Thursday, December 19, 2013

How to check your Aadhaar status in your mobile - Android application




C. G. Technosoft Pvt. Ltd come up with official application to check your Aadhaar Staus i.e  your aadhaar linking Status with Banks and LPG supply companies.

Link of official application to check your aadhaar card status:


Thursday, November 28, 2013

Your ATM Pin is now compulsory on all purchases on debit cards at retail outlets..



As per Reserve Bank of India (RBI) guidelines, from 1 December 2013, all debit card transactions at retail outlets will need to be validated using the existing ATM PIN. The move was introduced to reduce the incidence of frauds in payment systems.


Now every time you swipe your card at a merchant outlet, you will have to enter the personal identification number (PIN) that you use at an automated teller machine (ATM).


Here's how your Debit Card with PIN works

➡Step 1. The merchant swipes/inserts your Debit Card into a Point Of Sale (POS) machine.
➡Step 2. The merchant then enters the transaction amount.
➡Step 3. The POS machine prompts for a PIN to be entered by you.
➡Step 4. You enter your Debit Card ATM PIN in the POS machine to complete the transaction.

Safety tips to keep in mind while transacting using your Debit Card

✔Never share your Debit Card ATM PIN with anyone, including the merchant.

✔You should always insist on entering the PIN yourself.

✔Use your hand or body to shield your PIN from onlookers while you are entering the PIN.

✔Keep your Debit Card in sight during any transaction, especially at restaurants and fuel stations.

✔Remember to take your Debit Card back when the transaction is complete and ensure that it is your Debit Card only

Thursday, September 19, 2013

Mutual Fund Tax Rates for FY 2013-14



As per Finance Bill 2013, the DDT applicable for debt funds has increased from 12.5 per cent to 25 per cent for individuals and HUFs.

DDT applicable to any person other than an individual or HUF i.e. a firm, or a company, continues to be 30 per cent.

This new rate is applicable from June 1, 2013 on dividends declared on or after June 1, 2013.


Securities Transaction Tax has been reduced on equity schemes and exchange traded funds to 0.001 per cent for the financial year 2013-14 from June 1, 2013.
Refer this


Tax is deducted at source (TDS) when processing redemptions and switch outs for Non-Resident Indians (NRIs) only. There is no change in the existing TDS rates, but a new surcharge of 10 per cent has been introduced if the income exceeds Rs 1 crore for NRI investors.

New HDFC Mutual Fund Transaction Slip for Purchase, Switch and Redemption

Wednesday, September 18, 2013

Merger of Reliance Natural Resources Fund into Reliance Vision Fund effective from September 7, 2013




As per the Addendum No 38 released by RMF on 31st Jul 2013, the units held in Reliance Natural Resources Fund (RNRF) have been merged into Reliance Vision Fund (RVF) with effect from September 7, 2013 based on the prevailing NAV of RVF as on the previous day i.e. September 6, 2013 equal to the value of the units held in RNRF.


http://reliancemutual.com/UPLOAD/ARTICLEATTACHMENTS/NoticeNo38RNRFRVF.pdf

Also future transactions related to Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) / Systematic Withdrawal Plan (SWP) or any other special products registered by you in Reliance Natural Resources Fund will be processed in Reliance Vision Fund on their respective due dates.

 Merger of Reliance Infrastructure Fund  into Reliance Diversified Power Sector Fund effective from September 7, 2013
 
As per the Addendum No 40 released by RMF on 31st Jul 2013, the units held in Reliance Infrastructure Fund (RIF) have been merged into Reliance Diversified Power Sector Fund (RDPSF) with effect from September 7, 2013 based on the prevailing NAV of RDPSF as on the previous day i.e. September 6, 2013 equal to the value of the units held in RIF. 
 

Wednesday, July 10, 2013

Tax On Debt Mutual Funds In India.....

 
 
 
Short term capital gains on Debt funds
 
Non equity Funds (which holds less than 65% of its expousre in equity)Short term means period of holding is less than a year.
Short Term Capital gains tax is deducted according to individual investor's income tax slab.

