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Modern life style and changing food habits have paved way for many new kinds of diseases. People who are hale and healthy today fall in the Intensive Care Unit all of a sudden the next day. Handling such emergency situations that are usually expensive becomes tough due to lack of required Finance.

Health Insurance plans come in handy during such situations which cause concern. Let us look at some Health Insurance plans prevalent in India during 2018.

Importance of health insurance including its tax benefits

Before venturing into specific Health Insurance Plans, let us have a detailed look at the importance of the same.

  • Taking health Insurance helps us to manage medical emergencies in a smart manner
  • When you take a Health Insurance, you can avail Tax exemption under Section 80D of the Income Tax Act
  • The cashless facility offered by Health Insurance Plans acts as a boon to many who have cash crunch
  • Health Insurance plans offer the chance to get the best of the Medical treatment for any ailment
  • Many Health Insurance Plans help the insured cover pre hospitalization, ambulance and other charges incidental to the actual ailments
  • Having a Health Insurance Plan helps handle large expenses that need to be incurred for critical ailments in an easy manner
Top 6 Best Health Insurance Plans in India 2018 1. Apollo Munich

‘Optima’ is the name of the Health Insurance Plan offered by Apollo Munich.

  • A maximum of 6 family members can be covered under the Optima Health Insurance Plan at any point of time
  • While the minimum sum assured is 3 Lakhs rupees, the maximum under the plan is 15 Lakhs.
  • One of the best features of ‘Optima’ is that it reinstates the sum assured to the fullest extent when the same is exhausted before the policy term ends
  • In the case of hospitalization, the Daily Cash Benefit is offered to the insured under this plan
2. Max Bupa Health Companion

The Health Insurance Plan offered by Max Bupa is popularly known as ‘Heart Beat’. It is a Family Floater Insurance Plan offering coverage to a maximum of 13 members under one single policy. This is one of those policies that offer coverage for maternity and new born babies also.

  • Under this Health Insurance Plan the minimum sum assured is 2 Lakhs and maximum is 50 Lakhs
  • Any new born baby falls under the coverage of this plan right from his 1st day
  • This policy supports treatments that fall under domiciliary and organ transplant category
  • The Direct Claim Settlement option that can be availed without TPA intervention is one of the best features the policy offers to the insured
3. HDFC ERGO Suraksha Policy

‘Suraksha Policy’ is the name of the Health Insurance Plan floated by HDFC Ergo. 

  • HDFC Ergo Health Policy offers the choice for the insured to choose a one year or two year policy term
  • This policy offers the user option to choose either an Individual or Family Plan
  • ‘Suraksha Policy’ does not have any sub limits set on the Hospital expenses, Doctor Fees and Hospital Room rents during hospitalization
4. IFFCO Tokio

Family Health Protector Policy is the name of the Health Insurance Plan offered by IFFCO Tokio.

  • This is an end to end comprehensive Health Insurance plan that offers cover to all expenses incurred towards Hospitalization, Organ transplantation, Surgery and treatment.
  • All relations related to the prime insurer can be covered under this Medical Insurance Plan irrespective of the relationship shared with them
5. Religare Care Health Insurance

‘Care’ is the name of the Health Insurance plan offered by Religare Health Insurance. This plan offers coverage to people who fall in the age group of 91 days to any age without any upper limits.

  • The minimum sum assured under this plan is 2 Lacs while the maximum is 60 Lakhs
  • Based on the claims made during the previous years, the NCB (No claim Bonus) ranges between 50% and 150%
  • Ambulance expenses incurred towards hospitalization also gets covered under this plan
  • Free health checkups every year is another key offering of Religare Health Insurance
  • When the policy term is 2 years, a discount of 7.5% is offered to the insured
6. ICICI Lombard Complete Health Insurance

iHealth is the name of the Medical Health Plan offered by ICICI Lombard.

  • The minimum sum assured for individual coverage is 3 Lakhs and for the complete family is 2 Lakhs
  • The maximum sum assured in both cases is 10 Lakhs
  • The minimum eligible age limit to be covered under this policy is 3 months in the case of a Family policy and 6 years in the case of Individual policy
  • The term period under this policy can either be 1 or 2 years and is given as a choice for the insurer to choose

The above information provided are just basic guidelines pertaining to some of the best Health Insurance Plans of 2018 in India.  Choose the best plan the suits your requirements based on the benefits you target to avail from the same.

