Step by step guide for your e payment of income tax

WHAT IS INCOME TAX?

Tax is a mandatory payment to the government which may be imposed directly or indirectly on the citizens. There are two modes of income tax: the direct tax and the new Goods and Services Tax (GST) which now supersedes all the indirect taxes like VAT, service tax, excise duties etc.

With the introduction of modern technology, one does not have to wait for days and fill out numerous forms to pay their taxes. Now they can avail the e payment of income tax facility. Hence, with the necessary documents one can pay their taxes online.
 
WHY IS IT NECESSARY TO PAY TAX?

 Proper distribution of wealth in the economy
Taxes are paid by individuals/group of individuals as per their annual income. The progressive taxation system helps to maintain a balance between the rich and the not so rich.

 Economic development
By paying taxes, one can expect economic development. The government uses their revenue, which is the taxes collected and uses them to generate more and more employment, development of basic facilities which leads to more business opportunities etc..

 For availing basic and common facilities
The revenue which the government collects is used in making proper roads and municipal offices to serve the public in the economy. It also helps in developing better facilities such as transportation, healthcare, education etc.

 Civic duty
The public develop a questioning attitude to ensure that the money taken from them are not mis-utilized. This is actually beneficial to minimize corruption in the economy. The government serves the people and the people cannot expect facilities if they don’t support for them.

Step By Step Guide For Your E Payment Of Income Tax

 STEP 1: Log in to the Government Link
First we need to log in to the authentic government link which is: Online E services for tax payment and then select the mode of payment by which you want to pay. For tax payment, you have to select the applicable challan and enter the challan number as per the section which is necessary, income tax/ corporate tax.

 STEP 2: Fill in necessary details
You need to fill in the necessary details correctly to pay the taxes. The details usually required are your PAN number, the Assessment Year (AY) and the Financial Year (FY), where the AY is the year where you actually pay the taxes and FY is the year for which you are paying the taxes.

 STEP 3: Select Bank and confirmation
In order to pay the tax, you just need to select the bank in which you have an account for the gateway payment and then after paying the tax; you need to wait for the confirmation of payment.

 STEP 4: Challan generation
The challan shows the type of tax you have paid online. This needs to be generated for proof in the form of a receipt that you have actually paid the taxes.

Why Mobile Banking in India is on the rise

Today, digital is the new buzzword and more and more people are assembling under its umbrella. The Digital India campaign and demonetization have given the objective of an online banking system and a cashless India the much-needed push and the people of the country have also embraced the same with open arms.

Financial services are one of the most important aspects in people's lives and they would obviously opt for a system which lets them fulfill their banking needs at their disposal. Today's digital users want banking services to be fast. And mobile banking does just that. No wonder mobile banking is on the rise in India. Here are the reasons why mobile banking in India is on an upward growth curve.

Convenience

This is the factor that has to top the list of benefits. Earlier, we had no option but to physically visit the bank to make a mere fund transfer. Now, by virtue of mobile banking, we can do so much more wherever and whenever we wish to. We do not have to disrupt our busy schedules anymore by going to a bank. Be it loan repayment, credit card bill payment or mutual fund debits, you just need your unique ID and password to access your account and make transactions whenever needed. Also, unlike banks, mobile banking services are available round the clock. All you need is your bank's app on your smartphone and an internet connection in order to make a transaction. You can pay your DTH bill or recharge your phone while being on the move. Thus, it is of no surprise that mobile banking in India grew at a rate of 122% going from 2016 to 2017. 

High Mobile Phone penetration

India is the second largest smartphone market in the world where mobile phone penetration is set to reach an all-time high of 85-90% within the next two years. With smartphones in the hands of most Indians, they are ready to make use of the numerous benefits that mobile banking provides. 

Government and Corporate Impetus

The rise of mobile banking in India has to be attributed to the numerous initiatives and schemes promoted by the Government of India. The government came up with incentives for those using cashless payment modes and also organized Digi Dhan Vyapar Yojanas and Digi Dhan Melas to bring both consumers and traders within the purview of mobile banking. All e-retailers provide cashbacks and discount coupons to those who use mobile banking to make payment. Internet connectivity was a concern when it came to mobile banking. But that's not the case anymore. With the help of the government-owned BSNL and private companies like Bharti Airtel and Reliance, India has a total broadband network of more than 2,05, 404 kilometres that cover most semi-urban and some rural areas as well.

Bank Locker versus Home Safes: Which one is better?