Example: Suppose you are getting Rs.25000 gain by selling debt fund within a year and if your annual salary is Rs.5,00,000, then your taxable income will be Rs 5,25,000.

Long Term Capital Gains
Long term capital gains means units are held for more than a year, so tax will be 10% on gains without indexations  or 20% on gains with indexation plus applicable surcharge and education cess.
 
Now how we can calculate long term gains gain with indexation
Example: Indexation helps you to offset your gain with the effect of inflation.

Government will notify the Cost of inflation Index every year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Table Source: Tax Point India
 
 
In indexation, the investment cost is raised to inflation cost for the period the investment is held. This is done by using a cost inflation index number released by the central tax authorities every year.
Suppose you have invested 2 Lakh in a debt fund in April 2012 and is selling in May 2013 for 2,21,000

 
Your original investment = 2, 00,000

Your Long Term Capital gain is 21,000 (sale price - cost price)
 

Indexed cost:  2, 00,000 x 939/852 = 220422.535
 
Capital Gain after indexation = 2, 21,000 – 220422.535 = 577.465 (sale price- indexed cost)
 
So, in this case, you have to pay 20% tax on the gain of 577.465/- only and not on the gain of 21,000!  Your tax liability is only 115/-. This is the benefit of indexation.
 
If you don’t want to apply indexation, you have to pay 10% tax on the gain of 21,000. Then the tax liability will be 2100/-.
 
 
How does debt mutual funds taxation differ for NRI investors?
If you are an NRI and you invest in an  non equity mutual fund and redeem it, tax will be deducted at source. This is only for NRIs, not for resident individual investors.
 
Short Term Capital Gains
TDS on STCG is applicable at 30% for debt mutual funds.

Long Term Capital Gains
 TDS on LTCG will be applicable at 20%.

 
 

Thursday, July 4, 2013

Securities Transaction Tax (STT) paid on Mutual Fund Units in India - FY 2013-14


Securities Transaction Tax
Equity Oriented Fund
Sale of a unit of an equity-oriented mutual fund0.001%
Purchase of a unit of an equity-oriented mutual fund where the transaction is entered into a recognized stock exchange and the contract for sale is settled by the actual deliveryNIL
Sale of a unit of an equity-oriented mutual fund the where transaction is entered into a recognized stock exchange and the contract for sale is settled by the actual delivery0.001%

Other than Equity-oriented Fund – Exempt from Securities Transaction Tax
Mutual Funds will also pay securities transaction tax wherever applicable on the securities bought/sold.





Securities Transaction Tax has been reduced on equity schemes and exchange traded funds to 0.001 per cent for the financial year 2013-14 from June 1, 2013.

There are three areas where the STT would come into play.

1. Buying Mutual fund units from stock exchange - units going into individual's demat account
Earlier it was 0.1% now this has been abolished (w.e.f June 1, 2013) 

2. Selling Mutual Fund Units on the stock exchanges
Earlier it was 0.1% now current rate is 0.001% (w.e.f June 1, 2013)

3. Selling Mutual Fund Units directly to fund house.
 Earlier it was 0.25% now current rate is 0.001% (w.e.f June 1, 2013). This means on a transaction of Rs 1 lakh the tax will be just Re 1. 



Tuesday, June 25, 2013

How to get Mutual Fund Portfolio Valuation Statement??



Mutual Fund Portfolio Valuation Statement is available in Karvy as well as Cams.



How to get that?

I. From cams


1.Visit camsonline mailback services for Investors
2. click Portfolio Valuation Statement.
3. Submit your registered email address. If you have not provided an email address in your mutual fund application fom this request can't be responded.





II. From Karvy

Visit here : Karvy Portfolio Valuation for Investors by email
or  Portfolio Valuation By PAN






















 Also refer:



1. How to update Pan in all mutual fund schemes with one request


2.  How to change email address in mutual funds in India






Important Information on Employee Unique Identification Number (EUIN)..




