How To Get Your Credit Card Application Approved: Tips & Tricks

If your credit card application has been recently declined, there might be a reason or two. It is important for applicants to analyse the likely reasons for rejection and make amends before applying the next time around. Do not feel dejected or lose hope. Generally, banks are not very likely to give you an explanation for the rejection.

Here are some tips to follow to ensure speedy and successful approval of your credit card application:

Take a look at your credit score: The first thing to do if you are applying for a credit card is to check if you have a good track record and a good credit score. Yes! You can have a credit score even without owning a credit card. Generally, people who do not have a credit card assume that they do not have a credit history and thus tend to be very careless with their finances. This is usually where the problem lies. Remember that there are several factors that determine how trustworthy you are as a borrower. This includes how you pay your bills, loans such as personal loans, car loans, etc. All this will reflect in your credit score before you even apply for a credit card! A poor payment history and track record will lead to rejection. So, mend these aspects before you send out the application.

What is a credit score?
A credit score is a three-digit number that acts as an indicator that will determine of reliable you are as a borrower. This is a very crucial factor that helps determine how much credit you will be eligible for in the future. It is also one of the main factors that will help you get your credit card application approved without any hassle. Ideally, a good credit score is a figure that hovers around the 700 mark.
How to improve your credit score:

• Do not make late bills payments
• Manage your debt in an effective manner
• Have a reasonable debt to income ratio
• Do not let debt get piled up
• If you already have a credit card and are planning to apply for a second one, use your credit card wisely

Make sure you are applying for a card you are eligible for: Another essential point to keep in mind is to apply for a card that you qualify for. There are many types of credit cards, and they come with different credit limits. You will be given an approval for a card based on your income level and track record. So, if your income is Rs.30,000 per month and the credit limit is Rs.50,000 per month on the card you have applied for, the card will not be granted. Most banks may not cite an income criterion, and therefore it is up to the customer to make that calculation and apply for a card accordingly.

Go, paperless: One of the most important things to keep in mind while sending out an application is the approach. If you submit a paper application form, it is likely for the application to go unnoticed or sometimes, even get misplaced. There is also the need to make an effort to go all the way to the bank. Why not explore the paperless method and submit your credit card application online? Use can also use an app to apply for a credit card.

Make sure you are paying bills: Be it your mobile bill or other types of utility bills, if you are not making bill payments on time or defaulting payments, it is very likely that your credit history is getting affected.

Do not default loan payments: If you already have any existing debts such as personal loans, education loans, home loans, car loans, etc., be disciplined enough to pay your EMIs on time without fail. Any default in this will have an adverse effect, and you will then be classified as an unreliable borrower. This is possibly one of the strongest reasons why banks reject credit card applications.

Also, here is a list of other factors that will affect your approval:

• If you have a relatively high loan balance
• If you have too many loans
• If you have a track record of loan default
• If you have missed a couple of EMI payments

Avoid making too many cold calls: The worst thing you can do is to apply for too many credit card at the same time. Especially if you have faced rejection in the recent past. It is important to first look into the causes of rejection before sending out a new/fresh credit card application. Also, if you already have more than one credit card, this will also have a negative impact.

Ask for reference: If you ask an existing customer to give you a reference, it might up your game and increase your chances of getting your application approved. So, keep this in mind, when you send out an application the next time around.

Check if your credit score is wrong
Sometimes, there may be some type of misrepresentation in identity, and your credit score may not be accurate. So, make sure you check if there is any discrepancy. How do you know this? Check and see if you have made late payments on bills or loans. If you have been disciplined with your payments and your credit score still does not look positive, there could be some type of misrepresentation in such a case.
Final words
Before sending out an application, know where you stand and do not blindly blame the bank. Make an effort to work on your shortcomings and the send out forms. Getting a credit card approval is a big step forward indeed and can give you a lot of financial freedom.

Points One Should Know About Prior To Filing Income Tax Returns

When filing income tax returns, we all tend to make certain mistakes. While some of the mistakes are caused due to lack of information or knowledge, others are due to our carelessness. With the last date of filing income tax returns approaching fast i.e 31 July 2018, here we look at certain points that need to be kept in mind while filing income tax returns this year.

