Monday, April 17, 2017

The Indian Government has announced new passport rules aimed at simplifying and easing the process of issue of passport.

The Indian Government has announced new passport rules aimed at simplifying and easing the process of issue of passport.  The new passport rules also simplify the process of application for single parents, orphaned children etc. The changes have thus been notified.
In one of the most major changes, eight (8) different documents will now be accepted as proof of Date of Birth (DOB). As per the existing provisions of the Passport Rules, 1980, all applicants born on or after 26th January 1989 must mandatorily submit a Birth Certificate as the proof of Date of Birth (DOB). Changing this rule, the government has now decided that applicants can submit any of the following eight (8) documents as the proof of DOB while submitting the passport application:
  • Birth Certificate (BC) issued by the Registrar of Births & Deaths, or the Municipal Corporation, or any other prescribed authority whosoever has been empowered under the Registration of Birth & Deaths Act, 1969 to register the birth of a child born in India.
  • Transfer or School-Leaving or Matriculation Certificate issued by the school last attended, or by the recognized educational board containing the DOB of the applicant.
  • PAN Card issued by the Income Tax Department with the DOB of applicant.
  • Aadhar Card/E-Aadhar having the DOB of applicant.
  • Copy of the extract of the service record of the applicant (only in respect of Government servants) or the Pay Pension Order (in respect of retired Government Servants), duly attested/certified by the officer/in-charge of the Administration of the concerned Ministry/Department of the applicant, having his DOB.
  • Driving licence issued by the Transport Department of the concerned State Government, having the DOB of the applicant.
  • Election Photo Identity Card (EPIC) issued by the Election Commission of India having the DOB of applicant.
  • Policy Bond issued by the Public Life Insurance Corporations/Companies having the DOB of the holder of the insurance policy.
Simplified rules for various sections of society
Provision for Single Parents: The online passport application form now requires the applicant to provide the name of father or mother or legal guardian, i.e., only one parent, and not both. This allows single parents to apply for passports for their children and to also issue passports where the issuing authority cannot print the name of either the father or the mother, at the request of the applicant.
Number of Annexures reduced: The new rules bring down the total number of Annexures prescribed in the Passport Rule, 1980, to nine from the present 15. They have removed Annexes A, C, D, E, J, and K, and merged certain Annexes.
Only Self-Declaration from now on: All the required annexes will now be self-declarations on plain paper. No attestation/swearing by/before any Notary/Executive Magistrate/First Class Judicial Magistrate will henceforth be necessary.
No affidavit/Marriage Certificate required for married applicants: Applications now don’t require married applicants to provide Annexure K/marriage certificate.
Spouse’s Name not required for separated/divorced applicants: Passport applications now don’t require a spouse’s name for separated/divorced persons. There is even no requirement of the Divorce Decree.
Provision for Orphaned children : Orphaned Children without proof of DOB may now submit a declaration. The declaration – by the Head of the Orphanage/Child Care Home on their official letter head – confirms the applicant’s DOB.
Children not born out of a wedlock: Applications for children not born out of wedlock need only Annexure G.
For domestically adopted children: Applications for in-country domestically adopted children no longer requires submission of the registered adoption deed. In the absence of a deed, the passport applicant may give a declaration on a plain paper confirming the adoption.

Government Servants without a NOC: Government servants sometimes cannot obtain the Identity Certificate (Annexure-B)/NOC (Annexure-M) from their employer. They can now get the passport by submitting a self-declaration in Annexure-‘N’. The declaration must state that they have informed their employer, that they are applying for an ordinary passport.

Wednesday, April 12, 2017

State Bank of India New Rules Effective From 1st April 2017

1.       3 times deposit free in your account. After more than 3 times deposit, you will pay 50/- per deposit.

2.       Minimum 5000/- balance to be maintained in metro city branch account   holder.

3.       Minimum 3000/- balance to be maintained in city/town branch account holder.

4.       Minimum 2000/- balance to be maintained in semi urban area branch account holder.

5.       Minimum 1000/- balance to be maintained in villages branch account holder

6.        If you do not maintain minimum amount in your account, you will pay upto Rs.200/- + extra surcharge.(depending on how many days)

7.       SBI ATM free for 5 times use, after 5 times you will pay 10/- per transaction.

8.       Other bank ATM free for 3 times use, after 3 times you will pay 20/- per transaction.

9.       Unlimited SBI ATM use without any charges, If you maintain 25000/- in your SBI savings account.

10.     Unlimited SBI & OTHER BANK ATM use without any charges, If you maintain 100000/- in your SBI savings account.

11.     15/- SMS charge you will pay after 3 months, (SMS charge free, If you maintain 25000/- in your SBI savings account)

12.     The failure to maintain Monthly Average Balance (MAb) in accounts will call for a penalty between Rs 50 to Rs 100 plus service tax per month.

