In four different notifications, the Ministry of Finance had mandated the 12-digit unique ID number for verifying the identity of account keepers. It is another step towards forming the utilization of all-pervasive Aadhaar in a nation where it is already being utilized to better target recipients of some government support and welfare programs. “Granted that where Aadhaar number has not been authorized, the depositor shall submit evidence of application of enrolment for Aadhaar,” the notification stated declaring.
Existent depositors who have not presented the Aadhaar number at the time of application for such securities “shall present his Aadhaar number to the post office profits bank or the concerned deposit office, on or before the specified date,” it added. There are more innumerable than 1.18 billion Aadhaar cardholders in the nation. The extension will comprise as many as 135 schemes (of 35 ministries) inclusive of the unrestricted cooking gas to underprivileged women, kerosene and fertilizer aid, targeted public distribution scheme, and the Mahatma Gandhi National Rural Employment Guarantee Act.
Beginning this year, the government had made pricing one’s Aadhaar or Aadhaar enrolment ID obligatory while applying for a PAN, which is necessary for filing tax returns, inaugurating bank accounts and financial transactions exceeding a vestibule.
While the Supreme Court has decided a three-judge constitution bench will hear the question of mandatory connecting of Aadhaar with PAN card and its necessity for filing tax returns, all other challenges that are surrounding Aadhaar. A total of 22 cases have been registered to be heard by a constitution bench on Aadhaar. The question covers several aspects of Aadhaar; and the use and contribution of the data collected under the program.
Among these challenges are those involving making Aadhaar mandatory for social welfare benefits, infringement of the right to privacy, and executing Aadhaar necessary for filing tax returns and for receiving and retaining a PAN.
According to the notification, the following entities are allowed to hold the bonds:
The connecting of Aadhar with savings schemes like Public Provident Fund, post office deposits, National Savings Certificate, and Kisan Vikas Patra can be done via both online and offline methods:
Aadhaar linking to numerous saving schemes can be done via Indian Post Bank Account. The following stages should be monitored in the following manner:
The Government is emphasising on Aadhaar Card number for producing mobile phones, bank collaterals, and other utilities to battle against black money and Benami deals. As per a notification issued by the Government, Aadhaar number if not immediately accessible can be provided later in the event the depositor allows an application proof of Aadhaar registration.
The deadline for obtaining Aadhaar has now been increased, and the existing investors need to furnish their Aadhaar numbers for the post office savings banks and other deposit services within the mentioned deadline.Schemes under the Aadhaar Extension
The Aadhaar extension, which was set by the Indian Government, implements for those who have not taken their Aadhaar Card numbers or have not registered for this utility document yet. However, assistance will not be curtailed until the deadline, but only after the equivalent is not followed accordingly.
Below are the plans, programs and other fields for which the deadline of implementing Aadhar number is extended to:
This record is like a savings account with a bank; without that it is held with a post office. Only a single account can be started with one post office and can be shifted from one post office to another. An individual can also start an account in the name of a minor. The interest rate is 4 percent and is completely taxable. However, no TDS is subtracted on the same. However, a deduction of Rs 10,000 per annum is accessible on your total savings account interest inclusive of post office savings interest under Section 80TTA of the Income Tax Act, 1961.
Different scheme which offers guaranteed solidified monthly income on the lump sum advance made by the investor. Any resident person can open the MIS account in single or joint holding design. A minor can also finance this plan and if minor is of more than 10 years, and then he can even administer the account. Minimum end for investment is Rs.1500 and maximum investment limit is Rs.4.5 lakhs in separate holding account and Rs.9 lakhs for joint accounts.
Post office RD is essentially a monthly investment for a fixed term of 5 years with an interest rate of 7.3 percent per year (compounded quarterly). On finishing of the fixed tenure of five years, RD account with Rs. 10,000 funded every month will fetch an individual Rs. 7,25,051. After completion of its period, account can still be maintained for 5 more years on year-to-year foundation.