• One needs to mandatorily declare all bank accounts while filing income tax returns. The details of all the savings and current accounts that were held at any time during the previous year need to be provided. While most of us think that we need not mention the income that is tax exempt while filing income tax returns, it is not true. All income that we earn from various sources needs to be mentioned.
• For quick filing of income tax returns, documents like receipt of income and investments, old tax receipts, Form 26AS, Form 16, bank documents need to be kept handy. The documents are not only needed to while filing the form online but also needs to be provided as proofs to the Assessing Officer (AO).
• While there was no late fee for filing Income tax Returns (ITR) after the due date until last year, this year onwards Rs.5,000 would be charged if the return is filed after 31 July 2018 but before 31 December 2018. The late fee would double to Rs.10,000 if the return is filed after 31 December 2018. The change has been brought about under Section 234F. The late fee would be Rs.1,000 for people whose total income is less than Rs.5 lakh.
• The 12-digit Aadhaar number needs to be mentioned in the Income Tax returns even though the deadline for linking of PAN and Aadhaar has been extended. For those who are yet to avail the Aadhaar number, they need to provide their 28 digits Aadhaar Enrolment ID while filing the IT returns.
• Applicants need to e-verify ITR-V using net banking, Aadhaar card or through Electronic Verification Code (EVR) process after the income tax return is filed. Doing this is necessary because only after doing it can the Income Tax department start processing the returns.
• Starting this year, individuals would also need to provide the GST identification number (GSTIN) along with the turnover while filing ITR-3. This has been done to ensure that people provide the correct details and make sure that they cannot evade taxes.
• Details such as account number, IFSC code, name as per bank records, PAN Card, address, and email ID needs to be provided correctly in the ITR form. This needs to be ensured because it helps in receiving important communications from the income tax department with the regard to the ITR filing.
• Deductions offered under Section 80 must be availed. This ensures in reducing the tax liability. To claim the deductions while filing ITR, all proofs need to be kept safely with the applicant as they would need to submit the proof to the AO later.
• While filing income tax returns, the individual is required to provide a detailed break-up of the salary as per the new income tax return forms. This needs to be in line as of Form 16 issued by the employer.

Online Application Process for Availing PAN through UTIITSL:

• Visit www.utiitsl.com
• Click Services on the homepage and select ‘PAN Card’
• Next, select one among ‘Apply for New PAN card (49A)’ and ‘Apply for New PAN card (49AA)’
• Fill in the details and click ‘Submit’
• Re-verify the details provided in the form and ensure that it is correct.
• Make the payment of the requisite fee.
• Once the payment is successful, the applicant needs to save the fill-in application form and get a couple of printouts for further use.
• Affix two photographs on the printout and sign across it.
• The applicant also needs to sign below the photograph and on the bottom of the second page of the printout.
• Next attach the required documents with the form and submit it using the digital signature option or at the UTIITSL office located near the applicant.

Will An Aadhar Linked With Pan Get Unlinked, If A Married Woman Changes Their Name In Aadhar After Marriage And Not In Pan?

The answer to the question seems to be ‘no’ for now as the government has not mentioned anything about unlinking of documents with regards to Aadhaar.

It needs to be mentioned that currently when linking of PAN and Aadhaar is being carried out individuals who have mismatch in their PAN and Aadhaar cards need to to fill a form and submit a signed declaration stating that the provided Aadhaar number should not be used for the purpose of linking it to ‘any other Permanent Account Number (PAN)’.

It is worth remembering that the process of filling up the form and submitting declaration is not  required by those whose records match as per both the documents.

How to get answers to all your PAN Card related queries by using the UMANG app

As a step towards creating a Digital India, Prime Minister Narendra Modi’s government has launched a new application UMANG (Unified Mobile Application for New-age Governance) which can be availed on various platforms like iOS, Android etc. Citizens of India can have access to different services of the government by using this app. If you do not have a PAN Card and want to apply for a new one or you want to know the details of your existing card online you can do it through the UMANG app. But before we delve deep into the how's and why's of the PAN Card business, let’s talk a little more about the UMANG app.

What is UMANG app?

As a government of India’s initiative to provide its citizens with all kinds of governmental services - central, state, and utility - online through a unified approach. The application which is designed and developed by the Ministry of Electronics and Information Technology (MeitY) and National e-Governance Division (NeGD) aims to provide solutions to various governmental service related queries. The UTI Infrastructure Technology And Services Limited (UTIITSL), a company owned by the government, helps to connect the users of UMANG application with different types of services.

To ease the process for its users, the app, now at its beta version, supports 13 languages through which you can currently avail 1200 services from several sectors of the government. Based on the operating system of your smartphone, you can download the app from Google Play Store/iTunes, or you can also give a missed call to 97183-97183 to get a download link. You can also take help of the customer service providers who are available every day from 8 am to 8 pm. Once you sign up to the app by one registration through your mobile number, you can access several of the services without visiting different websites.

What are the various PAN Card related services available through UMANG app?

