All that you need to know about pune tax payment

In any state or district of any country, taxes are to be paid. We pay taxes to obtain various basic facilities and for proper distribution of wealth. Taxes are the main form of government revenue through which they serve us in terms of education, transport, healthcare facilities, employment opportunities etc. Hence to ensure that taxes are paid in an efficient manner, each state has its own municipal corporation. A municipal corporation is a local governing body that follows various changes in legal autonomy and these corporations help to reduce the bureaucracy of the governing bodies.

BENEFITS OF PAYING TAX

 Good credit return
A proper income tax return ensures many benefits to an individual. Income tax returns help you to acquire various forms of credit hassle free and you have a good credit rating as well. The higher income tax you have, higher the credit rating you get.

 Investor value
While acquiring investors for any purposes, investors always look into your financial records. Having a truthful tax record will build up trust and reliability by which investors will invest in a diligent manner.

 Civic sense
Paying taxes builds a civic sense among the people who are paying taxes. Since the taxes are being paid with their hard earned own money, people have a questioning attitude to ensure that the funds are utilized in a proper way.

 No fear of penalties
If you pay your taxes in advance then there will not be a possibility of penalty on you for tax fraud. The government takes these kinds of fraudulent activities very seriously and one might face losing all their assets and might also end up in prison.
The same is also applicable for Pune tax payment.

THINGS YOU SHOULD KNOW FOR PUNE TAX PAYMENT

 Log in via a simple process
In order to perform Pune tax payment, you need to log in to the Pune Municipal Corporation website and register as an user for which you will get a username and password. 

 Necessary details
You need to select the Assessment Year (the year when you are actually paying the tax) and the Financial Year (the year for which you are paying your taxes).

 Generate your Challan
Challan is the receipt that shows the type of income tax you paid (corporate/property etc.) and  now this challan needs to be taken to the bank via which you can make your payment with demand drafts, cheques, debit/credit cards etc.

 Confirmation
The final receipt of the PMC (Pune Municipal Corporation) will be handed over to you along with an acknowledgement with the challan itself.

Wire transfer and Telegraphic Transfer- What is the difference

In the earlier days, transferring cash from one place to another was a hefty process. The most common form of fund transfer in earlier times was through post offices where the money was mailed to the recipients. With rapid urbanization and introduction of modern technology, we now have facilities like National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) which have made transferring funds much easier. These facilities ensure secure and authentic fund transfer from one place to any other place in the world. There are domestic and international forms of payment and these systems also help in EMI facilities, payment of salaries etc.

What do we mean by wire transfer and telegraphic transfer? 

Wire transfer
Wire transfer is a mode of fund transfer from one individual/group of individuals to another entity. It is basically a form of linked bank accounts by which you can transfer funds. This is a fast mode of transfer of cash like NEFT or RTGS.

Telegraphic transfer
Telegraphic Transfer (TT) is also a form of electronic fund transfer which is mainly used for transferring funds for overseas wire exchanges. Telegraphic transfers are used commonly for Clearing House Automated Payment System (CHAPS) in the U.K. This mode of fund transfer was used there before the 1990s.

Differences between wire and telegraphic transfer
Mode of operation

Wire transfer helps to transfer money from one bank account to another bank account. It can be used to transfer cash at a cash station. This mode of transfer is affected by SWIFT (Society for Worldwide Interbank Financial Telecommunication), and each bank has an identification code.

Telegraphic transfer was used in the earlier days where overseas payments were made via telex messages between the financial institutions. Telegraphic transfer system uses a system of cable messages. Therefore, it ensured fast fund transfer before RTGS or NEFT.  

Systems used
Wire transfers use a system of unique bank identification codes which makes it clear that any individual who chooses to transfer funds, does not require having a bank account with that respective bank. This means that fund transfer can take place between any two banks.

