![[Valid RSS]](images/valid-rss-rogers.png "Valid RSS")
This is a valid RSS feed.
This feed is valid, but interoperability with the widest range of feed readers could be improved by implementing the following recommendations.
<figure><img decoding="async" class="aligncenter" src="https://kb.informatio ...
<figure><video src="https://media1.giphy.com/media/JtBZm3Getg3dqxK0zP/giphy. ...
<figure><video src="https://media1.giphy.com/media/JtBZm3Getg3dqxK0zP/giphy. ...
<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>TheFinFact.com</title> <atom:link href="https://www.thefinfact.com/feed/" rel="self" type="application/rss+xml" /> <link>https://www.thefinfact.com/</link> <description>Your Finance Buddy Online</description> <lastBuildDate>Sun, 20 Aug 2023 15:43:27 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod> hourly </sy:updatePeriod> <sy:updateFrequency> 1 </sy:updateFrequency> <generator>https://wordpress.org/?v=6.1.6</generator> <image> <url>https://www.thefinfact.com/wp-content/uploads/2020/06/thefinfact-squre-logo-150x150.png</url> <title>TheFinFact.com</title> <link>https://www.thefinfact.com/</link> <width>32</width> <height>32</height></image> <item> <title>When To Use Waterfall Charts</title> <link>https://www.thefinfact.com/when-to-use-waterfall-charts/</link> <comments>https://www.thefinfact.com/when-to-use-waterfall-charts/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Fri, 03 Jun 2022 02:44:10 +0000</pubDate> <category><![CDATA[Investment]]></category> <category><![CDATA[Personal Finance]]></category> <category><![CDATA[Waterfall Charts]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=1384</guid> <description><![CDATA[<p>Waterfall charts are a great way to visualize how different parts of a whole contribute to the total. They can be used to show how… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/when-to-use-waterfall-charts/">When To Use Waterfall Charts</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<p>Waterfall charts are a great way to visualize how different parts of a whole contribute to the total. They can be used to show how a goal is broken down into smaller pieces, how progress is being made towards that goal, or how different factors contribute to a final result. Keep reading to learn <a href="https://www.tibco.com/reference-center/what-is-a-waterfall-chart">when to use waterfall charts</a> and how to create them in Excel.</p><h2>How Waterfall Charts are Used</h2><p>Waterfall charts are a great way to visualize how a particular value changes over time. These useful charts can be used to track revenue, expenses, or any other type of data.</p><p>There are three main components to a waterfall chart: the starting point, the change in value, and the ending point. Waterfall charts should be used when you need to show how values change over time, and you want to emphasize the difference between the starting point and the ending point.</p><p>Waterfall charts can be used to compare values in any order you like. However, most people use them to compare values in descending order so that the largest values are at the top and the smallest values are at the bottom. This makes it easy to see which values had the biggest impact on overall change.</p><h2>How to Create a Waterfall Chart</h2><figure><img decoding="async" class="aligncenter" src="https://kb.informationbuilders.com/sites/default/files/images/8205/8207_waterfall.jpg" alt="img" /></figure><p>To <a href="https://support.microsoft.com/en-us/office/create-a-waterfall-chart-8de1ece4-ff21-4d37-acd7-546f5527f185">create a waterfall chart in Excel</a>, you will need two columns of data: the first column will contain the initial value, and the second column will contain the change in value. In cell A1, type “Value 1,” and in cell B1, type “Change 1”. Copy cells A1 and B1 down through row 10.</p><p>In cell A11, type “Value 2,” and in cell B11, type “Change 2”. Copy cells A11 and B11 down through row 20. Now it’s time to create your waterfall chart. Select cells A2:A10 and click on Insert > Chart > Line Chart.</p><p>Excel will create a basic line chart based on the data in those cells. Right-click on any of the lines in the chart and select “Add Data Labels” from the menu that appears. This will add labels to each line indicating its value at each point along the graph axis. Next, you’ll need to format your waterfall chart so that it looks like a waterfall chart instead of a line chart. To do this, you’ll use some custom formatting rules for your data series (the lines in our waterfall chart).</p><p>Select all of the lines in your waterfall chart (by clicking once anywhere inside of them) and then press Ctrl+1 (or go to Format > Series > Options). In this dialog box, set Border Width to “0pt,” Cap Style to “Butt Cap,” Join Style to “Miter Joint,” Marker Type to “None,” and Marker Size to “0pt.”</p><p>The first column in a waterfall chart is always at the bottom and is usually called the “base” or “initial” value. The second column is often called the “change” column, and it shows how much each value changed from the base value. Finally, the third column is usually called the “percentage change” column, and it shows how much each value changed as a percentage of the base value.</p><p>The chart begins with a value of 0 and then sequentially adds or subtracts values, tracking the cumulative result.</p><h2>Situations in Which Waterfall Charts Are Used</h2><figure><video src="https://media1.giphy.com/media/JtBZm3Getg3dqxK0zP/giphy.mp4?cid=d180a633y5b1y170zxmmompyidficfeu8315sleoz6gn6zkc&rid=giphy.mp4&ct=g" autoplay="autoplay" loop="loop" width="600" height="300" data-mce-fragment="1"><span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span></video></figure><p>Waterfall charts are typically used when you want to show how a particular value changes by comparing it to other values. In a waterfall chart, each column represents a different value, and the height of each column represents the relative size of that value.</p><p><a href="https://www.ibm.com/docs/en/cognos-analytics/11.1.0?topic=type-waterfall">Waterfall visualization</a> can be used to illustrate how individual items contribute to a total, such as monthly sales totals or budgeted expenses. They can also be used to track changes in a value over time, such as stock prices or company profits.</p><p>In a nutshell, waterfall charts are an important tool for visualizing data and understanding how different parts of a process contribute to the overall outcome. They can be used to track progress over time, identify areas of improvement, and make decisions about where to focus resources. When used together with other data visualizations, waterfall charts can help you understand the big picture and make better decisions.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/when-to-use-waterfall-charts/">When To Use Waterfall Charts</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/when-to-use-waterfall-charts/feed/</wfw:commentRss> <slash:comments>0</slash:comments> <enclosure url="https://media1.giphy.com/media/JtBZm3Getg3dqxK0zP/giphy.mp4?cid=d180a633y5b1y170zxmmompyidficfeu8315sleoz6gn6zkc&rid=giphy.mp4&ct=g" length="3027381" type="video/mp4" /> </item> <item> <title>When it Comes to your Finances – you Need External Accounting Services</title> <link>https://www.thefinfact.com/when-it-comes-to-your-finances-you-need-external-accounting-services/</link> <comments>https://www.thefinfact.com/when-it-comes-to-your-finances-you-need-external-accounting-services/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Tue, 17 May 2022 01:39:00 +0000</pubDate> <category><![CDATA[Banking]]></category> <category><![CDATA[Accounting Services]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=1378</guid> <description><![CDATA[<p>Business owners talk about the success that their current enterprises are having and we listen to them even though we are not really sure if… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/when-it-comes-to-your-finances-you-need-external-accounting-services/">When it Comes to your Finances – you Need External Accounting Services</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<p>Business owners talk about the success that their current enterprises are having and we listen to them even though we are not really sure if they are being honest and telling the truth. It’s quite normal for any business owner to try to sell up his business, but the one sure way to tell if the business is successful or not is to have a look at the books. The one sure way to ascertain if a business is being profitable or not is by taking a brief look at the accounts, and these numbers will tell you exactly what is true and what isn’t. This is why your accounting is so important because it gives you an idea of how well that your business is doing even though you may think the direct opposite. It helps you to put things in context and it helps you to make better business decisions.</p><p>When dealing with accounts, this is one aspect of your business that you shouldn’t be doing yourself because you will not be able to offer a neutral stance when it comes to your accounting procedures. Many of your decisions about your business will be based on your heart and your gut rather than the numbers that appear on the paper. This is why you need to use external <a href="https://singapore.acclime.com/accounting/">accounting services</a> because if you want the job done right then you need to have to turn to the professionals. For those of you who think that you’re saving yourself money and time by doing your own accounts, you have a lot to learn and the following can explain it better.</p><ul><li><strong>It is incredibly affordable – </strong>Many business owners wrongfully assume that getting external help for your accounting is going to be a cost prohibitive thing, but the opposite is actually true when it comes to your <a href="https://www.thefinfact.com/personal-finance-blogs-in-india/">personal finances</a>. There are many service providers out there offering their accounting services and so it has made the marketplace very competitive. If you do your homework and you shop around a little, it’s quite possible to find an external accounting service provider that is extremely affordable. When you think of the cost of hiring a full-time professional in your business to do your accounts, it doesn’t really bear thinking about and so an external service provider is the smart financial choice.</li><li><strong>It will definitely save you time – </strong>Trying to do your own accounts is a time intensive thing and you can afford to make any mistakes. There are <a href="https://www.iras.gov.sg/who-we-are/what-we-do/taxes-in-singapore/the-singapore-tax-system">taxes to be paid to the government</a> and even though you might not mean to pay less than what is due, a mistake like this could end up costing you a lot more money and time to fix. As was mentioned briefly before, trying to hire an in-house accountant just wouldn’t make sound financial sense and you would have to pay all of the other benefits that employees are due as well.</li></ul><p>Hopefully these two reasons can help you to make a smarter business decision when it comes to your accounting needs and all you need to do now is to find an external accounting services provider that can do the job for you.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/when-it-comes-to-your-finances-you-need-external-accounting-services/">When it Comes to your Finances – you Need External Accounting Services</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/when-it-comes-to-your-finances-you-need-external-accounting-services/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>LIC Jeevan Lakshya Plan (Table 833) – Features and Benefits</title> <link>https://www.thefinfact.com/lic-jeevan-lakshya-plan-table-833-features-and-benefits/</link> <comments>https://www.thefinfact.com/lic-jeevan-lakshya-plan-table-833-features-and-benefits/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Sat, 05 Jun 2021 14:51:56 +0000</pubDate> <category><![CDATA[LIC of India]]></category> <category><![CDATA[LIC Jeevan Lakshya Policy]]></category> <category><![CDATA[LIC Table 833]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=860</guid> <description><![CDATA[<p>LIC Jeevan Lakshya Plan Overview LIC Jeevan Lakshya policy is a perfect mix of both life cover and saving plan. The plan provides the best… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/lic-jeevan-lakshya-plan-table-833-features-and-benefits/">LIC Jeevan Lakshya Plan (Table 833) – Features and Benefits</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<h2><strong>LIC</strong> <strong>Jeevan Lakshya Plan Overview</strong></h2><p>LIC Jeevan Lakshya policy is a perfect mix of both life cover and saving plan. The plan provides the best financial security to both family and children. The plan offers the risk cover during the policy tenure and on survival as</p><p><strong>Maturity Amount = Sum Assured + Bonuses</strong></p><p>One can also use the Jeevan Lakshya maturity calculator to calculate the maturity value. In the event of the death of an insured person, the policy offers 10% of the sum assured amount per year and till maturity, the policy offers 110% of Sum Assured + Bonuses. The policy offers a limited premium paying plan. It is a non-linked plan that came to exist in March 2015. One has to visit the LIC office to buy this plan, as it is not available online. One can contact agents and brokers of LIC to get an idea about this plan and to buy it.</p><h2><strong> </strong><strong>Why should you buy LIC Jeevan Lakshya Plan?</strong></h2><p>LIC Jeevan Lakshya 833 plan is an endowment plan and it offers guaranteed benefits to the policyholders within the policy tenure. But throughout the tenure, one can get the benefits of the plan even in the death of an insured person. It is a traditional non-linked endowment plan, as it will not depend on the market movements. Here the insured person is eligible to get some bonuses which will increase the maturity amount. Thus, the LIC Jeevan Lakshya plan is the best in offering financial security to the policyholder’s family.</p><h2><strong>LIC Jeevan Lakshya Plan – Salient Features</strong></h2><p>Let us discuss some salient features of the LIC Jeevan Lakshya policy.</p><ol><li>The plan provides a double benefit to the insured person during the policy term</li><li>Here the minimum sum assured amount under the policy is Rs. 1, 00,000, and one can get the basic sum assured in terms of multiples of Rs. 10,000.</li><li>The policy tenure of the LIC plan 833 is around 13-25 years</li><li>The plan offers four modes of premium payment including Monthly, Quarterly, Half-Yearly, and Yearly. One can choose the premium payment mode based on your convenience.</li><li>The policyholder is eligible for the plan under a certain category such as 18-50 years. So, the maximum maturity under this plan is 65 years.</li><li>Bonuses are the huge benefit of this plan. According to the Profits Endowment Assurance plan, the plan collects profits throughout the policy tenure through the Simple Reversionary Bonus and Final Addition Bonus. One can get such bonuses after the maturity period is over.</li><li>One has to pay the premium amount within 3 years of the policy tenure. It doesn’t depend on whatever the policy term you go with.</li><li>Here the LIC plan offers two optional riders such as LIC’s Accidental Death and Disability Benefit Rider. The final one is the Term Assurance Rider.</li><li>The LIC plan offers another option for paying premiums through Electronic Clearing Service (ECS). One can use the LIC Jeevan Lakshya calculator to know about the premium amount and maturity value.</li></ol><h2><strong>What are the benefits offered by LIC Jeevan Lakshya Plan?</strong></h2><p>Here are some benefits of the LIC Jeevan Lakshya Policy:</p><h3><strong>Death Benefit</strong></h3><p>In the event of the unfortunate death of an insured person during the policy term, the nominee gets the death benefit. Here the details of the death benefit:</p><ul><li>The nominee gets the annual income benefit which is equal to 10% of the basic sum assured every year. The nominee gets the death benefit until the end of the policy term.</li><li>On the date of maturity, the assured absolute amount is equal to 110% of Basic Sum Assured along with bonuses. Such bonuses include a simple reversionary bonus and final addition bonus.</li></ul><h3><strong>Maturity Benefit</strong></h3><p>Maturity benefit is the whole sum amount that the policyholder gets after the maturity period. Here the entire sum assured amount is the lump sum amount that includes a simple reversionary bonus and final addition bonus. LIC Jeevan Lakshya calculator provides this maturity value upon entry of certain details.</p><p>Maturity Sum Assured = Sum Assured + Vested Simple Reversionary Bonus + Final Addition Bonus.</p><h3><strong>Participatory Plan</strong></h3><p>The Jeevan Lakshya LIC policy is a non-linked participatory plan. The policy will participate in LIC profits, and policyholders may get bonuses with the profits from the LIC plan.</p><ul><li>In the event of the death of the policyholder, the entire bonuses will reach the nominee on the maturity date. So, the nominee gets the bonuses after the policy ends.</li><li>In the event of lapsed policies, the plan will not participate in future profits. But, the policyholder gets the accrued bonuses.</li><li>After the maturity of the policy, the policyholder gets the Maturity Assured Amount along with accrued bonuses.</li></ul><h3><strong>Additional Optional Benefits</strong></h3><p>An additional optional benefit is to avail of the rider benefit under the LIC 833 plan. The policyholder can choose either two or any one of the rider benefits. They are</p><ul><li>LIC’s Accidental Death and Disability Benefit Rider</li><li>LIC’s New Term Assurance Rider</li></ul><h3><strong>Flexibility in Premium Payment</strong></h3><p>The plan provides various modes of premium paying amount. Some of the flexibility modes include:</p><ol><li>Monthly</li><li>Quarterly</li><li>Half-Yearly</li><li>Yearly</li></ol><h3><strong>Attractive Rebates</strong></h3><p>Based on various modes of premium payment, here are the details of the attractive rebates and discounts. This is for premium payment mode rebate:</p><table width="638"><tbody><tr><td width="319">For the monthly and quarterly mode of premium payment</td><td width="319">NIL</td></tr><tr><td width="319">For the half-yearly mode of premium payment</td><td width="319">1% rebate on tabular premium</td></tr><tr><td width="319">For the yearly mode of premium payment</td><td width="319">2% rebate on tabular premium</td></tr></tbody></table><p>This is for high sum assured rebate:</p><table width="638"><tbody><tr><td width="319">Sum Assured Rs. 1,00,000 to Rs. 1,90,000</td><td width="319">NIL</td></tr><tr><td width="319">Sum Assured Rs. 2,00,000 to Rs. 4,90,000</td><td width="319">2% of the basic sum assured</td></tr><tr><td width="319">Sum Assured Rs. 5,00,000 and above</td><td width="319">3% of the basic sum assured</td></tr></tbody></table><h2><strong>Eligibility Criteria of LIC Jeevan Lakshya Policy</strong></h2><p>Here are the eligibility criteria of Jeevan Lakshya LIC policy</p><table width="638"><tbody><tr><td width="167"><strong> </strong><strong>Plan Parameters</strong></td><td width="154"><strong> </strong><strong>LIC Jeevan Lakshya</strong></td><td width="159"><strong> </strong><strong>Accidental Death & Disability Rider</strong></td><td width="159"><strong> </strong><strong>New Term Assurance Rider</strong></td></tr><tr><td width="167"><strong> </strong><strong>Basic Sum Assured</strong></td><td width="154">Rs. 1,00,000</p><p>No maximum limit</td><td width="159">● Minimum – Rs. 10,000</p><p>● Maximum – Equal to the Basic SA – Rs. 100 lakhs</td><td width="159">● Minimum – Rs. 1,00,000</p><p>● Maximum – Rs. 25 lakhs</td></tr><tr><td width="167"><strong> </strong><strong>Entry Age – Minimum</strong></td><td width="154">18 years</td><td width="159">18 years</td><td width="159">18 years</td></tr><tr><td width="167"><strong> </strong><strong>Entry Age – Maximum</strong></td><td width="154">50 years</td><td width="159">>5 years of PPT of plan</td><td width="159">Same as Jeevan Lakshya plan</td></tr><tr><td width="167"><strong> </strong><strong>Maturity Age</strong></td><td width="154">65 years</td><td width="159">65 years</td><td width="159">65 years</td></tr></tbody></table><h2><strong> </strong><strong>Premium Paying Terms</strong></h2><p>Here the premium payments for the LIC table no 833. The policyholder can make premium payments in monthly, quarterly, half-yearly, and yearly modes. Here the policyholder can get an ECS facility too for making easy premium payments using net-banking.