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What, if you went for a passport application with aadhar card and it was not accepted. So, Is Aadhar card Mandatory for Passport? and if not what are various other documents that can be used for passport application?
Actually in this article I will be narrating a real life incident which I have witnessed in the Passport office.
What kind of Aadhar is not accepted as a Passport document?
There was a man sitting next to me, completely perplexed. Then I asked him what happened to him, why he is upset.
He narrated me whole incidence that his aadhar was not accepted as a document for passport.
Then I got little intrested in the conversation as I was also using aadhar card for my application.
After that I asked him to elaborate whole situation, then he told me that due to miss matche in his name on aadhar and other documents.
He was carrying aadhar card, PAN card and class 10th mark sheet. His PAN card and class 10th marksheet had same name.
But, In class 10th mark sheet his name was written as “Rajat Kumar Sharma” and his name on aadhar was “Rajat Sharma”. So, This type of aadhar is not accepted as document for possport.
He was asked to get other document or update his aadhar name by using class 10 marksheet.
Is Aadhar Card Mandatory For Passport?
It’s simple and straight answer is, Number Aadhar is one of the documents not only document required for passport.
Before this, if you have to apply Tatkal passport and you don’t have aadhar card, simply you can not apply.
There was only one way to apply, firstly apply for aadhar and then apply for passport with Aadhar application no.
Valid Documents for Passport Application
If you don’t have Aadhar Card then you can use any 3 of 14 documents prescribed passport officials.
14 valid documents for Fresh Indian Passport Application
Here, is list of documents required as Proof Of Present Address:-
Telephone (landline or post paid mobile bill)
Income Tax Assessment Order
Election Commission Photo ID card
Proof of Gas Connection
Certificate from Employer of reputed companies on letter head
Spouse’s passport copy (First and last page including family details mentioning applicant’s name as spouse of the passport holder), (provided the applicant’s present address matches the address mentioned in the spouse’s passport)
Parent’s passport copy, in case of minors(First and last page)
Photo Passbook of running Bank Account (Scheduled Public Sector Banks, Scheduled Private Sector Indian Banks and Regional Rural Banks only)
List of documents required as Proof Of Date Of Birth:-
Birth Certificate issued by the Registrar of Births and Deaths or the Municipal Corporation or any other prescribed authority,whosoever has been empowered under the Registration of Birth and Deaths Act, 1969 to register the birth of a child born in India
Transfer/School leaving/Matriculation Certificate issued by the school last attended/recognised educational board
Policy Bond issued by the Public Life Insurance Corporations/Companies having the DOB of the holder of the insurance policy
Copy of an 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
Election Photo Identity Card (EPIC) issued by the Election Commission of India
PAN Card issued by the Income Tax Department
Driving License issued by the Transport department of concerned state Government
A declaration given by the Head of the Orphanage/Child Care Home on their official letter head of the organization confirming the DOB of the applicant
List of Valid Documents For Minor/Child Passport Application
Documents Required for Diplomatic Passport in India
Axis Bank has launched a credit card in a partnership with “Google Pay” Named Axis Bank Ace Credit Card.
This card is launched in the market to compete with HDFC Millenia Credit Card which is king of cashback card.
Check out “Our Verdict” section for my thoughts about this card.
This card doesn’t have any welcome benefits but it’s reward system is interesting.
Since, it’s announcement I was bit interested in this card as this card is offering flat 5% cashback on bill payment which maximum card won’t offer and if some card provide cashback on bill payment they have maximum capping.
So, lets find out how what this credit card has to offer, and does it stand out in the market.
Should I apply?
This card has some mind blowing benefits and feature which I have explained below.
In this card you will get 5% cashback on all your bill payments on Google Pay app with no capping.
My article will let you know all round features and benefits of this credit card and a quick comparison with HDFC Millenia Credit card.
What is Eligibility of Axis Bank Ace Credit Card?
Here is eligibility criteria to be fulfilled before applying this card:-
The applicant must be An Indian Resident
Age Limit :- Minimum age of 18 Years and Maximum of 70 Years
Income Proof :- 25,000 per month (Not Conformed By Bank)
How to Check Axis bank Ace Credit Card Application Status?
Visit Axis Bank website
Go to product section
Choose your Cards
Select Apply online for Credit Cards
Select Track your Application
Enter Application ID
Enter Mobile Number
Note :- Please keep your application ID handy as you will need to use check your application status.