Telegraphic Transfer uses a system of cable messages or telex messages. This form of transfer was used in earlier times where all the banks had to be linked with a messaging system. When funds are being dispatched from one bank to another, both the banks get a confirmation via the telex message about the transfer of cash.

Toll recharge is now made easy with this option

There are various forms of taxes, and one of the taxes that we pay is known as toll tax. Toll tax is a system of taxation where public and private roads are maintained and constructed with a fee/ toll paid by the citizens who use the roads. This is a road pricing to maintain cost and maintenance of roads, flyovers, highways etc. We pay highway toll to ensure that these roads are regularly maintained, and we get the best of transportation services out of them.

There are new systems by which individuals, who make long journeys by roads, do not have to pay toll taxes daily. These individuals can acquire a toll card. This is a smart card to eliminate the hefty process of paying these taxes daily and via these smart cards, they are automatically paid at regular intervals. There is also a system of toll recharge where you can track your taxes for toll as well.

FASTag 
FASTag is a rechargeable tag or a smart card which helps you to deduct the taxes automatically and lets you avail the toll passes without stopping for a cash payment of the toll. FASTag is linked to your prepaid account which you can recharge at your own convenience and it has a system of Radio Frequency Identification (RFID) which is placed on a vehicle after the FASTag account is active and verified.

FASTag ensures that toll recharge and toll tax payments are made easy. It serves us with the following benefits:

 Hassle-free payments
Now you don’t have to waste your valuable time to stop and pay taxes while you are on the go, the tag card deducts the money automatically from your account and lets you travel hassle-free. Also, you do not have to worry about carrying cash; thus, this mode of system saves a lot of time.

 Convenience
As FASTag is a prepaid account, you can pay and recharge at your own convenience. You can choose to recharge for a flexible amount and not more than what you want.

 Advance alerts
The FASTag system also sends notifications to its users. You can avail SMS alerts for toll payments, alerts for low balance on account etc.

 Online services
You can recharge your toll card online by using your credit/debit cards, NEFT, RTGS or Net Banking facility. You do not have to go to any office and fill out forms or wait in queues; you can now pay whenever and wherever you want.

 Incentives
By promoting digitalization, you can earn cash back point, various discounts etc.

What are the options you can consider to remit to India?

Any Non-Resident Indian will be familiar with the term remittance. It involves transferring money from their foreign bank account to their accounts in India. This may sound like a simple proposition, but it is anything but simple. People need to keep in mind certain factors while remitting to India.

Here is a look at some of the options that you can consider when you want to remit to India.

1. Bank wire transfer
The simplest form through which you can remit to India is through a bank wire transfer. Usually this means that the money gets transferred directly from an overseas account into an account in India. Generally, this kind of remittance involves the usage of SWIFT or Society for Worldwide Interbank Financial Telecommunication. Banks usually charge a transaction fee for such a remittance. Some banks may also set a limit concerning the maximum amount that can be transferred.

2. Agency money transfer
In case of agency remittance, you can approach an agent in the foreign country and ask him/her to transfer the money on your behalf. The agent will present you a code for the transaction. You need to mention this code to the beneficiary in India. The representative from the same agency in India will then enquire about the code. If the beneficiary is able to recall the code, the money is transferred to them. Usually, a fee is charged for such a remittance.

3. Online money transfer
Transferring funds online is perhaps the simplest method of money transfer from a foreign country into India. Several online portals and sites allow you to discharge funds to your Indian account or to a beneficiary here. Users can transfer the funds directly or they can also use their credit cards to transfer an amount into an Indian account.

However, with all forms of remittance to India, NRIs need to pay special attention to the transaction fees. This fee can be drastically different from one place to the next, so choose a firm that offers the best rate. It is also important to ensure that the mode of remittance is safe and secure. Select a trustworthy agency or bank to conduct such a transaction in order to ensure your funds reach their destined account in India. Be wary of scam agencies and options, which may promise you zero fee transactions, but may vanish with the transfer amount.

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.