</p><table width="638"><tbody><tr><td width="167"><strong>Plan Parameters</strong></td><td width="154"><strong> </strong><strong>LIC Jeevan Lakshya</strong></td><td width="159"><strong> </strong><strong>Accidental Death & Disability Rider</strong></td><td width="159"><strong> </strong><strong>New Term Assurance Rider</strong></td></tr><tr><td width="167"><strong> </strong><strong>Policy Tenure</strong></td><td width="154">13-25 years</td><td width="159">N/A</td><td width="159">13-25 years</td></tr><tr><td width="167"><strong> </strong><strong>Premium Payment Term</strong></td><td width="154">Policy Term minus 3 years</td><td width="159">Same as Jeevan Lakshya plan</td><td width="159">Same as Jeevan Lakshya plan</td></tr></tbody></table><h2><strong>How does LIC Jeevan Lakshya Plan Work?</strong></h2><p>When you want to buy the <strong>LIC Jeevan Lakshya policy 833</strong>, an individual has to think about the following details:</p><p><strong>Basic Sum Assured</strong> – It is the life cover amount that an individual can decide from Rs. 1, 00,000 to any maximum amount.</p><p><strong>Policy Tenure</strong> – The policy term means the period that you can cover between 13-25 years.</p><p><strong>Premium Payment Term</strong> – One has to pay the premium amounts in a term which is equal to the policy term minus 3 years.</p><p>Based on the above parameters such as age, policy term, the basic sum assured, one will get an annual premium amount. One will also receive a simple reversionary bonus and final addition bonus along with the sum assured amount.</p><h2><strong>Other Policy Benefits:</strong></h2><h3><strong>Free-look Period</strong></h3><p>If the policyholder is not happy with the terms and conditions of the plan, then he/she can cancel the plan within 15 days of purchasing the policy. It is known as the free-look period. One will get the premium paid amount upon the cancelation of the policy.</p><h3><strong>Grace Period</strong></h3><p>The <strong>LIC Jeevan Lakshya child plan</strong> offers additional days for paying the premium amount is called the Grace Period.</p><ol><li>For monthly premium payment – 15 days</li><li>For quarterly, half-yearly, and yearly premium payment modes – 30 days</li></ol><h3><strong>Loan</strong></h3><p>One can avail of the loan facility under this policy after paying the premium amount for 3 years.</p><h3><strong>A Revival of the Policy</strong></h3><p>One can revive the policy within 2 years of the lapsed plan. After 2 years of the lapsed policy, you can’t get the revival of the policy.</p><h3><strong>Riders</strong></h3><p>An individual has a choice to choose the following rider after paying an extra premium amount.</p><ul><li>LIC’s Accidental Death and Disability Benefit Rider</li><li>LIC’s New Term Assurance Rider</li></ul><h3><strong>Surrender Value</strong></h3><p>If the policyholder surrenders the plan before making 3 years of premium payment, he/she will not get any money back. In case, if an individual surrenders the plan after at least 3 years of making premium payment, he/she can get the surrender value. To know about the surrender value factor, one can contact the LIC office.</p><h3><strong>Paid-up Value</strong></h3><p>If the policyholder pays the premiums for at least three consecutive years, then he/she will get a paid-up value. In this scenario, the Maturity and the Death Benefit will be the multiple of the fraction of the number of paid premiums and the number of premiums that have to be paid.</p><h2><strong>How to purchase LIC Jeevan Lakshya Policy?</strong></h2><p>One can purchase the <strong>LIC 833 plan</strong> in the following ways:</p><h3><strong>Online Channel</strong></h3><p>One can check the details of the <strong>LIC Jeevan Lakshya Policy</strong> to purchase online. It is simple, as one has to visit the official website of LIC. One can even get help from various online agents and brokers. It is easy to purchase using the online channel at any time anywhere. An online channel offers you the flexibility to choose premium payment modes.</p><h3><strong>Offline Channel</strong></h3><p>Another way of buying this plan is through an offline channel. One has to submit the nearby LIC branch to purchase this policy. One can get the help of authorized agents of LIC to buy this plan.</p><h2><strong>Documents required buying LIC Jeevan Lakshya Policy</strong></h2><p>Here is the list of documents that you need to buy LIC Jeevan Lakshya Policy:</p><ul><li>Photo Identity Proof like PAN Card, Voter ID, Aadhar Card, etc</li><li>Age Proof like Passport, Birth Certificate, etc</li><li>Address Proof like Rental Agreement, Electricity bill, Ration card, Voter ID, bank passbook, Credit card bill, Driving license, Telephone bill, and Water bill, etc</li><li>Duly filled proposal form of LIC policy</li><li>Passport-sized photograph</li></ul><h2><strong>Exclusions under LIC Jeevan Lakshya Policy</strong></h2><p>The Life Corporation of India offers the LIC Jeevan Lakshya Plan, which doesn’t provide any rules and regulations in particular. But it is similar to other policy, as it has some exclusion:</p><ol><li>In the event of the death of the policyholder due to a suicide attempt, the plan doesn’t offer any life cover to the insured person</li><li>If the policyholder commits suicide within 1 year from the purchase period, then the policyholder will get 80% of the single premium paid amount.</li></ol><p>By using <strong>LIC Jeevan Lakshya 833 premium and maturity calculator</strong>, one can easily calculate the premium and maturity rates of the policy. Check the online details of the plan to purchase it with great comfortability.</p><h2><strong>Tax Implications in LIC Jeevan Lakshya Policy</strong></h2><p><strong>Premiums</strong> – The premiums paid amount under this scheme are tax-free under Section 80C of the Income Tax Act.</p><p><strong>Maturity Claim</strong> – Here the maturity amount is tax-free under Section 10(10D) of the Income Tax Act.</p><p><strong>Death Claim</strong> – The nominee receives the death benefit which is tax-free under Section 10(10D) of the Income Tax Act.</p><h2><strong>Procedure to claim under the LIC Jeevan Lakshya Plan</strong></h2><p>LIC Jeevan Lakshya Plan offers two types of claims such as</p><ol><li>Maturity Claim</li><li>Death Claim</li></ol><p>Maturity claim is the payment of the maturity amount to the policyholder when he/she completes the policy tenure. The procedure to apply for this maturity claim is simple, as you need to fill and submit the duly signed claim form. Submit this form along with your identity proof to get your maturity benefit. The list of documents to submit for making a maturity claim is as follows:</p><ul><li>Copy of Identity Proof</li><li>Duly filled and signed NEFT mandate form</li><li>Duly filled discharge form</li><li>An original LIC policy document</li></ul><p>In the case of death claim, the nominee gets the death claim in the event of the death of the policyholder. Here the procedure to make a death claim is different. Here the first step is to inform the LIC about the life assurance of the policyholder.</p><h2><strong>Documents required for Death Claim</strong></h2><p>The next step in making a death claim is submitting the required documents to the LIC. Here is the list of documents for making a death claim:</p><ul><li>Proof of death such as a Death Certificate</li><li>Original policy document</li><li>NEFT mandate for receiving direct credit in the nominee’s bank account</li><li>Details of medical treatment</li><li>A duly filled claim form</li><li>Proof of title</li></ul><p>In the event of the death of an insured person due to an accident or disability, the nominee has to submit some additional documents:</p><ul><li>Punchanama</li><li>A certified copy of the First Information Report (FIR)</li><li>A certified copy of the Police Inquest Report</li><li>Post Mortem Report</li><li>Hospital Treatment Reports and Records etc</li></ul><h2><strong> </strong><strong>Premium Calculator for Jeevan Lakshya Plan</strong></h2><p>One can use the <strong>LIC Jeevan Lakshya premium calculator</strong> to calculate the premium amount. One has to provide the details such as age, policy term, the sum assured, etc. to calculate the premium using the <strong>Jeevan Lakshya premium calculator</strong>. The premium calculator provides an option to calculate the premium for the accidental benefit and term riders.</p><h2><strong>Maturity Calculator for Jeevan Lakshya Plan</strong></h2><p><strong>Jeevan Lakshya plan 833 maturity calculator</strong> is the best way to calculate the maturity amount. It needs some of your details such as current age, the sum assured, policy term, purchase year, etc. to calculate maturity value. <strong>LIC Jeevan Lakshya maturity calculator</strong> uses some parameters like Final Addition Bonus, Bonus Rate, etc to get the maturity value.</p><h2><strong>What happens if you stop paying your premium amount under the Jeevan Lakshya Plan?</strong></h2><p>If the insured person stops paying the premiums after the grace period, then the policy will acquire a Paid-up value. One can avail of the paid-up value if the policyholder pays the premium amount for at least 3 years.</p><p>The LIC policy will not provide any bonuses</p><p>The Death Benefit will be:</p><ul><li>(Number of premiums paid / total number of premiums payable) * (110% of Basic Sum Assured + Bonus accrued)</li><li>(10% of Basic Sum Assured x (No. of premiums paid / Total no. of premiums payable)). This will be an annual income benefit that the nominee gets under the plan before the maturity period.</li></ul><p>The Maturity Benefit will be:</p><ul><li>(Number of premiums paid / Total number of premiums payable) x (Basic Sum Assured + Accrued bonus)</li></ul><p><strong>Conclusion:</strong></p><p>Thus, LIC Jeevan Lakshya Plan is the best plan that provides an annual income to the family in the event of the death of the policyholder. The family can get the lump sum amount of sum assured at the end of the maturity period. It is better to purchase this plan to provide financial security to the family. So the family gets the financial benefit irrespective of the survival of the insured person.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/lic-jeevan-lakshya-plan-table-833-features-and-benefits/">LIC Jeevan Lakshya Plan (Table 833) – Features and Benefits</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/lic-jeevan-lakshya-plan-table-833-features-and-benefits/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Gratuity: What is Gratuity? How to calculate Gratuity?</title> <link>https://www.thefinfact.com/gratuity-what-is-gratuity-how-to-calculate-gratuity/</link> <comments>https://www.thefinfact.com/gratuity-what-is-gratuity-how-to-calculate-gratuity/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Mon, 12 Oct 2020 16:07:34 +0000</pubDate> <category><![CDATA[Personal Finance]]></category> <category><![CDATA[Gratuity]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=840</guid> <description><![CDATA[<p>What is meant by Gratuity? What is Gratuity? Gratuity is the lump sum amount which the company pays to an employee for his/her service to… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/gratuity-what-is-gratuity-how-to-calculate-gratuity/">Gratuity: What is Gratuity? How to calculate Gratuity?</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<h2><strong>What is meant by Gratuity?</strong></h2><p>What is Gratuity? Gratuity is the lump sum amount which the company pays to an employee for his/her service to the company. Some employees work in a company for several years, and those employees get a reward, which is gratuity. The company pays gratuity to an employee at the time of retirement, or one can ask the gratuity while moving to another company after serving for 5 years. So, the gratuity meaning is a reward or tip to an employee.</p><h2><strong> </strong><strong>What is the Gratuity Act?</strong></h2><p>Gratuity Act is also known as the Payment of Gratuity Act, 1972, that came to act in September 1972. The main aim of this act is to help an employee with a lump sum amount, who has serviced the company for several years with great hard work. This act applies to all organizations and industries in India but, include terms and conditions under Gratuity act rules. This act covers employees working in various fields such as</p><ul><li>Factories</li><li>Mines</li><li>Plantations</li><li>Oil fields</li><li>Ports</li><li>Companies</li><li>Shops</li><li>Railway Companies</li><li>Other related establishments having more than ten employees at work.</li></ul><h2><strong> </strong><strong>Gratuity Rules</strong></h2><p>Gratuity Rules in India includes employees of two categories such as</p><ol><li>Employees covered by the Payment of Gratuity Act, 1972</li><li>Employees who are not covered by the Payment of Gratuity Act, 1972</li></ol><p>Based on the Gratuity rule in India, companies or industries having more than 10 or more employees will come under the first rule i.e. employees covered by the Payment of Gratuity Act, 1972.</p><p>The State and Central Government employees of India will come under the second rule, i.e. employees who are not covered by the Payment of Gratuity Act, 1972. Here the employees have different service rules for payment of gratuity.</p><h2><strong> </strong><strong>Gratuity Eligibility</strong></h2><p>The following points are the gratuity eligibility rules to receive a lump sum amount.</p><ol><li>Retired employees</li><li>An employee moves to another job after working for 5 years in a company under a single employer</li><li>In the event of the death of an employee due to illness or accident</li><li>If the employee suffers from disability due to a sudden accident</li><li>An employee should be eligible to receive gratuity under superannuation</li></ol><table width="614"><tbody><tr><td width="307"><strong> </strong><strong>Continuous Service</strong></td><td width="308"><strong> </strong><strong>Number of working days </strong></td></tr><tr><td width="307">Consider 1-year of continuous service</td><td width="308">It means 190 days in an establishment, so working less than 6 days in a week. In other cases, the number of days is 240</td></tr><tr><td width="307">Consider 6 months of continuous service</p><p> </td><td width="308">It means 95 days in an establishment, so working less than 6 days in a week. In other cases, the number of days is 120</td></tr><tr><td width="307">Consider as continuous employment</td><td width="308">In this case, an establishment may be open for not less than 75% of days, which means a seasonal employment</td></tr></tbody></table><h2><strong> </strong><strong>Gratuity Formula</strong></h2><p>You may doubt how to calculate gratuity, it is calculated based on the Payment of Gratuity Act, 1972. The gratuity calculation depends on the 15 days’ wages amount for every year of your service. Here the salary considered is the last drawn salary of an employee. Thus, the gratuity formula to calculate the gratuity amount is:</p><table width="638"><tbody><tr><td width="638">Total Gratuity = (Last Drawn Monthly Salary)*(15/26)*(Number of years served in a company)</td></tr></tbody></table><p>For instance, if you started to work in a company in 2013, and resigned your job in 2018. Then, the gratuity formula is as follows.</p><p>Monthly Salary = Rs. 50,000</p><p>Gratuity = (50,000)*(15/26)*5 = Rs. 1, 44,230.</p><p>The above gratuity calculation formula will help you if you don’t know how to calculate gratuity amount.</p><h2><strong>Gratuity Calculator</strong></h2><p>The other name for Gratuity Calculator is the Taxable Gratuity Calculator. This calculator is an online tool that helps you in calculating gratuity as well as the gratuity taxable amount. To estimate the amount of money at your retirement, or after completing several years in a company, this gratuity calculator online tool helps you the most. This is because the gratuity payout varies for employees based on some factors. For those, what is gratuity in salary amount can make use of this calculator.</p><h2><strong>Calculation of Gratuity</strong></h2><p>The gratuity calculation in India is of two categories of calculations such as</p><p><strong>Category 1:</strong> Employees who are coming under the Gratuity Act</p><p><strong>Category 2: </strong> Employees who are not coming under the Gratuity Act</p><p>These two categories are crucial, as they cover both the government and private employees.</p><p><strong>Category 1:</strong> Employees coming under the Gratuity Act</p><p>Here there are two important parameters include the last drawn salary and the number of years of service. Now, here is the gratuity calculation formula</p><p>Gratuity = (Last Drawn Monthly Salary)*(15/26)*(Number of years served in a company)</p><p>26 days means the number of working days in a month.</p><p>15 days means the amount of the wages of an employee to do gratuity calculation.</p><p>The last drawn salary is based on the following components to calculate it without missing any of these components.</p><ol><li>Basic pay</li><li>Dearness Allowance (DA) for Government employees</li><li>Sales commission</li></ol><p>For instance, if you get your last basic pay as Rs. 80,000 with 10 years of service in a company, then the gratuity calculation is</p><p>Gratuity = 80,000 * (15/26) * 10 = Rs. 4.62 lakhs</p><p><strong>Category 2:</strong> Employees not coming under the Gratuity Act</p><p>You can get a gratuity amount even if your company is not under the act. Here, the number of working days changes to 30 from 26.</p><p>Gratuity = (Last Drawn Monthly Salary)*(15/30)*(Number of years served in a company)</p><p>30 days means the number of working days in a month.</p><p>Consider the same example, if you get your last basic pay as Rs. 80,000 with 10 years of service in a company, then the gratuity calculation is</p><p>Gratuity = 80,000 * (15/30) * 10 = Rs. 4.00 lakhs</p><p>For employees under the act, the denominator value is low. So the employees can get a high gratuity amount when compared to another category.</p><h2><strong>Nomination under Gratuity</strong></h2><p>After completing one year of service in a company, an employee can make a nomination for receiving a gratuity. The nominee must be one of his/her family members. Considering nominee in favor of another person, who is not a family member, will result in canceling the gratuity.</p><p>In the event of the death of the nominee before the employee’s death, the interest rate of the gratuity will go back to the employee. In such a situation, an employee can choose a new nominee from his/her family. To choose a new nominee, the employee needs to fill the Form F.</p><h2><strong>Payment of Gratuity by the Employer</strong></h2><p>An employer of the company must pay the gratuity amount to an employee within 30 days from the date of billing of the gratuity amount. However, if the employer fails to pay the amount within 30 days, then the amount becomes payable along with the interest amount. The interest rate depends on the rules of government, and the interest starts to count after the 30 days.</p><p>Another note is that an employee receives the gratuity amount as cash unless an employee or nominee requests for a cheque or demand draft.</p><h2><strong>Payment of Gratuity in case of Death of an Employee</strong></h2><p>In the event of the death of an employee, the gratuity amount should be as follows.</p><table width="638"><tbody><tr><td width="319"><strong> </strong><strong>Number of years of service</strong><strong> </strong></td><td width="319"><strong> </strong><strong>Gratuity Amount</strong></td></tr><tr><td width="319">Service is less than 1 year</td><td width="319">2 times the basic pay (2*BP)</td></tr><tr><td width="319">Service is more than 1 year but less than 5 years</td><td width="319">6 times the basic pay (6*BP)</td></tr><tr><td width="319">Service is more than 5 years but less than 11 years</td><td width="319">12 times the basic pay (12*BP)</td></tr><tr><td width="319">Service is more than 11 years but less than 20 years</td><td width="319">20 times the basic pay (20*BP)</td></tr><tr><td width="319">Service is more than 20 years</p><p> </td><td width="319">The maximum amount is 33 times the basic pay.</td></tr></tbody></table><h2><strong>Deductions from Gratuity Amount</strong></h2><p>If the employer terminates an employee on account of causing damage to the employer’s property or other act of negligence or any act of wrongdoing to the employer, then the gratuity amount decreases to the amount. This reduced amount is the original gratuity amount subtracted by the total damage or loss value. So, employers should open insurance from Life Insurance Corporation to manage the damage or loss amount under the payment of gratuity act.