EUIN is a unique number allotted to employees of distributors involved in selling mutual fund products. This number is being allotted pursuant to AMFI best practices circular no. 33 dated December 31, 2012 as amended vide AMFI best practice circular no. 37 dated March 28, 2013.


EUIN will assist in identifying the employee who sold the mutual fund product and address issues of mis-selling even if he/she leaves the employment of the distributor.
While investing in any mutual fund scheme, please specify the EUIN of the employee / distributor who advised you on the investment. If you have not sought any investment advice but merely executed the transaction through a distributor, please sign the declaration to this effect. Below is the relevant portion of the application form which you need to fill.



Investors shall ensure that the application form, if routed through a Distributor shall have a valid ARN code, Sub broker ARN code, and EUIN.

 Investors are further requested to use only those application forms/ transaction forms which have spaces for the Sub broker ARN code and the EUIN.




Wednesday, June 19, 2013

Is the dividend re-investment in a Tax Saver fund also subject to a lock-in period of 3 years?



Is the dividend re-investment in a Tax Saver fund also subject to a lock-in period of 3 years? Also post completion of the 3 year lock-in period, can the non-dividend part be redeemed?

 Any investment made into an Equity Linked Saving Scheme (ELSS) is subject to a lock-in period of 3 years, same holds even for dividends from ELSS which is re-invested if the investor has chosen the dividend re-investment option. 


The implication for the investor is that some portion of his investment will always be locked-in because dividend declared is re-invested and will attract a three year lock-in.

However, any portion of the investment, whether originally made or as a result of dividend re-invested, which has completed the lock-in period of three years, can be redeemed by the investor.

 Alternatively, investors may choose the growth option while investing, or if opted for dividend reinvestment and want to make changes, he can do so by making changes in dividend option, i.e from dividend reinvestment to dividend payout.

Also refer:

Tax Treatment for Equity Linked Savings Scheme (ELSS)

Tax Treatment of Public Provident Fund (PPF)  


Capital Gains Tax on Sale of Mutual Fund Units!




Investors have to pay short-term and long-term capital gains on mutual fund investments. 

When units are held over a period of one year, investors pay long-term capital gains tax on debt funds. In case of equity mutual funds, there is no long-term capital gains tax. This means if you hold units of equity fund for a period of more than 12 months, you can avoid the short-term capital gains tax.

For investments sold within one year, you pay 16.995% (15% + cess) short-term capital gains tax.


Short Term Capital Gains  



Long Term Capital Gains

Monday, June 17, 2013

How to redeem your mutual Fund units and get redemption amount (Direct Credit) in your bank account.




The process of selling your mutual fund units is called as redemption. If you wish to redeem mutual fund units from any of the open ended mutual fund scheme; you do so on any business day. 

You need to fill  a transaction slip, which you can download from mutual fund website or detach from the end of your account statement. The Application can be submitted at mutual fund office or registrar office (Cams or Karvy)

 The process is actually very simple. It depends on whether you have bought the mutual fund from an agent or purchased it online.

If you have invested in a mutual fund through an agent, or directly through an mutual fund, you need to visit the mutual fund office or or registrar and fill a redemption form.

If you have online access to your mutual fund investment, login to your online account and you will find the option. Follow the steps and complete the process.

Now with  RTGS and NEFT option redemption proceeds are directly credited to the investor’s bank account, so in order to get funds directly in your bank account, update your MICR &  IFSC Code (11 digit code).


Prerequisite to get paid in your bank account


  • Bank Name and Complete Branch Address with pin-code should be provided.
  • Update Core Banking Account Number.
  • Provide IFSC Code (It is the11 digit alphanumeric code printed on the cheque leaf, near branch address. Alternatively, you may check the same with your bank branch) &
  • MICR code (It is the 9 digit code that appears next to cheque number)
You need to attach  cancelled cheque along with redemption slip to get fund directly in your bank account.

















How to Canel Systematic Investment Plan


To cancel Sip in mid way, is actually not good idea, but sometime we take such decision due to unavoidable financial reasons, or may be fund is not performing the way we expected.