Safes at home have been the storehouse for valuables since long before the banking system was established. Banks took the concept of home safes and introduced the system of bank lockers for the safekeeping of valuable goods in a physical location in return for a nominal annual payment. However, a few recent incidents including a fire at a nationalized bank have raised the question of whether a bank locker is indeed more secure than a home safe. In response to a recent RTI, the Reserve Bank of India has stated that the responsibility for valuables stored in a bank locker lies with the customer, and the bank will not be liable to pay any compensation in case of an untoward incident, which would be dealt with according to law. Although this might make it appear that home safes are the better alternative compared to bank lockers, many experts still put greater faith in bank lockers. Here are some of the advantages of each of these two options:

• Bank Lockers:
The greatest advantage of a bank locker is that it provides multiple layers of security at a nominal rate, replication of which at home would cost far greater. The locker itself needs to be opened by two keys simultaneously, one of which lies with the customer and the other with the bank. Other than this, banks have other levels of security, including security personnel, monitoring of entry and exits, CCTV surveillance, etc. Banks also provide details about their security arrangements if you ask for them. So if you have a large amount of valuables, the bank locker is a far safer option.

• Home Safes:
Home safes have a slight advantage over bank lockers in terms of convenience. They are easily accessible always, while bank lockers are inaccessible on holidays. Home safes today come with far greater security features than a simple lock and key safe box. They may be digitally protected with passwords or pin codes, and may even have a fingerprint scanning system or retinal scanning system for biometric security. They may also incorporate an SMS alert system to notify you of any changes in the lockbox status. However, these features are far costlier than bank lockers, and cost more for safes with larger storage.

• Others:
Some private institutions offer locker storage space for rental. The rent amount may vary and is usually greater than that in banks, but they are more accessible as they usually remain open even on holidays.

Bank lockers and home safes both have their own set of advantages in terms of security, reliability and cost effectiveness. In general, it is always a good idea to keep as little valuables at home as possible, and to insure all valuables like jewelry against any chances of damage.

What are the steps for the visa credit card payment?

Credit card is often a necessity for people who like to shop around but do not want to spend the hard-earned money in their bank accounts. With credit cards, you can freely shop and purchase products without having to use your debit card or making transactions in cash. Usually, visa credit cards are issued by most banks and the card holders essentially take a small loan from the banks to purchase items.

So, it is essential to settle the credit card bills at the end of the month which is similar to paying off a loan. Here is a look at some of the easy methods through which you can make visa credit card payments.

Credit Card statement

The first step in paying off your credit debt is to acquire the statement from your bank. This statement is usually sent through the mail to your house or office. However, you can choose to download the statement from the online portal of the bank in question. This statement will provide you with the necessary details of your credit card usage and will also let you know exactly how much you need to pay to settle your bills.

Online method of bill settlement

Since the internet is one of the most important modes for any payment now, credit card bills can also be settled online. For instance, internet banking can be used to clear off the debt. For settlement through internet banking,
• Log into the account and access the Credit card payment option on the portal.
• Enter the credit card number and the account which you want to be debited for the payment.
• Enter the amount that needs to be paid and click on the submit button. This is perhaps the simplest form of Visa credit card payment in which you do not even have to leave the confines of your home.

Similarly, NEFT and IMPS payments can be made online as well. Just access the bank’s site and choose IMPS/NEFT transactions. Following this, enter the name of the beneficiary, name of the bank, branch name, 16-digit credit card number and the IFSC code for your branch.

Offline bill payment methods

If you want to clear your credit card bill offline, you will need to write out a cheque or create a draft of the said amount and send it over to the bank. Some banks also allow you to clear the bill using any Visa ATMs in the country. Lastly, banks also allow for the cash payment of the credit card bills, but in such a case, you would need to visit a branch of the bank in question.

Are you aware of the Government Limits Charges on Electronic Fund Transfer?

In this day and age of virtual operations, you might be all too familiar with the convenience of transmitting funds over the internet. This process of electronic fund transfer, although remarkably efficient and simple, is often laden with unpleasant charges that you could not have anticipated. Thus, it becomes imperative to learn of all the charges that could be taken out of your account so you can be prepared to make the most informed financial decision.

The finance ministry, in a bid to encourage the use of electronic fund transfer, has now asked public sector banks to reduce the fees associated with Immediate Payment Service (IMPS) as well as Unified Payments Interface (UPI) so that it stands in accordance to the rates listed for National Electronic Funds Transfer of Rs. 1000. This includes Unstructured Supplementary Service Data transactions, for which the ministry has directed a discount of 50 paise per transaction. The National Institution for Transforming India has also introduced certain schemes, namely Lucky Grahak Yojana and Digi Dhan Vyapar Yojana that are set to cover small transactions between Rs.50 and Rs. 3000.