13.     There will be no charge for UPI/ USSD transactions of up to Rs 1,000. Beyond Rs 1,000, there are charge

a). The Monthly Average Balance of Rs 5000 in a branch in Metropolitan City then :
Shortfall <=50% = Rs 50/- + Service Tax.
Shortfall >=50-75% = Rs 75/- + Service Tax.
Shortfall > 75% = Rs 100/- + Service Tax
b). The Monthly Average Balance of Rs 3000 in a branch in the Urban area then :
Shortfall <=50% = Rs 40/- + Service Tax.
Shortfall >=50-75% = Rs 60/- + Service Tax.
Shortfall > 75% = Rs 80/- + Service Tax
c). The Monthly Average Balance of Rs 2000 in a branch in the Semi- Urban area then :
Shortfall <=50% = Rs 25/- + Service Tax
Shortfall >=50-75% = Rs 50/- + Service Tax.
Shortfall > 75% = Rs 75/- + Service Tax.
d). The Monthly Average Balance of Rs 2000 in a branch in the Rural area then :
Shortfall <=50% = Rs 20/- + Service Tax
Shortfall >=50-75% = Rs 30/- + Service Tax.
Shortfall > 75% = Rs 50/- + Service Tax

10 Income Tax Rules That Will Change From 1st April 2017

1) The tax rate on income between Rs. 2.5 lakh and Rs. 5 lakh will get halved to 5 per cent from 10 per cent. However, rebate under Section 87A gets reduced from Rs. 5,000 to Rs. 2,500. And no rebate will be applicable for taxpayers having income above Rs. 3.5 lakh. This means tax savings of up to Rs. 7,700 for those with a taxable income between Rs. 3 lakh and Rs. 5 lakh. And for persons with taxable income between Rs. 5 lakh and Rs. 50 lakh, tax savings of Rs. 12,900.
2) A 10 per cent surcharge will be applicable for individuals having income ranging from Rs. 50 lakh to Rs. 1 crore (existing surcharge of 15 per cent will remain the same for individuals having income above Rs. 1 crore.)

3) A simple one-page form will be introduced for filing tax return for individuals having a taxable income up to Rs. 5 lakh other than business income.
4) No deduction will be allowed for investment in Rajiv Gandhi Equity Saving Scheme from Assessment Year 2018-19. This tax-saving scheme, announced in the Union Budget for financial year 2012-13, was designed exclusively for the first-time individual investors in the securities market with gross total income below a certain limit.
5) Income tax officials can reopen tax cases for up to 10 years if search operations reveal undisclosed income and assets of over Rs. 50 lakh. Currently, tax officers can go back up to six years to scrutinise the books of accounts of assessees. Taxpayers who do not file their returns on time will have to shell out a penalty of up to Rs. 10,000 from Assessment Year 2018-19. However, if the total income of the person does not exceed Rs. 5 lakh, the fee payable under this section shall not exceed Rs. 1,000.
6) The holding period of a property for qualifying as long-term gains will be reduced to two years, from three years. This will help save tax if a property is sold within two years of buying. If a property is sold before two years, the profit from the transaction will be treated as short-term capital gains and will be taxed according to the slab rate applicable to him/her.
7) The government has cut down tax benefits borrowers enjoyed on properties let out on rent. As per current tax laws, for properties rented out, a borrower could deduct the entire interest paid on home loan after adjusting for the rental income. On the other hand, borrowers of self-occupied properties get a deduction of Rs. 2 lakh on interest repayment on home loan. But from April, on rented properties, the borrower can only claim a deduction of up to Rs. 2 lakh per year after adjusting for the rental income. And the amount above Rs. 2 lakh can be carried forward for eight assessment years. Since the interest component of home loan repaid in initial years is higher, experts say that the borrower may not be able to fully adjust the interest paid as deduction even in subsequent years.
8) Individuals will be required to deduct a 5 per cent TDS (tax deducted at source) for rental payments above Rs. 50,000 per month. Tax experts say that the move will ensure that persons who get a large rental income come into the tax net. It will be effective from June 1, 2017.
9) Partial withdrawals from National Pension System (NPS) will not attract tax. According to the proposed changes, NPS subscribers can withdraw 25 per cent of their contribution to the corpus for emergencies before retirement. Remember that withdrawal of 40 per cent of the corpus is tax-free on retirement.
10) Aadhaar number will be a must while applying for PAN as well as filing of income tax returns from July 1. To curb black money, the limit on cash transactions has been set at Rs. 2 lakh. The Finance Bill had originally proposed the cap at Rs. 3 lakh. If a person receives any sum in contravention of the tax law, he/she will be liable to pay, by way of penalty, a sum equal to the amount.