Transfer and withdraw Provident Fund in just 3 days

Retirement fund body Employees' Provident Fund Organization (EPFO) is planning to settle all claims like transfer and withdrawal of provident fund (PF) within three days, a move that will benefit over one crore such claimants every year.

In order to give effect to the proposal of expeditious settlement of claims, EPFO has called a meeting of all zonal heads on July 5, to draw an action plan.

The body is expecting 1.2 crore claims in the current fiscal and hopes that if around 70 per cent of those are settled in three days, then about 84 lakh claimants would be benefited.

Also Read : Check EPF (Employee Provident Fund) balance online

EPFO has already launched a pendency clearance drive to settle all claims received before June 15 this year. As many as 5,38,704 claims were pending as on June 11 this year.

"...in 2012-13, the body has settled 1.08 crore claims, out of which 12.62 lakh claimants were dissatisfied as their claims were not settled within 30 days. Moreover 1.41 lakh claims not settled even after 90 days has brought down the image of the EPFO amongst our members," the order stated.
It further said, "...customers expect change in the mindset from 30 days (maximum period for settlement of claims) to at least three days in computerised era for withdrawing their own money."

Also Read : Invest in Spouse’s name to cut Tax

The body is also in the process of introducing a facility where claimants would be able to apply online for transfer and withdrawal of their PF from July 1.

EPFO is setting up a central clearance house which will be operational on July 1. This will enable subscribers to apply online for settlement of withdrawal and transfer of funds claims.

The new facility will also enable subscribes to track online the status of their applications for transfer and withdrawals.

Under the new system, the onus of verifying the details of the PF account from previous employers would be on the EPFO.

At present, employees have to get their applications verified from their employers for settlement of claims.

Source – NDTV Profit

About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com

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Know ITR (Income Tax Return) Forms
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Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days

Continue

How to know status of Income Tax REFUND

All you need is: PAN Number and Assessment Year

Go to https://tin.tin.nsdl.com/oltas/refundstatuslogin.html and enter your PAN number and choose the Assessment year and click on submit.
This will give you the current status of your income tax refund. You can also track the status of the income tax refund by contacting the help desk of SBI’s at toll free number: 18004259760 or email them at itro@sbi.co.inor refunds@incometaxindia.gov.in


Website - https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
Call at Toll free number 18004259760
Email at itro@sbi.co.in or refunds@incometaxindia.gov.in

Also Read : Belated ITR fling rules and other aspects

Some important points about Income Tax Refund:
1. Note that the income tax refund is valid only if you file your income tax return on time.
2. If you delay the income tax return filing, in that case you will lose the interest on your refund money
3. Filing your tax return online will help you to get tax refund faster than offline return filing. So…go online.
4. The State Bank of India (SBI) is the refund banker to the Income Tax Department (ITD). So State bank of India sends the income tax refunds
5. Refunds are generated in two modes i.e., ECS and paper. If the taxpayer has selected mode of refund as ECS (direct credit in the bank account of the taxpayer) at the time of submission of income return the taxpayer’s bank A/c (at least 10 digits ) and IFSC code of bank branch are mandatory . For taxpayers who have not opted for ECS refund will be disbursed by cheque or demand draft.
6. The status of the refund would be available for tax payers, only 10 days after the refund has been sent by the Assessing Officer to the refund banker.
7. Refund status can be viewed only if you have received an acknowledgement from the IT department of having received the ITR form.

About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com

Other Posts:
Importance of filing Income Tax Return (ITR)
Know ITR (Income Tax Return) Forms
Belated ITR fling rules and other aspects
Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days

Continue

Why home loan is better than renting

Buying a house is one of the most important decisions of your lifetime. If you have available down payment (typically 15% of house value), then you can borrow balance 85% against the house you intend to buy.

The benefits of home loan interest deduction and repayment of principal will be more than the house rent allowance deduction. Most important benefit in buying a house is the hidden appreciation of the value of property. If you delay the decision to buy a house, the value may so appreciate that you may not be able to afford it.

Also Read : Never change house before 3 years

Buying a house using home loan is also an investment for retirement. It is like a disciplined saving for your safe retirement. You can reverse mortgage the house after attaining 60 years of age. Your monthly expenses could be met by the tax-free amount you will receive from reverse mortgage. However, the cash outflow is high in case you buy a house. For example, if you buy a house worth Rs. 50 lakh, then you will need Rs. 7.5 lakh for down payment and approx. Rs. 47,000/- EMI (@10.5%, 15 yr loan).
So, outflow in the first year is Rs. 13 lakh. Whereas, you can rent a similar property for approx. Rs. 2 lakh (including 4 months security).

Also Read : Leave home not liability when you are not around!

Buying a house is a long term decision as the cost of transfer/sale is very high. It includes stamp duty, brokerage etc. Moreover capital gain tax liability will also arise at the time of sale. Though a rented house is easy on cash outflow, a home lease is typically given for only 11 months, which makes renting a house a short term plan. Your home could be the asset you give your children as a secure gift for generations.
Buy a house if you are eligible through home loan.

About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com

Other Posts:
Importance of filing Income Tax Return (ITR)
Know ITR (Income Tax Return) Forms
Belated ITR fling rules and other aspects
Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days

Continue

Even home loan prepayment/foreclosure charges eligible for tax benefit now!