These decisions have been announced as a collective effort launched by the finance ministry to incentivize digital transactions between individuals as well as businesses. Not only do these methods include the transfer of funds through debit/credit cards between accounts, they also handle online bill payments, direct debit operations and direct deposit payments. These modes of electronic fund transfer have transformed finance dealings across the nation and now form an integral part of the national economic identity.

If you are able to master the technical aspects of electronic transfers, these online transactions could be done in the matter of a few minutes between concerned accounts. Additionally, most banks and money transfer firms contain your history of transactions so that you are able to organize and record your transfer information for future decisions. These electronic payment systems also charge a rather low commission charge on your transfer; some companies even offer flat fees so that you are persuaded to make large transactions through this method without the nagging worry of service fees. As the populace becomes more and more familiar with virtual transactions, it is natural for you to gradually adopt digitalized methods of fund transfer. It helps that most of the websites offering these options are top of the line and showcase interfaces ideal for the average user. Thus, the government announcing a reduction of charges on these transfers should allow for a larger intake of customers going forward.

Why should you opt for a credit card in your early employment days?

The early employment phase can be characterized by stressful decisions, unprecedented expenses and complex responsibilities. For many individuals, this ascent from being a naive, energetic student to being overworked, tired and often saddled with unexpected financial expenses can be quite challenging. Though being allowed to draw credit is not guaranteed to solve all your troubles, the best credit card would extend a range of options to your benefit and alleviate some of your immediate financial demands. Here are some of the many reasons why you should opt for a credit card, especially during the early employment period.

Convenience

Living in an economy that brings in unforeseen charges at every inopportune moment, you have to be prepared to part with any amount of money at any given time. Having cash in your pocket is oftentimes not sufficient or safe for conducting large transactions that accompany a new living or working space and thus the convenience of a credit card can assist you in those desperate times. Although it is borrowed money and you are required to pay it back by a fixed date, it can be a quick and easy solution for an emergency. 

Protective Features

Due to the many difficulties associated with navigating early employment, you may be quite vulnerable to dubious scams or expensive moneylending schemes. The best credit card programmes will protect you from unauthorized charges from your account and will not hold you liable for them. Additionally, your company might activate electronic security systems that alert you of suspicious activity involving your card, verify your identity through chip card technology as well as photo identification.

Incentives to Save

You might be inclined to believe that a credit card discourages you from accumulating savings but many companies provide credit scores and history that might actually facilitate loan applications and borrow money in the future. Some banks also offer certain reward points, discounts; cash back offers that might incentivize you to make smarter savings.

Organization

The early employment phase is marked by a breakdown of your organization skills, especially in terms of managing your finances. A credit card is not only a swift way to align all your payments and transactions but also to categorize them on the basis of time, type of transaction and amount. This could help you to plan and prepare how you wish to be spending your money on a monthly or yearly basis and thus facilitate some sort of a personal budget formation.

Features of the NRI Accounts you need to be aware of

NRIs or Non-Residential Indians are allowed to open and hold savings accounts in India. However, these accounts are not the same as the ones that are offered to residential Indians. There are three types of NRI accounts that one can take advantage of if he/she wants to maintain a bank account in the native country.

Here is a look at the three types of accounts and the features pertaining to the same.

1. FCNR Account

FCNR account stands for Foreign Currency Non Resident account. This particular kind of account is only useful for keeping fixed deposits for a certain period of time, ranging from one to three years. The features of such an account include-

• Depositing FD amounts for at least one year and up to a maximum of three years.
• The principal and interest earned can be transferred to an account overseas in the same currency or it can also be converted to any other currency as well.
• The interest on the FD is exempt from any income tax in India.

2. NRE Account

NRE or Non-Resident External Rupee account allows an NRI to open a simple savings account. However, the balance is maintained in the Indian currency only. Even if a deposit is made in another currency, it would first be converted to INR, before getting deposited. The features of the account include,

• Withdrawals can be made in the foreign currency, but is such a case, the account holder needs to first convert the INR into the currency of their choice. The cost for the same must be borne by the account holder.
• The deposits made in such an account as well as the interest earned is free from any income tax under the laws of the Indian government.
• The entire amount in the account can be sent out of India without requiring any clearance from the Reserve Bank of India.
• Account holders can also apply for loans against the deposits in the NRE account.

3. NRO Account

Any normal bank account held by a Non-Residential Indian is known as Ordinary Non-Resident Account or NRO account. The features of an NRO account include,

• Making deposits into the account from overseas.

• This account is non-repatriable. This means that account holders cannot transfer their savings from this account into a foreign account without the permission of the RBI.

• The interest earned from these accounts are not exempted from Income tax in India.

If you are an NRI looking to open an NRI account in the country, ensure that you understand the features of these three accounts and choose the one that best suits your needs.