</p><h2><strong>Forfeiture in Gratuity</strong></h2><p>The employer has the right to forfeit the gratuity payment; even the employee has the service of 5 or more than 5 years. The employer can charge the penalty amount to be a partial amount or the whole amount of gratuity. The reason for the employer to forfeit the gratuity payment includes the following:</p><ul><li>An employee’s lawless act</li><li>Violent behavior of the employee</li><li>An employee’s disorderly conduct</li><li>An employee’s violent offense act like moral turpitude</li></ul><p>When an employee commits any one of these offenses, then the employer can forfeit the gratuity.</p><h2><strong>Maximum Gratuity Limit</strong></h2><p>The gratuity exemption limit is Rs. 20 lakhs for an employee. This is the maximum amount covered under the payment of gratuity act, 1972. The gratuity tax-free limit applies to the entire working life of an employee. In case, if an employee is getting multiple gratuity payments, then the total tax exemption limit is Rs. 20 lakhs. This does not depend on the number of times of paying the gratuity.</p><h2><strong>Taxation on Gratuity</strong></h2><p>The taxation rules for gratuity in salary depends on the type of employee, here we will discuss it in brief.</p><h3><strong>Government Employee Receiving Gratuity Amount</strong></h3><p>In this case, an employee working under the state government or central government, then the total gratuity amount free from income tax.</p><h3><strong>Gratuity amount paid to an employee cover under the Payment of Gratuity Act, 1972</strong></h3><p>In this case, an employee receives a gratuity amount under the gratuity act. But here, the last 15 days salary amount exempts from tax.</p><h3><strong>Gratuity amount paid to an employee not covered under the Payment of Gratuity Act, 1972</strong></h3><p>In this case, an employee receives a gratuity amount and it depends on three amounts that are exempt from tax.</p><ul><li>10 lakhs</li><li>Actual gratuity amount that an employee receives</li><li>The half monthly salary of the employee for every year</li></ul><p>But now, according to gratuity act 2019, then exemption limit raises to Rs. 20 lakhs from Rs. 10 lakhs.</p><table width="638"><tbody><tr><td width="319"><strong>Employee category</strong><strong> </strong></td><td width="319"><strong> </strong><strong>Tax-Free Amount</strong></td></tr><tr><td width="319">Government Employee</td><td width="319">Whole gratuity amount tax-free</td></tr><tr><td width="319">An employee covers under the Payment of Gratuity Act, 1972</td><td width="319">Last 15 days salary is tax-free</td></tr><tr><td width="319">An employee not covers under the Payment of Gratuity Act, 1972</td><td width="319">Rs. 20 lakhs tax exemption limit</td></tr></tbody></table><h2><strong>New Gratuity Rules 2019</strong></h2><p>According to the gratuity rules 2019, the limit of gratuity raises to Rs. 20 lakhs. This new rule covers various things such as</p><ol><li><strong>Gratuity calculator formula 2019 </strong>= Last drawn salary * service years * (15/26)</li><li>New Gratuity limit = Rs. 20 lakhs</li><li>Gratuity eligibility = 5 years of services in an organization</li><li>Gratuity becomes mandatory</li></ol><p>One can even make a gratuity calculation in excel for easy understanding.</p><h2><strong>How to Download the Gratuity Application?</strong></h2><p>To download the application form for receiving a gratuity, you need to get the below forms.</p><ul><li>An employee (Form I)</li><li>For nominee of the employee (Form J)</li><li>For legal heir of the employee (Form K)</li></ul><p>Once you fill the gratuity form, you need to submit it to the appropriate authorities in your company. This will enable the employer to start working for your gratuity payment.</p><h2><strong>The Bottom Line</strong></h2><p>Since the government has made the gratuity compulsory for all organizations; it is much helpful for employees to receive a good lump sum amount at the time of retirement or moving to another job. Follow the gratuity rules to receive your gratuity payment without any hassle.</p><h2><strong> </strong><strong>FAQs on Gratuity</strong></h2><p><strong>Q1: Which salary amount is used to calculate gratuity?</strong></p><p><strong>Ans:</strong> To calculate gratuity, the last drawn salary of an employee is taken into account.</p><p><strong>Q2: How much percentage that one can receive monthly for gratuity?</strong></p><p><strong>Ans:</strong> One can receive 57.69% of the monthly payment as a gratuity. Use the gratuity calculation 2019 formula to know the exact percentage.</p><p><strong>Q3: How much amount of gratuity is exempt from tax?</strong></p><p><strong>Ans:</strong> The maximum gratuity exemption limit is Rs. 20 lakhs for an employee.</p><p><strong>Q4: Can an employee get excess gratuity from the employer?</strong></p><p><strong>Ans:</strong> Yes, an employee can get excess gratuity from the employer. But this excess amount applies to income tax.</p><p><strong>Q5: What is the gratuity formula?</strong></p><p><strong>Ans:</strong> The formula for gratuity is (15 * last drawn monthly salary * service years) divided by 26. Here, 26 is the number of working days in a month.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/gratuity-what-is-gratuity-how-to-calculate-gratuity/">Gratuity: What is Gratuity? How to calculate Gratuity?</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/gratuity-what-is-gratuity-how-to-calculate-gratuity/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>All About Public Provident Fund (PPF): Features & Benefits</title> <link>https://www.thefinfact.com/all-about-public-provident-fund-ppf-features-benefits/</link> <comments>https://www.thefinfact.com/all-about-public-provident-fund-ppf-features-benefits/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Mon, 12 Oct 2020 15:11:45 +0000</pubDate> <category><![CDATA[Investment]]></category> <category><![CDATA[Investment Schemes]]></category> <category><![CDATA[PPF]]></category> <category><![CDATA[Public Provident Fund]]></category> <category><![CDATA[Public Provident Fund (PPF)]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=836</guid> <description><![CDATA[<p> What is a Public Provident Fund? A Public Provident Fund (PPF) is a popular savings scheme in India that came to act in 1968. With… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/all-about-public-provident-fund-ppf-features-benefits/">All About Public Provident Fund (PPF): Features & Benefits</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<h2><strong> </strong><strong>What is a Public Provident Fund?</strong></h2><p>A Public Provident Fund (PPF) is a popular savings scheme in India that came to act in 1968. With this PPF, in the form of an investment, one can make a small saving and get a good return from it. The other name of PPF is savings-cum-tax savings investment vehicle. The PPF account full form is the Public Provident Fund. One can build good savings to spend after retirement, and one can save annual taxes. This gives clear ppf meaning in simple words.</p><p>If you are the one looking for a safe investment option that provides guaranteed returns, then PPF will serve as the best option. This long-term investment option offers an attractive interest rate for investors on the invested amount. Here the advantage is both interest and returns do not apply to taxes under income tax. To get the benefit of this PPF, open a PPF account and invest your amount which you can claim later under 80C deductions with the interest amount.</p><h2><strong>Why open a PPF Account?</strong></h2><p>A PPF account means the best for individuals who can accept low risks. As this is an Indian government plan, one can expect guaranteed returns from the PPF fund to protect your financial status. Here the invested funds never link to the market, so you don’t have to worry about inflation. Whenever there is a downswing in the business cycle, PPF still offers stable returns on your investment.</p><h2><strong>Features of a PPF Account</strong></h2><p>The key features of a PPF scheme are in the following list.</p><h3><strong>Investment Tenure</strong></h3><p>A PPF account has a maturity period of 15 years. Before this lock-in period, one can’t withdraw the funds completely. But the investor can extend the maturity period to 5 more years once the lock-in period is over.</p><h3><strong>Principal Amount</strong></h3><p>One can invest a minimum of Rs. 500 and a maximum of Rs. 1.5 Lakh under this public provident fund scheme annually. One can make this investment through an installment basis or lump sum amount.</p><h3><strong>Deposit Frequency</strong></h3><p>To make installment payments, an individual is eligible for only 12 yearly payments. For your account to stay active throughout the maturity period, one has to invest every year in a PPF scheme.</p><h3><strong>Loan against investment</strong></h3><p>Public Provident Fund allows you to avail loans against your investment amount. But one can avail this loan facility from the beginning of the 3<sup>rd</sup> year of the maturity period to the end of the 6<sup>th</sup> year. The calculation of the year starts from the date of account activation. For loans, the maximum tenure is 3 years. One can get a loan amount of 25% or less than that of your investment amount.</p><h3><strong>Nomination</strong></h3><p>At the time of opening the PPF account, one can choose a nominee for the PPF account holder. After some time too, you can choose a nominee.</p><h3><strong>Mode of Deposit</strong></h3><p>One can deposit the investment amount through cash or Demand Draft or Cheque or online money transfer.</p><h3><strong>Joint accounts</strong></h3><p>Opening a joint account is not possible under the PPF scheme. Only one individual can open the PPF account using his/her name.</p><h2><strong>Benefits of opening a PPF Account</strong></h2><ul><li>Since PPF investment is a Government-based scheme, your investment amount and interest for the same are safe in your PPF account.</li><li>Both the contributions that you make under this PPF scheme of up to Rs. 1.5 Lakhs p.a. and the interest that you get for the contributions are free from tax.</li><li>The rate of interest varies every quarter, as per the declaration of the Indian Government. One can get higher returns from PPF than the FD scheme of banks.</li></ul><h2><strong>Eligibility Criteria to open a PPF account</strong></h2><ul><li>Any individual who is an Indian resident is eligible to open a PPF account.</li><li>Non-resident Indians are not eligible for this PPF scheme. However, this is possible for Indian citizens who are eligible to open the PPF account who later become Such NRIs can continue investing in PPF until the lock-in period.</li><li>Parents or guardians are eligible to open PPF accounts for their minor children.</li><li>PPF scheme doesn’t allow opening joint accounts or multiple accounts.</li></ul><h2><strong>How to open a PPF account?</strong></h2><p>One can open PPF accounts at post offices, private banks like ICICI, Axis Bank, and nationalized banks. One can open a PPF account online in private banks such as ICICI Bank, Axis Bank, etc. through net banking. Once you open a PPF account, you will get a passbook similar to your bank passbook. The passbook contains all records of transactions such as interest on ppf taxability, subscriptions, withdrawals, etc. Some banks allow seeing PPF entries online rather than issuing a passbook.</p><h2><strong>Documents Required to Open a PPF Account</strong></h2><p>You may require the following documents to open a PPF account.</p><ol><li>PPF account opening form (Form A) and get this form from banks or download it online</li><li>ID proof like Voter ID, PAN card, Aadhar card, etc</li><li>Address proof</li><li>Passport size photograph of the PPF account holder</li><li>Nomination form to choose a nominee</li></ol><h2><strong>PPF Login and Registration Process</strong></h2><p>To open a PPF online account, you need to follow the below steps:</p><ul><li>You should have an account in a bank where you plan to open your PPF account</li><li>Log in to the particular banking portal</li><li>Check for the option ‘Open a PPF Account’ and click on it</li><li>Now, choose either the option ‘self account’ or ‘minor account’</li><li>Furnish the details like nominee details, bank details, etc</li><li>Verify the Permanent Account Number (PAN), which you will see on the screen</li><li>After the verification process, enter the investment amount under the PPF scheme</li><li>Now, you need to provide standing instructions based on which the bank deducts the amount following certain intervals or as a lump sum</li><li>Now, you will get an OTP and check it on your registered phone number</li><li>Some banks may ask you to provide a hard copy of the details. Submit them with your reference number</li><li>All these details submit them to the bank where you have a PPF account. You can also visit the official website of the Indian post office to open post office ppf online account</li></ul><h2><strong>PPF Passbook</strong></h2><p>PPF is a long-term investment to get guaranteed returns. To check your account balance, you can refer to EPFO. PPF passbook is a useful way to check the details of all the deposits that you made in the PPF account.</p><h2><strong>How to check PPF Account Balance?</strong></h2><p>Here is the simple procedure to check about PPF account balance:</p><ul><li>Before you want to check, ensure that the online banking of your bank account is active</li><li>Using banking credentials, you can log on to the PPF account</li><li>As soon as you log in, you can see your PPF account balance on the screen</li><li>You can use internet banking to transfer funds to your PPF account online. Based on your standing instructions that you set for your PPF account, you can transfer funds. To apply for a loan against PPF, download the PPF account statement and submit it to the respective bank</li></ul><h2><strong>List of Banks where you can open a PPF account</strong></h2><table width="638"><tbody><tr><td width="319">Allahabad Bank</td><td width="319">IDBI Bank</td></tr><tr><td width="319">Canara Bank</td><td width="319">Axis Bank</td></tr><tr><td width="319">Central Bank of India</td><td width="319">Vijaya Bank</td></tr><tr><td width="319">Indian Bank</td><td width="319">SBI</td></tr><tr><td width="319">Union Bank of India</td><td width="319">Bank of Baroda</td></tr><tr><td width="319">Dena Bank</td><td width="319">Bank of Maharashtra</td></tr><tr><td width="319">Indian Overseas Bank</td><td width="319">Punjab National Bank</td></tr><tr><td width="319">ICICI Bank</td><td width="319">Oriental Bank of Commerce</td></tr><tr><td width="319">Bank of India</td><td width="319">State Bank of Bikaner & Jaipur</td></tr><tr><td width="319">State Bank of Patiala</td><td width="319">State Bank of Hyderabad</td></tr><tr><td width="319">State Bank of Mysore</td><td width="319">State Bank of Travancore</td></tr><tr><td width="319">Corporation Bank</td><td width="319">United Bank of India</td></tr></tbody></table><h2><strong>PPF Interest Rate</strong></h2><p>The central government of India decides the interest rate on PPF every three months once. The central government aims to offer higher interest rates for PPF account holders when compared to the interest rate of commercial banks. The current interest rate is 7.1%, which changes quarterly.</p><p>The government decides the interest rate based on the deposits of the PPF account holders. The lowest balance before the 5<sup>th</sup> of every month decides the public provident fund interest rate. It is better to make deposits from 1<sup>st</sup> to 5<sup>th</sup> of the month to increase your returns.</p><table width="612"><tbody><tr><td width="306"><strong> </strong><strong>Period</strong></td><td width="306"><strong>Rate of Interest (%)</strong></td></tr><tr><td width="306">January to March 2019</td><td width="306">8.0</td></tr><tr><td width="306">April to June 2019</td><td width="306">8.0</td></tr><tr><td width="306">July to September 2019</td><td width="306">7.90</td></tr><tr><td width="306">October to December 2019</td><td width="306">7.90</td></tr><tr><td width="306">January to March 2020</td><td width="306">7.90</td></tr><tr><td width="306">April to June 2020</td><td width="306">7.10</td></tr><tr><td width="306">July to September 2020</td><td width="306">7.10</td></tr></tbody></table><h2><strong>PPF Tax Benefits & features</strong></h2><p>One can get income tax exemptions for the invested amount in a PPF scheme. One can claim the entire investment amount under Section 80C of the Income Tax Act of 1961. But one should keep in mind that the total principal amount should not exceed Rs. 1.5 lakhs. Another benefit is the interest amount that you earn from this deposit, which is also exempt from any tax calculations.</p><p>This means the entire amount that you get after the maturity period is free from taxation. This makes the PPF scheme attractive to the people in India.</p><h2><strong>PPF Account Opening Form</strong></h2><p>One can open a PPF account in post offices within 4 steps:</p><ol><li>Visit the nearest post office to get an application form.</li><li>Fill up the Form A to open a PPF account in a post office. Submit it to the post office along with KYC documents and the photograph of you.</li><li>The PPF minimum deposit is Rs. 500 and the maximum amount is Rs. 70,000. You can deposit this maximum deposit initially to the post office. Later, you can deposit within Rs. 1.5 lakhs</li><li>Once the procedure is over, you will get a passbook containing all the necessary details. Also, you can refer to the official website of the Indian post office to open post office ppf online account.</li></ol><p>For PPF, there are various forms that you may need to know before applying it.</p><table width="638"><tbody><tr><td width="319"><strong> </strong><strong>Forms</strong></td><td width="319"><strong>Purpose</strong></td></tr><tr><td width="319">PPF Form A</td><td width="319">For opening a PPF account</td></tr><tr><td width="319">PPF Form B</td><td width="319">To make a contribution</td></tr><tr><td width="319">PPF Form C</td><td width="319">To make a partial withdrawal</td></tr><tr><td width="319">PPF Form D</td><td width="319">To avail loan</td></tr><tr><td width="319">PPF Form E</td><td width="319">Nomination</td></tr><tr><td width="319">PPF Form F</td><td width="319">To change nominee</td></tr><tr><td width="319">PPF Form G</td><td width="319">Claim</td></tr><tr><td width="319">PPF Form H</td><td width="319">To extend the PPF scheme further</td></tr></tbody></table><h2><strong>PPF Withdrawal</strong></h2><p>One can close the PPF account only after completing the maturity period of 15 years. Upon completion of the maturity period, one can withdraw the entire deposit amount along with the interest rate without paying taxation.</p><p>If the account holder wants to withdraw funds before the maturity period, then the scheme allows partial withdrawal of the amount after the completion of six years. The account holder can get a maximum of 50% amount at the end of 4<sup>th</sup> year. Then one can make withdrawals yearly once in the maturity period.</p><h2><strong>Procedure for withdrawal from PPF</strong></h2><p>To make a partial withdrawal in your PPF account, you need to submit the Form C. Get the Form C from the respective bank where you have an account. Form C has 3 sections such as declaration section, office use section, and bank details section.</p><p><strong>Declaration Section</strong> – Enter your PPF account number and the amount you want to withdraw from the PPF amount. Mention the number of years that you have completed already in this PPF scheme.</p><p><strong>Office Use Section</strong> – Furnish the opening date of the PPF account. Provide the withdrawal amount, sanctioned withdrawal amount, etc.</p><p><strong>Bank Details Section</strong> – Issue the details of the bank where you need to get your amount credited.</p><h2><strong>Nomination Rules for </strong><strong>PPF Account</strong></h2><p>To choose a nominee or to change a nominee, here are the rules that one has to follow:</p><ul><li>With the favor of one or more persons, one has to make a nomination. If one specifies more than one person as a nominee, then you need to specify the percentage for each nominee.</li><li>For minor’s PPF account, one can’t make any nominations</li><li>One can nominate the spouse, parents, friends, and relatives, etc, as a nominee</li><li>To add a nominee, submit the Form E to the respective bank</li><li>Throughout the maturity period of the account, one can choose a nominee or cancel a nominee. For changing nominee, you need to submit Form F.</li><li>An account holder has to sign the nomination form and also provide two witnesses. Nominee’s signature is not needed.