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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Know-What is ULIP ???

A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that unlike a pure insurance policy gives investors the benefits of both insurance and investment under a single integrated plan. Unit Linked Plans refer to Unit Linked Insurance Plans offered by insurance companies. These plans allow investors to direct part of their premiums into different types of funds (Equity, Debt, Money market, Hybrid etc.)

History:-

The first ULIP was launched in India in 1971 by Unit Trust of India (UTI) with the Government of India opening up the insurance sector to foreign investors in 2001 and the subsequent issue of major guidelines for ULIPs by the Insurance Regulatory and Development Authority (IRDA) in 2005, several insurance companies forayed into the ULIP business leading to an over abundance of ULIP schemes being launched to serve the investment needs of those looking to invest in an investment cum insurance product.

Working Principle:-

 A ULIP is basically a combination of insurance as well as investment. A part of the premium paid is utilized to provide insurance cover to the policy holder while the remaining portion is invested in various equity & debt schemes. The money collected by the insurance provider is utilized to form a pool of fund that is used to invest in various markets instruments  (debt & equity) in varying proportions just the way it done for mutual funds. Policy holders have the option of selecting the type of funds or a mix of both (debt and equity) based on their investment need and appetite. Just the way it is for mutual funds, ULIP policy holders are also allotted units and each unit has a net asset value (NAV) that is declared on a daily basis. The NAV is the value based on which the net rate of returns on ULIPs are determined. The NAV varies from one ULIP to another based on market conditions and the fund’s performance.

Features:-

ULIP policy holders can make use of features such as top-up facilities, switching between various funds during the tenure of the policy, reduce or increase the level of protection, options to surrender, additional riders to enhance coverage and returns as well as tax benefits.

Types:-

There are variety of ULIP plans to choose from based on the investment objectives of the investor, his risk appetite as well as the investment horizon. Some ULIPs play it safe by allocating a larger portion of the invested capital in debt instruments while others purely invest in equity. Again, all this is totally based on the type of ULIP chosen for investment and the investor preference and risk appetite.

Charges:-

Unlike traditional insurance policies, ULIP schemes have a list of applicable charges that are deducted from the payable premium. The notable ones include policy administration charges, premium allocation charges, fund switching charges, mortality charges and policy surrender or withdrawal charge. Some insurer also charge “Guarantee Charge" as a percentage of Fund Value for built in minimum guarantee under the policy.

Risks: -

Since ULIP returns are directly linked to market performance and the investment risk in investment portfolio is borne entirely by the policy holder, one need to thoroughly understand the risks involved and one's own risk absorption capacity before deciding to invest in ULIPs.

Providers: -

There are several public and private sector insurance providers that either operate solo or have partnered with foreign insurance companies to sell nit linked insurance plans in India. The public insurance providers include LIC of India, SBI Life and Canara Life while some of the private insurance providers include ICICI Prudential, HDFC Life, Bajaj Allianz, Aviva Life Insurance & Kotak Mahindra Life.

Advantages: -

(1) ULIP has limited liquidity. One needs to stay invested for a minimum   period of time as specified in the policy before redeeming the units.

(2) ULIP gives you flexibility to invest as per your risk profile, financial commitments and convenience. You can choose to invest either in equity or in debt or in hybrid fund and even change your investment    strategy. Unit Linked Plans offer you a wide range of flexible options such as   -- 

        (a)  The option to switch between investment funds to match your changing needs.

       (b) The facility to partially withdraw from your fund, subject to charges and conditions.

       (c) Single premium additions to enable the policy holder to invest additional sums of money (Over and above the regular premium) as and when desired, subject to conditions.

(3) Market Linked Returns:  ULIP give you an opportunity to earn market- linked returns as part of the premiums are invested in market linked funds which invest in different market instruments including debt instruments and equity in varying proportions.

(4) Life Protection, Investment and Savings: ULIP offer the twin benefits of life insurance and savings at market-linked returns. Thus you have     the opportunity to invest you money to earn higher returns, while     taking care of your protection needs. Investing in unit linked plans    helps to inculcate a regular habit of saving and investing. Which is important for building wealth over the long term?

(5)  All ULIPs offer Tax benefits under section 80C upto a maximum of Rs.1,50,000/-

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Missed To File Income Tax Return In Time…. You Missed These Benefit

Did you missed to file Income Tax Return in Time or thinking that I have Refund / Zero Tax so I can file my ITR upto 31st March. Failing this you are also loosing some benefit / facility also provided by Income Tax Department. For your information some important points are highlighted here:-

* Avoiding interest under section 234A
Though interest under 234B and 234C is levied if there is tax due and taxpayer did not pay advance tax. Taxpayers can avoid paying interest under section 234A by filing their return on time. This interest is charged @ 1% per month. It is calculated from the due date till the date on which you actually file your return.


*Loss of Interest on Refund
If your calculation shows Refund and did not file ITR in its due course then you will loose interest @1% per month on the Refund Amount which is calculating from April to date on which your refund get process  .