The post Top 6 Best Health Insurance Plans in India 2018 appeared first on One Rupee.

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Credit cards have become part and parcel of our lives. Undoubtedly, they have revolutionized the workings of the digital world. With everything happening with a click of a button, credit cards are a blessing in disguise.

With its increasing use, salaried people are switching to the credit-driven economy. It is no longer a privilege which only a few wealthy people can enjoy. Credit cards have indeed made the workings of a salaried class simple and easy. With several options at your disposal, applying for a credit card is no longer a tedious task. You have different payment options available.

Credit cards can be a convenient in many way, but they can also be risky and expensive.

There are several benefits of using a credit card. Making a choice can be a challenge, but make sure that you choose the best option according to your requirements. Here is an exclusive list of best credit cards for salaried people in India, in no particular order.

TOP 5 CREDIT CARDS FOR SALARIED PEOPLE IN INDIA SBI Simply Save Credit Card

SBI offers a range of benefits to its users. It provides you multiple rewards for daily usage. Also, reward points are an additional incentive for salaried people to use credit cards as much as possible. It is an ideal card if you wish to grab exclusive reward points. Easy Bill facility can help you pay utility bills without any hassles. With the option of EMI payments, you can pay your outstanding bills easily. Easy SMS alerts can play an essential role in providing enhanced safety to its customers.

SBI SimplyCLICK Credit Card

With increasing trend of online shopping, cardholders can avail exclusive benefits by using the card for online transactions. You are gifted with vouchers on particular usage of the card. You can also receive reward points for online purchase with Amazon, Lenskart, OLA, Zoomcar and more. Flexipay option allows you the opportunity to make EMI payments without paying high interests. You also get mini statements and timely email alerts to keep updated on the card usage.

HSBC Visa Platinum Credit Card

It comes with a range of offers and deals for a salaried class individual. Some of the features include the easily redeemable amount in the form of cashback, gift coupons and more. You also have an option of converting your earned points into Singapore Airlines and Jet Airways air miles. You can avail 15% discount on select airport lounges and dining places. Also, you receive cashback of 10% on each purchase made during the first 90 days.

Axis Bank Platinum Credit Card

It offers a wide range of benefits to its customers. With a full line of attractive deals and offers, all you can expect is best loyalty programs with low annual fee plans. It is a perfect choice for all those who are willing to save money while spending. Earn an easy cashback of 25% on movie ticket bookings. One exclusive feature of this card is recommending the card to your loved ones to reap its benefits every time they use the card. Also, zero liability feature is beneficial in case your card gets stolen or lost.

HDFC Diners Club Premium Credit Card

You can earn up to 2500 reward points in the form of easy cashbacks. Get easy access to first class dining restaurants, airport lounges across the world. Apart from that, you also get points for spending on shopping and buying retail items.

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Let me know your favorite credit card in India that is missing from the list in the comments section.

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Public Provident Fund (PPF) is one of the top most investment option preferred by Indians for their retirement needs. PPF returns are fully exempted from tax and it offers attractive interest rate.

In PPF, investors can invest as minimum of Rs 500 to 1,50,000 in a financial year. PPF account holders have the useful options like withdrawal, loan against PPF etc. thus PPF remains one of the popular long term investment in India.

ICICI is one of the private bank which is authorized
by RBI to collect subscriptions under PPF scheme.

How to open PPF Account in ICICI Bank and invest online

ICICI provides the facility of opening Public Provident Fund online to its customers but they need to visit bank branch once to submit the signed form A along with required KYC documents. ICICI will map your PPF account to one of the designated branch.

Documents required to open PPF account in ICICI Bank

Customers who have a relationship with ICICI for less than 5 years:
Form A
Passport size photograph
Copy of PAN card

Customers who have a relationship with ICICI for more than 5 years:
Form A
Passport size photograph
Copy of PAN card
Residence proof – Passport/ Electricity Bill

The above documents should be self-attested and also carry the originals along with you.

PPF account opening procedure

ICICI has it own PPF account opening “form A” template, which is avail in all ICICI branches – you can also download Form A from ICICI website. Once printed , we need to fill the basic details like Personal details, Initial contribution details, Account opening Branch, Debit mandate, standing instructions, PAN etc.