If your application is denied, I recommend calling for an inquiry about why your application has been rejected.
Before applying next time fix these issues, and call again. It’s surprising how often denials can be changed to approvals.
Benefits of Axis Bank Ace Credit Card
This is limited time period offer in which you will be getting 5% cashback on BigBasket and Grofers. It may be extended but there is no surety.
Note:- This card offer is only valid till 31 December 2020.
Axis Bank Ace Credit Card has a very good reward benefit which will be given in form of cashback.
The best thing about this card is that it has no capping on cashback reward, which means cashback
You will get 5% cashback* on all your bill payment (such as Electricity, Internet, Gas etc.) DTH and recharges.
4% cashback on Swiggy, Zomato and Ola
2% cashback** on all other Merchants shopping
*Note:- Cashback will be given only when you have made payment on Google Pay Application.
**Note:- 2% Cashback will not be applicable on following transaction:-
Purchase converted to EMI
Wallet loading transaction
Payment of outstanding Balance
Payment of card Fees
All cashback earned on your spending during each billing cycle will be credited in statement 3 days earlier to the statement generation date.
Suppose your statement is generated on 23 of every month then all cashback will be settled in your statement on 20 of every month.
Airport Lounge Access
Axis bank ace credit card comes with 4 complimentary domestic lounge visit every year and there is no quarterly capping.
Fuel Surcharge Waiver
This card also offer 1% fuel surcharge waiver at all fuel stations in India and it is valid on only transaction between Rs. 400 to Rs. 4000.
Note:- Surcharge waiver is limited to only Rs 500 per month.
Fees and Charges
Annual and Joining Fees
Joining Fees :- 499 + GSTAnnual Fees :- 499 + GST
Limited Period Offer :- No joining fees for application received till 31st December 2020
Joining fees reversed upon spending of Rs. 10,000 within 45 days of card issuance
Annual Fees will be waived off on annual spends greater than Rs. 2,00,000
Interest :- 3.4% Per annum will be charged
Cash Advance Charge :- 2.5% of cash amount(Minimum Rs. 500)
Over Limit Penalty :- 3% of the over limit amount(Minimum Rs. 500)
Late payment fees :- Maximum of Rs. 700 can be levied
Foreign currency transaction fee :- 3.5% of the transaction value
HDFC Millenia Credit Card Vs Axis Bank Ace Credit Card
This is going to be neck to neck compitition so let’s check out which card wins
HDFC Millenia Credit Card
Axis Bank Ace Credit Card
1000 Cash Points
₹1000 worth gift vouchers
5% cashback on BigBasket and Grofers
First year fee waived off.
1 CashPoint = ₹1
1 CashPoint = ₹1
Annual Membership Fee
Rs. 1000/- plus Applicable Taxes
Rs. 499/- plus Applicable Taxes
Membership fee reversal
Get renewal fee waived on spends of Rs. 1,00,000
Get renewal fee waived on spends of Rs. 2,00,000
Reward on Offline Spend
8 Complimentary Domestic Lounge
4 complimentary domestic lounge
CashBack On Amazon & Flipkart
Online shopping and utility bill payment
utility bill payment
Both card has certain upsides and downsides but it totally depends upon your need.
If you are using any other credit card which offer good shopping benefits and you need a card for your utility bill payment then you should go for Axis Bank Ace credit card.
One downside of HDFC Millenia credit card is, Your spend below Rs. 2,000 will not incur any reward point.
So choose wisely.
I remember that earlier it was very easy to get good reward on paying utility bills through credit cards.
Because since last one year I am noticing a fall in reward rates on payment of utility bills.
But a big thanks to Axis Bank for providing Such a good card which is most beneficial for utility bill payment.
I totally recommend this credit card for all, because this card is a most useful for utility bill payment.
In this card you will get 5% cashback on all your bill payments on Google Pay app with no capping.
Not only this, you will also get 2% cashback on all other payments other then google pay.
One downside of HDFC Millenia credit card is, Your spend below Rs. 2,000 will not incur any reward point.
That’s why I am recommending you Axis bank’s card which may not offer 5% cashback on amazon and flipkart but has no capping as HDFC Bank Millenia Credit Card.
Soon, I will post my real life experience of this card on my website as I receive my card.
How can I apply for Google Pay Axis Bank Ace Credit Card?
Simply Visit Axis Bank Website or App and go to Credit card Section
Paytm in partnership with SBI Card is trying its luck in the Credit Card segment with launch of two cards.