* Faster Refund Process 
Income tax department has been processing refunds faster for returns filed on time. Delays in filing also mean delay in receiving refund. Last year, the department processed refunds within 2-3 weeks of filing. So if excess TDS has been deducted on your income, do not delay your filing.

* Revise Return Filing is Possible
Many times; taxpayers commit mistakes while submitting their returns. Forgetting to claim a deduction is common errors. Sometimes an income may not have been included. Filing your returns by due date makes revision possible.

* Carry Forward of Losses
A lot of taxpayers have short term losses from equity shares. These losses can carried forward in your tax return and set off from capital gains in succeeding 8 years. To be able to do this, your return must be filed within the due date. Losses from business and profession are also allowed to be carried forward when return is filed on time. So remember to file on time if you have losses.


* Paying Tax Dues Timely
A lot of taxpayers see a tax due in their return after they consolidate their incomes and prepare their submission. This may happen due to inclusion of interest income. If there is a tax due, interest keeps accumulating until it is paid. So filing on time makes sure taxes are paid in time and interest (under sections 234B and 234C) does not keep adding up. Why shell out extra money when you can file on time and save on penal.

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Star Family Health Optima (Family- Floater)

One of the best family floater plans available in cashless health insurance (Mediclaim) sector : -

Some Points to Know before buying this policy :-

* Single policy, wider coverage for whole family at an affordable premium.

* Get extra sum insured (auto recharge) at no extra cost, up to 30%  of sum insured.

* Health Checkup costs up to Rs.5,000/- for every block of 3 years of policy coverage.

* Donor expenses for organ transplantation.

* Domiciliary Hospitalization Expenses for treatment exceeding 3 days.

* Cover for over 400 day care procedures.

* Entry age 16 days to 65 years.

* Restoration benefits you can claim 100% of your sum insured

  E.g. if sum insured is 5 lac  is exhausted  we can provide you claim of 5 lac on different  

  disease..

* New born baby covered after 16 days without any extra premium..

* Pre hospitalization 60 days before

* Post hospitalization 90 Days after

* No claim bonus

  1st year 25%

  2nd year 10%

* Recharge Benefit

  On 3 lakh - 25%

        4 lac - 25%

        5 lac - 15%

* No Third Party (Direct claim settlement)

* Ambulance facility covered

* Health Checkup after 3 claim free year

* 7000 cashless hospital facility in all over India

* Tax Benefit - Under Section 80D

*  Document Require to Avail this plan :

   1Passport size photo of each family members

   1DOB Proof

   1Address proof

**  Payment mode by cheques / credit card/ cash

Read Brochure Here

If you are interest & living in Delhi then call/contact Pradip @ 9958781151.

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Deduction U/s 57 for LIC Agents

Deduction U/s 57 of Income Tax Act, 1961 for Income earned by LIC agent as Income From Other Sources :-

The benefit of adhoc deduction to Insurance agents of the Life Insurance Corporation having total commission (including first year commission, renewal commission and bonus commission) of less than Rs. 60,000 for the year, and not maintaining detailed accounts for the expenses incurred by them, may be allowed as follows :  

(i)  where separate figures of first year and renewal commission are available, 50 per cent of first year commission and 15 percent of the renewal commission;

(ii)  where separate figures as above are not available, 100/3 per cent of the gross commission. In both the above cases, the adhoc deduction will be subject to a ceiling limit of Rs. 20,000.

The “gross commission” in (ii) above will include first year as well as renewal commission but will exclude bonus commission. The complete amount of bonus commission is taxable and will be taken into account for purpose of computing the total income, and no adhoc deduction will be allowed from this amount. The benefit of ad hoc deduction will not be available to agents who have earned total commission of more than Rs. 60,000 during the year. The admissibility of the expenditure claimed by such agents will be decided by the Assessing Officers as per the provisions of the Income-tax Act. —Circular No. 648, dated 30-3-1993 

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Revised Rates of Interest under Various Financial Transaction in LIC

LIC revised rate of interest chargeable under various financial transaction for the financial year 2016-17 vide circular ref no.ACTL/PS/2224/4 Dt.18th April 2016

Details are here as follows :

Sr. No.	Type of Transaction	Rate of Interest
1.	(i) Policy Loans [under all plans except Jeevan Aastha (Plan195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) And Jeevan Shikhar (837) (ii) Policy Loan under Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) And Jeevan Shikhar (837)	10.00        10.50
2.	For Policies issued on or after 01/01/1957 – (I)     Arrears of premiums within six months from the date of FUP. (II)   For revivals	9.50 (Subject to a minimum int. of Rs.5/-)
3.	Arrears of premiums for alterations and age proving higher.	9.50
4.	Dating back the policies	9.50
5.	Discount factor for (i)   Commutation of instalments under Educational Annuity Policies. (ii)   Commutation of Income Benefits under Multi-Purpose,             Guaranteed Benefits under Annuity Settlement Options. (iii)   Unpaid instalments under Settlement Options.	9.50
6	Settlement options for Maturity Claims	6.00
7.	Advance payment of premiums under (i)    Jeevan Sneha (Plan 128) (ii)  Jeevan Bharati (Plan 160) and Jeevan Bharati I (Plan 192)	10.00   6.00
8.	Delayed payment of claims	9.00
9.	Discounted Value or Accumulated Value for Calculation of SSV under Jeevan Saral (Plan 165)	7.50
10.	Accumulation of S B under Jeevan bharati (Plan 160) and Jeevan Bharati –I (Plan 192)	4.00
11	Discounting of Claims during the last year of policy term	9.00
12	Reinstatement of Surrendered Policies	10.50

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List of Alteration Allowed with LIC Policy

While taking life insurance we miss certain things by mistake like so we need to make some alteration in Insurance Bond after receiving it.