KVP allows an interest rate of 7.7 percent compounded yearly. It can be obtained from any post office. The invested sum doubles every 112 months (9 years and 4 months). Investment is possible in groups of Rs.1,000, Rs. 5,000, Rs.10,000, and Rs. 50,000. The minimum investment is Rs.1000 with no maximum limit. Certificates are readily transferable and can be endorsed to third person.
The minimum age of starting is 60 years for SCSS. Someone who has taken a voluntary retirement after 55 years of age can also begin this account inside a month of obtaining the retirement benefits. The amount financed in such cases should not exceed the value of corpus collected on retirement. Maximum limit of investment provided per individual (consolidated balances in all account) is Rs. 15 lakhs. The investment sum can be in multiples of Rs.1000. An individual can operate multiple accounts in his name or in joint holding with their spouse. . Investments are permissible for a tax deduction under Section 80C of the Income Tax Act. However, tax will be deducted at the beginning if the amount of interest exceeds Rs.10,000 in a year.
PPF is a long-term financing for a time of 15 years currently offered at an interest rate of 8 percent per annum and compounded annually. There is no minimum or maximum span of account opening. Investments are provided with the minimum amount of Rs. 500 and maximum of Rs. 1.5 lakhs in a fiscal year. Investments can be made in consolidated sum or in 12 equal instalments. Account can only be prepared in a single holding form.
The NSC has a cultivation period of five years. The NSC rate of interest is 8 percent per annum increased half-yearly but payable at maturity. That means, an individual's investment of Rs. 100,000 will return you Rs. 144,231 after 5 years. There is no maximum limit on financing with a minimum amount of investment of Rs.100. Purchases can be done in denominations of Rs.100, Rs. 500, Rs. 1,000, Rs. 5,000, and Rs.10,000. The NSC Certificate can be obtained in a single holding or on account of a minor. Investment in NSC is tax-deductible beneath Section 80C of the Income Tax Act. Interest on NSC is also considered to be reinvested under Section 80 C and hence, tax-deductible without interest in the final year of the NSC.
Sukanya Samriddhi is a scheme launched for the benefit of the girl child. It presently offers an engaging interest rate of 8.5 percent per annum compounded annually. The minimum amount of financing is Rs.250 and the maximum of Rs.1,50,000 in a financial year. An individual has to invest at least the minimum amount every year for 15 years from the date of account opening. Thereafter, the account will continue to earn interest till the maturity. . Investment in the Sukanya Samriddhi Account is tax-deductible under Section 80 C up to Rs 1.5 lakh per annum. The interest on the Sukanya Samriddhi Account is also tax free and the maturity value is tax free. Numerous accounts cannot be initiated in the name of one girl child. A parent/guardian can open a maximum of two accounts in the name of two separate girl children. There will be a fine of Rs.50 if minimum amount is not invested in a financial year.
Post Office Saving Account, Kisan Vikas Patra, or Post Office Recurring Deposit, no matter what type of Post Office scheme you have invested in or are intending to invest in-you would need your 12-digit Aadhaar Card to link with the account. Linking Aadhaar to Post office deposit is possible in both modes, offline as well as online. It means you can visit the nearest Post Office with the requisite documents or you can from the comfort of your home, link your Aadhaar number to the Post Office deposit accounts.
To link your Aadhaar to your Post Office Savings account:
According to UIDAI, there are more than 6500 authorised post offices available to update your Aadhaar details. These post offices also act as the enrolment centre for Aadhar.
To link Aadhaar to Post Office Recurring Deposit account via an online method:
If you do not have any documents for Aadhaar enrolment, you can take the help of the head of your family or any other person as an introducer. You fill in all the details, provide your biometric information, and the biometric information of the introducer is also recorded.
NSC or National Savings Certificates is used for small savings. It is a five year saving scheme of post office. You get a certificate showing the maturity amount when you invest in NSC. This scheme provides a good interest rate as well as tax-benefit.
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