If you are a salaried or self-employed citizen of India, it goes without saying that you must have a PAN Card. The Permanent Account Number (PAN) is issued by the IT department of India, and it is mandatory for every earning Indian citizen to be a PAN card-holder. According to the official website of UMANG, there are still a large number of people in India who do not have a PAN card. If you are one of them, then worry not as the government has facilitated online PAN services via UMANG to speed up the process. At present, you can avail different PAN related services like:

• Apply for new PAN Card (49A)
• Track your PAN Card
• Direct payment for form 49A and CSF
• Direct e-Sign or Pan eKYC for form 49A and CSF
• Download form 49A for Indian citizens/NRI/Corporations/form 49AA for Foreign citizens/form for changes or corrections in PAN card details.
• Contact Us.

How to gain easy access to various PAN related services through UMANG app?

After you have successfully installed the app on your smartphone, click on My PAN and choose any of the four options - New PAN Card (49A), PAN Query, Other Services, and Contact Us.

New PAN Card (49A): If you do not have a PAN Card and are applying for a new one, you can quickly do that by completing the steps mentioned below:

Once you have opened My PAN, click on New PAN Card (49A). You can apply for a new card by clicking either eSign or Form 49A Physical option.

If you have chosen the eSign option, you will be redirected to a new page which contains specific guidelines for submitting and making payment for the PAN application. Read it carefully since it contains important information about the process. For the Physical option, you can follow all the steps of eSign process and then submit the hard copy of Form 49A and make payments at the respective PAN office.

Click the Proceed button and add your personal details as mentioned on your aadhaar card and click NEXT.

On the next page provide your Address details and click NEXT.

Provide your financial details on the next page to continue further. You should provide necessary information on the following page only if you a minor, i.e., under 18 years of age. If this option is not valid for you, then just scroll down and click on the NEXT button.

Now, you will be asked to upload proofs of your identity, address, and date of birth to support the data that you submitted earlier. Here you can preview your documents before submission. Once you are sure that your information matches with the proofs uploaded, click the Submit button.

The final page is about payments. You will receive your application number which can later be used to track the progress of your PAN and make payments.

Track your Pan card: Click on the PAN Query option and enter either your application number or PAN Card number and click the Go button to know about the status of your PAN.

Download documents: You find this option inside the Query box. Just choose from the given choices of forms and select to download it either to your device or send it as an email.

Direct payment: If you have already filled and submitted form 49A and CSF form, click Other Services and then click Direct Payment option to make payment by entering your application number.

Direct eSign: In case your payment was successful, but you are unable to eSign, click on Direct eSign under Other Services options and re-upload/reconfirm your documents and aadhaar details by entering your application number.

For any other information, you can also click Contact Us and then select your city and branch to get the contact details.

10 Things Millennials Should Know to Grow their Wealth

Often glued to social media and lost in virtual reality, what does an average millenial know about financial management? A millennial is anyone who was born between 1981 to 1996 and is currently aged between 22 years to 37 years. This age group constitutes the young generation in any work environment. While this generation has mastered the art of hailing a cab, ordering food online and using mobile apps, what about financial management? Well, the foundation may be quite shaky for most people who fall in this age group. Financial prudency is required at every stage in life and it is always better to start early than to begin at a later stage in life when things get complicated or when it is too late.

In this article, give this generation the most valuable tips when it comes to money management.

Tip 1 - Say hi to personal finance apps: Using a personal finance app is very simple in today’s world. Most of these apps are free and there are no charges involved to use 90% of all the features. This kind of app is easy to use and will automatically track each and every expenditure incurred on a daily basis. Many apps also have a section where they give you some useful financial tips and also tell you where you need to cut down your spending overall to achieve your financial goals. Also, you can set automatic reminders for credit card and also utility bill payments through these mobile apps. So, start using a personal finance app and see how it helps you manage finances on a day to day basis.

Tip 2 - Track where you are spending, arrest spending: This is one of the most important strategies to follow for personal finance management. The thing here is to not stop spending but to be fully aware of where your money is going. Once you know this, you will know where you are spending excessively. For example, if you are taking cab rides all the time and spending more money on transportation, you can look for a cheaper alternative such as boarding a metro train instead. Are you spending too much on eating out or ordering food online at office? Try to make home cooking more fun by trying new recipes, throwing dinner parties, or even taking fun home-cooked meals to office. Do not forget to track your spending behavior.