Now the question comes in our mind whether any penalty is charged, if we cancel our ongoing sip in mid-way, the answer is No.
 
To cancel your ongoing SIP all you need to submit request letter.

You can stop sip by writing simple application mentioning your complete details(name, address, contact number, email address), folio number(customer folio/Account No.), Amount,  Sip date and submit to nearest mutual fund office or Cams or Karvy Service Center.

Most important rule for cancellation of SIP, is that if your sip is registered in offline mode (means sip is registered by submitting SIP form- SIP Auto debit form) , then in order to cancel the same, you need to submit form offline(means visit mutual fund office or registrar) and same goes for online sip, that is if sip is created online then you can cancel by visiting website online.

Process to follow for cancellation of SIP 

 1. Download the form,
2.  Fill the relevant details 
3. Submit SIP Cancellation form to nearest  Mutual Fund or Registrar office.
4. Don't forget to take the acknowledgement Slip for further communication.



SIP Cancellation Format (in pdf)
From:                                            
................................................................
................................................................
................................................................
................................................................

Cancellation of Systematic Investment Plan

To,
........................................................................
.......................................................................
........................................................................

Dear Sir,
I/We wish to discontinue the following SIP and hence request you to stop deducting the  below mentioned amount from my/our account from the. MONTH / YEAR.
Folio Number   ......................................................................................................

Scheme Details: .....................................................................................................

Sip Amount   ..........................................................

Date of Sip: .................................................................

Bank Account Number: .........................................................................................

Bank Name   ...............................................................................................................


Kindly initiate appropriate action and confirm.


Thanking you


Yours truly,

 (Signature)
Name/s of   unitholder/s











 What are Relevant Details to Fill in SIP Cancellations Form

 

 
1. Folio Number
2. Scheme Details
3. Sip Date
4. Bank Details
5. SIP Mode
6. Sip Cancellation date (Normally 30-45 days notice gets accepted for cancellation of Sip)
7. Signature of the Investor (most important)

Also Refer Can I Cancel my Sip Before Tenure
http://mutual-funds-personalfin.blogspot.in/2012/10/can-i-cancel-my-sip-before-tenure.html







 




Thursday, May 16, 2013

How to Change Address or Name in Your Aadhaar Card



In order to make changes you need to visit Aadhaar Self Service Update Portal, Login with your Aadhaar number, submit your request and upload documents


Step by step process
2. Data update Request
3. Upload documents


You can request for change in aadhaar card details maximum of four times till march 2014

How to check your Aadhaar status in your mobile - Android application



C. G. Technosoft Pvt. Ltd come up with official application to check your Aadhaar Card linking Status with Banks and LPG supply companies

Link of official application to check your aadhaar card status



Source:

How can i change my address in my pan card?


Query of Blog Reader

I have changed my residence since PAN card was obtained originally. How to and where change can be done in the records of PAN issuing authorities? - Dr Mrs Krishna Gupta





In order to make changes in address details in Pan Card you need to submit "Request for Change or Correction in Pan Data Form."

Form
Request for New PAN Card or / and Changes or Correction in PAN Data Form
Pan change Form
Pan change Form

Do's and Don't points
 Refer Do's and Don't for making application for a new PAN card / corrections
Important instructions and guidelines : PAN CR  

Fees
Fee for processing PAN application:  Rs. 96 (Rs. 85 + service tax) for PAN card to be dispatched in India. 



Where to submit
 Refer this  
http://www.myutiitsl.com//intra/web/search_psa.jsp
https://www.tin-nsdl.com/bank-center.php
 https://www.tin-nsdl.com/pan.php


  

Online request for change in address
IF want to follow process online then visit here https://tin.tin.nsdl.com/pan/changerequest.html 






Wednesday, May 8, 2013

What is the Tax treatment for an NRI investor - investing in mutual funds in India



The tax treatment for NRI investors with respect to Mutual Fund investments is the same that is applicable for Resident Investors except that applicable tax would be deducted at source for NRIs. 


How is TDS calculated for NRI Investments?


















 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 short 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.





 

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