Key Highlights:
• Home loan prepayment/foreclosure charges will be deductible under the head “Income from house property”
• Taxpayer can set them off against other heads of income such as salary.
• This verdict is also applicable for taxpayer who has prepaid their home loan in previous year IE FY 2012-13. They can claim deduction before July 31, 2013.
• Avoid Fixed Interest Rate home loan - Reserve Bank of India in June last year had prohibited banks from charging foreclosure charges or prepayment penalties of any kind on home loans taken on floating interest basis.

Also Read : Invest in Spouse’s name to cut Tax

According to an order by Mumbai bench of the Income Tax Appellate Tribunal, prepayment charges for home loan will be deductible under the head 'income from house property'. This means taxpayers can set them off against other heads of income such as salary.

The tribunal has said that both interest and prepayment charges come under the definition of housing loan interest.

"When we incorporate the definition of 'interest' in Section 24(b) (of the Income Tax Act), the position which emerges is that not only the amount paid designated as interest but also any other amount paid by whatever name called in relation to such debt incurred also qualifies for deduction," the tax tribunal said in its order.

Also Read : Enjoy hassle free online PF transfer & withdrawal from July 1, 2013

The verdict will reduce tax liability of those who have prepaid property loans with 'income from house property'. The decision will help them claim deduction in the current assessment year as well as for previous years. A taxpayer can claim only one house as self-occupied and has to include income from the property (even if it is vacant) in the rest for tax computation.

Case – Hearing an appeal filed by Windermere Properties, the tribunal examined the definition of interest. Interest on housing loan is admissible as a deduction under income from house property. The bench comprising R K Gupta and R S Syal observed, "The appellant had obtained a loan from HDFC for acquisition of property. The bank accepted the early repayment of loan on receipt of prepayment charges (of Rs 1.56 crore). It is obvious that these prepayment charges have a live and direct link with the housing loan."
Dismissing the stand taken by the tax department, the tribunal bench added, "It is beyond our comprehension as to how the amount paid as interest for the housing loan taken is allowable as a deduction but the amount paid as prepayment charges of the very same loan is not deductible."
Both the direct interest and prepayment charges were held by the tribunal to fall within the definition of the term interest and allowable as a deduction from house property income.

Also Read : Why home loan is better than renting

"This ruling will help those who had paid prepayment charges during FY 2012-13. This payment will be deductible from income from house property. As a next step in the tax computation, salaried employees can claim a set-off against their salary income while filing their returns, the due date for which is July 31," explains Sonu Iyer, tax partner, Ernst & Young.

It must be noted that the Reserve Bank of India in June last year had prohibited banks from charging foreclosure charges or prepayment penalties of any kind on home loans taken on floating interest basis. Against this backdrop, it is likely that taxpayers for the financial year 2012-13 would have paid foreclosure charges only during April and May 2012. However, tribunal decision will also help in the course of pending assessment of earlier years.

Source – Yahoo! Finance

About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com

Other Posts:
Importance of filing Income Tax Return (ITR)
Know ITR (Income Tax Return) Forms
Belated ITR fling rules and other aspects
Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days

Continue

Leave home not liability when you are not around!

We have tried to enlist some guidelines that you need to consider while borrowing for a house.

Generally, you should not borrow above 50% of your take home salary. The other monthly payments such as insurance premium must be deducted while calculating repayment capacity. You also need to consider the tax benefits of home loan and the rate of interest on home loan while deciding how much to borrow.

Also Read : Never change house before 3 years

IDEAL HOME LOAN –
What is an ideal home loan?
A Home loan of Rs. 16 lakhs @10% for 15 years is an ideal position to optimize on tax benefits. EMI comes to Rs. 17,194 X 12 = Rs. 2,06,328.
Out of this, interest payable during the financial year is Rs. 1,57,817 and principal repayment is Rs. 48,511.
In case of joint home loan, the limit of 16 lakhs will be doubled. Interest deduction is allowed to each co-owner to the extent of his/ her share. The loan amount also depends on the value of the house you are buying as the banks typically allow only up to 85% of the total cost.

Also Read : Why not to buy a second house

You need to remember to take term insurance to cover home loan. One should take life insurance plan to ensure repayment of home loan in the event of untimely death. Generally, banks include insurance premium in your EMI, which makes it convenient to pay. So even if you are not around to pay off the installments, your family will never have to be without a home. Term plan is mostly cheaper and advisable than mortgage insurance. Term Plan continues even if you prepay the home loan whereas mortgage insurance reduces the risk cover every year.

About the Author: Manoj Harchandani is a certified TRP (Tax Return Preparer), authorized by Income Tax Department, Government of India. He is a tax planner and investment advisor. If you need ITR filing assistance, tax advice, tax saving tips, short term/ long term investment advice, please write him at manojh.trp@gmail.com

Other Posts:
Importance of filing Income Tax Return (ITR)
Know ITR (Income Tax Return) Forms
Belated ITR fling rules and other aspects
Tax saving thru’ Medical Insurance Policies u/s 80D
Benefits of Income Tax Return (ITR) Filling
Never buy a second house
Invest in Spouse’s name to cut Tax
Never change house before 3 years
Tax Saving through Home Loan
Enjoy hassle free online PF transfer & withdrawal from July 1, 2013
Leave home not liability when you are not around!
Check EPF (Employee Provident Fund) balance online
Why home loan is better than renting
Even home loan prepayment/foreclosure charges eligible for tax benefit now!
How to know status of Income Tax REFUND
Transfer and withdraw Provident Fund in just 3 days

Continue