In this article I am going to cover and compare these two variant of Paytm SBI Credit Card.
My article will let you know all round benefits of these cards and it will provide all information and my thoughts so that you choose right card. And at last I will share my views about both cards.
These cards are not the first card launched by Paytm, Paytm First Credit Card is already in the market.
The name of card launched are Paytm SBI Card and Paytm SBI Card SELECT. Both of these cards are launched on visa platform.
Paytm SBI Card which is entry level card whareas Paytm SBI Card SELECT is higher variant credit card.
Should I Apply?
This card doesn’t offer any mind-blowing benefits that you should apply for this card.
But to be sure check out full review and then decide whether to have this card or not.
Are You Eligible?
Both from SBI and paytm eligibility has not been specified on their websites.If you don’t want your application to be rejected, you must check these points before applying :-
Must be indian resident
Age Limit :- 21 years Minimum
Address proof copy
Have a stable income
Have a good credit History
As this card is from SBI your application may get rejected so be careful.
If you have any other bank credit card you you can also apply this card on card on card basis.
If you have already applied, you can check your application status in two ways:-
Call 1860 500 1290 or 1860 180 1290 number.
Visit SBI card Website(Sbicard.com)
If your application is denied, I recommend calling for an inquiry about why your application has been rejected.Before applying next time fix these issues, and call again. It’s surprising how often denials can be changed to approvals.
Paytm SBI Card Select
Annual Fees :- ₹1499 + GST
Joining Fees :- ₹1499 + GST
Note :- Fees waiver on ₹2,00,000 annual retail spend
Paytm SBI Card
Annual Fees :- ₹499 + GST
Joining Fees :- ₹499 + GST
Note :- No fees waiver
Benefits of Paytm SBI Card SELECT & Paytm SBI Card
When you activate your card and make your first transaction with these cards you will be rewarded with these benefits:-
Paytm SBI Card Select
Free Paytm First Membership worth INR 750 on first transaction with this card
INR 750 Cashback
Paytm SBI Card
Free Paytm First Membership worth INR 750 on first transaction with this card
The best benefit of this credit card is cashback reward program. So lets check out what are these:-
Paytm SBI card Select
5% Cashback :- On Travel, Movies and Mall purchases through Paytm App
2% Cashback :- On other purchases made through Paytm App
1% Cashback :- On other transactions whether offline or online
Paytm SBI card
3% Cashback :- On Travel, Movies and Mall purchases through Paytm app
2% Cashback :- On other purchases made through Paytm app
1% Cashback :- On other transactions whether offline or online
Note :- No Cashback on wallet load and fuel spend
Reward value for 1 reward point is ₹ 1 which is really good and these points comes with no expiry date.
All reward cashback will added to paytm wallet as Gift card balance.
One of the most impressive benefit of this credit card is that you will be rewarded with milestone benefits.
Paytm SBI card
You will get complimentary Paytm first membership renewal on achieving ₹ 1 Lakhs Milestone.
Paytm SBI card SELECT
Rs. 2,000 gift voucher on achieving Annual spend of ₹ 4 Lakh (Reward rate :- 0.50%)
Rs. 4,000 gift voucher on achieving Annual spend of ₹ 6 Lakhs (Reward rate :- 0.50%)
Lounge Access Benefits
Paytm SBI card does not have any lounge access benefits whereas Paytm SBI card select has. Paytm SBI card SELECT offers 4 domestic lounge access which is limited to 1 per quarter.
For international lounge access it comes with free Priority pass membership worth US $99 for first 2 years.
Note :- Only priority pass membership is free, you will charged with US $27 per visit.
Fuel Surcharge Benefits
Both card offers 1% fuel surcharge waiver on all fuel spending
Note :- Transaction limit ₹500 to ₹4000 and Surcharge waiver of upto ₹250(For Paytm SBI card Select) and ₹100 (for Paytm SBI card) per statement cycle
Fraud Insurance Cover
Both card comes with cyber fraud insurance for amount of Rs. 1,00,000(For Paytm SBI Card) and Rs. 2,00,000(For Paytm SBI Card Select).
For Paytm SBI Credit Card on PAYTM’s Secured Site.
This credit card is to totally waste, I won’t recommend this card to anyone Rest is your choice. I won’t think majority of people use paytm for shopping instead of using Amazon and Flipkart. Axis bank ace credit card is way better option then this card.
