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Have You Chosen Your Nominee in Mutual Fund Investment!

An investor can nominate a person called nominee to whom his Mutual Fund Units will be transferred on his / her demise. Mutual Fund Units get transferred to the nominee registered in the folio on the demise of the Investor.

Nomination is now mandatory for new folios/accounts opened by an individual especially with sole holding and no new folios/accounts for individuals in single holding would be opened without nomination.

However, investors who do not wish to nominate must sign separately confirming their non-intention to nominate. Investor who don't want to mentioned nominee details need to sign declaration for not exercising the right of nomination in respect of units held by him/her.

 Registering a nomination facilitates easy transfer of Funds to the nominee on the unfortunate demise of the investor. In the absence of the nominee, a claimant would have to produce a host of documents like a Will, Legal Heir ship Certificate, No-objection Certificate from other legal heirs etc. to get the units transferred. The process is simple if a nominee is registered in the folio.

Nomination ensures all rights and /or amount(s) payable in respect of the holdings in Schemes of Mutual Fund would vest in and be transferred to the nominee upon death of the Unit holder. The nominee receives the units only as agent and trustee for the legal heirs or legatees as the case may be. Investors should opt for the nomination facility to avoid hassles and inconveniences in case of unforeseen events in future. 

Terms and conditions related to Nomination

 The nomination can be made only by individuals applying for / holding units on their own behalf singly or jointly.    In case a folio has joint holders, all joint holders should sign the request for nomination/cancellation of nomination, even if the mode of holding is not "joint". 
Every new nomination for a folio/account will overwrite the existing nomination.
An investor may make up to three nominations and even specify the percentage of the amounts that will go to the nominee. If the percentage is not specified, equal shares will go to the nominees.

A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the unit holder.

Nomination form:

Why to update your Pan details in Bank records..

Permanent Account Number is a number by which the Assessing Officer can identify any person.  PAN consists of ten alphanumeric character and is issued in the form of a laminated card. 

If PAN is quoted in all documents, it would be very convenient to locate the assessing officer holding jurisdiction over the person concerned. 

If PAN is quoted in all challans, the credit for payment of taxes can be quickly granted to the taxpayer. 

If PAN is quoted in all specified transactions, the Department can excercise greater control over unregulated and undisclosed transactions.

Benefits of updating Pan Number

If your PAN details are updated in your bank records you can get your Form 16A (TDS certificate) from the NSDL website.

You will get the benefits of Double Taxation Avoidance Agreement (DTAA) to avoid excess tax.

If Pan details are not updated 

As per new section 206AA of the Income Tax Act, 1956 effective from April 1, 2010, residents, whose tax is required to be deducted, need to submit their valid PAN; else tax will be deducted at the prevailing rate or 20%, whichever is higher.

In the absence of a valid PAN of a non-resident customer, benefit of DTAA for lower deduction of tax will not be granted and tax would be deducted under section 195 at higher of a) the rate specified in the relevant provisions of this Act; or b) rate in force; or c) the rate of 20%.

Where the PAN given is invalid, it shall be deemed that the PAN has not been given and tax shall be deducted at the prevailing rate or 20%, whichever is higher.

Form 15G/H shall not be treated as valid unless a valid PAN is mentioned and the benefit of exemption from TDS will not be granted in the absence of a valid PAN.

How to update my PAN number?

Step 1) Submit a written request specifying your updated PAN number
Step 2) Give a self-attested photocopy of your PAN card. (carry originals for verification)

 PAN details will be updated in bank records only after verification of your name, date of birth and PAN details on NSDL site.


How to Check Your TDS Status Online - Form 26AS

Income Tax Department facilitates a PAN holder to view its Tax Credit Statement (Form 26AS) online. 

 Users of net banking in India can view tax credit in form 26AS through Bank Login : Users having PAN number registered with their Home branch can avail the facility of online view of tax credit in Form 26AS. 
Form 26AS contains
  • Details of tax deducted on behalf of the taxpayer by deductors
  • Details of tax collected on behalf of the taxpayer by collectors
  • Advance tax/self assessment tax/regular assessment tax, etc. deposited by the taxpayers (PAN holders) 

 How to Register online for Form 26AS 

Visit here
List of banks registered with NSDL for providing view of Tax Credit Statement (Form 26AS) are as below

The Form 26AS (Annual Tax Statement) is divided into three parts, namely; Part A, B and C as under:

 Part A

Part A displays details of tax which has been deducted at source (TDS) by each person (deductor) who made a specified kind of payment to you. Details of the deductor (name & TAN) along with details of tax deducted like section under which deduction was made (e.g. section 192 for salary), date on which payment was effected, amount paid/credited, tax deducted from payments and deposited in the bank are included in this part.