At the time of PPF opening, one has to deposit the initial amount which can be minimum of 500 to maximum of 1,50,000. This amount can also be paid via Cheque also. For cheque payments – you need to attach the cheque and also fill the cheque details on Form A.

Once you submit Form A will all required documents, it takes two – three days to get activate your PPF account.

Also read: How to open PPF account in HDFC

How to transfer PPF account from other banks or post office to ICICI 

You have the choice to transfer your Public Provident Fund (PPF) account from your existing bank or Post office to ICICI bank. The Good news is, these transferred will be considered as a continuing account.

To transfer existing PPF account to ICICI – investors has to submit PPF transfer request along with ICICI branch address in their current bank/post office where PPF account is held. Current bank or Post office will arrange to sent the original documents such as a PPF certification, nomination form etc. along with cheque/DD of the outstanding balance in the PPF account to ICICI Bank.

Once ICICI receive these documents, customer needs to submit fresh account opening form A, Nomination form (Form E), existing PPF passbook along with KYC documents.

5 important points to remember while opening PPF account
  • The customer has to deposit the minimum amount of Rs. 500 in a financial year, if not – penalty of Rs. 50 will be levied per year of default.
  • No premature closure of PPF is allowed.
  • Only one PPF account can be maintained/allowed by an individual, except an account is opened on behalf of a minor.
  • PPF loan can be availed between 3rd to 6th financial year. No loan can be taken after the 6th financial year. Interest rates are far lower than those of personal loans. Partial amount can be withdrawn from PPF account from 7th year onwards.
  • You can transfer funds online from your ICICI Savings Bank Account and you can also view your PPF statements online

If you have any doubts regarding opening the new PPF account, kindly leave your comments. We would try our level best to address those.

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Every mutual fund in India has two types of plans; one is REGULAR and another is DIRECT PLAN. 

What is Regular Mutual Funds?

When you buy mutual funds from distributors, advisors etc. is termed as Regular Mutual Funds. In Regular plan, the investor can get the help of an adviser when doing the paperwork or choosing the funds based on his/her risk appetite.

Regular Mutual Funds has a higher expense ratio because of agents & distributors commissions. 

What is Direct Mutual Funds?

When you buy mutual funds directly from the mutual fund company is termed as Direct Mutual Funds. Direct Mutual Plans have a lower expense ratio compared to Regular because it does not include commission, distribution expenses, etc. 

Lower costs translate to better returns on investment.

Pointers to consider while switching from Regular Mutual Fund model to Direct Mutual Fund.
  1. You eliminate the intermediary so the commission aspect involved is avoided.
  2. This savings in commissions is added to the Direct Mutual fund returns in the form of a higher Net Asset Value (NAV).
  3. A Direct Mutual fund investor needs to handle paperwork by himself/herself since there is no intermediary.
  4. When you have invested your funds through the SIP mode, date of every installment is taken for calculation of the Exit Load
  5. Before taking the decision of switching your funds from the regular mode to direct mode, take into consideration the type of fund you have invested in. If you have invested in ELSS, then the product comes with a minimum lock in period of three years. Switching is not possible in this case.
  6. Long Term Capital Gains (LTCG) is another area that requires your consideration when you shift from Regular to Direct model of Mutual Fund
  7. Before investing in Direct funds, investor must understand about the scheme, its track record, mainly his/her financial goal and risk profile.
How to shift from Regular Mutual Fund model to Direct Mutual Fund?

You can shift from Regular Mutual Fund to a direct one in two ways – Online and Offline.

Offline method to shift from regular to direct mutual funds:
  • Visit the AMFI website to get information about Mutual Fund Distributors who are registered.
  • Fill in the CAN Form (Common Transaction Form) downloading the same from the MFU Website.
  • Take the acknowledgement given by the Mutual Fund house on submission of the duly filled in form
  • Remember to mention ‘Direct Plan’ in the form to avoid any confusion.
Online method to shift from regular to direct mutual funds:

Until recently, buying a direct plan was a tedious task. You have to register each mutual fund company website and do KYC compliance every time you invest in new mutual fund company.

An easier way of investing in direct plans is through online portals like CAMS, Clearfunds, zerodha.com etc. 

Follow the below steps to shift your Regular mutual funds to Direct Mutual fund online:

  • Log on to the myCAMS site with your login credentials
  • Click on the Switch button displayed under the Transact option
  • Choose the Folio number and the name of the AMC
  • Accepting the terms and conditions displayed will initiate the switching process instantaneously or on a later date as specified by you.
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Who doesn’t want to own a lump sum amount irrespective of the source it comes from? You may win a lottery or inherit a huge amount from your ancestral property? 