Paytm SBI credit card FAQ
When Paytm SBI credit card will launch?
Its launch date is expected to be by end week of November 2020
Is paytm credit card worth it?
It has some good and bad features and benefits. Check out my full review to decide
What is minimum age to apply for Paytm SBI credit Card?
In recent days lots of talk is going on about Pradhan Mantri Jan Dhan Yojana. Pradhan Mantri Jan Dhan Yojana is in news because it has recently completed 6 years since its launch.
So, in this article I am going to discuss various features, benefits and achievement of Pradhan Mantri Jan Dhan Yojana.
What is Pradhan Mantri Jan Dhan Yojana?
Pradhan Mantri Jan Dhan Yojana(PMJDY) is a national mission based on financial inclusion by Government of India. Here, I have used a word ‘financial inclusion’ which needed to be understood before proceeding towards PMJDY.
What is financial inclusion?
According to World Bank “Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way”.
Financial inclusion is a government’s National priority because it is driving force of inclusive growth.
The first announcement of Pradhan mantri Jan dhan Yojana was made on 15 August 2014 by Prime minister Narendra Modi.
6 Pillars of Pradhan Mantri Jan dhan Yojana
Universal access to banking services
Under this Government promises to facilitate at least 1 bank account in a family. At the time of launch government estimated that every habitation has access to banking services within 5 km with in one year.
Pension scheme for unorganised sector
Under this government promises to facilitate pension for or elderly people aged above 60 through various schemes. The government has launched ‘Pradhan mantri Vaya Vandana Yojana‘ to provide social security to elderly person aged above 60 years.
The responsibility for implementation of this scheme is given in the hands of Life insurance corporation of India(LIC). LIC will provide a fixed return of 8% per annum for 10 years.
Providing Basic Banking Accounts with overdraft facility and RuPay debit card
Government will put effort to cover all those households, which are not covered with banking facilities by August 2015. With the help of RuPay debit card provided under this scheme, facility of overdraft of Rs. 5000 will be provided.
Note : The limit of overdraft has been increased to Rs. 10000.
To provide micro – insurance to all willing and eligible persons by 14th August, 2018, and then on an ongoing basis.
Financial Literacy Program
Financial literacy is an integral part of this Mission. This scheme let the beneficiaries make best use of the financial services being made available to them.
Creation of Credit Guarantee Fund
The government will create a credit guarantee fund that will be responsible for covering the defaults by overdraft accounts.
Benefits under Pradhan Mantri Jan Dhan Yojana
One basic savings bank account is opened for unbanked person.
There is no requirement to maintain any minimum balance in PMJDY accounts.
Interest is earned on the deposit in PMJDY accounts.
Rupay Debit card is provided to PMJDY account holder.
Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.
Life Insurance Cover of Rs. 30,000 to eligible PMJDY account holders who opened their account for the first time between 15.8.2014 to 31.1.2015 is available.
An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pendion Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme.
A minimum monthly remuneration of Rs 5,000 to business correspondents.
Achievements of Pradhan mantri Jan dhan Yojana
Government is celebrating 6 years of Jan dhan Yojana achievement these days, so here I have mentioned some achievement of PMJDY.
Government was successful in providing banking services to more than 40.35 crores unbanked people due to implementation of PMJDY.
It’s a great achievement for Government because banking was not accessible to low income group people and farmers.
Total money deposit under Pradhan mantri Jan dhan Yojana scheme stands at Rs. 1.31 lakhs crore which in itself a huge number.
The average account balance of all accounts under Pradhan Mantri Jan Dhan Yojana stands at Rs. 3239.
Pradhan Mantri Jan Dhan Yojana FAQs
What is pradhan mantri jan dhan yojana?
Pradhan mantri Jan dhan Yojana(PMJDY) is a national mission based on financial inclusion by Government of India.
How to open pradhan mantri jan dhan yojana bank account?
Simply visit any bank near to your home and ask for Jan dhan yojana account.
If your application is denied, I recommend calling for an inquiry about why your application has been rejected. Before applying next time fix these issues, and call again. It’s surprising how often denials can be changed to approvals.
Benefits of RBL Titanium Delight Credit Card
RBL titanium delight credit card comes with the welcome benefit of 2000 rewards points. If you spend Rs 10000 within 60 days of the card issued you will be also rewarded with 1000 rewards points.
