Sukanya Samriddhi Account-Govt’s Special Scheme for Girl child

Sukanya Samadhi Account – Child Development Project – Variety Properties, Review & Advantages

The Sukanya Samadhi Account (SSA), which started as Beti Bachao-Beti Pathao (BBB), officially began on January 22, 2015. These availabilities are introduced by our Prime Minister Narendra Modi.

Sukanya Samriddhi Account / Yojana is a small fun specially designed depot scheme for girls. This scheme is specifically designed for college or marriage.

Minister of Finance Arun Jaitley has announced this scheme with his speech in July. The Gazette on this scheme was released on 2 December 2014. January 21, 2015, the Finance Ministry issued a notification for the adequate interest rate on the Sukanya Samriddhi Account.

We can understand the features and benefits of the Sukanya Samadhi Account Special Savings Deposit Scheme.

Sukanya samriddhi account

Features of Sukanya Samadhi Account (SSA):

  • Who can open the account?
    • Sukanya Samadhi can open A / C (or Kath) in the name of a girl who is a nature (organic) parent or legal guardian.
  • What is the age limit?
    • The SSA can be opened in the name of a girl until the age of the girl is 10 years old. (Girl who was in or after 02-12-2003 can open an SSA / SSI account).
  • How many accounts can open?
    • The investor can open and operate the same account for the same boy under this program. The Guardian (or) Guardian can open only two accounts in SSS.
  • How to open an SSA account (Open Savings Account opening procedure)?
    • The accounts of a girl can be opened in any of the branches of a bank in the post offices or by the Central Government authorized by the Central Government to open an account under these scheme rules.
  • What is the minimum deposit to open an account?-SSA If the deposit is deposited in the amount of Rs 20000 or Rs 200 for a certain amount of money then a minimum amount of Rs 200 lakh is deposited in an account in a financial year.

        What is the maximum deposit amount? – At least one thousand rupees will be deposited in the financial year. However, the amount invested in a single instrument or multiple occasions in the account shall not exceed Rs. 1.5 lakhs

  • Deposits/contribution in an account is made for 14 years from the date of account opening.
  •  Upon completion of 21 years from the date of opening of the account, there is an option to retain the account in respect of the Project marriage. Then, the maturity of the account is 21 years. If the girl is married before the date of account opening or 21 years of completion, whichever is first.
  • Will a girl account continue after marriage?
    •  Account activity before the marriage of the girl is not allowed.
  •  What are the necessary documents to open Sukanya Samadhi account?
    • The girl’s birth certificate should be produced. An investor (parent or guardian) must submit his / her identity to prove the address.
  • Download the Sukanya Samadhi Account / Yojana (SSA / SSY) Application Form. (Please submit this SSA Application Form Post Office by clicking on the below image and downloading the form Download your Form Office Savings Bank Page Form and then you can print)

SSA Application form

 

  • When an account begins, a deposit account will be issued to the investor. This will include the date of birth of the girl, account opening date, account number, the amount and the amount deposited by the account holder’s name and address. Purchase Deposit/deposit at the timeframe of interest on investors in the post office or bank.

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RBI hikes Interest rates on your Personal Finances

RBI Interest Rate Increase – The Impact on the Economy & Personal Finance

One of RBI’s key functions is to control the money supply in the economy as well as ‘credit costs’. That is, how much money is available for the industry or economy and what price it should have the paying economy to borrow the money. ‘Availability of money’ is nothing but liquidity and ‘borrowing costs’ is the interest rate.

Both of these (offering money and credit costs) are closely monitored and controlled by the RBI. Inflation and economic growth are strongly influenced by these two factors.

To control inflation and growth, the RBI uses certain tools, such as

  • CASH RAINABLES RATIO
  • LIQUIDITY RELATION UP TO, REPO LEVEL, AVERAGE LEVEL, etc.

A rate of RBI Increase – Impact on the Economy

RBI Hike interest rate

 

The major national and international economic factors that could lead to the possibility of an increase in bank interest rates are:

  • Crude Oil Prices
  • Inflation Rate: In addition to higher oil prices, the Govt Push device for minimum cost price, revisions to the governing body, a good Monson, etc.,

Repo rate inflation

  • Current Account Deficit
  • Value of Rupee: Because of the above factors, the value of the Rupee against international currencies such as the US Dollar has weakened.

weakening rupee value 2018

So, to withstand the inflation rate, the RBI may raise interest rates. But, this could lead to lower economic growth.

RBI raises interest rates – Impact on Personal Finance

When we need money, we take a loan from the bank, the bank imposes a certain interest rate on this loan. The rate at which banks borrow money from RBI by selling their government securities surplus to the central bank (RBI) is known as the “Repo Rate.” Repo rate is a short form of Buyback Rate.

rbi hikes rates impact on home loan

If you plan to buy the property through a short-term loan, you can decide on a “fixed rate loan”. E homeowners could make a partial advance payment of the loan (if you have a separate fund) to reduce the EMI exposure after the interest rate is set.

