benefits under Section 80C of the Income Tax Act 1961 (Act) and Maturity Proceeds are also eligible for exemption under section Section 10(10D)  and  Section 10(10A)(iii). 
Life Insurance helps Assessee in saving tax, achieving their long term goals and it also provides Comprehensive financial protection against unforeseen events of their family.

Deduction U/s. 80C in respect of life insurance premium

Maximum Limit – Maximum Deduction allowed under this Section is Rs. 1.50 Lakh and the sum includes payment on other allowable investment option available Under Section 80C of the Income Tax Act,1961. It is to be further noted that combined Maximum limit of deduction under Sec 80C & 80CCC & 80CCD (1) is Rs 1,50,000.

Restriction on Deduction limit: Deduction will be allowed only for premiums upto a maximum of 10% of the sum assured for policy issued on or after April 1, 2012. In case of policy issued before March 31, 2012, deduction will be allowed only for premiums upto a maximum of 20% of the sum assured.

Allowable on Payment- Only life insurance premium paid or deposited during the year are allowable as deduction under Section 80C. 

Disallowance: 

The deductions claimed earlier will be taxable as income if the policy is terminated either by notice or by failure to pay any premium in case of,

Single Premium Policy : within 2 years after the commencement date
Regular Premium Policy : before premiums have been paid for 2 years.

Individual and Hindu undivided family (HUF) can take tax deduction's benefit u/s 80C. It can be paid :-

(i) in the case of an individual (Resident or Non Resident)
- On his own life
- On Wife/Husband (Dependent or Not)
- Child
- Major or Minor (Dependent or Not
- Married or Unmarried Daughter / Son (Dependent or Not)

(ii) in the case of a Hindu undivided family (HUF), any member thereof;

Please note that life insurance premium paid by you for your parents (father / mother / both) Brother, Sisters or your in-laws is not eligible for deduction under section 80C.

If you are paying premium for more than one insurance policy, all the premiums can be included.

It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.

Tax-ability on Maturity

Section 10(10D)

The proceeds under a life insurance policy are exempt under Section 10(10D) of the Act, subject to the provisions of the said section.

Section 10(10A)(iii)

Commuted Pension received from Pension fund (Pension Plans approved by IRDA) would be tax-free.

Goods And Service Tax (Earlier Service Tax) on Life Insurance Premium

All premiums and charges are subject to applicable taxes (i.e. GST) as applicable under the prevailing tax laws.

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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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Tax Relief For Agents

LIC agents main earning is commission. So, Income Tax Department allows some relief to favour Insurance agent. But this relief is for small commission earning agent. If commission earned from LIC insurance business is below Rs.60,000/- p.a. and if no separate books of accounts maintained then the entitlement for deduction is as follows:

i) On First Year Commission - deduction is 50%  

ii) On Renewal Commission - deduction is 15%

The LIC Commission after claiming deduction was mentioned above will be included and can be disclose with other source of income for tax purpose.

The benefit of Adhoc deduction will not be available to agents who have earned total commission of income more than Rs.60,000/- during the year.

In case gross commission earned by an Agent from LIC exceeds Rs.60,000/- per annum  then, he will be not entitled for claiming deduction referred above. He has to maintain books of accounts as required under the Income Tax Act. The following books and documents are recommended to be maintained :

1) Cash Book

2) Bank Book

3) Ledger Book

4) Journal Book

5) Vouchers And Bills

6) LIC Commission Statement

7) TDS Certificates Received from LIC

8) Bank Pass Book, Cheques Book, Deposit Voucher

9) All Other Connected Documents 

Also Read : deduction U/S 57 For LIC Agents

LIC Agents are entitled to claim all expenses incurred for generating LIC Commission such as :

a) Salary to Staff

b) Rent for Office Premises, in case own office then maintenance for the same

c) Fuel Expenses and maintenance for maintaining vehicles.

d) Books, Publications, Periodicals expenses connected to business

e) Printing And Stationery

f) Electricity Expenses

g) Travelling / conveyance Expenses

h) Telephone / Mobile / Internet Expenses

i) Postage Expenses

j) Depreciation Expenses on Vehicles, Computers and Other Office Equipment

k) Gifts, Diaries, Calenders Expenses etc.

l) Staff Welfare Expenses

m) Any Other Expenses related to generate commission.

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Health Insurance And Tax Benefit

Health is Wealth or You may say Health is the greatest assets for a human being. Our overall health is severely affected by our lifestyle. Unhealthy Eating Habits, Lack of Adequate Sleep, Stress can affect our health. A Mediclaim policy acts as savior & it protect you from facing a financial crunch in a medical emergency. Since Inflation has made medical bills costlier, having a heath insurance policy is necessary as other necessities.

There are dual benefits of the health insurance. First it ensures your financial stability and give coverage against expensive medical bills and also offer you benefit of Tax Deduction under section 80D upto Rs.25,000/- to Rs.30,000/- (for Senior citizen).

In order to enjoy tax deductions along with health coverage, you need to check which policy suits you & your family and how much premium required for. The premium amount paid by you can be utilize as Tax Rebate Tool. Remember, if the premium paid by your employer, you will not be eligible for tax rebate. Under the IT Act, 1961 medical allowance is not considered as an allowance, which is exempted. 

Generally, medical allowance is confused with medical reimbursement. Medical reimbursement is paid by an employer to their employees when they submit medical bills. 

When it comes to tax planning, people generally don't consider their parent's health insurance as a tax saving tools. If you are paying for your parents health insurance, you can claim upto Rs.30,000/- as tax deduction benefit in your annual income tax return. 

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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

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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Financial Duties Of An Individuals

Every citizen have some financial duties and rights that they should know but most of them are unknown to it. We have listed some are here Financial Duties here for your information.

(1) Duty to Pay Tax On Due Date:-
If your income is above taxable limit then you should consult a tax consultant and pay tax as per given slab. Income  Tax paid by you is used by the Government to build the infrastructure of the nation. you can be shock after knowing that only approx 3% of the population file Income Tax Returns and pay taxes. 

(2) Duty to be Truthful with Financial Planning:- 

Now a days livelihood is very expensive. Calculate your insurance cover properly to take adequate amount of insurance. Less or More may misplan your financial future needs. Declare true fact while you are filling proposal form of insurance, any incorrect information can result in your claim being reject.

(3) Duty to Nominate in Time:- 

Mentioning Nomination at the time of filling proposal form is better than later because unexpected risks may happen any time and dependent may come in problem in your absence.

(4) Duty to Sign Filled Form Only:- 

You should know that only you are responsible for the form you signed. So, don't handover any blank form. Fill out the form you are signing yourself or have it done in your presence. Self attested documents are good to prevent frauds.

(5) Duty To Pay Your Dues On Time:- 

Late payment of your dues may impact your credit ability in market. Some time late payment of credit card dues or loan installments can derail your financial planning. Late payment fees are hefty and so always try to avoid it.

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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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