Each reward point has a value of Rs 0.25. So overall you get 3000 reward points of value Rs 750.
With this titanium delight card, you will reward with 1 reward point for each Rs 100 you spend. Both online and offline spending is covered under this program. Each reward point has a value of Rs 0.25.
The reward rate is good if you are a beginner but if you are a pro user you will not provide you good value for spend.
There are various cards which offer good benefits then this card. If you take the example of SBI simply click credit card, it offers way better reward then this card.
If you spend Rs 1.2 lakhs in a given year you will get 4000 rewards points as milestone benefit. It is also not good as compared to SBI simply click credit card, in which you get an Rs.2000 voucher on spend of 1 lakhs. and, 2000 voucher for another 1 lakhs spend.
The best benefit of this card is that when you spend on movie, grocery, and pizza on Wednesday you get accelerated rewards points and discounts.
If you book a movie from BookMyShow you will get 1+1 or Rs 200 off (which is lower) on Wednesday once a month.
You will get 20 reward points for every Rs 100 when you use your RBL titanium delight credit card on all big grocery stores. This offer is only applicable on Wednesday.
Domino’s / Pizza Hut discount
You will get 40 reward points for every Rs 100 when you buy pizza from Domino’s or Pizza hut online.
Note:- This offer is only applicable on Wednesday and a Maximum of 1000 bonus Reward Points each for Groceries and Pizza spend in a billing cycle.
Annual Saving Benefit Calculator
For this purpose I have taken Rs.15000 per months spend. I you wish to Check your saving you can check out from Here.
Saving in Rupees
Movies(Once A Month)
Rs.1.2 Lakh Milestone Benefits
Total annual Benefits
So, overall RBL titanium delight credit card offer good value. Its Wednesday shopping offer is very good. If you use to shop in grocery stores then this card is for you. If you are a person who does not shop on grocery stores and you want to get travel voucher instead then you should apply for SBI simply click credit card.
RBL Titanium Delight Credit Card FAQ
What is RBL Titanium Delight Credit Card cash withdrawal charges?
2.5% (min Rs.300) of the cash amount wef July 1, 2020, 2.5% (min Rs.500) of the cash amount
What is RBL Titanium Delight Credit Card 1 reward points value?
1 Reward points has value of Rs.0.25.
What is RBL Titanium Delight Credit Card customer care number?
Call this Number 1800 121 9050
RBL Titanium Delight Credit Card Maximum Limit?
It can not be predicted because it fully depend upon bank and your credit history.
What is RBL Titanium Delight Credit Card Interest Rate?
APR up to 3.99% p.m. (47.88% p.a.)
What is RBL titanium delight credit card annual fee?
Many times it may come to your mind that what is Liquid fund. Are they safe enough for investment, and are they different from other investment instruments? I will discuss these points in detail in this article.
What is liquid fund?
Firstly, let’s understand what a liquid fund is? Liquid funds are a kind of mutual fund. Mutual funds generally invest in equity(shares), whereas Liquid funds are a kind of Debt fund (One type of mutual fund).
Liquid funds don’t invest money in any company’s share, whereas they invest in bonds, government securities, and debentures.
Generally, debt funds offer a fixed amount of return, and the time frame in this type of investment is 2-3 months.
Liquid Funds Meaning
The liquid fund got its name liquid because it can invest in debt instruments for a very short time.
Liquid funds can invest in only that debt instrument which are having a maturity period of a maximum of 91 days.
Let’s understand Liquid Funds with an example:-
If company A needs a short term loan for 91 or less than 91 days, company A will issue Debentures with maturity time of up to three months.
And the debenture issued by Company A will be subscribed by Liquid fund manager.
Finally, after the maturity period, Company A will pay the liquid fund manager amount of loan with a fixed rate of interest as agreed earlier.
In this type of instrument, Liquid funds invest their money. In return, they get a fixed amount of return from such investment.
Here, a question may come to your mind that if liquid funds invest for a very short period, how can we invest for long periods in these funds.
We can stay invested in liquid funds for whatever period we would like. The 91 days boundation is for the fund manager.
The fund manager can not invest in any debt instruments with a maturity period of above 91 days.
Suppose the fund manager has invested in Company A debentures. After maturity, he will take the money with interest and invest it in other options.
This process keeps on repeating, and your money will keep on growing.
Liquid fund Exit load(redeem)
The inventor can withdraw or redeem his money as per his need.