Many a times, owning a huge amount appears a bane when we are confused about the venues to invest the same.

“The art is not in making money, but in keeping it.” – Proverb

Here goes a simple guide for you to understand where the huge money you have in your hand can be safely invested in a profitable manner.

Allocation of Assets plays a crucial role.

It is important that you allocate funds for emergencies over and above spending for the regular commitments in life. Once you are done with funds allocation for emergency situations, it is time you look out for other venues to invest your money

At this stage of investment planning, you have four options to choose from to invest the huge amount that is in your possession.

1. Equity – Basically a Mutual Fund product or Direct Stock Market Investment, investing in Equity means buying ownership of the businesses that are traded by Companies in a public manner. Directly investing in Stock market has its own risk – when someone having no prior knowledge of equity markets starts investing directly in stocks only to lose money. It is always advisable to invest in good Mutual funds. For Equity Funds are generally classified based on risk levels. Some types of Equity Funds that are popular among investors are Diversified Equity Fund, Index Funds, Thematic Funds, Equity Linked Savings Scheme and Sector Funds. You may decide to invest the huge money you have either under the Growth option that multiplies your money in a cumulative manner. You may decide to invest under the Dividend option which will help you manage your short term commitments. Equity is one of the best options to invest your huge money in since it is professionally managed and offers high scope of liquidity.

2. Debt – Debt is one of those Asset classes that are less volatile in nature. Investing in Debt will mean investing lump sums of money. This will suit your current plan of investing the huge sum you have in your hand. Remember to keep in mind that investing in Debt means varying rate of returns since the same is not a fixed one. Another point to note while investing in Debt Funds is its reliance on the scheme the Fund Manager decides to park the same.

3. Real Estate – You may choose to invest your huge money in Real Estate if you are ready to wait. Investment in Real Estate must be looked only in terms of long term. Real Estate may not work out in the planned manner at all points of time when looked at as a short term venture.

4. Gold – Investing huge money in Gold depends on the exact quantum of money involved. Investing too huge an amount in Gold may mean Insurance at times of inflation and disaster. However, owing to the slow volatility rate, the yield from the investment will be lower than other forms of investment. Investing huge amounts in Gold will also mean making up the mind to deal with storing issues and managing transactions.

To summarize, the best way to invest lump sum of money is to:

  • Invest the total amount in Equities if you are a risk thirsty investor. Remember, when you go in for this approach, you may get lucky if the trend arrow moves upwards. However, when there is downfall in the money market, you are risking your entire amount to market fluctuations. One consoling factor in this option is, Equity markets are mostly on the raise going by the trends in the past. Investing in Equity can be one of the safest ways to park your huge funds since the same is professionally managed. Though the returns from investment on Equity are market dependent, the efficiency of the Fund Manager many a time earns huge profits too.
  • The other option you have to invest your large sum of money is to invest the same every month in a staggered manner. This will help you buy increased number of units when the market is low earning you profit when the market strikes a high.
  • The third option you have to invest the huge sum you have is to purchase Debt or Liquid Funds initially. You can then opt to go in for a Systematic Transfer Plan (STP). This will in turn fund a Gold Fund or a diversified Equity Fund over a period of one and a half to two years time.

Hope the above information pertaining to the various investment options available for investing huge chunks of money was useful to you.

With the clarity of mind pertaining to options available for investment, invest the huge amount you have choosing the avenue that best suits your requirement. Remember, the high levels of flexibility and patience you exhibit will help your money grow multi-fold.  

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Tax filing is a key practice for income tax payers as there are numerous benefits attached to it. Having a proof of your tax filing will come in handy when you are planning to apply Visa, Home Loan, or to get tax refunds and to avoid paying tax penalties. Tax filing is compulsory only if your annual income exceeding the minimum exempted limit.

It is always an easier option to e-file and e-verify your returns as it safer, quick and more convenient. 

Also read: Various Ways To E-Verify Your Income Tax Return

Even if there is no tax dues with salaried individuals where TDS gets deducted on each month, Still the filing is compulsory. 