Part B

Part B displays details of tax collected at source (TCS) by the seller of specified goods at time these goods have been sold to you. Details similar to those displayed in Part A in respect of the seller and the tax collected will also be available.

Part C

Part C displays details of income tax directly paid by you (like advance tax, self assessment tax) and details of the challan through which you have deposited this tax in the bank.

Form 26AS will be prepared only with respect to Financial Year 05-06 onwards. 


SBI PPF Online Transfer - (PPF Linked with SBI online)

Query of Blog Reader
How to add my SBI PPF account in my SBI net banking (saving) account to view online statement of PPF account!

How to link your PPF Account to SBI Bank Account

In order to link your PPF account to your saving Bank account,  you need to visit your SBI Branch and request your Branch Manager to Link your accounts. 

In case if your PPF Account is in one SBI Bank Branch and Saving/Current Account in another SBI Bank Branch then also you can request your SBI Bank Branch and SBI PPF Branch to connect(link) both account in one single user ID.

When your PPF account is linked with your SBI Saving Bank account that too with single user id,(user id which you use for your net banking transaction) then  you can directly make online payments from your bank to your linked PPF account.

 The Funds Transfer facility enables you to transfer funds within your accounts in the same branch or other branches. To make a funds transfer, you should be an active Internet Banking user with transaction rights.
Amount of Transfer Allowed in Fund Transfer
  • Daily limit for Funds Transfer to own Accounts:
  • Between Accounts in the same branch: Rs.10 Lacs.
  • Between Accounts across branches: Rs.5 Lacs.
  • Daily limit for Funds Transfer to PPF Accounts in the same branch or across branches: Rs.1,00,000. 

This is subject to a ceiling of Rs.1,00,000, by a maximum 12 deposits, during the Financial Year, for the Principal Amount. 

How to go ahead with Fund Transfer

  •  Just log on to retail section of the Internet Banking site with your credentials
  •  Select the Funds Transfer link under Payments/Transfers tab. 
  • You can see all your online debit and credit accounts. 
  • Select the debit account from which you wish to transfer funds and the credit account into which the amount is to be credited. 
  • Enter the amount and remarks. 
  • The remarks will be displayed in your accounts statement for this transaction. 
  • You will be displayed the last five funds transfer operations on your accounts. 
  • On confirming the transaction, you will be displayed a confirmation page with the details of the transaction and the option to submit or cancel the funds transfer request. 
  • A reference number will be generated for your record.

Step by Step Fund Transfer Process

    Select the option Funds Transfer
     Select the account from which you want to make transfer if more  
     than one account is linked to your net banking account

     Click Submit. An intermediate page displays details of the selected 
     account details, amount to be transferred and the credit account.
    Verify and Confirm the Transaction Details

    Confirmation of Fund Transfer

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How to go online to invest in mutual funds in India?

Query of Blog Reader
 How to go online to invest in mutual funds in India

In order to invest online in mutual funds, you require following:

1. Permanent Account Number (Pan card)

2. Net Banking Facility
(which have option for third party transfer and bill payment facility for investment in  SIP in mutual funds)

3. KYC Compliant
All investors investing in Mutual Funds are required to be KYC Compliant. Investors can execute financial transactions on their folios only if they are KYC compliant.

Effective January 01, 2011, KYC has been made mandatory for all category of investors who wish to invest in the schemes of Mutual Fund irrespective of investment amount for all transactions.

Revised KYC form (effective January 01, 2012)
For Individuals : Please Click here for (New) KYC Form
For Non-Individuals : Please Click here for (New) KYC Form 

4. Folio Number 
 (This feature differ from mutual fund to mutual fund as some fund houses allow only registered (existing investors) and some allow both new as well as existing investors.

5. User ID and Password 

In order to register online, you need to visit website of mutual fund, then click on link to apply online, Download IPIN Agreement/Form, Fill all the details that is Your complete name, address and contact details, Pan number,  date of birth,  bank details i,e bank account number with MICR code and IFSC code.
Only Physical copy of application form/agreement is accepted by mutual fund.
Submit dully filled form along with KYC acknowledgement to nearest mutual fund branch.