Note:- If you withdraw within seven days, you have to pay a nominal fee.
You can also say that what’s different in this fund, it looks the same as Fixed deposits. So here is a quick Comparison between FD and Liquid Funds.
Disadvantages Of Liquid Fund over FD
Generally, a Fixed deposit offer returns from 6% to 8%, which are different for different organisations.
Whereas, if we talk about liquid funds, they are almost similar to FD.
From the returns point of view, they are almost the same(But there is fluctuation involved).
Suppose you are putting your money in reputed banks or nationalised banks. In that case, your money is almost risk-free, or we can also say that zero risk.
Note: From 1st April 2020, your FD amount of up to 5 lakhs is fully insured.
In the case of a liquid fund, we can not say that it has zero risks, but we can definitely say that the risk involved is very less.
And there is a reason behind this: it is easier to estimate the risk for shorter duration investment than a longer period.
So overall, it is not as risk-free as FD is concerned.
Advantages of the liquid fund over FD
Liquid funds are flexible in terms of investment where you can invest weakly, monthly, or quarterly as per your choice in a single account.
Whereas fixed deposits are a one-time investment, and if you wish to invest again, you have to open a fresh account.
In liquid funds, you can withdraw your money whenever you want. Only, if you withdraw it within 7 days of investment, you have to pay a minor exit load fee.
In FD, some institutions will have a policy of no withdrawal before maturity. In contrast, some institutions will cut down interest by half or one percent.
Indians love safe investment options(PPF vs Mutual Fund). According to us, Safe investment is one that offers a fixed return in a fixed time.
We believe so much in this, that we often forget what a safe investment option actually is and apart from these two parameters the other parameters to evaluate investment options.
PPF vs Mutual Fund Which is Better
Can PPF beat Mutual fund? to know the answer let’s begin the face off. Let’s evaluate both the options on para meter no.1
PPF offers a fixed interest rate. This usually hovers around 8%-9%. In the last 50 years, It has touched 12% high and gone down to as low as 4%.
Investing in equity mutual funds for a long duration can get you better returns than any other option. In the long term, Equity Mutual Funds can easily offer 10%-12% returns.
These kinds of returns are difficult to get in any other investment option. So I will award 4.5 to mutual funds and 2.5 to PPF.
Now let’s talk about the option through which the investment can be redeemed at the time of emergencies. During the financial emergencies, the money can’t be withdrawn from the PPF account.
PPF has a lock-in of 15 years. Once invested, the investor will have to complete the 15-year term. There are a few exemptions. After 7 years for selective reasons like buying a house or medical emergency, the money can be withdrawn. But not the entire amount.
Money can be withdrawn easily from a mutual fund account. With just a few formalities, the amount is credited to your account in 3-4 days.
The withdrawal process is also very simple. This can be completed from the comfort of your home. With PPF you save tax with a lock-in of 15years whereas with ELSS you can save tax with a lock-in of just 3 years.
In terms of liquidity, ELSS is an amazing option. Here I will give 4 marks to Mutual Fund and 2 to PPF.
Now let’s see how tax effects return in both the options. Let’s understand how returns are taxed in both these two. Because we will get to know about the real returns after we calculate the returns after tax.
When it comes to tax, you get tax benefits under sec 80C on investment in PPF. This comes under the category of EEE.
It means that from investment to maturity amount, no tax is levied. You can save tax by investing in equity-linked saving schemes mutual funds.
In long term equity mutual funds, a 10% LTCG tax is levied.year, on the profit exceeding 1 lakh, in a financial.
This 10% is levied on the profit that exceeds1 lakh. Meaning, profit up to 1 lakh is tax-free. PPF has left behind Mutual funds in tax benefits. I will award PPF 4 and Mutual funds 3.
The biggest test of an investment option is its ability to beat inflation. Let’s see which is the better of the two here If we talk about retail inflation then PPF can beat that because of its high interest rates.
But, when we break inflation into sectors,then we see a different picture. The biggest example here is education inflation which is in double digits.
PPF might not be able to accumulate sufficient wealth required for the higher education of children and retirement planning. In the long term, the equity mutual funds can give as high as 12% returns.
It means the possibility of earning a higher return is more with mutual funds than PPF. It means mutual funds can beat inflation better. Here, I will award 3 to PPF and 4 to MF.
The next point I would like to talk about is that RISK PPF doesn’t involve any risk. You get a fixed return in this. The amount invested is locked in for a fixed time period.