There are lots of good options available to file tax returns in India; here are my list of 5 websites to easily file your income tax returns online.  

incometaxindiaefiling.gov.in

Incometaxindiaefiling website offers tax related services by the Income Tax Department, Government of India. This is free of cost for all tax payers in India and no matter which form one uses to upload their returns. The online e-filing system is easy to use with 5-6 pages to fill and it offers flexibility to file your income tax returns from anywhere and anytime.

Apart from this, you can find information about various online services such as status of your tax refund, ITR-V receipt status, PAN details, TAN details, CPC refund failure status, digital signature, etc. On this website, the ITR forms are available in two formats: Excel and Java mode.

Also read: Types of ITR forms

Apart from Govt’s Income Tax department website, there are many private tax filing websites, which are registered to enable e-filing process through their websites. Main advantage of these websites is they offers free basic e-filing services and they charge for the more complex tax filings service at moderate rate.

ClearTax

ClearTax is one of the famous tax filing website in India as it provides nice and simple interface and most importantly it is very easy to use.  The moment you enter the ClearTax website, you will see two buttons – Left side [Start Your Tax Returns Now] button that lets you to manually e-file your tax return by filing all details.  Right side [Upload your Form-16 Now] button allows you to upload your Form-16 PDF and it will fill your details automatically to prepare your income tax returns. Once uploaded Form 16 PDF, you need to just double check the data, enter any missing data like any other income received etc, finally pay taxes (if any) and file your returns.

For those who need a CA assistance to file their returns, Cleartax offers Expert-assisted e-filing starting from Rs. 499.

Taxsmile

TaxSmile established in 2007 and now it ranks among the top 5 eRIs in India. Taxsmile.com offers online tax services to individual taxpayers, businesses, professionals and income earned outside India. Taxsmile offers a dedicated support helpline to its users and also offers free e-filing for those with net taxable income of upto Rs. 5 lakhs.  

HRBlock.in

Similar to ClearTax platform, HRBlock website reads your Form 16 and pre-fills your form fields automatically to save your valuable time. HRBlock also offers chat and call support throughout the e-filing process. It also provides other paid services like Expert online tax preparation, In person tax e-filing, NRI Tax e-filing etc. The self e-filing services are completely free here. Apart from that, they have 3 plans: Basic (Rs. 499), Medium (Rs. 799) and Complex (Rs. 1,499) for tax filing assistance services. 

MyITreturn

They have unique questionnaire model to understand the exact scenario of the tax payer. This is simple questionnaire with Yes or No model, using those answers they automatically show only concerned Forms and Fields that the tax payer has to fill. Apart from website e-filing service, it also offers MyITreturn mobile app to easily file your income tax returns on the go. This App helps you to quickly calculate your Income tax, to check the status of your e-filed Income-tax return, to see the status of your income tax refund etc.

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What is MoneyTap? 

MoneyTap is India’s very first online app offering instant personal loans with a line of credit along with a credit card in partnership with the leading banks in India. This user-friendly app lets you borrow money at the tap of a button and helps you meet your financial needs for a wedding, vacations, medical emergencies, renovations or any big purchases you want to make. With this app, you can borrow as little as Rs. 3000 or as much as Rs. 5 lakhs. The best part about using MoneyTap is that you pay interest only on the amount you use and not on the amount that is approved.

How MoneyTap Work?

MoneyTap’s friendly chat bot guides you through a safe and speedy registration process where you need to fill in a few details. These details are required for approving your application and for checking your eligibility amount. The approval process is pretty quickand you can start to use your approved amount as cash or card while keeping a constant track of all your personal loan transactions, money transfers and EMIs in one place. With MoneyTap’s line of credit, every time you swipe Rs. 3000 or more, you can convert the amount into EMIs with a single tap and the interest rate will be reflected upfront.

Getting instant Personal Loans Online with MoneyTap Eligibility Criteria 

Anyone who is at least 23 years of age, whether salaried or self-employed with a minimum income of Rs. 25,000 per month is eligible to apply for MoneyTap’s personal loan with a line of credit.

Documents Required to get Your Personal Line of Credit Pre-Approved

If you are applying for MoneyTap’s personal loan, all that you would need handy during the application process is your Pan Card, your company’s name, your company’s email address, your net banking login details including your salary account and preferably your Aadhaar card. The KYC documents that you would need after your credit line approval include your ID proof and address proof.