</li></ul><h2><strong>Loan against PPF</strong></h2><p>One can avail loan facility against PPF scheme from 3<sup>rd</sup> year to 6<sup>th</sup> year of the maturity period. After the expiry of one year, one can get the loan benefits. But ensure that you take this loan opportunity before the expiry of five years. To get loan benefits, one has to submit the Form D to the respective bank or post office. You need to provide the details like account number, borrowing amount, etc. You should specify that you repay the amount with interest within three years.</p><h2><strong>A Revival of Inactive Account</strong></h2><p>Your PPF account becomes inactive if you didn’t maintain the ppf minimum amount of Rs. 500/year. If your account becomes inactive, then follow the below steps:</p><ol><li>One has to submit the written request to the respective bank or post office to reactive your PPF account</li><li>One has to pay a fine amount of Rs. 50 for each year of inactive account</li><li>One has to pay a minimum arrear amount of Rs. 500 for all the years of the account being inactive</li></ol><h2><strong>PPF Transfer</strong></h2><p>One can transfer the PPF account from the post office to the bank or bank to the post office. One can also transfer the PPF account between different bank branches of the same bank.</p><h2><strong>How to close a PPF account?</strong></h2><p>Premature closure of the PPF account is not available within 5 years of the maturity period. One can close the PPF account for specific reasons such as life-threatening ailments that affect the PPF account holder, spouse, parents, or children. But to claim the premature closure of the PPF account, one has to submit the medical documents to the respective bank or post office.</p><h3><strong>Premature Termination</strong></h3><p>One can close the post office public provident fund account prematurely after the completion of the first five years for the following reasons:</p><ol><li>To continue higher education of the PPF account holder or for the education of the minor account holder</li><li>If the account holder or spouse or children of the account holder suffers from life-threatening diseases</li></ol><h3><strong>Death of Account Holder</strong></h3><p>In the event of the death of the PPF account holder, the nominee can claim the proceeds of the PPF account. Here the claimant should submit the Form G application. You need to fill the Form G details such as nominee details, account number, etc. One has to submit documents such as Form G, death certificate of the account holder, passbook, etc.</p><h2><strong>FAQ’s on PPF</strong></h2><p><strong>Q1: Can one withdraw PPF after 5 years?</strong></p><p><strong>Ans:</strong> Yes, you can withdraw the PPF amount after 5 years. Also, you can withdraw the whole amount after 5 years and close the account.</p><p><strong>Q2: Can one person have 2 PPF accounts?</strong></p><p><strong>Ans:</strong> No, it one can’t open 2 PPF accounts. But the family can have multiple PPF accounts.</p><p><strong>Q3: Whether a senior citizen can open a PPF account?</strong></p><p><strong>Ans: </strong>To open a PPF account, there is no upper age limit for senior citizens. Any residents of India can open a PPF account without age limitations.</p><p><strong>Q4: What is the PPF maturity period?</strong></p><p><strong>Ans:</strong> The lock-in period for the PPF scheme is 15 years. After the completion of 5 years, one can make the premature withdrawal of the total amount under certain situations.</p><p><strong>Q5: What is the minimum contribution to the PPF account?</strong></p><p><strong>Ans:</strong> The minimum amount to open a PPF account is Rs. 500.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/all-about-public-provident-fund-ppf-features-benefits/">All About Public Provident Fund (PPF): Features & Benefits</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/all-about-public-provident-fund-ppf-features-benefits/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>LIC New Jeevan Anand Plan (Table 815) – Features and Benefits</title> <link>https://www.thefinfact.com/lic-new-jeevan-anand-plan-table-815-features-and-benefits/</link> <comments>https://www.thefinfact.com/lic-new-jeevan-anand-plan-table-815-features-and-benefits/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Mon, 12 Oct 2020 10:19:09 +0000</pubDate> <category><![CDATA[Insurance]]></category> <category><![CDATA[LIC of India]]></category> <category><![CDATA[Life Insurance]]></category> <category><![CDATA[LIC New Jeevan Anand Plan]]></category> <category><![CDATA[LIC New Jeevan Anand Plan (Table 815)]]></category> <category><![CDATA[LIC Table 815]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=850</guid> <description><![CDATA[<p>LIC New Jeevan Anand Policy Overview LIC New Jeevan Anand Plan is one of the best endowment plans of LIC that offers a great risk… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/lic-new-jeevan-anand-plan-table-815-features-and-benefits/">LIC New Jeevan Anand Plan (Table 815) – Features and Benefits</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<h2><strong>LIC New Jeevan Anand Policy Overview</strong></h2><p>LIC New Jeevan Anand Plan is one of the best endowment plans of LIC that offers a great risk cover to the insured person. The main benefits of this plan are accidental death and disability benefit riders. The plan offers an additional amount in the event of the death of the insured person.</p><p>Jeevan Anand policy is a perfect blend of a whole life plan and an endowment plan. For those who are looking for the endowment policy offering entire life cover advantages, LIC New Jeevan Anand Plan is the best choice. One can enjoy the bonus facility, tax-free maturity amount, etc.</p><h2><strong> </strong><strong>Why should you buy LIC New Jeevan Anand Plan?</strong></h2><p>LIC Jeevan Anand policy has several benefits to buy it. Some of the reasons that make you buy this LIC include:</p><ul><li>This policy is a perfect combination of an endowment plan and a whole life plan.</li><li>It offers a great life cover to the policyholder.</li><li>The plan offers major benefits such as accidental death and disability benefit rider.</li><li>One can get a bonus such as a simple reversionary bonus and final addition bonus after the policy term.</li><li>The plan offers a tax-free maturity amount under Section 10(10D) of the Income-tax act.</li><li>The premium that you pay during the policy term is free from taxes under Section 80C.</li></ul><h2><strong>LIC New Jeevan Anand Plan – Key Features</strong></h2><p>The key features of the LIC Jeevan Anand 815 are as follows:</p><ul><li>It is a whole life insurance plan, as it offers the life cover even after completing the maturity period.</li><li>The Policyholder gets the option of regular premium payment</li><li>The plan offers a simple reversionary bonus to the insured person to increase the payable benefits in the event of an earlier death of an insured person or on maturity.</li><li>Here the maturity benefit is equal to Sum Assured + Resultant Bonuses. And the risk cover option is available till death.</li><li>The death benefit of this policy offers only Sum Assured after the maturity period.</li><li>The death benefit of this policy offers both Sum Assured + Resultant Bonuses before the maturity period.</li><li>In the event of the death of the policyholder or disability till the 70<sup>th</sup> birthday, the policy offers additional benefits such as accidental death and disability benefit rider.</li><li>If the plan gets a surrender value, then the policyholder can apply for a loan.</li><li>One can’t switch to another policy after purchasing this new Jeevan Anand.</li><li>One can get the tax-free maturity benefit under Section 10(10D) of the Income Tax Act. The plan allows tax exemption on the premium amount paid during the policy tenure under Section 80C.</li></ul><h2><strong> </strong><strong>Eligibility Criteria of LIC New Jeevan Anand Plan</strong></h2><p>According to the Jeevan Anand policy details chart, the eligibility criteria is as follows:</p><table width="638"><tbody><tr><td width="213"><strong> </strong><strong>Plan Parameters</strong></td><td width="213"><strong> </strong><strong>Minimum</strong></td><td width="213"><strong>Maximum</strong></td></tr><tr><td width="213"><strong> </strong><strong>Sum Assured (in Rs.)</strong></td><td width="213">Rs. 1 Lakh</td><td width="213">No limit</td></tr><tr><td width="213"><strong> </strong><strong>Policy Tenure (in years)</strong></td><td width="213">15</td><td width="213">35</td></tr><tr><td width="213"><strong> </strong><strong>Premium Payment Term (in years)</strong></td><td width="213">5</td><td width="213">57</td></tr><tr><td width="213"><strong> </strong><strong>Entry Age of an insured person</strong></td><td width="213">18 years</td><td width="213">50 years</td></tr><tr><td width="213"><strong> </strong><strong>Maturity Age</strong></td><td width="213">Nil</td><td width="213">75 years</td></tr><tr><td width="213"><strong> </strong><strong>The Revival of the policy</strong></td><td colspan="2" width="426">Within 2 years</td></tr><tr><td width="213"><strong> </strong><strong>Loan</strong></td><td colspan="2" width="426">After 3 years making full premium payment of the policy tenure</td></tr><tr><td width="213"><strong> </strong><strong>Surrender Value</strong></td><td colspan="2" width="426">After 3 years of making full premium payment</td></tr><tr><td width="213"><strong> </strong><strong>Premium Mode Rebate</strong></td><td colspan="2" width="426">Nil on Monthly & Quarterly, 1% on Half Yearly, 2% on Annually</td></tr><tr><td width="213"><strong> </strong><strong>Availability</strong></td><td colspan="2" width="426">In addition to Indian citizens, NRIs can also avail of this policy from Indian Insurance Companies.</td></tr></tbody></table><h2><strong> </strong><strong>Benefits of LIC New Jeevan Anand Plan</strong></h2><p>Here are the benefits of the LIC New Jeevan Anand plan</p><h3><strong>Maturity Benefit</strong></h3><p>If the policy term comes to an end and the policyholder is still alive, then he/she will get the maturity benefit. The maturity benefit is the total sum assured paid with a simple reversionary bonus and final addition bonus.</p><h3><strong>Death Benefit</strong></h3><p>In the event of the death of the policyholder during the policy term, the nominee receives the death benefit. The death benefit is the sum assured on death with a simple reversionary bonus and final addition bonus. But the sum assured on death is higher, which is either 125% of the sum assured or 10 times the annual premium amount. It means that the death benefit will not be less than 105% of the total premiums.</p><h3><strong>Bonus</strong></h3><p>The LIC Jeevan Anand 815 policy participates in the financial year to earn profits in LIC. Such profits of the policy are added to the sum assured as the reversionary bonus. In addition to the simple reversionary bonus, a final additional bonus is also available with the death or maturity benefit.</p><h3><strong>Rider</strong></h3><p>The whole life insurance plan offers</p><ul><li>Accidental Death</li><li>Disability Benefit Rider</li></ul><p>The above riders offer life cover to the accidental death and disability conditions of the policyholder. In the event of the accidental death of an insured person, he/she can get an additional sum assured. On the other hand, if the insured person faces disability issues due to an accident, then the sum assured for the policy is paid in monthly installments to the policyholder. The insurer pays it for the next 10 years.</p><h3><strong>Loan Benefit</strong></h3><p>The policyholder can avail of the loan facility after three years of the policy tenure. The insured person is eligible to get a loan after making premium payments. When the plan acquires the surrender value, the policyholder can apply for the loan.</p><h3><strong>Income Tax Benefit</strong></h3><p><strong>Premium</strong> – The premiums that you pay for the plan are free from taxation. This is under Section 80C of the Income Tax Act, 1961.</p><p><strong>Claim Amount</strong> – Maturity or Death Claims are free from taxes under Section 10(10D) of the Income Tax Act, 1961. There is no limit on the claim amount, and the entire amount will be tax-free.</p><h3><strong>Premium Discounts</strong></h3><p>One can avail of two types of premium discounts under the LIC Jeevan Anand policy 15 years minimum period. The first discount is available for those, who pay premiums half-yearly or yearly. The discount for half-yearly premium is 1% and the discount for yearly premium is 2%. The second discount is available for the policyholders, who choose higher coverage levels. The discount rates under the plan are as follows.</p><table width="510"><tbody><tr><td width="258"><strong> </strong><strong>Amount of Sum Assured</strong></td><td width="252"><strong> </strong><strong>Rate of Discount</strong></td></tr><tr><td width="258">Rs. 200,000 to Rs. 495,000</td><td width="252">1.50% of the sum assured</td></tr><tr><td width="258">Rs. 500,000 to Rs. 995,000</td><td width="252">2.50% of the sum assured</td></tr><tr><td width="258">Rs. 10,00,000 and above</td><td width="252">3% of the sum assured</td></tr></tbody></table><h2><strong>Other Policy Details</strong></h2><p>Here are the other Jeevan Anand Policy details:</p><h3><strong>Paid-up Value</strong></h3><p>If you pay the premiums continuously for at least three years of the policy term, then the policy will get a paid-up value. This will help you to not lose the plan benefits in the future. In such a situation, the policy may continue at a reduced paid-up value. Here, one can use the following formula to calculate the reduced sum assured.</p><p>Paid-up sum assured = (Number of premiums paid / number of premiums payable) * sum assured</p><h3><strong>Surrender Value</strong></h3><p>If the LIC policy acquires the paid-up value, you can surrender the policy to avail of the surrender value. Here the surrender value is higher than the guaranteed surrender value (GSV) or special surrender value (SSV). To calculate guaranteed surrender value, the plan uses an aggregate surrender value of the premiums paid. On the other hand, it depends on the LIC to calculate the special surrender value.</p><p>Guaranteed Surrender Value (GSV) = (total premiums paid* GSV Factor) + (vested bonus * GSV factor of Bonus)</p><h3><strong>Revival Period of the policy</strong></h3><p>The new Jeevan Anand policy allows for the revival of the lapsed plan when the policyholder does revive within 2 years from the closed date. To revive the lapsed plan, one has to pay the outstanding premiums with proof of insurability.</p><h3><strong>Grace Period</strong></h3><p>The LIC Jeevan Anand plan offers an additional period for making premium payments is called a grace period. It depends on the mode of premium payments.</p><ul><li>Monthly – 15 days grace period</li><li>Quarterly, Half Yearly, and Annually – 30 days grace period</li></ul><p>If the insured person doesn’t pay the premium amount before the end of the grace period, then the policy will come to an end. But one can revive the lapsed policy within 2 years from the unpaid premium date.</p><p>For example, if the policyholder has to make a yearly premium payment on 10<sup>th</sup> June, then the policyholder has time till 10<sup>th</sup> July. After this date, the policy may come to an end.</p><h3><strong>Cooling-off Period</strong></h3><p>In LIC new Jeevan Anand 815, a policyholder has the right to return the policy within 15 days is called the Cooling-off Period. The policyholder can return the plan if he is not happy with the terms and conditions of it. After making a cooling-off request, the insurer will cancel your plan and return your premium amount. But the insurer deducts some proportion of premium, clerical cost, and medical test cost from the premium amount. A Cooling-off period is also known as Free-Look Period.</p><h2><strong>How Does LIC New Jeevan Anand Works?</strong></h2><p>The policyholder has to select the Sum Assured and the policy term. The LIC Jeevan Anand policy details are essential to calculate the premium amount. Some of the parameters that the plan use to calculate the premium amount include</p><ul><li>Age of the insured person</li><li>Sum Assured</li><li>Policy Term</li></ul><p>According to this plan, an insured person has to pay a premium amount for the whole policy term. The insured person gets the maturity benefit, in case if he/she survives until the end of the policy term.</p><p><strong>Maturity Benefit = Sum Assured + Bonus (received amount throughout the tenure) + Any Final Addition Bonus</strong></p><p>Now, if the insured person dies during the policy term, then the nominee will get the death benefit. Here the death benefit provides an additional sum assured amount.</p><p><strong>Death Benefit = Sum Assured on Death + Reversionary Bonus (till death date) + Any Final Addition Bonus</strong></p><p>Here the sum assured on death is 125a5 of the sum assured or 10 times the annual paid premiums.</p><h2><strong>LIC New Jeevan Anand Premium Illustrations</strong></h2><p>Let us discuss Jeevan Anand LIC policy details with example.</p><p>Consider the policyholder is 25 years old, and he buys the plan in the year 2019 with tenure 25 years. So, the annual premium is around Rs. 21472 and the total premium paid amount is around Rs. 536800.</p><h3><strong>Case 1</strong></h3><p>If the policyholder survives the term, then he/she will get the following benefit.</p><table width="516"><tbody><tr><td width="264">Maturity Year</td><td width="252">2044</td></tr><tr><td width="264">Maturity Age</td><td width="252">50 years</td></tr><tr><td width="264">Basic Sum Assured</td><td width="252">Rs. 5 lakhs</td></tr><tr><td width="264">Bonus Additions</td><td width="252">Approximately Rs. 8 lakhs</td></tr><tr><td width="264">Maturity Amount Payable</td><td width="252">Rs. 13 lakhs</td></tr></tbody></table><h3><strong>Case 2</strong></h3><p>If the policyholder dies during the tenure, then the nominee will get the 125% of the sum assured along with bonuses. If the policyholder dies in an accident, then the claim amount gets added to the minimum sum assured.</p><p>Let us see the table that provides approximate values of sum assured with life cover and accidental cover:</p><table width="638"><tbody><tr><td width="160"><strong> </strong><strong>Year of Premium Payment</strong></td><td width="160"><strong> </strong><strong>Total Paid Premiums</strong></td><td width="160"><strong> </strong><strong>Life Cover</strong></td><td width="160"><strong> </strong><strong>Accidental Cover</strong></td></tr><tr><td width="160">1<sup>st</sup> Year</td><td width="160">Rs. 21,472</td><td width="160">Rs. 6,10,000</td><td width="160">Rs. 11,30,000</td></tr><tr><td width="160">5<sup>th</sup> Year</td><td width="160">Rs. 1,07,360</td><td width="160">Rs. 7,50,000</td><td width="160">Rs. 12,60,000</td></tr><tr><td width="160">10<sup>th</sup> Year</td><td width="160">Rs. 2,14,720</td><td width="160">Rs. 9,00,000</td><td width="160">Rs. 14,00,000</td></tr><tr><td width="160">15<sup>th</sup> Year</td><td width="160">Rs. 3,22,080</td><td width="160">Rs. 10,52,000</td><td width="160">Rs. 15,50,000</td></tr><tr><td width="160">20<sup>th</sup> Year</td><td width="160">Rs. 4,29,440</td><td width="160">Rs. 12,63,125</td><td width="160">Rs. 17,70,000</td></tr><tr><td width="160">25<sup>th</sup> Year</td><td width="160">Rs. 5,36,800</td><td width="160">Rs. 15,80,000</td><td width="160">Rs. 20,00,000</td></tr></tbody></table><h2><strong>Role of an Income Tax</strong></h2><h3><strong>Premiums</strong></h3><p>In LIC new Jeevan Anand plan, the premiums that the policyholder has to pay are exempt from taxes under Section 80C of the Income Tax Act, 1961. The policyholder can avail of the maximum exemption of around Rs. 1.5 lakhs. To get this maximum exemption, one has to restrict the premium to 10% of the sum assured.</p><h3><strong>Maturity Claim</strong></h3><p>The policyholder can get the maturity amount as a whole without any deductions. Because the maturity amount is free from taxes under Section 10 (10D). To get this exemption, the sum assured is 10 times the total premium paid.</p><h3><strong>Death Claim</strong></h3><p>In the event of the death of the insured person, the nominee can get the death claim without any deduction. Here the death claim is tax-free under Section 10 (10D) of the Income Tax Act, 1961. For death claims, there is no limit on exemptions.</p><h2><strong>How to buy LIC New Jeevan Anand Plan?</strong></h2><p>With the Jeevan Anand policy benefits, one can opt for this policy. This plan is an offline plan, as one has to visit the company’s branches or contact the company executives. One can also contact the company intermediaries such as LIC agents or brokers.</p><p>One can also buy the plan online, using the LIC portal or other online insurance companies. It is easy to buy this plan online, as it is completely hassle-free. One can even pay the premium amount online.