At the time of maturity, the amount is returned with the interest. In Equity mutual funds, the risk reduces substantially in the long term.
But in the short term, there is risk involved. But just like PPF is a long term product, the money is invested for 15 years, in the long term, the risk is almost negligible in equity mutual funds.
The possibility of getting double-digit returns is also high. Looking at the risk profile of both,i will give 4 marks to PPF and 4 to Mutual funds Mutual funds have defeated PPF. Mutual funds option is the winner of all the rounds.
How to increase CIBIL Score Made Easy. In this article, I am going to help you understand what a credit score is and how it’s calculated, show you how to improve your credit score and keep it high, AND I’m going to give you THREE tricks that can quickly boost your credit score.
What is Credit Score?
So, first of all, your credit score is basically a number that tells banks or other institutions how good you are at paying your bills and how likely you are to pay back a loan (on time).
CIBIL credit scores range from 300 to 900,the higher the better. Having a good credit score enables you to buy expensive things like a house or a car or something for your business, and pay for it gradually.
It enables you to get the best available credit cards, which will pay you to use them. I make almost $1,000 a year just by using credit cards for all my purchases.
A good credit score also will help you to get lower interest rates when borrowing, and it can even lower the cost of your insurance.
Generally, you need a score of at least 760 to get the best possible interest rates on a loan. That interest rate can make a big difference in what kind of home you can buy.
Suppose you can only afford to pay $1200/mo after a 20% down payment. If you increased your credit score from 630 to 760, you would be able to buy a house costing $50,000 more and still have the same monthly payments.
However, if your credit score is less than 500, you won’t be able to get any loan.
How CIBIL Score is Calculated?
The first step to improve your credit score is to understand how it is calculated. There are four main factors that can influence it:
The first and most important factor is whether or not you pay your bills on time. This accounts for 35% of your credit score. There are no ways around this one.
You simply have to pay all your bills on time,and the easiest way to do this is to set up automatic payments for all your bills.
If, however, you have an overdue bill or derogatory mark on your account, pay the most recent ones off first.
Older derogatory marks do not hurt your score as much as recent derogatory marks. Furthermore, don’t just pay an overdue bill by mailing a check; pick up your phone and call the company. Explain why you missed the deadline. Use your nice guy voice.
Ask them to please remove it from your credit report and remove any late fees. Offer to pay the full amount due. Remember, they just want you to pay your bills,and they have the ability to remove any penalties.
Okay, before we go any further, have you ever seen your own credit report? Not just your score, but the full report. You need to read your credit report so that you can figure out what is hurting your credit score.
Maybe there’s a bill you forgot about,maybe there’s a mistake, or maybe someone stole your identity.
You won’t know unless you read your credit report, which you should be able to get for free from any of the three major credit bureaus,Experian, TransUnion, or Equifax.
All of them will try to get you to sign up for some paid service, but you don’t need that. Just get the free credit report. I personally use Experian, but the others should work fine too.
After you read the credit report, what do you do if you find out that there is a mistake or possibly fraud? Or, what do you do if your debt has already gone to a collection agency?
As far as your credit report goes, I suggest the same response, which is my first trick. Send a 609 letter to the credit bureaus.
Write something like the following: I’m exercising my right under the Fair CreditReporting Act, Section 609.
Please send me the original sources of information reported including, but not limited to, the original contract with my signature for the following account(s): (here you should list the account names and numbers) If you can’t provide me with this information,please remove the account(s) immediately.
Be sure to sign the letter, and write your name, address, phone number, date of birth, and social security number. This should help to remove any mistakes on your credit report. In addition, collection agencies often do not have the original documents, which are required by law.
This won’t stop the collection agencies from bothering you, but it could remove them from your credit report and help your credit score.
Keep in mind that this won’t work if the collection agency has the original documents. The second factor that determines your CIBIL score is the amount of credit you are currently using, which accounts for 30% of your credit score.
This is simply a ratio of the amount you have borrowed using your credit cards divided by your total credit limit.
Ideally, this should be less than 10%, orat the very least less than 30%. Anything more than that will hurt your credit score.
This can be improved two ways: decreasing the amount you owe on your credit card accounts or increasing your total credit limit.
So, if you can, every month you should autopay your entire statement balance for every account you have.
Unless you are experiencing some financial crisis at the moment, it is ludicrous to EVER carry a balance on a credit card.