Tip 3 - Start saving a portion of your salary each month: Living from one paycheck to another is a big no no. The habit of spending everything from your salary account each month and being broke at the end of the month is not going to get you anywhere, and quite literally. Make sure you are setting aside a portion of your pay monthly in an investment scheme. Ideally you should be saving at least 10% to 20% of your monthly salary. So, if you earn Rs.20,000 a month, and you save 20% of it, you will have to set aside Rs.4,000 each month. So, why not start a Systematic Investment Plan (SIP). Invest Rs.4,000 each month in a SIP or even a recurring deposit account. The idea here is that it does not matter if you earn less or more. No matter how much you earn, you need to be financially prudent and take the first step towards saving money. Take the baby steps and inculcate a savings habit before it is too late. Do not deplete all your resources.

Tip 4 -There is something called investing, do it: Just saving money in a savings bank account will not cut it. You need to make your money work for you and earn out it. Even if you start small, it does not matter. The idea is to make investments that will pay you in the long-run. So, if you have a lump sum saved up, do not keep it idle in a savings bank account, open a fixed deposit instead. This will help you earn more interest when compared to what is paid on a savings bank account. You can also look for other investments options. Take the first step and go make that investment that you have always wanted to make.

Tip 5 - Explore the options: In today's world, there are numerous investment options that are available. There are different degrees of risk associated with each type of investment. For example, investing in a fixed deposit is one of the most risk-free and offers you guaranteed returns. On the other hand, if you put your money in an SIP, you can earn more out of the investment but there is a slight risk associated. There are also other options available such as gold bonds and shares. So, take a look at the range of investment options that are available at your disposal instead of jumping at the first option that you get. While most Indians tend to be very conservative when it comes to making investments, make sure that you are not overly conservative as it will bring down your chances of earning money.

Tip 6 - Do not ignore insurance: One of the other most important things to do when you are planning your financial portfolio is to make sure there is insurance in it. Both life insurance and health insurance is crucial. And the best part is, the more young you are, the lesser is the premium cost for insurance products. It is best to go for insurance when you are younger because there are more chances of you getting a higher cover as well than when you are old. So, go for a health insurance policy and a life insurance policy.

Tip 7 - Plan your taxes: You are way into adulthood but still do not know a thing about taxes. There is no excuse. It is very important to be aware about the tax aspect of life. Do a little research and learn how to do your taxes. Learn more about how you can avoid paying a lump sum by making certain types of investments. SIPs, FDs, and PPF, all give you tax benefits. Even life insurance and health insurance comes with tax benefits.

Tip 8- Look for freebies: If you have a credit card then look for the various complementary features that comes with it. This may include free meal vouchers, buy one get one free movie tickets, reward points and cashbacks. Make sure you are making the best use of all of these and not wasting money in any way. So, hunt around for financial freebies and make the best use of them. Also, ask your employer the perks and benefits that you are entitled to. 

Tip 9- Take calculated investment risks: This is the age for us to take some element of financial risk. As you age, it will become more and more harder to take up any type of financial risk. Any investment portfolio should be made up of a mixture of investments that include risk-free options, mid-range risk investments and also a small share of risk-prone investments. This way, you are balancing out your financial portfolio and this will help you gain.

Tip 10 - Have a retirement and emergency fund: After all the financial planning that you do, what is the point if you do not have enough money for the retirement. This is one aspect that most people ignore. So, before you make all your ambitious financial plans, first make sure that you set aside some portion of your earnings for an emergency fund. After you have an emergency fund, the next thing to do is to create a solid and pool-proof plan for your retirement

On a concluding note
The previous generation always has a tendency to be tough on the current generation. It is not easy being a millennial and life at this time and age comes with its own set of challenges. However, despite all this, it is very important to look at how we can be financially secure, especially when the types of jobs are evolving and the whole concept of pension has already died down. This is why it is more important to start saving towards retirement from the very beginning, in fact, this should be done from the first paycheck you get at the first job. Create a financially secure life for yourself and stay happy!

How Small Savings Schemes Can Help You Increase Your Monthly Savings

Regular income is a must in everyone’s life. Though high cost of living and growing materialistic needs
has reduced our savings bank account balance, many strive to increase it. Financial success and a
high bank balance are considered as a sign of achievement in this society. Making sure you receive a
monthly cash flow can be challenging.