</p><p>There is no need to worry about languages, as you can get in the form of needed language. For people in Tamilnadu, LIC new Jeevan Anand policy details in the Tamil language are available.</p><p>One has to provide details such as</p><ul><li>Age</li><li>Gender</li><li>Income</li><li>Sum Assured to buy this plan</li></ul><p>You have many options in endowment policies. So check the details of different LIC plan to buy the right one.</p><h2><strong>Documents required for buying the LIC New Jeevan Anand Plan</strong></h2><p>To get LIC Jeevan Anand benefits, one has to submit the following documents:</p><ul><li>Dully-Filled Application Form/Proposal Form</li><li>Address Proof Documents</li><li>Age Proof Documents</li><li>Other KYC documents like PAN card, Aadhar Card, Tax Details, etc.</li><li>Medical History</li><li>Medical Diagnosis Reports</li></ul><h2><strong>Simple Reversionary Bonuses in </strong><strong>LIC New Jeevan Anand Plan</strong></h2><p>With several LIC Jeevan Anand policy benefits, one can purchase this plan for a whole life cover. One such benefit is the Simple Reversionary Bonus. The plan participates in the profit investments and earns bonuses. Simple Reversionary Bonus is the bonus per thousand sum assured yearly at the end of every financial year. Once the plan gets profits, it declares guaranteed benefits for the policyholder. The policy adds bonus and final addition bonus to the maturity amount during the selected term of the policy. But it adds only when the policy is in force. So, one can enjoy the LIC new Jeevan Anand with profits and bonuses.</p><p>Bonus Value = (Sum Assured * Bonus Rate) /1000</p><h2><strong> </strong><strong>Loan Facility under LIC Jeevan Anand Policy</strong></h2><p>One can avail the loan facility under the LIC New Jeevan Anand plan 815 if the policyholder finishes making the premium payments in the first three years. Another condition is to acquire the surrender value to get the loan under this policy.</p><p>One can get the maximum loan amount which is approximately ninety percent of the surrender value under the LIC Jeevan Anand plan 815 scheme.</p><h2><strong> </strong><strong>Exclusions under LIC New Jeevan Anand Plan</strong></h2><p>According to the LIC Jeevan Anand plan details, there is some exclusion under the scheme.</p><ol><li>If the policyholder commits suicide within 1 year of purchasing the plan, then the plan will be excluded. But the insurer returns 80% of the paid premium to an insured person.</li><li>If the policyholder commits suicide within 1 year of reviving the plan, then the plan will be excluded. In this case, the insurer refunds 80% of the premiums paid or higher of the surrender value.</li></ol><h2><strong>Claim process of the LIC New Jeevan Anand Plan</strong></h2><h3><strong>Death Claim</strong></h3><p>In the event of the death of the policyholder, the nominee can claim the death benefit. Under the new Jeevan Anand LIC policy, the nominee has to submit the duly filled claim form 3783. A nominee has to submit the other mandatory documents such as</p><ul><li>Death certificate of the policyholder</li><li>Bank account details</li><li>Identity proof</li><li>Medical treatment details</li><li>Hospital bills</li><li>Original policy document</li><li>NEFT mandate form</li><li>Age proof</li></ul><p>In case of an accident, a nominee has to submit the panchnama, police FIR, post mortem report, etc.</p><h3><strong>Maturity Claim</strong></h3><p>If the policyholder survives until the end of the policy term, the policyholder can claim the maturity amount. Here the policyholder has to submit the following documents under the Jeevan Anand 815 plan.</p><ul><li>Identity Proof</li><li>Policy bond</li><li>Bank account details for NEFT transfer</li></ul><h3><strong>Claim on Surrender of Policy</strong></h3><p>In the LIC Jeevan Anand plan, the surrender of policy is an important feature to consider with attention. The term ‘Surrender’ means the closure of the LIC plan before the policy term. The surrender value is the amount that an insurer pays to an insured person. For the surrender claim, the policyholder has to submit the following documents.</p><ul><li>Bank account details for NEFT transfer</li><li>Identity proof</li><li>Policy document</li></ul><p>According to the new Jeevan Anand policy details, the policyholder becomes eligible for the surrender value only if he/she pays the premium amount for at least three years.</p><h2><strong>What Happens If?</strong></h2><ul><li>If the policyholder commits suicide within 12 months from the starting date of the LIC policy, then the nominee will get 80% of the premiums paid till the date of the death of the policyholder.</li><li>If the policyholder commits suicide after the revival of the LIC policy, then the policyholder will get 80% of the premiums paid or surrender value acquired.</li><li>If the insurance company finds the details of the policyholder to be unreliable, then the insurer can surrender the insurance policy. This is applicable under section 45 of the insurance act, 1938. So, the policyholder has to submit the right documents and correct details to the insurer. The LIC Company makes the verification process about the details of the policyholder. Once they get confirmation of the details, they may sanction your LIC policy.</li></ul><h2><strong>Conclusion</strong></h2><p>Thus, LIC New Jeevan Anand Plan is a non-linked plan that offers a combination of life cover and savings. The policyholder can get better financial protection, as the policy offers a lump sum amount at the end of the policy tenure. It serves as the traditional saving cum insurance plan, so one can enjoy the Jeevan Anand with profits and bonuses. As it is one of the most sold endowment plans, people can purchase it without going for another option.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/lic-new-jeevan-anand-plan-table-815-features-and-benefits/">LIC New Jeevan Anand Plan (Table 815) – Features and Benefits</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/lic-new-jeevan-anand-plan-table-815-features-and-benefits/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>How to Download GST Certificate Online – Complete Guide</title> <link>https://www.thefinfact.com/how-to-download-gst-certificate-online-complete-guide/</link> <comments>https://www.thefinfact.com/how-to-download-gst-certificate-online-complete-guide/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Mon, 12 Oct 2020 10:16:38 +0000</pubDate> <category><![CDATA[Tax Planning]]></category> <category><![CDATA[Goods and Service Tax]]></category> <category><![CDATA[GST]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=829</guid> <description><![CDATA[<p>In July of 2017, the Indian government introduced a unified tax called GST. GST stands for goods and service tax. The aim of launching this… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/how-to-download-gst-certificate-online-complete-guide/">How to Download GST Certificate Online – Complete Guide</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<p>In July of 2017, the Indian government introduced a unified tax called GST. GST stands for goods and service tax. The aim of launching this tax format was reducing the need to pay various types of taxes. GST is made mandatory by the government for all business with a certain turnover. The turnover of the business that needs to register under GST is above 20 lakhs.</p><p>In this article, we will be talking about the meaning of GST certificate, its registration and how to download GST registration certificate?</p><h2><strong>What is GST?</strong></h2><p>As previously mentioned GST stands for goods and service tax. It is a type of indirect tax introduced by the government of India. The tax was launched for removing various indirect taxes. These taxes were excise duty, VAT, Service tax etc. GST is levied on the supply of goods and services. GST tax is levied on every value-added service or value additions.</p><p>In simple words, GST is an indirect tax that is domestic in nature. It is valid all over the country.</p><h2><strong>What are the components of the GST?</strong></h2><p>Under GST indirect tax there are three main components. These components are as follows:</p><ol><li>CGST – It is the main component of the GST tax. It is a type of tax collected by the central government of India. The tax is collected on intra-state sales.</li><li>SGST – the second component of the GST tax is SGST. It is again a type of tax collected by the respective state government. SGST is collected by the state on the intra-sales of goods and services.</li><li>IGST – the last component of the GST tax is called IGST. It is a type of tax collected by the central government of India. The IGST is collected by the central on the inter-sales of goods and services.</li></ol><h2><strong>Seven important features of the GST</strong></h2><p>The list of features of the GST that all persons should know is as follows:</p><ol><li>The GST tax is imposed and collected by both central and state government in the form of CGST and SGST respectively.</li><li>IGST is also applied for the import of goods and services in addition to inter-state sales.</li><li>The tax law of the GST also states certain exemption, which is free from taxes.</li><li>A taxpayer under the GST scheme must submit a periodic return of their respective businesses.</li><li>The returns under the GST form of taxation must be submitted to both state and central government.</li><li>After completing the registration by a person or entity under GST format a number is issued. In other words, taxpayers under GST registration get a unique number for future references.</li><li>GST tax does not relate to the exports of goods and services.</li></ol><h2><strong>What is the GST registration?</strong></h2><p>GST registration is a process of registering the business as a taxable person. The business which needs to be registered under the GST is listed in the rules and regulations of the said tax. Usually, the turnover of the business is considered for registering under GST tax law.</p><p>After the introduction of GST, the government has clearly stated that a business not registered under it will be considered an offence. This rule applies only for those businesses that fall under GST category. Only after registration one can obtain certificate through GST download.</p><h2><strong>Who or which business should be registered under GST?</strong></h2><p>The following people or business should definitely register under GST indirect tax law.</p><ol><li>Any individual who was registered under previous excising tax-laws. Such as VAT, excise duty, service tax etc.</li><li>Businesses with turnover as specified by the GST tax law.</li><li>Casual taxable person</li><li>Input service distributor and agent of a supplier</li><li>Persons supplying under e-commerce and every e-commerce aggregator</li><li>In case a person is paying tax under reverse charge mechanism then they should register under GST.</li><li>And finally, any person supplying online information, database access or retrieval services must register under GST tax law.</li></ol><h2><strong>How to register for GST certificate?</strong></h2><p>To get a GST certificate the person of business must be registered under GST tax law. The procedure for doing an online GST registration is as follows:</p><ol><li>Visit the official portal of the GST website. On opening the site a person will be greeted with GST images.</li><li>In the home page of the website look for the services tab. Click on it and then go to registration, here select new registration</li><li>Here GST form or GST application form will be displayed, fill the form with all required details and then click on proceed</li><li>Here you will be sent an OPT to the number filled in the form, enter that OPT and email id</li><li>After this step, a person registering must verify the application. On verification Part A of online GST registration is complete</li><li>On completing Part A registration a temporary GST number is issued. This number is required for completing the next part of the registration process.</li><li>For continuing with registration, again login to the website and look for a saved application form. Click on it and enter TRN number to continue.</li><li>After filling the details click proceed, verify the page and enter OTP for next step of registration</li><li>Now for the last part of the registration look for saved application tab and action column under it. Click on edit option for display for GST remaining tab.</li><li>These tabs so displayed are business, partner, account, and signature, good and service, and state-specific information. Fill all the details correctly.</li><li>On completing the registration and verification successful an acknowledgement is sent to the registered email id and phone number. In addition to the temporary number, an ARN receipt number will also be sent for future reference.</li></ol><h2><strong> What is GST certificate? And what are the contents of GST certificate?</strong></h2><p>After business or person as mentioned above register under GST, they are given a certificate. GST registering certificate is a document issued by the government of India for registered tax persons. Usually, it takes about 2 -3 working days to complete the registration process under GST.</p><h2><strong>Contents of GST certificate</strong></h2><p>GST registration certificate is the most important document for the business of people registering under it. The certificate is in the form of GST REG-06. The downloaded GST certificate is not a single document. It contains three pages.</p><p>Page 1 – the first page of the GST registration certificate download contains details as to the principal place of business.</p><ol><li>GSTIN or GST number of the registered business or person</li><li> The legal name of the registered party of business</li><li>Trade name of the business is also included if it contains</li><li>The next detail including is the constitution of the business</li><li>The full address of the principal place of the business is also included in the first page of the certificate.</li><li>Date of liability and the date of validity for the certificate.</li><li>Type of registration and particulars of issuing authority</li><li>And finally, the date of issuing the certificate.</li></ol><p>Page 2 – also called Annexure A</p><p>This page of the GST certificate download contains details on the additional place of business.</p><ol><li>GSTIN of the individual or business entity</li><li>Legal name and trade name</li><li> A total number of additional places of business in the state with full details.</li></ol><p>Page 3 – also called as Annexure B</p><p>This page of the certificate contains details about the person or persons responsible for carrying out the business. This person can be sole proprietor, Partner, Karta, Managing director, the board of trustees, members of the managing committee of associations of persons.</p><p>The details of these persons included in the page are as follows:</p><ol><li>GSTIN of the person or business entity</li><li>Name</li></ol><p>Designation or status A resident of the state</p><p>Photo</p><p>GST number format is the common feature of all pages of the certificate. This number is very important for all tax purposes.</p><h2><strong>List the documents required for doing GST registration</strong></h2><p>The important documents required for GST certification requirement are as follows:</p><ol><li>PAN card of the applicant</li><li>Aadhaar card</li><li>Address proof of the place of business</li><li>Bank account details of the business or cancelled cheque</li><li>Proof supporting the business registration or incorporation</li><li>Digital signature</li><li>Identity and address of the promoters of business</li><li>Or identity and address of the directors with a photograph</li><li>And finally letter of authorization or board resolution for authorized signatory.</li></ol><h2><strong> What is the fee structure for GST registration?</strong></h2><p>As per the general rules of the government, GST registration fee is zero. The government of India doesn’t charge any fee from people for registering under GST. But in case any person or business takes the help of the professional for registration then they pay a fee. The fee so paid is to the professional who helped them register, not to the government. Also, the fee charged by the professionals vary, it depends on the market rates and needs of a person.</p><h2><strong>How to download GST certificate?</strong></h2><p>GST certificate is issued to a person or businesses that have successfully completed the registration process. After completing the process, verification is done and acknowledgement is issued. For, how to download GST certificate follow the below-mentioned simple steps.</p><h2><strong>The steps for downloading GST certificate are as follows</strong></h2><ol><li>Visit the official online portal for GST. Use the same one as used for the registration process.</li><li>In the home page of the website for GST look for an option with the title service menu</li><li>Under the service, menu select an option called user services</li><li>In the user services, there are different options. You need to find for an option called a view or download GST certificate<strong>. </strong>Any taxpayer can only download GST certificate online.</li><li>Click on this option and wait</li><li>After a minute or two, a GST certificate with all added details will appear. GST certificate will be downloaded into your system.</li></ol><p>GST registration certificate download PDF format is the most popular of all. Tax payers are also get GST certificate download by GST number</p><h2><strong>What is GST invoice format?</strong></h2><p>On registering to GST the business and person must issue an invoice for their services and goods in GST format/ GST invoice format is the sample in which a GST billing should be issued. It must contain specific details like date, number, name of the customer and billing address.</p><p>For reference on GST invoice format, one can find plenty online. A person can also download GST bill format in excel or GST invoice format in word. Only a few reputed online platforms allow for this type of downloads. But in case you would like to create a invoice then GST invoice format in excel is the best.</p><h2><strong>What is the penalty for failing to register under GST?</strong></h2><p>The penalty is enforced by the tax authorities for failing to register and also for late GST registration. As per section 122 of CGST Act, any taxable person failing to register must pay a penalty.</p><p>He or she is legally bound under the law to pay 10,000 rupees or amount of tax evaded whichever is higher. The penalty is also imposed by the tax authorities for late registration. The penalty under this category is similar to the offence committed under failing to register.</p><p><strong>Bottom Line:</strong></p><p>The article on GST registration and downloading of GST certificate is concluded here. GST is an indirect tax introduced by the government for the benefit of business and people. The GST is not for all business, a specified person and business must register under GST.</p><p>On registration, the government issues a certificate. The certificate must be downloaded online by logging into the official portal. GST certificate is a mandatory document for people registering under it. It must also be displayed in the place of business.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/how-to-download-gst-certificate-online-complete-guide/">How to Download GST Certificate Online – Complete Guide</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/how-to-download-gst-certificate-online-complete-guide/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>What Is A Salary Slip Or Pay Slip? Difference Between Salary Slip And Salary Certificate</title> <link>https://www.thefinfact.com/what-is-a-salary-slip-or-pay-slip-difference-between-salary-slip-and-salary-certificate/</link> <comments>https://www.thefinfact.com/what-is-a-salary-slip-or-pay-slip-difference-between-salary-slip-and-salary-certificate/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Mon, 12 Oct 2020 09:37:28 +0000</pubDate> <category><![CDATA[Personal Finance]]></category> <category><![CDATA[Pay Slip]]></category> <category><![CDATA[Salary Slip]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=822</guid> <description><![CDATA[<p>What is a Salary Slip? A salary slip is a crucial document that contains the necessary details of your salary components along with employment details.… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/what-is-a-salary-slip-or-pay-slip-difference-between-salary-slip-and-salary-certificate/">What Is A Salary Slip Or Pay Slip? Difference Between Salary Slip And Salary Certificate</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<h2><strong>What is a Salary Slip?