6. Complete Registration Process
Some fund house gives you facility of creating user name and password. You can complete that process with help of IPIN. After receipt of IPIN, Visit mutual fund website, complete the registration process. After successful completion of registration process you are all set for online transaction which includes, purchase, sale, switch, change of dividend option.

But change of address and change of bank details is not allowed even if you have online access. For change of address you need to go through KYC process again and for change of bank details you need to submit physical documents and follow this new rule which is:

"For investors holding units in non-demat mode, Unit holders may change their bank details registered with the Mutual Fund by submitting a 'Multiple Bank Account Registration Form' or a standalone separate Change of Bank Details request along with the mandated accompanying documents."

How to create online access for your Franklin Templeton Investments.

Franklin Templeton Investments helps you to create your own user name and password online by visiting the share holder section of Franklin website that is

Features of Online Access
  • Buy, redeem and switch units online, which means investors can transact in a quicker and more convenient manner
  • View, print or email your account statement, capital gain statement, dividend history, portfolio valuation & transaction details
  • Register for systematic transfer plan or a systematic withdrawal plan 
  • Register for Easy Mobile through our website– to receive SMS transaction alerts and SMS NAV alerts
  • View your SIP/SWP/STP transactions including processed and to be processed with payment details
  • Add / Remove accounts to your family portfolio using “username” Here,

Online account creating process for registered investor (if you have already invested in Franklin Templeton Investments)

The process of creating online access is very simple, follow this step by step process to create online access for your Franklin Templeton Investments.

1. Visit
Click on Log in ======> Investors=======>Enter Investor Area

 2. Click on "Register for online Account access".
You can create online access if you are already invested with Franklin Templeton or New to Franklin Templeton.

3. Verify your resident status
Example: If you are from India, then click on I am not a USA Person :)

4. Enter your Customer Folio or Account Number


5.Verify your account information which is registered in that customer folio 
i.e your Pan Number, Bank account Number and select(reply) any one from following that is Pin code, or date of birth or transaction amount, You can proceed  further only if you add correct information in this step.

6. Verify your Email addressThe best thing here in this step about email verification is that we have option here to change our registered  email address or opt for same email address.(so if our registered email address is wrongly mentioned then also we can proceed future and rectify or add our new email address.

7. Confirmation in your email box
If you had followed above process correctly,  you will receive link of confirmation in your email box and click on that link to create your own user name and password. The verification link is active for 7 days, after seven days you need to follow the same steps again to get the email link to validate your account information.

8. Refer Terms and conditions of HPIN Use and Accept

9.Verify your account information again here in this step

 10. Create User name and Password of your own Choice, also make a note of secret question which will help you in case you forget your password or your log in id.

11. Confirmation Page
  Give you details of information you can check after log in.

12. Log out
This option is for logging out from your user name and password. Always click on log out to come out your user name and password. Please do not close the screen without logging out properly.

Features post Logging In - (online access for Franklin Templeton Investment)

Income Tax Rates for 2012-13 (Tax Reckoner 2012-13)

The rates are applicable for the financial year 2012-13 and are subject to enactment of the Finance Bill, 2012.

 Tax Implications on Dividend received by Unitholders

       Individual/  HUF     Domestic Company     NRI*
  Equity oriented schemes            Nil         Nil       Nil
   Debt oriented schemes            Nil          Nil          Nil

Tax on distributed income (payable by the scheme) rates
Equity oriented schemes **
Debt schemes
12.5% + 5% Surcharge + 3% Cess
30% + 5% Surcharge + 3% Cess
12.5% +5% Surcharge + 3% Cess
= 13.519%
= 32.445%
= 13.519%
Money market and Liquid schemes
25% + 5% Surcharge + 3% Cess
30% + 5% Surcharge + 3% Cess
25% + 5% Surcharge + 3% Cess
= 27.038%
= 32.445%
= 27.038%

Capital Gains Taxation

Long Term Capital Gains (units held for more than 12 months)
Equity oriented schemes **
Other than equity oriented schemes
10% without indexation or 20% with indexation whichever is lower
+ 3% Cess
10% without indexation or 20% with indexation whichever is lower
+ 5% Surcharge# + 3% Cess
10% without indexation or 20% with indexation whichever is lower
+ 3% Cess
Without indexation
= 10.300%
= 10.815%
= 10.300%
With indexation
= 20.600%
= 21.630%
= 20.600%