Features and Benefits of MoneyTap’s Personal Line of Credit

MoneyTap’s convenient credit line comes with the following benefits:

  • The pre-approval process is pretty quick.
  • You can use your credit line as both – a quick cash loan and a card.
  • Interest is charged only on the amount used and not on the money transferred.
  • You can swipe as low as 3000 for ongoing expenses or withdraw as much as 5,00,000 in one go for a major expense.
  • You can convert your credit card spends into EMIs with a single tap on your mobile app.
  • You get 24-hour access to funds for emergencies and unforeseen expenses.
  • You get an attractive reward on the first swipe followed by big discounts on food, entertainment and fuel.
  • No collateral is needed.
  • You can maintain your credit line as long as you like.
  • You can choose your own EMIs with easy-to-repay variable rates.
Locations Served 

MoneyTap personal loans are currently available in the following locations:

  1. Bangalore
  2. Delhi NCR (Delhi, New Delhi, Noida, Greater Noida, Ghaziabad, Faridabad, Gurgaon)
  3. Mumbai (Mumbai, Navi Mumbai, Thane)
  4. Chennai
  5. Pune
  6. Hyderabad
  7. Secunderabad
  8. Gandhinagar
  9. Ahmedabad
  10. Chandigarh
  11. Jaipur
  12. Vadodara
  13. Mohali A
  14. Anand
  15. Panchkula
  16. Vijayawada
  17. Vizag
  18. Indore
MoneyTap Credit Line or Convention Loan: WhatMakes a Better Option for Financial Help in India?           

MoneyTap’s line of credit is very different from a conventional loan because MoneyTap loans are quick, convenient, and relatively flexible as opposed to a traditional personal loan that involves seemingly endless paperwork, a complicated approval process, and strict lending regulations. A major difference between a conventional loan and a MoneyTap credit line is the rate of interest. While a personal loan has a lower interest rate, the closing cost of a credit line is generally lower as compared to a personal loan because a credit line is a continuous revolving credit account. 

While a conventional loan gives you a lump sum amount and requires you to pay interest on the entire amount from Day 1, MoneyTap personal loans, let you pay interest only on the amount you use and not on the approved amount. Only a MoneyTap credit line lets you use the approved amount in bite-sized chunks as and when you need them. With a MoneyTap credit line you also get an instant top-up so every time you repay the amount you borrow, your available balance gets refilled by the same amount. So, if you repay on time, you would never run out of funds!

This is not all; you also get to decide your repayment cycle along with the amount of EMIs.

Looking for quick and easy access to funds? Give MoneyTap a go now! 

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Feeling of having repaid your loans is very satisfying.

Early closure of your Personal loan comes up with various advantages including saving a lot on the interest amount as these loan carries a very high interest rate. 

Considering the fact that Personal loan interest ranges from 13% to 20%; quick closing of your personal loan is the key to save money spent on EMI.

A personal loan normally have a lock in period of about 1 year, after which the entire balance amount can be prepaid.

In this post, we will see how to Preclosure your HDFC personal loan

1. Loan Pre-closure charges: To close a loan early, you need to pay a pre-closure charge. Each bank will have a different percentages for this. In HDFC it is based on the months, for example – if it is between 13-24 Months – 4% of Principal Outstanding, if it is between 25-36 Months – 3% of Principal Outstanding and for more than 36 Months – 2% of Principal Outstanding.

2. Outstanding amount: Know your Total Outstanding Amount including preclosure charges by calling the HDFC customer care. You can get the number from this link. This call center customer service is available between 8:00 a.m. to 8:00 p.m., 365 days a year.

3. Get the nearest HDFC Bank Retail Loan Service Centre address: In HDFC, you can’t pre-close your Personal Loan online or any HDFC branch. You need to visit the HDFC Bank Retail Loan Service Centre to close your loan. You can get the address from Customer Care or from HDFC website

4. Once you get the retail loan branch details – take your government issued identification document, loan account number for verification. Bank personnel will verify this document and collect Cheque/DD/Cash for the remaining  outstanding loan amount. Note that cash beyond Rs. 49,000 will not be accepted for loan repayment.

Once you closed your personal loan, get pre-closure acknowledgement receipt from the bank and also collect all your documents if you have taken loan against property / securities etc.

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As per section 194A of Income tax, TDS or Tax Deducted at Source will be mandatory deducted on all interest payment from banks and financial institutions exceeding Rs. 10,000 in any financial year. Thus, bank will have to deduct tax when any customer receives more than Rs. 10,000 and will directly pay this tax to the government on the behalf of the customer. 