</strong></h2><p>A salary slip is a crucial document that contains the necessary details of your salary components along with employment details. Every month, an employer issues the salary slip to an employee. The salary slip or pay slip either is in the form of soft copy or printed hard copy. A salary slip contains some crucial details such as the company’s name, logo, and address.</p><h2><strong>Who gets a Salary Slip?</strong></h2><p>Working employees in a company get this monthly salary slip. It is the sole responsibility of an employer to issue a copy of salary pay slip to employees. Some small companies or start-up companies may not provide these employee pay details. In such a situation, you can ask an employer for a salary certificate. Most employers may provide electronic pay slips, and while some may issue hard copies.</p><h2><strong>Format of Salary Slip</strong></h2><p>Different companies follow different standard formats for pay slips. Here the list of details that the pay slips may contain the following details. The salary slip format includes the following details.</p><ul><li>Name of the company, logo, and address</li><li>Date, month, and year of the Salary Slip</li><li>Employee details like name, designation, code, and department</li><li>Employee bank account number, PAN or Aadhar card number</li><li>EPF Account Number</li><li>UAN (Universal Account Number)</li><li>Total number of working days, Number of leaves</li><li>Earnings and deductions list</li><li>Gross Pay and Net Pay</li></ul><p>One can get the salary slip format word document or salary slip format in excel pdf, as per the company rules.</p><h2><strong>What are the Components of a Salary Slip?</strong></h2><p>An employee pay slip involves two major parts such as incomes and deductions.</p><h3><strong>Incomes</strong></h3><ol><li><strong>Basic Salary</strong></li></ol><p>The basic salary is a crucial part of the monthly pay slip, as it contains your 35% to 50% oat the total salary amount. The calculation of other salary components depends on the percentage of the basic pay. Thus, most companies try to give your lower amount of basic pay to avoid paying higher allowances. In general, basic pay is more for junior-level employees and less for senior-level employees.</p><p><strong>Features of Basic Pay</strong></p><ul><li>Basic pay amount applies to taxes, as a whole</li><li>The Basic Pay is a part that you get as an in-hand salary</li><li>Based on your Basic Pay, you will get other allowances such as DA, HRA, and EPF</li></ul><ol start="2"><li><strong>Dearness Allowance (DA)</strong></li></ol><p>DA depends on your basic pay, but this allowance helps to handle the impact like inflation. This allowance relates to your living cost which differs based on the locality of employees.</p><p><strong>Features of DA</strong></p><ul><li>DA amount applies to taxes</li><li>It is a part of the amount that you get in-hand</li></ul><ol start="3"><li><strong>House Rent Allowance (HRA)</strong></li></ol><p>This allowance helps the employee to pay his monthly rent amount if he/she stays in a rented house. This HRA is equal to 50% of Basic Pay in metro cities whereas, it is 40% in small towns.</p><p><strong>Features of HRA</strong></p><ul><li>It is a part of the amount that you get in-hand</li><li>HRA is 50% of Basic Pay for employees living in cities like Mumbai, Bangalore, Delhi, Kolkata, etc. HRA is 40% of Basic Pay for employees living in small cities like Nagpur, Mysore, etc</li></ul><ol start="4"><li><strong> </strong><strong>Conveyance Allowance</strong></li></ol><p>This allowance is especially for employees to travel from home to office and office to home.</p><p><strong>Features of Conveyance Allowance</strong></p><ul><li>It is a part of the amount that you get in-hand</li><li>This allowance affects the in-hand salary for junior-level employees</li></ul><ol start="5"><li><strong> </strong><strong>Leave Travel Allowance (LTA)</strong></li></ol><p>This LTA helps to cover your travel expenses for the employee when he/she leaves for a trip with family members. To claim LTA, one has to submit the travel proof tickets and other things. This LTA covers only travel expenses but not other expenses on a trip of an employee.</p><p><strong>Features of LTA</strong></p><ul><li>It is not a part of the amount that you get in-hand</li><li>When you travel for twice in four years, the LTA is free from taxes</li></ul><ol start="6"><li><strong>Other Allowances</strong></li></ol><p>These other allowances cover additional allowances such as medical allowance, performance allowance, meals allowance, city compensatory allowance, etc. Some companies may provide these allowances while others may not.</p><h3><strong>Salary Slip Deductions</strong></h3><ol><li><strong>Employees Provident Fund (EPF)</strong></li></ol><p>One of the components of your pay slip that is deducted from the employee’s salary amount is the Employees Provident Fund. This deduction is usually 12% of your basic pay amount. This fund you will get after your retirement period. This EPF amount is free from tax under Section 80C of the income tax act.</p><ol start="2"><li><strong>Professional Tax</strong></li></ol><p>This deduction is applicable for all categories of employment such as professionals, salaried persons, and other traders getting an income. This tax depends on the individual’s tax slab and only some states in India use this deduction for employees.</p><ol start="3"><li><strong>Tax Deductible at Source (TDS)</strong></li></ol><p>An employer may deduct a certain percentage of your income and pay it to the income tax department on behalf of an employee. One can reduce the TDS amount through investment in tax-saving schemes.</p><h2><strong>Impact of Standard Deduction on Salary Slip</strong></h2><p>Reintroduction of standard deduction happens in the Union Budget 2018-2019 by FM Arun Jaitley. This increases the standard deduction amount of Rs. 40,000 to Rs. 50,000 for salaried employees. As a result, the tax outgo decreases for pensioners. Finally, this deduction replaced the various components such as transport allowance and medical reimbursement, etc. in the employee salary slip.</p><h2><strong>Why is Salary Slip important?</strong></h2><h3><strong>Helps to manage income tax payments</strong></h3><p>A salary slip pdf document may help you to calculate income tax. This salary slip helps the employees to prepare for income tax returns. Thus, an employee can determine how much tax amount he/she has to pay or how much refund amount he/she has to get for every financial year.</p><h3><strong>Proof of employment</strong></h3><p>A salary slip format in excel is the best proof for your employment. To travel abroad for employment reasons, you need to submit copies of your salary slip for getting your visa.</p><h3><strong>Apply for loans or credit card</strong></h3><p>Since your salary slip format in excel, pdf formats contain the details of your monthly income, you can use it as proof to apply for loans or credit cards. To make borrowings, a salary slip is essential.</p><h3><strong>Helps to get new jobs</strong></h3><p>If you want to move to another job, you need to provide copies of salary slip to your new company for making salary negotiations. Check for your salary slip format in excel, download it in any format to apply for new jobs.</p><h3><strong>Access to Government facilities</strong></h3><p>A salary slip in excel format allows availing the various subsidized facilities of the Indian Government like food grains, health care, etc at some subsidized rates.</p><h2><strong>How does Salary Slip help to Save Income Tax?</strong></h2><p>In a salary slip, there are several components such as House Rent Allowance (HRA), Medical Allowance, Dearness Allowance (DA), etc. present in it to save the income tax that you pay for every financial year. Tax authorities enable companies to design employees’ salaries in such a way that it will help them to save tax using these allowances in income.</p><h2><strong>Benefits of a Salary Slip</strong></h2><ul><li>Salary slip helps to decide the employees about the income that they will get in their hands. They will decide this income when seeing the clarification about how much to pay for income tax every financial year.</li><li>A salary slip decides the employee’s loan repaying capacity and thus, based on your salary, you will get the loan amount.</li><li>Through a salary slip, an employee can find out how much he/she saves towards employee provident fund.</li></ul><h2><strong>How knowledge of salary slip increases your take-home salary?</strong></h2><p>To increase your take-home salary, you can follow the below tips.</p><ul><li>To increase your take-home salary, the best way is to reduce the basic salary and adjust the same with long-term benefits. If the basic pay is more, you need to contribute to HRA, DA, and EPF more. But reducing your EPF may affect your settlement amount after retirement.</li><li>Avoid allowances that apply to taxes as a whole. You can do these using tax-free benefits.</li><li>You can get huge benefits from medical and travel allowances.</li><li>Your variable pay applies to taxes, so reduce the amount to a minimum.</li></ul><h2><strong>Differences between Cost to Company (CTC) and in-hand salary:</strong></h2><table width="638"><tbody><tr><td width="319"><strong> C</strong><strong>ost to Company (CTC)</strong></td><td width="319"><strong> </strong><strong>In-Hand Salary</strong></td></tr><tr><td width="319">This is the total amount that the company spends for its employee during a financial year.</td><td width="319">This refers to the amount that an employee gets in-hand as a monthly salary</td></tr><tr><td width="319">CTC includes basic pay, allowances, pension, and PF.</td><td width="319">In-Hand Salary doesn’t include allowances, pension, income tax, professional tax, and PF.</td></tr></tbody></table><h2><strong>Taxable/partially taxable & non-taxable components of salary slip</strong></h2><table width="638"><tbody><tr><td width="319"><strong> </strong><strong>Components</strong></p><p><strong> </strong></td><td width="319"><strong> </strong><strong>Fully-Taxable or Partially taxable or Non-taxable</strong></td></tr><tr><td width="319">Dearness Allowance (DA)</td><td width="319">Fully-taxable</td></tr><tr><td width="319">House Rent Allowance (HRA)</td><td width="319">Partially Taxable</td></tr><tr><td width="319">Medical Allowance</td><td width="319">Partially Taxable</td></tr><tr><td width="319">Conveyance Allowance</td><td width="319">Partially Taxable</td></tr><tr><td width="319">Basic Pay</td><td width="319">Fully-taxable</td></tr><tr><td width="319">City Compensatory Allowance (CCA)</td><td width="319">Fully-taxable</td></tr><tr><td width="319">Leave Travel Allowance</td><td width="319">Partially Taxable</td></tr><tr><td width="319">Performance/Special Allowance</td><td width="319">Fully-taxable</td></tr><tr><td width="319">Tiffin/Meals Allowance</td><td width="319">Fully-taxable</td></tr><tr><td width="319">Other Allowances</td><td width="319">Fully-taxable</td></tr><tr><td width="319">Allowances paid to Supreme and High Court’s judges</td><td width="319">Non-taxable</td></tr><tr><td width="319">Allowances paid by the government to its employees living abroad</td><td width="319">Non-taxable</td></tr><tr><td width="319">Allowances paid to employees by UNO</td><td width="319">Non-taxable</td></tr><tr><td width="319">Allowances to the UPSC members</td><td width="319">Non-taxable</td></tr></tbody></table><h2><strong>Legal Validity of Manual, Digital Pay Slips</strong></h2><p>Salary slips available in either manual or online salary slip digital format. But when you do any sort of unofficial attacks with a monthly payment slip, it is a big criminal offense. So, never try to alter your pay slip unofficially. This can lead to solving the problem officially in the labor court to resolve your salary slip dispute. But now, due to computerization and bank transfer of payments, criminal offense is getting rare. One can apply for salary pay slip online to get easily.</p><h2><strong>How to Create Salary Slip Online in Easy Way?</strong></h2><p>Sometimes, employees get additional payment for their work over an extended shift hour, which will also appear in your pay slip. Now, you understand the importance of pay slip, so let us see pay slip download procedure in steps.</p><ol><li>You can either download a pay slip in word or PDF or excel format. It is better to go for a salary slip format in excel download</li><li>After the above step, you can select the period mentioning the year and month.</li><li>Fill the company details, company name, employee name, ID, designation, phone number, company address, etc.</li><li>Enter the salary components of your employment.</li><li>Enter your PAN card number.</li><li>Now, you can save the file and take the printout of the same.</li><li>The final step is to verify your salary slip by your HR head. Get the company’s stamp and signature.</li></ol><h2><strong>What is meant by Salary Certificate?</strong></h2><p>A Salary certificate is like a verification letter that the company issues to the employees that declares the various stuff such as salary, duties, designation, and employment period. You will get a salary certificate for a few reasons such as personal purpose or friend’s reasons. When your management permits you to get a salary certificate, you will get a simple salary certificate format with a subject line mentioning Salary Certificate. One can use to apply for loans at financial institutions based on its interest and validity. Usually, the validity is for less than or equal to one year.</p><h2><strong>Salary Certificate Format</strong></h2><p>Salary Certificate format should be in a simple format to understand it easily. Check for salary certificate samples available online. The general format of salary certificate includes details such as employee’s name, address, contact details, designation in the company, etc. In a salary certificate model, you can also see details of basic pay, allowances, and deductions.</p><h2><strong>Salary Certificate Sample</strong></h2><p>Let us consider the salary certificate sample:</p><table width="659"><tbody><tr><td width="659"><strong> </strong><strong>SALARY CERTIFICATE</strong></p><p> </p><p>This is to certify that Mr. is working in our ABC Private Limited as</p><p>. This is salary drawn for the financial year 2019-20 is as follows.</p><p><strong> </strong></p><p><strong> </strong><strong> </strong><strong> Particulars Amount</strong></p><p> </p><p>Income-</p><p> </p><p>Gross Salary-</p><p> </p><p>Bonus-</p><p> </p><p>Total Gross Amount-</p><p> </p><p>Deductions-</p><p> </p><p>Professional Tax-</p><p> </p><p>EPF-</p><p> </p><p>ESIC-</p><p> </p><p>Net Salary Amount Paid-</p><p> </p><p> </p><p> </p><p> </p><p>The company issues this salary certificate to the employee on behalf of his/her particular request.</p><p> </p><p>Authorized Signatory</td></tr></tbody></table><p> </p><p>The above is the salary certificate format in word document, which is simple to understand. Get a simple salary certificate pdf format, which is easy to follow for you.</p><p>To understand the difference between the salary certificate and a simple salary slip format in excel, consider the salary slip format.</p><p> </p><table width="638"><tbody><tr><td colspan="4" width="638"> </p><p><strong>ABC Company</strong></p><p><strong> </strong></td></tr><tr><td colspan="4" width="638"><strong> </strong></p><p><strong>Salary Slip</strong></p><p><strong> </strong></td></tr><tr><td width="160"> </p><p>Personnel No.</td><td width="160"></td><td width="160"> </p><p>Name of the employee</p><p> </td><td width="160"></td></tr><tr><td width="160"> </p><p>Bank</td><td width="160"></td><td width="160"> </p><p>Bank Account Number</p><p> </td><td width="160"></td></tr><tr><td width="160"> </p><p>DOJ</td><td width="160"></td><td width="160"> </p><p>LOP Days</td><td width="160"></td></tr><tr><td width="160"> </p><p>EPF Number</td><td width="160"></td><td width="160"> </p><p>STD Days</td><td width="160"></td></tr><tr><td width="160"> </p><p>Location</td><td width="160"></td><td width="160"> </p><p>Number of Worked Days</p><p> </td><td width="160"></td></tr><tr><td width="160"> </p><p>Department</td><td width="160"></td><td width="160"> </p><p>Designation</td><td width="160"></td></tr></tbody></table><p> </p><table width="638"><tbody><tr><td width="181"><strong>Earnings</strong></td><td width="138"><strong>Amount in Rupees</strong></td><td width="160"><strong>Deductions</strong></td><td width="160"><strong>Amount in Rupees</strong></td></tr><tr><td colspan="2" width="319"> </p><p>Basic Pay</p><p>House Rent Allowance</p><p>Special Allowance</p><p>Conveyance</p><p>Additional Allowance</p><p>Shift Allowance</p><p>Bonus</td><td colspan="2" width="319"> </p><p>EPF</p><p>Professional Tax</p><p>Income Tax</td></tr><tr><td width="181">Gross Amount</td><td width="138"></td><td width="160">Gross Deductions</td><td width="160"></td></tr><tr><td colspan="2" width="319"> NET PAY</td><td colspan="2" width="319"></td></tr></tbody></table><p> </p><h2><strong>Difference Between Salary Slip and Salary Certificate:</strong></h2><table width="638"><tbody><tr><td width="319"><strong> </strong><strong>Salary Slip</strong></td><td width="319"><strong>Salary Certificate</strong></td></tr><tr><td width="319">A Salary slip is a document that gives detailed information about the salary of an employee.</p><p> </p><p> </p><p>Here you will get a detailed note of the monthly salary amount.</p><p> </p><p>A salary slip indicates the financial status to get loans or other facilities</p><p> </p><p>A salary slip is proof of employment in addition to providing monthly payment details</td><td width="319">A Salary certificate is a document that the organization’s head issues to an employee for proving the employment status in its company.</p><p> </p><p>Here you will not get a detailed note of the monthly salary amount of an employee.</p><p> </p><p>This salary certificate doesn’t show any financial status.</p><p> </p><p>A salary certificate docx is just proof of employment only.</td></tr></tbody></table><h2><strong>The Bottom Line</strong></h2><p>Thus, salary slips are much important for an employee to access loans or long-term benefits. On the other hand, a salary certificate is also crucial for an employee to manage his/her reasons. This salary certificate also helps to declare the employment status of an employee.</p><h3>Our Partners:</h3><ul><li><a href="https://www.traveltactical.com/traveltactical/">Travel Tactical</a></li><li><a href="https://www.traveltactical.com/wepromote247/">WePromote247</a></li><li><a href="https://www.traveltactical.com/thefinfact/">TheFinFact</a></li><li><a href="https://www.traveltactical.com/thehostmate/">TheHostMate</a></li><li><a href="https://www.traveltactical.com/getifsc/">Get IFSC</a></li><li><a href="https://www.traveltactical.com/hostinglive247/">HostingLive247</a></li><li><a href="https://www.traveltactical.com/millionreads/">Million Reads</a></li><li><a href="https://www.traveltactical.com/newscoverstory/">News Cover Story</a></li><li><a href="https://www.traveltactical.com/rtoindia/">RTO India</a></li><li><a href="https://www.traveltactical.com/theautomanual/">The Auto Manual</a></li></ul><p>The post <a rel="nofollow" href="https://www.thefinfact.com/what-is-a-salary-slip-or-pay-slip-difference-between-salary-slip-and-salary-certificate/">What Is A Salary Slip Or Pay Slip? Difference Between Salary Slip And Salary Certificate</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/what-is-a-salary-slip-or-pay-slip-difference-between-salary-slip-and-salary-certificate/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>TDS – What is Tax Deducted at Source, Deduction Rules & Payment Methods?</title> <link>https://www.thefinfact.com/tds-what-is-tax-deducted-at-source-deduction-rules-payment-methods/</link> <comments>https://www.thefinfact.com/tds-what-is-tax-deducted-at-source-deduction-rules-payment-methods/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Mon, 12 Oct 2020 08:53:47 +0000</pubDate> <category><![CDATA[Tax Planning]]></category> <category><![CDATA[Tax Deducted at Source]]></category> <category><![CDATA[TDS]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=817</guid> <description><![CDATA[<p> What is TDS? TDS full form is Tax Deducted at Source. TDS is the tax amount that an employer or deductor deducts at a deductee… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/tds-what-is-tax-deducted-at-source-deduction-rules-payment-methods/">TDS – What is Tax Deducted at Source, Deduction Rules & Payment Methods?</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<h2><strong> </strong><strong>What is TDS?