Here are the LIST OF ALTERATIONS, WHICH ARE PERMISSIBLE WITH LIC POLICY:-

(1) In class (plan) or term.

(2) Reduction in sum assured.

      *Alteration in above case is allowed if basic risk cover is not increased &

        same time premium should not be decreased.

(3) Mode of Premium :

      During term, IN POLICY ANNIVERSARY MONTH Life Assured can change             premium paying mode.

      In case of higher mode to lower mode (not require for SSS or ECS) Rs. 
      50/- service charge to be paid.

(4) Splitting up of single policy into two or more policy.

(5) Merging of the policies in one policy if having same plan / term /             doc.

(6) Without profit to with profit plan.

(7) Grant of accident benefit.

         If any time of taking policy L.A. has not availed D.A.B., but after issue of 

         policy, request for granting D.A.B. if the L.A. is eligible for it, may be
         granted.

         Use form no. 3772 & if accident benefit is not asked from date of 

         commencement of policy then Rs. 50/- service charge be paid.

         In case of minor life assured on completion of their age 18 years, he or 

         she can avail double accident benefit.

        (Maximum up to 50 lakhs or equal to basic S.A. Whichever is less.)

        This benefit may be granted from the due date of policy anniversary 

        following immediately after the date of application.

(8) Grant of premium waiver benefit:

      (1) From no. 300 / 302 of proposer 

      (2) Standard age proof of proposer 

      (3) Medical requirement of proposer as per rules. 

      (4) An Application is required.

ALL Above 1 to 8 alterations will be allow only after 1 policy year complete.

(9) Alteration in Name :

      (1) If original name is required to be changed : GAZZET COPY & I.D. Proof

      (2) In case of female life after her marriage : Marriage certificate with                     application is required.

(10) Settlement option of Payment of Sum assured by installment. At time of           maturity payment.

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Service Tax Effect As on 19th April & From 01st June 2016

Dear LIC Agent

Please note that from 1st June 2016 Service Tax Rate has been changed on life insurance premium of diffrent LIC product. Details are as follows :

                          Existing          Revised
New Business       3.625%          3.75%
Renewal.              1.8125%       1.875%
Term/Health.        14.50%         15.00%
Jeevan Akshay      1.45%           1.50%

So please take care of your customers.

Complete all booked business on or before 31st May 2016.

Contact customers and guide them to pay renewal on or before 31st May 2016 to save a little Service Tax. 

Saving is Saving, size of saving is not necessary but saving is necessary. 

Start from yourself and guide others.

All The Best.

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How to Surrender an LIC Policy ??

Why we are thinking to surrender the policy while we take it to secure future from financial Problem or Unexpected other risk. Some time we take to save tax U/s.80C also.

REASON TO SURRENDER : 

There may be so many reasons to get it surrender. Might be you are not satisfy with the term & conditions or having some financial problem.

But before going to surrender your policy bond,  you need to check that does your policy has surrender values.

All endowment or money back insurance plans accrue a surrender value after certain (lock-in) period.

Generally insurance policies acquire surrender value completions of three years of your policy. This may varies than the amount of premium paid.

Remember Term Insurance / Health Insurance policies are pure protection plans and do not accrue any surrender value.

Once you have decided to surrender your policy, here is how you go.

REQUIRED DOCUMENTS : -

I.   Original Policy Bond / Certificate

II.  Photocopy of last premium payment receipts

III. Photocopy of latest unit balance (in-case of market linked plan)

IV.  Application for surrender value or LIC SurrenderRequest Letter

V.   LIC Form No. 3510/5074

VI.  LIC NEFT Mandate Form

VII. One Cancelled Cheques / Photocopy of Passbook (NEFT/RTGS Purposes)

All forms are self explanatory, fill all the forms accordingly and have some revenue stamps may require. With the above documents visit your home /servicing branch (office from where policy bond is issued). You can find it on your policy bond or on policy receipts. Only Policy holders can surrender the Policy Bond.

After verification all documents LIC officer will issue an Acknowledgement Receipts for the same. Surrendered process may take 15-20 days and the amount (Surrender Value) will be credited into your bank account directly.

POINTS TO REMEMBER : -

1. Surrender values are payable only after three full annual premium paid.

2. Surrender of policy is not recommended since the surrender value would always be proportionately low.

3. And When you decide again to go for an LIC Policy that would be with higher premium because of your    

    higher age .

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