New TDS Rule for Senior Citizen (Section 80TTB): 

From 1st April 2018, a new section (80TTB) has been introduced. This allows a deduction of tax at source on interest income for senior citizens from Rs 10,000 to Rs 50,000.

Form 15G and Form 15H are self declaration forms, which is to be submitted by bank customer requesting his/her bank for non deduction of TDS for prescribed income on Fixed deposit and Recurring deposit. One can submit these forms only when Tax on your Total Income is nil. Also, your total interest income for the year is less than the minimum exemption limit of that year, which is Rs 2,50,000 (Less Than 60 Years Old); 3,00,000 for senior citizens (60 Years Old Or More but Less than 80 Years Old) and 5,00,000 for super senior citizens (80 Years Old Or More). 

New Form 15G template

Form 15G is for Indian residents below 60 years of age.

New Form 15H template

Form 15H is for Indian residents above 60 years of age.

Important notes:

1. You will be penalized if you furnish wrong declaration on these forms or submitting even if you are not eligible to submit.

2. If your deposits are more than a year, you need to submit a fresh form 15 G/H for each financial year. 

3. NRI’s cannot submit Form 15G / 15H. 

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For every Indian citizen, the tax-filing period is a time of relentlessly looking for ways to save income tax, especially NRI taxation is a matter of concern for the vast number Indians living around the globe. The taxation policies in India are indeed very friendly for NRI. In general, the income earned outside the country is not taxable under Indian taxation system.

An NRI need to file an ITR (Income Tax return) in following cases:

1. All the profits gained by NRIs from their Business in India or from salary received by them for their services provided here are taxable in India. All these cases shall be taxed according to Indian tax slab rates.

2. If you own a house or any other property in India then your income from that property will be considered under Indian tax slab.

3. If you are having an account in an Indian bank whether it is a saving deposit, fixed or term deposit the interest earned from all these accounts will be taxable in India.

4. Capital gained from assets of NRI in India like property, shares, investments, debentures etc. are taxable.

Now NRI’s should have to use ITR 2 instead of ITR 1. They also have an option to furnish details of any one foreign Bank Account for the purpose of credit of tax refunds. 

Also read this post: Which Income Tax Return (ITR) Form To Fill For FY 2017-18 (AY 18-19)

Types of deductions and exemptions available for NRI’s

SECTION 80C: According to section 80C, a citizen of India (whether an NRI or a permanent resident) can get a deduction of maximum 1.5 lakh from their gross total income if he/she invests in any of following saving schemes:-

  1. Repayment of housing loan
  2. Tuition fees
  3. Life Insurance policy
  4. Investment in Equity funds or Mutual funds.
  5. Fixed deposit of at least five years.
  6. Investment in ULIPS
  7. Principal payment on loan for purchase of house property

SECTION 80D: This section gives you the benefit of deduction in your taxable amount for having a medical/ health insurance or in case of any medical emergency happened to you or your family. A total deduction of 25,000 is allowed for you, your partner and your dependent children. This amount is a bit more for senior citizen it is almost 30,000. Secondly, you can also claim an additional benefit of Rs.5,000 for paying the premium of preventive health schemes.

SECTION 80E: According to this section if an NRI had taken any kind of education loan for studying in India or Abroad then he/she can get a deduction equal to the interest of his/her loan. He/ she can enjoy this deduction up to 8 financial years.

SECTION 80TTA: This section is solely meant for NRI’s. According to this, an NRI can get a deduction of Rs. 10,000 on interest earned by them on their saving accounts in Indian banks.

SECTION 80G: NRI’s are allowed to claim a deduction in their taxable amount for donations for social causes to any registered helping institutions for underprivileged. The main thing is that you must have to keep the receipt for that donation for claiming your return.

Tax liabilities for returning NRI’s:

A returning NRI need not pay any tax on their income and assets outside India if their status in present financial year is still NRI. This exemption includes income from property capital gain, property, bank interest, debentures etc.

Suppose, you are a returning NRI trying to sell your property outside India and the capital gained by this transaction is transferred to your account in an overseas bank. In this case, this money is not considered under the taxable slab of India. If you want that money for buying anything in India then you can transfer it from your overseas account in part without creating a tax liability.

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