</strong></h2><p>TDS full form is Tax Deducted at Source. TDS is the tax amount that an employer or deductor deducts at a deductee and pays the amount to the Income Tax Department. A person who has the right to deduct the tax amount is deductor. A person from whose account gets tax deduction is called deductee. So, the TDS meaning is collecting taxes from the payee’s account before the payer pays to a payee.</p><h2><strong>Who can deduct TDS?</strong></h2><p>Usually, the deductor deducts the tax amount from the deductee’s salary at the time of paying salary, and forwards the same tax amount to the Income Tax Department directly. The deductor does this act on behalf of the employee or deductee. Also, the deductor has to pay this TDS amount to the government within a certain time limit. Here the deductor can make tds payment online for an easy process. If it exceeds the time limit, he has to pay a penalty for it. So, what is TDS is clear from this definition.</p><p><strong>Example</strong></p><p>For instance, consider a start-up company has to pay Rs. 90,000 as rent to the owner of the property. Here the TDS is 10% of the amount, which is Rs. 9,000. So, the company cuts Rs. 9,000 and pays the remaining amount Rs. 81,000 as rent to the property owner. Now, the company pays Rs. 9,000 to Income tax on behalf of the property owner. This explains the concept of the tds on property. Use the tds calculator to calculate the exact TDS rate.</p><h2><strong>Types of TDS</strong></h2><p>Here we will see some of the income sources that are applicable for TDS.</p><ul><li>Amount under LIC</li><li>Salary payment</li><li>Bank interest amount or tds on interest</li><li>Commission payouts</li><li>Brokerage</li><li>Insurance commission</li><li>Compensation on obtaining immovable property</li><li>Rent payment or tds on rent</li><li>Deemed Dividend</li><li>TDS on sale of property</li><li>Interest on securities</li><li>Interest amount remaining from interest on securities</li><li>Payments to contractor</li><li>TDS on advertisement</li><li>Transfer of immovable property</li><li>Winning amount from playing games like lottery, card, etc</li><li>Remuneration paid to the director of the company</li><li>TDS on professional fees</li></ul><h2><strong>Points to Remember Before Deducting TDS</strong></h2><ul><li>When an individual’s income doesn’t come under the income tax slab, then he/she has to provide Form 15G or Form 15H to the deductor. This Form submission will inform the deductor not to deduct any TDS on your income.</li><li>One can refer the Section 192 to 194L of Income Tax Act to understand the income sources coming under TDS.</li><li>For senior citizens, Form 15H is helpful to refer for TDS</li><li>Other individuals can refer to Form 15G.</li><li>For salaried individuals, TDS depends on the income tax slab rate.</li><li>When an individual’s income reaches a limit, then the TDS is applicable.</li><li>Deductor deducts a certain percentage of TDS based on the income amount for deductees.</li></ul><h2><strong>TDS Rates for FY 2020-21</strong></h2><p>Here the TDS rate chart for a clear understanding of the deductee:</p><table width="638"><tbody><tr><td width="103"><strong> </strong><strong>Section</strong></p><p><strong> </strong></td><td width="216"><strong>Income Source or Expenses</strong></td><td width="160"><strong> T</strong><strong>hreshold limit</strong></td><td width="160"><strong>TDS Rate</strong></td></tr><tr><td width="103">192</p><p> </td><td width="216">Salary payment</td><td width="160">Depends on the Income Tax Slab</td><td width="160">Based on slab rate</td></tr><tr><td width="103">192A</p><p> </td><td width="216">Premature withdrawal of PF amount</td><td width="160">Rs. 50,000</td><td width="160">10% TDS</p><p>20% TDS if no PAN card</td></tr><tr><td width="103">193</td><td width="216">Interest on Securities</td><td width="160">Rs. 10,000</td><td width="160">10% TDS</td></tr><tr><td width="103">193</td><td width="216">Interest on Debt</td><td width="160">Rs. 5,000</td><td width="160">10% TDS</td></tr><tr><td width="103">194</td><td width="216">Deemed Dividend Income</td><td width="160">Not applicable</td><td width="160">10% TDS</td></tr><tr><td width="103">194A</td><td width="216">Other interest than ‘interest on securities’</td><td width="160">Rs. 10,000 – TDS payer is a bank or post office</p><p>Rs. 5,000 – for other cases</td><td width="160">10% TDS</p><p> </td></tr><tr><td width="103">194B</td><td width="216">Winning amount from playing games like lottery, puzzle, etc</td><td width="160">Rs. 10,000</td><td width="160">30% TDS</td></tr><tr><td width="103">194BB</td><td width="216">Winning amount from playing games like jackpot, horse racing, etc</td><td width="160">Rs. 10,000</td><td width="160">30% TDS</td></tr><tr><td width="103">194C</td><td width="216">Contractors and Sub-contractors payment or TDS on contractor</td><td width="160">Rs. 30,000 – Single payment</p><p>Rs. 1,00,000 – Annual payment</td><td width="160">1% TDS</td></tr><tr><td width="103">194D</p><p> </td><td width="216">Insurance commission to agents or TDS on commission</td><td width="160">Rs. 15,000</td><td width="160">5% TDS</td></tr><tr><td width="103">194DA</td><td width="216">Maturity of LIC policy</td><td width="160">Rs. 1,00,000</td><td width="160">5% TDS</td></tr><tr><td width="103">194EE</td><td width="216">National savings scheme payment</td><td width="160">Rs. 2,500</td><td width="160">10% TDS</td></tr><tr><td width="103">194F</td><td width="216">Repurchasing from mutual funds</td><td width="160">Not applicable</td><td width="160">20% TDS</td></tr><tr><td width="103">194G</td><td width="216">Lottery tickets sale commission</td><td width="160">Rs. 15,000</td><td width="160">5% TDS</td></tr><tr><td width="103">194H</td><td width="216">TDS on brokerage</td><td width="160">Rs. 15,000</td><td width="160">5% TDS</td></tr><tr><td width="103">194I</td><td width="216">Land or building rent</td><td width="160">Rs. 2,40,000</td><td width="160">10% TDS</td></tr><tr><td width="103">194 IA</td><td width="216">Other than agricultural land, the immovable properties sale</td><td width="160">Rs. 50,00,000</td><td width="160">1% TDS</td></tr><tr><td width="103">194J</td><td width="216">TDS on professional services</td><td width="160">Rs. 30,000</td><td width="160">10% TDS</p><p> </td></tr><tr><td width="103">194K</p><p> </td><td width="216">Dividend payout from mutual funds</td><td width="160">Rs. 5,000</td><td width="160">10% TDS</p><p> </td></tr><tr><td width="103">194LA</p><p> </td><td width="216">Compensation for immovable property</td><td width="160">Rs. 2,50,000</td><td width="160">10% TDS</p><p> </td></tr><tr><td width="103">194LB</td><td width="216">Debt fund interest</td><td width="160">Not applicable</td><td width="160">5% TDS</td></tr><tr><td width="103">194N</p><p> </td><td width="216">Annual cash withdrawal from more accounts</td><td width="160">Rs. 1 crore</td><td width="160">2% TDS</td></tr><tr><td width="103">194O</p><p> </td><td width="216">e-commerce operator payments to a seller</td><td width="160">Rs. 5 lakhs</td><td width="160">1% TDS</td></tr></tbody></table><h2><strong> </strong><strong>How to file TDS Returns?</strong></h2><p>Here we will see how to file tds return in detail.</p><ul><li>One should have a valid TAN which is Tax Deduction and Collection Account Number. Ensure that you register it for e-filing</li><li>Use Return Preparation Utility to prepare the TDS statements before checking the same documents using File Validation Utility</li><li>To upload the returns using DSC (Digital Signature Certificate), you should have a valid DSC. You need to register DSC for e-filing</li><li>To upload the returns using an electronic verification code, you should provide the bank account details of your principal contact. Check the contact’s PAN card is in link with Aadhar card.</li></ul><h2><strong>Step-by-Step Procedure to Upload TDS statements</strong></h2><p>The simple procedure to upload your TDS statements is as follows:</p><ol><li>Visit the website <a href="https://www.incometaxindiaefiling.gov.in/home">https://www.incometaxindiaefiling.gov.in/home</a>. It will take you to a page where you will find two options such as ‘Registered User?’ And ‘Login Here’ options.</li><li>Click on the option to fill your details and then, log on to the page. For user ID, you need to enter the TAN.</li><li>After logging on to the page, click on the TDS drop-down menu. Here you will find an option ‘Upload TDS’, and click on it.</li><li>Now, you will get a form, where you need to choose the right details. Then click on Validate after selecting the right details.</li><li>Then, use either EVC or DSC, to validate your returns.</li></ol><h2><strong>Advantages of Tax Deducted at Source (TDS)</strong></h2><ul><li>TDS deduction happens all over the financial year hence, it helps the government to see a good revenue inflow.</li><li>Tax evasion is not a problem</li><li>TDS is the best way to create responsibility for the deductor to collect taxes and pay it to the government.</li><li>TDS helps to widen the tax base collected from deductees.</li></ul><h2><strong>Challan for TDS Payment</strong></h2><p>To make online payment of TDS and TCS, one can make use of Challan ITNS 281. This Challan form is valid for both paying TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). This TDS exception helps the Indian Government to get revenue flow continuously. Once you deposit the Challan in the bank for TDS payment, you can track the tds Challan Status online.</p><h2><strong>TDS Certificates</strong></h2><p>TDS certificates are of two categories: Form 16 and Form 16A. An Income Tax Act, 1961, under Section 203, the deductor must provide a TDS certificate to the deductee. This certificate shows the proof that the amount deducted as tax from salary. The deductor is responsible to provide this certificate to the deductee.</p><h3><strong>For Salaried Class</strong></h3><p>For salaried employees, the employers have to provide Form 16 to show the amount deducted as TDS from the salary of employees. Form 16 contains crucial details about the calculated TDS such as tax computation, tax deduction, and the TDS payment. Deductor has to provide this form to deductee before May 31 of the year.</p><h3><strong>For Non-Salaried Class</strong></h3><p>For non-salaried employees, the employer has to provide the Form 16A to the deductee. It contains all essential details of the TDS such as tax computation, tax deduction, and the TDS payments. The deductor has to issue the form within 15 days of the tds return due date.<strong> </strong></p><h2><strong>TDS Payment Due Dates</strong></h2><p>The monthly due date for making TDS payments is as follows:</p><table width="489"><tbody><tr><td width="169"><strong> </strong><strong>Month</strong></td><td width="320"><strong> </strong><strong>Due Date for making TDS payment</strong></td></tr><tr><td width="169">January</td><td width="320">On or before of 7<sup>th</sup> February</td></tr><tr><td width="169">February</td><td width="320">On or before of 7<sup>th</sup> March</td></tr><tr><td width="169">March</p><p> </td><td width="320">For Government deductors – On or before of 7<sup>th</sup> April</p><p>For non-government deductors – On or before of 30<sup>th</sup> April</td></tr><tr><td width="169">April</td><td width="320">On or before of 7<sup>th</sup> May</td></tr><tr><td width="169">May</td><td width="320">On or before of 7<sup>th</sup> June</td></tr><tr><td width="169">June</td><td width="320">On or before of 7<sup>th</sup> July</td></tr><tr><td width="169">July</td><td width="320">On or before of 7<sup>th</sup> August</td></tr><tr><td width="169">August</td><td width="320">On or before of 7<sup>th</sup> September</td></tr><tr><td width="169">September</td><td width="320">On or before of 7<sup>th</sup> October</td></tr><tr><td width="169">October</td><td width="320">On or before of 7<sup>th</sup> November</td></tr><tr><td width="169">November</td><td width="320">On or before of 7<sup>th</sup> December</td></tr><tr><td width="169">December</td><td width="320">On or before of 7<sup>th</sup> January</td></tr></tbody></table><h2><strong>TDS Return Filing Due Dates for FY 2020-21</strong></h2><p>Let us discuss the due dates for filing TDS payments.</p><table width="638"><tbody><tr><td width="139"><strong>Quarter</strong></td><td width="286"><strong>Time</strong></td><td width="213"><strong>Due Date for filing TDS payments</strong></td></tr><tr><td width="139">Quarter 1</td><td width="286">April to 30 June (2020)</td><td width="213">31<sup>st</sup> July</td></tr><tr><td width="139">Quarter 2</td><td width="286">July to September (2020)</td><td width="213">31<sup>st</sup> October</td></tr><tr><td width="139">Quarter 3</td><td width="286">October to December (2020)</td><td width="213">31<sup>st</sup> January</td></tr><tr><td width="139">Quarter 4</td><td width="286">January to March (2020)</td><td width="213">31<sup>st</sup> May</td></tr></tbody></table><h2><strong>Penalty for Late Filing TDS Return</strong></h2><p>The deductor has to pay penalty when he/she breached the TDS deadlines.</p><h3><strong>Failure to submit your returns</strong></h3><p>According to Section 272A(2) of the Income Tax Act of India, if one fails to submit the returns, then they have to pay a penalty of Rs. 100 for each day of delay after the due date. This will lead to a maximum TDS amount.</p><h3><strong>Failure to submit your returns on time</strong></h3><p>According to Section 234E of the Income Tax Act of India, if one fails to file the returns on time, then they have to pay a penalty of Rs. 200 for each day, resulting in a maximum TDS amount.</p><h3><strong>For defaults in the filing of TDS statement</strong></h3><p>According to Section 271H of the Income Tax Act of India, a deductor has to pay a penalty of Rs. 10,000 to Rs. 1 Lakh, in the event of failing to pay the TDS returns at the time of filing TDS returns.</p><h3><strong>For incorrect details</strong></h3><p>According to Section 271H of the Income Tax Act of India, a deductor has to pay a penalty of Rs. 10,000 to Rs. 1 Lakh, in the event of wrong details to the government such as PAN card, TDS amount, Challan details, etc.</p><h3><strong>For non-payment of TDS</strong></h3><p>According to the Section 201A of the Income Tax Act of India, if you didn’t make TDS payment within the due date, the interest will charge with the penalty amount. If the part of the tax amount or whole part is not deducted at source, then the interest will be charged at 1.5%. This deduction of interest is for every month from the date on which TDS is deducted. One can calculate the interest rate using the tds interest calculator online.</p><h2><strong>When is TDS not applicable?</strong></h2><ul><li>If you are paying the amount to state or central financial corporations, then TDS will not be applicable</li><li>If you are paying the amount to the government or other government bodies like RBI, then TDS is not applicable.</li><li>Under Section 192 of the Income Tax Act, if deductee shows the no-deduction certificate to the deductor, then the tax will not be applicable.</li><li>In the event of paying an amount to mutual funds, you don’t have to pay TDS under Section 10(23D).</li><li>If you pay the interest to banks, LIC, National Savings Certificate, Banking co-operative society, Kisan Vikas Patra, etc. you don’t have to pay TDS.</li></ul><h2><strong>How to know the deducted TDS amount?</strong></h2><p>To understand how to check the deducted TDS amount from your account, you can follow the below steps.</p><p><strong>Step 1:</strong> Enter the official website of the income tax department of India in the web browser and register as a new user in it.</p><p><strong>Step 2:</strong> Provide your details like Permanent Account Number, etc. and create a password.</p><p><strong>Step 3:</strong> Once you log on to the page using a registered ID and password, you can click the option to see the tax credit statement. Or click the Form 26AS. This form carries detailed information about your tax credit statement.</p><p><strong>Step 4:</strong> Now the website will take you to the page where you will get various details such as tds online payment, advance tax paid, and other details.</p><h2><strong>Refund of TDS</strong></h2><p>Using the income tax website, one can claim the TDS refund. But one has to file Income Tax Returns to get your TDS refund. As soon as your file the ITR, the income tax department will process your TDS refund. You may get a refund credited within 6 months to your bank account. To check the tds refund status, you can log on to the e-filing website.</p><p>For instance, your invoice amount is Rs. 40,000 for which you receive an amount of Rs. 39,200 after the TDS cut of 2% (Rs. 800), you will get a refund of Rs. 400. According to Section 194C, your TDS is 1% so it is Rs. 400. Thus, you will get a balance of Rs. 400 as a refund, when you file an income tax return.</p><h2><strong>TDS rates on Salary</strong></h2><p>TDS on salary is equal to the tax slab rate that applies to any individual. If your age is less than 60, then you don’t have to pay TDS. This is applicable when your income is less than Rs. 2.5 lakhs. But if it falls between Rs. 2.5 lakhs to Rs. 5 lakhs, then you have to pay TDS of 5%. For income falling between Rs. 5 lakhs to Rs. 10 lakhs, your TDS liability is 20%. Finally, if the income crosses Rs. 10 lakhs, then your TDS rate is 30%.</p><h2><strong>FAQs on TDS</strong></h2><p><strong>Q1: Whether TDS on material and labor is applicable?</strong></p><p><strong>Ans:</strong> Here the TDS applies to the salary payment for labor only not material.</p><p><strong>Q2: Whether TDS on purchase of property is applicable?</strong></p><p><strong>Ans:</strong> If the property costs more than Rs. 50 lakhs, then 1% TDS is applicable under Section 1941A.</p><p><strong>Q3: Whether there is TDS against transportation and freight charges?</strong></p><p><strong>Ans:</strong> If the taxpayer owns more than 10 goods carries, then the TDS on transportation is applicable.</p><p><strong>Q4: What is TIN?</strong></p><p><strong>Ans:</strong> TIN stands for Tax Information Network. This is an advanced system for various tax-related issues such as tax collection, processing of tax, and monitoring of tax, etc using IT.</p><p><strong>The Bottom Line</strong></p><p>Thus, Tax Deducted at Source is an essential tax of India under the Income Tax Act, 1961. All the taxpayer should be aware of the TDS limit, forms, etc. Understanding the TDS details will help you to ask your deductor if more deductions are there in your salary amount. You can also submit for TDS returns after filing ITR to income tax.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/tds-what-is-tax-deducted-at-source-deduction-rules-payment-methods/">TDS – What is Tax Deducted at Source, Deduction Rules & Payment Methods?</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/tds-what-is-tax-deducted-at-source-deduction-rules-payment-methods/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>LIC New Endowment Plan (Table 814) – Features and Benefits</title> <link>https://www.thefinfact.com/lic-new-endowment-plan-table-814-features-and-benefits/</link> <comments>https://www.thefinfact.com/lic-new-endowment-plan-table-814-features-and-benefits/#respond</comments> <dc:creator><![CDATA[admin]]></dc:creator> <pubDate>Sun, 11 Oct 2020 09:43:18 +0000</pubDate> <category><![CDATA[Insurance]]></category> <category><![CDATA[LIC of India]]></category> <category><![CDATA[Life Insurance]]></category> <category><![CDATA[LIC New Endowment Plan]]></category> <category><![CDATA[LIC New Endowment Plan (Table 814)]]></category> <category><![CDATA[LIC Table 814]]></category> <guid isPermaLink="false">https://www.thefinfact.com/?p=847</guid> <description><![CDATA[<p>LIC New Endowment Plan Overview LIC New Endowment Plan 814 is one of the best policies of LIC India. LIC offers many policies to its… </p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/lic-new-endowment-plan-table-814-features-and-benefits/">LIC New Endowment Plan (Table 814) – Features and Benefits</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></description> <content:encoded><![CDATA[<h2><strong>LIC New Endowment Plan Overview</strong></h2><p>LIC New Endowment Plan 814 is one of the best policies of LIC India. LIC offers many policies to its customers to satisfy the different needs of people. Each policy provides different benefits to the policyholders. One such plan that provides guaranteed returns is LIC New Endowment Plan. The plan is a non-linked LIC policy that offers a great time in the policy term. The duration of the policy plan is from 12-35 years.</p><h2><strong> </strong><strong>Why should you buy LIC New Endowment Plan?