To make sure you have sufficient savings for your post-retired life, you will have to start saving early.
There are many small savings schemes that one can choose from to build their savings portfolio.
Listed below are some of the most popular savings instruments you can invest to start saving:

Senior Citizens' Saving Scheme (SCSS)

Opening a Senior Citizens Savings Scheme is one of the easiest ways to start saving. This scheme is
available for senior citizens who are planning to have a regular flow of income throughout their
retired life. SCSS can be started in any of the post office or banks in India by anyone who has
reached the age of 60 years. Some of the features of SCSS are:

• The maturity period of SCSS is 5 years.
• An account holder can open more than one SCSS account individually or jointly with a spouse. 
• An SCSS account holder avail nomination facility.
• Currently, the interest earned on an SCSS account is 8.4% p.a.
• If the acquired interest on an SCSS account is more than Rs.1,000, the tax is deducted at source.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

This scheme was launched on 4 May 2017 to help senior citizens build a regular monthly cash flow
every month post-retirement. This scheme can be operated only by LIC (Life Insurance Corporation
of India). Senior citizens can buy PMVYY online or at any LIC office. Under this scheme, one can
earn an interest rate of 8% to 8.30% p.a based on the frequency of pension (monthly, quarterly,
semi-annually, and annually) chosen by them during the inception of the policy. Some of the features
of this scheme are:

• The minimum purchase price to be eligible for monthly pension is Rs.1.5 lakh.
• With an investment of Rs.1.5 lakh, an account holder will get Rs.1,000 as monthly pension.
• The maximum purchase price under this scheme is Rs.7.5 lakh which will return Rs.5,000 monthly pension.
• If the account holder survives throughout the tenure of the plan, the purchase price along with the final pension installment will be payable. 
• If the pensioner dies during the term, the purchase price will be paid as a death benefit to the beneficiary.

Post Office Monthly Income Scheme

A post office monthly income scheme is a savings scheme that can be opened by any individual.
This is a 5-year investment plan with a maximum investment of Rs.9 lakh if opened jointly
and Rs.4.5 lakh if opened individually. Some of the features of this scheme are:

• Currently, the interest rate on post office monthly schemes is 7.6% p.a.
• Nomination facility is available under the post office monthly income scheme.
• A post office monthly income scheme can be opened in the name of a minor as well. 
• A joint account may be opened by two or three people. 

Systematic Withdrawal Plans From Mutual Funds

One of the best ways to get regular savings is to invest in mutual funds. One should know how to
invest to make money in the mutual fund industry. While SWP holders make money and are allowed
to withdraw the money at once, equity fund usually suffers a sharp decline.

RD Deposits

RD Deposits are another great way to earn extra every month. It is a low risk financial instrument in
which an account holder locks his/her funds for a fixed period of time which earns rate of returns.
One can choose if they want monthly, quarterly, yearly return.

Start investing when you are young to have a financially safe future.

How to get a duplicate PAN card if your have lost your PAN card

Steps to get a Duplicate PAN card

• Visit the NSDL website.
• Fill the online PAN replacement form and click on submit.
• Ensure that all entry fields are correct, else you will not be able to submit the application.
• If you need to make changes to your PAN card, fill in the corresponding box with the required changes.
• Fill in your PAN details and address for contact.
• For a new request, your Aadhaar card will detail will have to be submitted along with your application.
• Currently, the price for a replacement of PAN card application is Rs.107 (inclusive of taxes). You can make the payment through your net banking account or with your credit or debit card.
• The fee for the process to replace a PAN card is Rs.997 currently. This too can be made via your net banking account, a demand draft or through your credit or debit card.
• If you are making a payment through Demand Draft, the name of the applicant should be on the DD.
• On making the entry, the acknowledgment will be displayed.

The acknowledgment will consist of:

• A 15-digit unique Acknowledgment number
• Details of Proof of Identity, Address & Date of birth(applicable for Individual & HUF applicants)
• Category of applicant
• Aadhaar No.
• Permanent Account Number (PAN)
• Name of applicant
• Father’s Name (in case of ‘Individual’)
• Date of Birth/Incorporation/Agreement/Partnership or Trust Deed/Formation of Body of Individuals/Association of Persons
• Address for Communication
• Space for Photograph (in case of ‘Individual’)
• Payment Details
• Space for Signature

When you have gotten the affirmation, you can check the status of the PAN confirmation. This ought to be done inside 5 days from accepting the affirmation. Take after the means said underneath to check PAN confirmation utilizing PAN number: 

Sign on NSDL PAN card money related administration site. 

For substitution or republish of PAN card, enter your current PAN card number. 

Enter the captcha. 

Tap on submit. 

The site will show the PAN check status.

Online application process for a copy PAN card Form 

Candidates should first tap on the connection titled 'Apply Online' and they will be diverted to another page. 

People should tap on 'Application sort' and select the third choice which is, 'Changes or Correction in existing PAN Date/Reprint of PAN Card (No progressions in existing PAN Data). 

Under 'Classification' candidates should pick the pertinent alternative, which is either individual or organization or so on. 

The following area is with respect to data of the candidate. The principal answer that should be given is the 'Title'. 