Short Term Capital Gains (units held for 12 months or less)
Equity oriented schemes **
15% + 3% Cess
15% + 5% Surcharge# + 3% Cess
15% + 3% Cess
= 15.450%
= 16.223%
= 15.450%
Other than equity oriented schemes
30%^ + 3% Cess
30% +5% Surcharge# + 3% Cess
30%^ + 3% Cess
= 30.900%
= 32.445%
= 30.900%
# In case of a domestic company surcharge of @ 5% shall be levied if the total income exceeds Rs. 1 Crore subject to marginal relief.
*The shor t term/long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors only.
** Securities transaction tax (STT) will be deducted on equity funds at the time of redemption and switch to the other schemes. Mutual Fund would also pay securities transaction tax wherever applicable on the securities bought / sold
^ Assuming the investor falls into highest tax bracket.

Tax Deducted at Source (Applicable only to NRI Investors)

Short term capital gains
Long term capital gains
Equity oriented schemes
Other than equity oriented schemes
# after providing for indexation

Dividend Stripping: The loss due to sale of units in the schemes (where dividend is tax free) will not be available for setoff to the extent of the tax free dividend declared; if units are: (A) bought within three months prior to the record date fixed for dividend declaration; and (B) sold within nine months after the record date fixed for dividend declaration.
Bonus Stripping: The loss due to sale of original units in the schemes, where bonus units are issued, will not be available for set off; if original units are: (A) bought within three months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units. However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units.

1.    Income Tax Rates
  • For Individuals,  
  • Hindu Undivided Family, 
  • Association of Persons, 
  •  Body of Individuals and
  •   Artificial juridical persons
Total Income
Tax Rates
Up to Rs. 2,00,000 (a)(b)
Rs. 2,00,001 to Rs. 5,00,000
Rs. 5,00,001 to Rs. 10,00,000
Rs. 10,00,001 and above

(a) In the case of a resident individual of the age of 60 years or above but
below 80 years, the basic exemption limit is Rs. 2,50,000.
(b) In case of a resident individual of age of 80 years or above, the basic
exemption limit is Rs. 5,00,000.
(c) Surcharge is not applicable.
(d) Education cess is applicable @ 3% on income tax.
(e) Marginal relief may be available.

  2. Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under.

Payable By
Purchase/ Sale of equity shares, units of
equity oriented mutual fund (delivery based)@
Purchaser/ Seller
Sale of equity shares, units of equity oriented mutual fund (non –delivery based)
Sale of an option in securities
Sale of an option in securities, where option is exercised
Sale of a futures in securities
Sale of unit of an equity oriented fund to the
Mutual Fund
@ effective 1 July 2012

3. Special rates for non-residents
(1) The following incomes in the case of non-resident are taxed at special

Nature of Income
Rate (a)
Dividend (b)
Interest received on loans given in foreign currency to Indian concern or Government of India.
Income received in respect of units purchased in foreign currency of specifies Mutual Funds / UTI
Royalty or fees for technical services
For Agreements entered into:
-  After 31 May 1997 but before
1 June 2005 –@ 20%
-  After 1 June 2005 @ 10%
Interest income from a notified infrastructure debt fund
Interest on FCCB, FCEB / Dividend on GDRs(b)

 (a) These rates will further increase by surcharge and education cess.
(b) Other than dividends on which DDT has been paid.
(c) In case the non-resident has a Permanent Establishment (PE) in
India and the royalty/ fees for technical services paid is effectively
connected with such, the same could be taxed at 40% (plus
surcharge and education cess) on net basis.

 (2) Tax on non-resident sportsmen or sports association on specified income @ 10% plus surcharge and education cess.

 4. Capital Gains
Short-term capital gains tax rates (a)
Long-term capital gains tax rates (a)
Sale transactions of equity shares / unit of an equity oriented fund which attract STT
Sale transaction other than mentioned above:

Individuals (resident and non-residents)
Progressive slab rates
20% with indexation; 10% without indexation (for units/ zero coupon bonds)
Par tnerships
(resident and non-resident)
Resident Companies
Overseas financial organisations specified in section 115AB
40% (corporate)
30% (non- corporate)
Other Foreign companies
20% / 10%
Local authority
10% without indexation (for units/ zero coupon bonds)
/ 20% (for others)
Co-operative society rates
Progressive slab

 Disclaimer : The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds tax consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone.we will not be liable in any manner for the consequences of such action taken by you.

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