</strong></h2><p>LIC new endowment plan is best for people because of the following reasons:</p><ul><li>This plan is a perfect combination of investment and life insurance</li><li>It provides a great bonus to its policyholders</li><li>One has to pay a low premium amount when compared to other plans</li><li>Rider gets double accidental benefits</li><li>The Policyholder is eligible to get a bonus and final addition bonus from LIC</li><li>The maturity amount is tax-free</li><li>One can save the tax amount on premium payment under section 80C</li><li>It serves as one of the secure investment options for getting monetary gains</li></ul><h2><strong>LIC New Endowment Plan – Key Features</strong></h2><p>The key features of the LIC endowment plan are as follows:</p><ol><li>The LIC plan is a non-linked traditional plan.</li><li>One has to pay the premium payment for the whole tenure.</li><li>When the policyholder survives at the end of the policy term, he/she will gain the benefits of the plan.</li><li>In the event of the death of a policyholder, the nominee gets the plan benefits. The plan will come to an end after that.</li><li>One can ask for the additional life cover after paying an additional premium amount.</li><li>The LIC plan 814 offers a simple reversionary bonus either on maturity or after the death of the insured person.</li><li>Massive sum assured rebate is another advantage of this plan.</li><li>One can buy this plan, as it offers guaranteed returns and bonuses.</li><li>An insured person can also avail other benefits such as Disability Benefit Rider and Accidental Death.</li></ol><h2><strong>Plan Parameters of </strong><strong>LIC New Endowment Plan</strong></h2><table width="576"><tbody><tr><td width="192">Entry Age</td><td width="384">8-55 years</td></tr><tr><td width="192">Policy Term</td><td width="384">12-35 years</td></tr><tr><td width="192">Premium Mode Rebate</td><td width="384">Nil on Quarterly, 1% on Half Yearly, 2% on Annually</td></tr><tr><td width="192">Loan Facility</td><td width="384">One can avail the loan after three years of the policy term</td></tr><tr><td width="192">Basic Sum Assured</td><td width="384">100000 and above</td></tr><tr><td width="192">Sum Assured Rebate</td><td width="384">0% on 0 to 1,95,000 of Sum Assured</p><p>2% on 2,00,000 to 4,95,000 of Sum Assured</p><p>3% on 5,00,000 and above Sum Assured</td></tr><tr><td width="192">Surrender</td><td width="384">After 3 years of making full premium payment</td></tr><tr><td width="192">The revival of the Policy</td><td width="384">Within 2 years</td></tr><tr><td width="192">Premium Paying Mode</td><td width="384">Monthly, Quarterly, Half Yearly, and Yearly</td></tr></tbody></table><h2><strong>Benefits of LIC New Endowment Plan</strong></h2><p>There are a lot of benefits that a LIC new endowment plan 814 offers to its insured person. Let us discuss them in detail:</p><h3><strong>Death Benefit</strong></h3><p>In the event of the death of an insured person during the policy term, the nominee receives the death benefit. Such a death benefit includes the</p><ol><li>Sum Assured on Death</li><li>Simple Reversionary Bonuses</li><li>Final Addition Bonus</li></ol><p>The sum assured on death is a higher sum that includes:</p><ul><li>Basic Sum Assured that you choose at the starting of the policy</li><li>10 times more than the Yearly Premium amount</li><li>105% of all the paid premium amounts till that date</li></ul><h3><strong>Maturity Benefit</strong></h3><p>LIC new endowment plan 814 provides a maturity benefit to the insured person at the end of the tenure. If the insured person survives until the end of the plan, he/she will receive the maturity benefit. Such a maturity benefit includes a lump sum amount that helps the insured person to meet financial goals.</p><p>Maturity Benefit = Sum Assured + Reversionary Bonus</p><h3><strong>Participation in Corporation Profit</strong></h3><p>Based on the experience of the LIC, it allows the policy to participate in profits. Such participation may allow you to get a Simple Reversionary Bonus. The plan declares the bonus amount at the end of the policy term. Based on the year of claiming the policy, the insured person is eligible to get Final Addition Bonus.</p><h3><strong>Tax Benefits</strong></h3><p>When your premium amount reaches INR 1.5 lakhs under LIC endowment plan 814, then the amount is free from taxes. It is applicable under the law of Section 80C. Also, the maturity benefit and death benefit are tax-free under the law Section 10D.</p><h3><strong>Rider Benefit</strong></h3><p>An insured person has the facility to avail Accidental Death and Disability Benefit Rider. It means that in the event of the death of an insured person due to accident or disability, he/she receives an extra benefit. It applies to only adults. This rider benefit is optional, and an insured person can decide about it.</p><h3><strong>Loan Benefit</strong></h3><p>The policyholder can avail of a loan after three years of the policy term. The policyholder can apply for a loan after completing the premium payments. The loan amount depends on certain parameters such as surrender value, etc.</p><h3><strong>Bonus Benefit</strong></h3><p>The maturity value of the insured person may increase through the final addition bonus and simple revisionary bonus. Also, such bonuses may increase if the LIC Company generates profits.</p><h2><strong>Other Policy Details of </strong><strong>LIC New Endowment Plan</strong></h2><h3><strong>Free-Look Period</strong></h3><p>If the insured person is not happy with the terms and conditions of the new endowment plan, he/she can cancel the plan within the Free-Look period. The Free-Look period is the time duration of 15 days from the date of purchase of the plan. Once, you cancel the policy, the plan credits the money back to your bank account.</p><h3><strong>Surrender Value</strong></h3><p>When the insured person surrenders the policy, he/she has to pay a certain amount called the Surrender Value. Sometimes, the insured person can’t make premium payments, in such a case he/she can surrender it. But the insured person can make a surrender claim only after paying the premium amount.</p><h3><strong>Grace Period</strong></h3><p>An insurer provides an additional time to make the premium payment is called the Grace Period. In such a period, the insured person doesn’t have to pay any penalty for delaying premium payment. Concerning to the LIC table no 814l,</p><ul><li>The customer gets the grace period of 30 days – For premium payment frequency is yearly, half-yearly, or quarterly</li><li>The customer gets the grace period of 15 days – For premium payment frequency is monthly</li></ul><p>If the policyholder is not able to clear the dues during the grace period, then the policy will fail. If the policyholder dies during the grace period, the nominee will get the benefits.</p><h3><strong>Revival Period</strong></h3><p>The policyholder has the facility to activate the plan, once the plan lapses due to failure of premium payments. But the revival should happen within 2 successive years of the policy term.</p><h3><strong>Flexibility in Premium Payment</strong></h3><p>The policyholder has the right to choose the frequency for making premium payments. So, there are four premium paying frequencies such as</p><ol><li>Monthly</li><li>Quarterly</li><li>Half Yearly</li><li>Annually</li></ol><h3><strong>Add-on Benefits</strong></h3><p>The policy offers some optional benefits, which you can add to this policy. Such optional benefits cover additional risks related to the life of the policyholder. The riders of this plan include</p><ol><li>New Critical Illness Benefit Rider</li><li>Premium Waiver Benefit Rider</li><li>Accident Death Rider</li><li>New Term Assurance Rider</li><li>Accidental Death and Disability Benefit Rider</li></ol><h3><strong>Paid-up Benefits</strong></h3><p>If the insured person discontinues the premium payment after paying it continuously for 2 years, then the person will receive the paid-up value. It reduces the maturity benefits and death benefits of the plan when you discontinue the premium payment after 2 years of tenure.</p><h2><strong>How does The New Endowment Plan work?</strong></h2><p>Under the LIC table 814 new endowment plan an individual invests for the policy between 12-35 years. Also, the policyholder has to select the sum assured of more than 1 Lakh. On completion of making premium payments, the policyholder gets the maturity benefit. Such a benefit is the sum of the basic sum assured and bonus.</p><p>In the event of the death of the policyholder, the nominee gets the death benefit. Such a benefit is the sum of the basic sum assured and reversionary bonuses. Death benefit provides the higher sum money, as it includes basic sum assured and 10 times of the Yearly Premium amount.</p><p><strong>Sample Calculation</strong></p><p>Consider,</p><p><strong>Policyholder’s age:</strong> 25</p><p><strong>Sum Assured:</strong> Rs. 25 lakhs</p><p><strong>Premium Payment Term: </strong>35 Years</p><p><strong>Policy Term:</strong> 35 Years</p><p>So, the premium amount that the policyholder has to pay is Rs. 5,800/month</p><p>Maturity Value = Sum Assured + Simple Reversionary Bonus + Any special bonus + Final Addition Bonus</p><p><strong>Maturity Amount = Rs. 60, 00,000 at 4% reversionary bonus</strong></p><h2><strong>Bonus in LIC Plan no 814 </strong></h2><p>There are two types of bonuses available under this LIC plan no 814. They are</p><ol><li>Simple Reversionary Bonus</li><li>Final Addition Bonus</li></ol><h3><strong>Simple Reversionary Bonus</strong></h3><p>A simple reversionary bonus is an amount per thousand of sum assured yearly. This bonus amount gets added to the maturity value during the selected term. One will get the reversionary bonus at the end of the premium paying term. If earlier death of the insured person occurs, the nominee gets the reversionary bonus with the final addition bonus.</p><h3><strong>Final Addition Bonus</strong></h3><p>In the event of the death of an insured person, the nominee or family members receive the sum assured with the final addition bonus. One may get this bonus when the policy runs for a certain minimum period. Also, LIC new endowment plan with profits may increase your bonus amount.</p><p>So, the Total Bonus = Simple Reversionary Bonus + Final Addition Bonus</p><h2><strong>How to calculate Bonus?</strong></h2><p>To calculate Bonus Value, one has to use the following formula:</p><p>Bonus Value = (Sum Assured * Bonus Rate) /1000</p><p>Consider an individual buys a plan for 25 years and the sum assured is Rs 10 lakhs. If the bonus rate is 30, then the simple reversionary bonus is</p><h3><strong>Simple Reversionary Bonus</strong></h3><p>Bonus = (Sum Assured * Bonus Rate) /1000 = (30 * 10, 00,000) /1000 = 30,000</p><p>So, the simple reversionary bonus = 30000 * policy tenure = 30000 * 25 = Rs. 7, 50,000</p><h3><strong>Final Addition Bonus</strong></h3><p>Assume that Rs. 200 is the value of sum assured per thousand</p><p>Final Addition Bonus = (Sum Assured * Bonus Rate)/1000 = (200 * 10, 00,000) /1000 = Rs. 2, 00,000</p><h3><strong>Total Bonus</strong></h3><p>Total Bonus = Simple Reversionary Bonus + Final Addition Bonus</p><p>Total Bonus = Rs. 7, 50,000 + Rs. 2, 00,000 = Rs. 9, 50,000</p><h2><strong>Premium and Maturity Calculator for </strong><strong>LIC New Endowment Plan</strong></h2><p>One can use the endowment plan premium calculator to calculate the various things such as</p><ul><li>Premium Sum</li><li>Development Esteem</li><li>Surrender Esteem</li><li>Credit Esteem</li><li>Returns of the Policy</li></ul><p>To get the premium value, you need to provide various data such as age, policy tenure, etc.</p><p>To calculate the maturity value, one can use the LIC new endowment maturity calculator. To get the maturity value using a calculator, you need to provide the following details</p><ul><li>Sum Assured in your plan</li><li>Premium payment term</li><li>Month and Year of the purchase of the plan</li></ul><p>Online Premium and Maturity Calculator of endowment plan 814 provides you the clear details of premium and maturity benefits. The online premium calculator calculates the premium amount in both ways of with or without riders.</p><h2><strong> </strong><strong>Riders for </strong><strong>LIC New Endowment Policy</strong></h2><p>The LIC endowment policy offers additional items to an insured person for the benefit of him/her. Some of the riders who can access such additional benefits are as follows:</p><ul><li>Critical Illness</li><li>Accidental Death</li><li>Hospital Cash</li><li>Waiver of Premium</li><li>Sum Assured Earlier</li><li>Physical Challenged Person</li></ul><h2><strong> </strong><strong>LIC New Endowment Plan 814 – Riders Available</strong></h2><h3><strong>LIC’s Accidental Death and Disability Benefit Rider</strong></h3><p>According to this benefit, the rider gets an additional amount which is equal to Accident Benefit Sum Assured. This benefit is applicable when the person is in force at the accident time. If the person suffers from accidental permanent disability, then the person will get an amount equal to the Sum Assured. The person gets such amount in installments for 10 years.</p><h3><strong>Critical Illness Benefit Rider</strong></h3><p>Critical Illness Benefit Rider helps to protect the financial loss of the person who suffers from major diseases. The plan provides the risk cover for the critically-suffering individual. LIC has a list of 15 critical illnesses. When the individual suffers from any one of these illnesses, then the individual gets the Sum Assured amount.</p><h3><strong>Term Insurance Rider</strong></h3><p>This rider helps an individual to gain some additional insurance coverage. An individual already has the insurance coverage of the plan. In addition to this plan coverage, he gains additional coverage through this rider.</p><h2><strong>Who should buy LIC New Endowment Plan?</strong></h2><p>An individual who is in between 8-55 years of age can purchase this LIC new endowment policy. It is the best policy, as it offers secure investment and life cover with good money returns. A person gets life protection under this plan, as it offers good lump sum money back at the end of the tenure.</p><h2><strong>How to purchase LIC New Endowment Plan?</strong></h2><p>One has to visit the nearest LIC branch to purchase this plan. An insurer provides you the proposal form 300/340/360, which you need to fill with correct details. Once you fill the form under the guidance of an insurer, you can submit it with a medical history and other KYC (Know Your Customer) documents. Depending on the sum assured and the age of the policyholder, he/she has to take a medical test. After submitting the documents and proposal form, you can wait for the approval of your policy.</p><p>You can check the status of the plan through the online LIC portal website. Use your policy number to check the status. One can also purchase the plan online using LIC portal website. You need to do a similar offline procedure like filling the online proposal form and submitting the documents.</p><h2><strong> </strong><strong>Required Documents to buy Endowment Policy</strong></h2><p>One has to submit the following documents to apply for the LIC policy 814.</p><ul><li>Passport size photograph</li><li>Proposal form with filled details</li><li>Medical test reports</li><li>Residence proof like Electricity bill, Ration card, Voter ID, bank passbook, Credit card bill, Driving license, Telephone bill, Water bill, and Rental agreement</li><li>Age Proof documents like Birth certificate, Passport, and Aadhar card</li></ul><h2><strong>Exclusions in LIC’s New Endowment Plan</strong></h2><p>LIC endowment plan table 814 becomes invalid if the policyholder commits suicide during the policy term.</p><ul><li>If the policyholder commits suicide within one year of purchasing the endowment plan, LIC will not provide any claim to the policyholder’s family. LIC just provides 80% of the premium amount paid, only when the policy is still in force.</li><li>If the policyholder commits suicide within one year of revival of the endowment plan, LIC may present 80% of the premium amount paid till the death of the policyholder. Other than that LIC will not present any other claim.</li></ul><h2><strong>Non-Forfeiture Regulations</strong></h2><p>The non-forfeiture regulation explains the various conditions under which the policyholder’s premium amount paid during the tenure is not forfeited.</p><h2><strong>Premium amount paid for the policy term for less than 3 years</strong></h2><ul><li>The termination of the LIC policy occurs when the grace period is over. The LIC policy starts counting from the first unpaid premium date.</li><li>After termination of the LIC policy, all benefits like maturity benefit and death benefit, etc, may stop to exist.</li></ul><h2><strong>Premium amount for 3 years of the tenure</strong></h2><ul><li>The LIC plan is not going to end completely</li><li>The sum assured amount may reduce to the ‘Paid-Up Sum Assured’. This sum assured may include the total premiums that the policy has specified.</li><li>The policyholder may get an existing bonus but not further profits that the insurer may gain after the policyholder’s death.</li></ul><h2><strong> </strong><strong>Claiming for LIC New Endowment Plan</strong></h2><h3><strong>Death Claim</strong></h3><p>In the event of the death of the policyholder, the nominee has to claim the LIC policy. To claim the plan, the nominee has to submit the following documents:</p><ul><li>Claim forms that are required by LIC</li><li>NEFT Mandate</li><li>Primary Policy Documents</li><li>Death proof such as Death Certificate of the policyholder</li><li>ID and Address Proof of the Nominee</li><li>Medical Treatment Proof before the death of the policyholder</li></ul><h3><strong>Maturity Claim and Surrender Claim</strong></h3><p>If the policyholder is alive till the end of the policy term, then the policyholder has to make a maturity or surrender claim. To claim the plan, the policyholder has to submit the following documents:</p><ul><li>Original Policy Papers</li><li>Bank Account Details</li><li>Discharged Form</li><li>NEFT Mandate from the Claimant</li></ul><h2><strong>What happens if t</strong><strong>he Policyholder stops paying the premium?</strong></h2><p>If the policyholder fails to make premium payments within the grace period, the policy will lapse and all benefits of the policy will stop. However, the policy may provide some paid-up value for the reduced sum assured to the policyholder, if the policyholder has paid premiums for at least three years.</p><p>Reduced Sum Assured = Basic Sum Assured *(Number of Premiums Paid / Total Number of Premiums Payable)</p><p>The revival of the policy happens within 2 consecutive years from the date of not making premium payment.</p><h2><strong>What happens if the Policyholder wants to surrender the policy?</strong></h2><p>One can surrender the policy plan only after completing at least 3 years of premium payments. The percentage of the cash value depends on the policy year and the policy tenure.</p><h2><strong>What happens if the Policyholder wants a loan against the policy?</strong></h2><p>One can apply for the loan after completing the premium payments of the policy term. One can also avail of the loan when the policy gets the surrender value and meets the terms and conditions.</p><h2><strong>Conclusion</strong></h2><p>Apart from the LIC New Endowment plan, the LIC offers other endowment plans such as</p><ol><li>Single-Premium Endowment Plan</li><li>LIC New Jeevan Anand</li><li>LIC Jeevan Rakshak</li><li>LIC Jeevan Lakshya</li><li>Limited Premium Endowment Plan</li></ol><p>One can also buy any one of these plans if you are not happy with the terms and conditions of the New Endowment plan. But the endowment plan is special about its combination of saving cum protection. It helps the family members of the policyholder to meet financial goals. Thus, the plan is the best option for an individual who wants a saving option along with risk cover. With the help of endowment policy, one can meet their long-term financial goals in a well-planned way.</p><p>The post <a rel="nofollow" href="https://www.thefinfact.com/lic-new-endowment-plan-table-814-features-and-benefits/">LIC New Endowment Plan (Table 814) – Features and Benefits</a> appeared first on <a rel="nofollow" href="https://www.thefinfact.com">TheFinFact.com</a>.</p>]]></content:encoded> <wfw:commentRss>https://www.thefinfact.com/lic-new-endowment-plan-table-814-features-and-benefits/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> </channel></rss> If you would like to create a banner that links to this page (i.e. this validation result), do the following:
Download the "valid RSS" banner.
Upload the image to your own server. (This step is important. Please do not link directly to the image on this server.)
Add this HTML to your page (change the image src attribute if necessary):
If you would like to create a text link instead, here is the URL you can use:
http://www.feedvalidator.org/check.cgi?url=https%3A//www.thefinfact.com/feed/