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Understanding Form 16 and other TAX related forms

 

Form 16 and other Tax-related forms (Form 16A & Form 26AS)

If you’re a salaried person, I’m sure you’ve received your Form 16 at the moment. This document is provided by employers each year. It is very important to understand the details provided on Form 16. Understanding the contents of Form 16 helps you present your T-T easily.

So, what is Form 16?

It is a certificate under section 203 of the Income Tax Law, 1961, which provides information on the tax deducted at the source (TDS) of the income attributable to the main “salaries“. Give details of the tax deducted by your employer. In simple terms, Form 16 is the “Salary/income certificate” issued by your employer.

In this post, let’s understand: What are the different sections on Form 16? What is the difference between Form 16 and Form 16A? What is the link between Form 16 and Form 26 AS? How to verify if TDS is deposited or not? How to use Form 16 to file your income tax returns?

Form 16 – Details & Sections

Form 16 is a user-friendly document. It has two episodes, ‘PART A’ & ‘PART B’.

Details of Part A of form 16 are –

  1. Employer’s name & address
  2. Employee’s name & address
  3. PAN no and TAN no (tax deduction account number) of your employer (Deductor)
  4. PAN details of employee
  5. Assessment Year (the year in which your tax liability is calculated for the income earned in the previous year. If financial Year or previous year is 2014-15, assessment year would be 2015-16).
  6. Part A provides the summary of TDS deductions. (This summary can be quarterly / monthly or based on the periodicity of how your employer deducts the TDS and credits the tax to the IT department)
  7. This section also gives you details about the ‘period of employment’. (If you have worked for two or more companies in a financial year, you will have multiple form 16s).

Part B of Form no 16 has below details:-

Chargeable income under the head of ‘Salary’. (Includes salary – Assignments and deductions (such as LTA / HRA / professional tax, etc.).

  • Gross income is the wage income + any other income reported by you. (Other income can be negative income, that is, loss of home ownership or capital gains, etc.)
  • Below, deductions are provided under Sections 80c / 80 CCC / 80 CCD. (The maximum limit is Rs 1.5 Lakh)

  • The deductions are then provided in other sections, such as 80D (health insurance premium), 80E (interest on education loans), 80G (donations) and others. (You would have submitted investment evidence to claim tax deductions from your employer, these tax deductions are listed here).

  • The totals of the qualifying deductions (Aggregate of the deductible amounts under Chapter VI A: Item 10) are reduced from your Gross Income (Item 8) to arrive at the ‘Taxable Income’ (item 11). The tax is calculated (Item 12) in this amount based on your tax slab.

  • If your employer deducts the TDS, this amount is subtracted from your total tax liability. The net amount of the tax can be zero (or) some amount of tax payable (or) reimbursement. (The balance, if negative, is the amount of your refund).

If your Salary income is more than the basic exemption limit (Rs 2.5 Lakh for the 2014-15 fiscal year), your employer must deduct TDS from your Salary and deposit it with the Government.

                                                        (Download Sample Form-16)

Form 16 Vs Form 16A

Form 16 is your Salary Certificate or TDS certificate issued by your employer. Form 16 A is also a TDS certificate that is usually issued a quarterly. While Form 16 is for salary income only, Form 16A is applicable to TDS in Non-Salary Income. (Form 16A is a statement that contains all the TDS details deducted from all payments, except salary).

Example: Form 16A is issued by banks when they deduct TDS on interest income accrued in their fixed deposits / recurring deposits.

Allow me to provide you with a sample form 16A. I received the following form 16 A from Standard Chartered Bank. In one of my FDs, I received a loan of Rs 1,188 as interest income and in it, Rs 118.80 was deducted as TDS (@ 10%). (Remember, if you are at a different income tax rate, say @ 20%, you must include this interest income and pay the corresponding taxes)

                                                        (Download Sample Form-16A)

What is Form 26AS? ( How to verify or verify if the TDS deductions are deposited in the IT department?)

Form 26A gives you all Tax Credits details. It is a form that shows that the tax deducted has also been deposited with the Govt.

(If there are inconsistencies, the IT department will only consider the TDS figures in accordance with Form 26AS. You need to contact the TDS recipient to remedy any errors. For example- If your employer has updated your PAN in Inaccurate, the TDS deduction will not be reflected in your 26AS Form. In this case, you need to remove this error from your employer.)

To use an AS 26 Form, you must visit the Income Tax Website and click View Form 26AS. You must enter your log to access this form. You can then download a form-26AS statement of the relevant financial year. (Form 26AS is provided by TRACES – TDS Analysis and Analysis Consistency Analysis)

You can also find details of your tax payment in Form 26 AS. Details of tax refund received during the financial year are also available in this form.