Next, they should give their last name or their surname. 

People should then give their first name and their center name. 

Next, people should specify their date of birth including month, year and date.

Top 5 Reward Credit Cards In India

Top Rewards Credit Cards  in India 2017

1.SimplySAVE Advantage SBI Card

This card comes stacked with benefits. Once the cardholder burns through Rs.2,000 in the initial 60 days, they get a reward of 2,000 reward focuses. Additionally, for each Rs.100 spent on feasting, staple, motion pictures, and departmental stores, the cardholder can gain 10x reward focuses. On each other use made on the card, they can gain 1 remunerate point for each Rs.100 spent on the card. Likewise, utilizing this card at any petroleum pump will get you opportunity from paying 1% fuel additional charge.

2.HDFC MoneyBack Credit Card

The cardholder earns 2 reward points on spending Rs.150 on this credit card. Also, they can earn 2x reward points while shopping online. Apart from this, the cardholder can bag a fuel surcharge waiver of up to Rs.500 on every billing cycle. This card also comes with zero liability if the cardholder ends up losing it.

3.American Express Membership Rewards Credit Card 

Easy to use and highly popular, this credit card is one of the most useful when it comes to gathering reward points. Cardholders can bag a welcome gift worth 4,000 bonus membership reward points. Also, they can earn 1 membership reward point for every Rs.50 spent on anything except for fuel, utilities, insurance, and cash transactions.

4.ICICI Instant Platinum Credit Card 

This card is for all those who love to have a good life. Cardholders can earn up to 2 reward points on every Rs.100 they spend on this card (except for expenditure on fuel). These reward points can be collected and redeemed for cash. Cardholders can also get a discount worth 15% on dining at more than 800 restaurants using the Culinary Treats Program.

5.Standard Chartered Platinum Rewards Credit Card 

This is another Mastercard that is profoundly mainstream among individuals who anticipate winning prize focuses. Cardholders can gain 5x remunerate focuses at presumed lodgings, eateries, and others in India and also, abroad. They can likewise acquire 1 remunerate point for each Rs.150 spent on each other classification. Cardholders can likewise sack 5x remunerates on purchasing fuel in India. 

On the off chance that picked admirably, a great prizes Visa can help the cardholder to win weighty rebates on shopping. All it needs is some fastidious picking. 

How to link PAN to Aadhaar

Citizens of India who have been allotted a 12-digit Aadhaar number will have to have it linked to their PAN. Those who are planning on applying for a PAN card will also have to quote their Aadhaar number when they do so. The Finance Act of 2017-18 has made Aadhaar a necessary requirement for the filing of tax returns provided that your PAN has been linked with your Aadhaar. Linking the two is expected to keep a tab on tax evasion. According to a notice by the government, those who fail to link their Aadhaar and PAN will have their PAN canceled.

It has been reported that over 2.07 crore taxpayers residing in India have already linked their Aadhaar and PAN card. Currently, there are over 115 crore people who have an Aadhaar card where as there are over 25 crore PAN card owners in the country.

PAN and Aadhaar should be compulsorily linked

The Government of India has declared that every Permanent Account Number (PAN) holder has to connect his or her number to their Aadhaar from July 1, 2017. You will soon have to start quoting your Aadhaar when you apply for PAN or while filing your income tax returns.

In Form 49A, a new section has been added to enter the Aadhaar number while one is applying for PAN. The Income-tax Rules of 1962 have been amended to declare that whoever has PAN must mandatorily quote his or her Aadhaar number to the income tax authorities.

PAN and recently even Aadhaar have been made compulsory for creation of bank accounts and making cash transactions.

 In the rush to link Aadhaar to PAN on the income tax website before 1st July 2017, people have observed that the website has been crashing. Most people seem to have understood that if they do not link their Aadhaar with PAN before 1 July, the PAN would be automatically disabled. But that is not entirely true.

As per the latest declaration from the government, the linking will be mandatory from 1 July, and not before it. After July 1st, the government would declare a date after which PAN cards not linked to Aadhaar will be invalidated.

Individuals applying for new PAN post July 1 would have to quote their Aadhaar numbers mandatorily. Quoting of Aadhaar is also mandated when filing income tax returns.

Login to the income tax e-filing website, https://incometaxindiaefiling.gov.in/ and access the ‘Profile Settings’ menu option. Click on ‘Link Aadhaar’. A form will be displayed in which you have to update your name, gender, date of birth, and Aadhaar details.

Submit the form to complete the process. You will receive a confirmation email at your registered email ID.

New to Credit Cards? Here’s All You Need to Know

So you’ve decided to take the plunge and get yourself a credit card. Unwrapping that shiny little piece of plastic opens you to a world of benefits and privileges. However, there are certain rules to live by if you want to avoid falling into a debt trap that could see your credit worthiness spiral downwards and make you a financial persona non grata.

A credit card gives you the freedom to spend money that is not debited from your bank account up to a certain sum for a fixed period of time. Thus, credit cards make credit available to you as and when you need it. The amount is to be repaid based on your billing cycle to avoid penalties and fines. While the initial rush of swiping your card everywhere you go might seem the way to go, here are some points to keep in mind so card debt does not loom on your financial horizon:

• Credit Card Charges:

A credit card usually comes with a whole list of Credit card charges, beginning with the joining fee. Additional charges include the annual fee, statement fees, service tax, surcharge, late payment fee, card replacement fee, etc. Exceeding your credit limit on your card will attract a charge as well. Delayed payment of your dues will also result in a penalty, which will be levied on your subsequent bill.

Not paying off the total amount due on your credit card will attract interest charges, which could be anywhere from 3%-4% a month. Doesn’t seem like much, you might scoff, but when annualised, the rate amounts to a whopping 48% on the higher end of the interest spectrum. This amount is also levied on each successive bill that has a balance carried over, which will inflate your overall amount due by a significant amount.

• Picking a Credit Card that Suits Your Needs:

Picking a credit card that suits your needs is important, as this could be the deal breaker between you enjoying the perks of a card and drowning in a sea of debt. If you’re looking for a card merely to help you keep up with payments and aren’t looking for any perks, a no-frills card is the best bet for you. Looking for discounts each time you swipe at a store? A shopping credit card that offers cashback or in-store rewards is the one for you. Frequent travellers can benefit from a travel card, which converts points into air miles redeemable on flights or hotel stays.

• Dates to Remember:

With your new credit card comes a host of important dates that you have to keep in mind, such as your bill payment date, the date the bill is generated etc. The date your bill is generated on marks the end of your billing cycle and lists your outstanding dues for that period only. The bill payment date is the date by which you are expected to pay off the outstanding amount or the minimum amount due to avoid late payment charges.

• Credit Card Application Status
  Different banks have different ways of credit card application status but most of them have an online facility, where you can apply for a credit card online as well. The process then involves furnishing all required documents and information to the bank. Once, the application process is complete, you must track your application status to check how far long has it been processed by the bank so that you can follow up with the bank accordingly. Usually, it takes up to three weeks to receive your credit card from most banks. Credit card may take a month from the date of registration, as it undergoes processing request, followed by dispatch to your home address.
  

• Minimum Due versus Full Payment:

Credit cards offer you the chance to pay off your debt in instalments, either before the due date or after it. It is always advisable to pay off your outstanding amount by the due date to keep your credit score and repayment history healthy. However, if you are unable to pay off the whole amount, you are required to pay a minimum amount, usually a percentage of your total outstanding amount.

Getting away with paying just the minimum amount brings with it a set of charges though, since you will be paying interest on the balance amount. You will also lose out on the interest-free period, meaning every successive transaction will incur interest from the day the purchase is charged to your card.

As seen above, there are quite a few pitfalls associated with credit cards that, if you aren’t careful to avoid, could leave you in debt for a considerable amount of time. Being prompt with payments, avoiding maxing out your credit card and being prudent with what you charge to your card will ensure that you reap the many benefits that come with credit cards.

Credit Card Bill Payment by Online Banking

To pay credit card bill by online banking follow the below steps

• Activate your online banking account which is secured with an IPIN.
• You can then login and view your credit card purchases, statements, payment dues dates and outstanding amounts.
• Select the credit card and click on “Pay credit card bill now”.
• You can then select the bank account to be used, enter the amount you wish to pay and make the payment.
• Online Banking is the fastest way to pay your bill as the turnaround time is usually immediately or on the same day.

SFBs Compete for Term Deposits as Interest Rates Fall

Banks across the country are flushed with currency since demonetization of two of the most popular currency notes – Rs.500 and Rs.1000 was announced by Prime Minister Narendra Modi on November 8, 2016. In lieu of this move, interest rates across deposits and banks have been falling ever since and SFBs or Small Finance Banks are competing with each other to offer the best possible rates on the table.

How are SFBs capitalizing on interest rates post demonetization?

The main reason for slashing the interest rates of deposits have been to keep in check with the offtake of slow credit as the aftermath of demonetization. Customers of SFBs are now being offered interest rates that are up to 200 bps or basis points higher than the current market rates. Take for instance, Suryoday Micro Finance – the bank is offering its term deposits at an interest rate of up to 9% p.a. depending on the tenure and senior citizens will receive an additional interest rate of 0.75% p.a. Even their savings accounts are being offered at an interest rate of 6.25% p.a. for up to Rs.1 lakh and for deposits between Rs.1 lakh and Rs.10 lakhs, an interest rate of 7.25% p.a. is being offered.

Utkarsh is another SFB that is offering their term deposits with interest rates of up to 8.5% p.a. and an additional interest rate of 0.50% p.a. for senior citizens. Utkarsh is also set to open 50 new bank branches over the span of 2 months and upgrade its present MFI or Micro-Finance Institutions into full-fledged banks this April, as communicated by the bank’s managing director, Govind Singh.

Ujjivan is another SFB that is prepared to offer interest rates on deposits that are higher than the prevailing market rates. Ujjivan’s focus so far has been only on wholesale deposits, but it is also preparing itself to raise interest rates for its retail deposits in the near future.

Equitas is offering interest rates up to 9% p.a. on their term deposits and between 6% p.a. and 7.5% p.a. on their savings account.

Capital Small Finance Bank is offering 4% p.a. interest rate on their savings account and 7% p.a. on their term deposits for a tenure between 5 years and 10 years. For senior citizens, the bank is offering an interest rate of 7.2% for a tenure of 400 days.

What does the future look like for SFBs?

The cost of funds for a majority of these Small Finance Banks have been 11% or more. However, as many SFBs are gearing themselves to convert their existing businesses into banks, their cost of funds will most definitely come down even if they are offering interest rates higher than the prevailing market rates.

However, most of the SFBs are said to initially focus on micro lending before transitioning into full-fledged retail banking. Due to this focus, most of the SFBs are proposing to keep their MCLR or Marginal Cost of Funds based Lending rate high.

According to the norms put forth by the RBI (Reserve Bank of India), SFBs have to start their operations latest by this April. RBI granted licenses to 10 SFBs in September 2015 and recently, 11 companies have been permitted to start payment banks.

Why Liquid Funds are a Good Idea

With the demonetisation drive that took the country by storm, liquidity has seen a tremendous increase and while the drive did stir up the pot, it managed to bring a lot of the currency back into the banks. The demonetized currency has almost entirely (close to 95%) been deposited back into the accounts and the overall financial ecosystem is currently seeing a great degree of liquidity.

This feature has consequences that reach farther than the lines at the ATM. Banks are now flush with cash which has caused them to reduce interest rates. Borrowers with car loans or home loans can enjoy this brief respite but investors’ better start looking at other options rather than traditional fixed deposits. Lowered interest rates also imply that the bank pays lower rates for deposit amounts thus reducing the returns.

The reduction in rates are meant to deter people from further depositing cash into the system. Investors can still opt for time tested methods of deposits that are extremely safe but give poor yields. Other options investors could consider are Liquid Funds.

Features of Liquid Funds

Liquid funds are money market funds that fall under the debt fund category. These funds give better returns than bank deposits and consist of investments such as short-term treasury bills, commercial papers, term deposits and certificate of deposits. The maturity period of assets invested in have an average period of 91 days

Liquid funds are offered by a wide range of fund houses. Entry or Exit loads are not imposed on these funds. Unlike equity funds, the management fees levied on liquid funds are lower as well ranging between 0.5% and 1%. Even the investment amounts are very affordable for those just starting off. Investments can be made through lump sums or through SIPs used in a manner similar to mutual funds. Lump sums invested in liquid funds can be as low as Rs.5,000.

Tax benefits

This is the realm in which liquid funds are far superior. Bank deposits usually offer lower interest rates but come with no risk. The interest rates on deposits can range from 4% to 7% and when you take tax deductions into account, the returns are further diminished. For those investors falling under the 30% tax bracket and holding a fixed deposit that offers an interest rate of 6.5% per annum, the interest rates received after tax deduction will wilt down to 4.55%

Liquid funds on an average have been earning more than bank deposits with interest rates averaging out at 8% to 9% per annum. This trend has been consistent over the past few years and even with a slump in interest rates of liquid funds as was witnessed last year, the funds still earned a rate of 7.5% which is comparatively higher than rates offered on bank deposits.

Another tax benefit of liquid funds is that the tax paid on annual interest rates does not occur annually as is the case with bank deposits. The tax is paid only when the fund is liquidated. Tax paid on returns is of two types. One is short-term capital gain tax which is levied on redemption of debt funds in less than 3 years or less than one year for equities. The second is long-term capital gain tax which is levied on redemptions made on debt funds after a period of three years.