Carrying a balance hurts your credit score and costs a lot in interest. In addition, there is a little trick thatcan help improve your credit score even more.
Pay your account balance BEFORE your statement is generated. This will bring your credit usage down to nearly 0% and give your FICO score an extra boost.
Alternatively, you can increase your total credit limit by getting more credit cards with no annual fees. This will hurt your credit score a little at first, but after about a year it will help your long term credit score.
At the very least, never cancel a credit card unless it has an annual fee. Even if you don’t use it at all, it helps your credit score by boosting your total credit limit.
Lastly, and perhaps the easiest thing that you can do today to improve your credit score is to request a credit limit increase for all your credit cards.
You can probably do this online, although it might work better to ask over the phone. The third factor that determines your CIBIL score is the length of your credit history, which accounts for 25% of your score.
Generally, this is going to take years to improve. It’s good to start by getting credit cards as young as you can responsibly use them.
Also, keep in mind that any hard credit inquiry will hurt your credit score for a year. This includes applying for a credit card or loan, so try to spread out credit card and loan applications.
There is actually one way to quickly build credit history without waiting, and that is my third trick. Find a relative or friend with really good and long credit history.
And ask them to add you as an authorized user on one or more of their old credit card accounts. Make sure they have never missed a payment and they have low utilization.
You do need to use your social security number,but they do not need to give you a credit card. The beauty of this trick is that you will adopt some of their good credit, but they cannot be hurt by your bad credit.
This is NOT cosigning. As long as they don’t give you a card, there is no risk for them at all. The fourth and last factor that determines your FICO score is the variety of credit you have used, which only counts for 10% of your credit score.
So, you can improve your long term credit score by having a variety of accounts. In addition to credit cards, this can be helped by having store cards, bank cards, student loans, car loans, mortgages, and personal loans.
The more accounts you have the better, anda perfect score can only be achieved by maintaining more than 20 accounts. However, this has only a small effect on your credit score, and it is always a bad idea to get a high-interest loan.
All right, thanks for reading, and good luck with your credit score! Please share your own experience below in the comment section.
A lot of times, people look at where their colleagues and friends have invested to save tax(Section 80c) and just buy the same things without thinking if they are right for them.
This isn’t the right approach. After all, you are putting your hard-earned money. You should know all the options available to you and then make an informed decision and that’s what we will talk about in this article.
Let’s begin. A big component of tax savings available to every taxpayer is the provisions under Section 80C. In this article, I will also discuss what is section 80c? and 10 Best Deduction Under Section 80c.
What is Section 80c?
Let us look at what is Section 80c of the Income Tax Act 1961. According to the tax laws, you can claim a deduction of Rs 1.5 lakh from your total income under section 80C.
Basically, you can reduce up to Rs 1.5 lakh from your total taxable income by saving and investing money in the products that are listed under Section 80C towards tax benefits.
This benefit under Section 80C can be availed by individual taxpayers and Hindu Undivided Family (HUF). Having understood this far, let us dig deeper as to how exactly you could benefit from Section 80C and utilise the Rs 1.5 lakh that you can.
As mentioned before, you need to deploy this sum into products that are listed as tax savers under Section 80C and they are many such products.
Various Deduction Under Section 80c
Actually, there are over a dozen avenues through which taxpayers could use to exhaust their tax savings under Section 80C. Each of these products is unique, though they all have a common objective which is to provide tax savings on the monies that flows into them each financial year. Let us understand the basic features of each one of them.
Public Provident Fund (PPF)
The Public Provident Fund (PPF) is one of the oldest tax saving instruments in the country which was introduced in 1968.
It is a long-term retirement savings option,which functions like a savings-cum-tax savings medium. The PPF has a minimum tenure of 15 years, which can be extended in blocks of 5 years as per your wish.
The amount deposited during a financial year in the account can be claimed under Section 80C deductions within the Rs 1.5 lakh limit. The current interest rate on PPF is 7.9%.
There is another advantage with PPF; the interest rate is guaranteed and the gains are tax free on redemption after maturity.
Employee Provident Fund (EPF)Your contributions in EPF are eligible for tax deduction of up to Rs 1.5 lakh under Section 80C and the money that you accumulate in your EPF earns a guaranteed interest which is notified at the beginning of the financial year.
To provide flexibility to taxpayers, they can withdraw from the account after the mandatory specified period of 5 years. Like PPF, the gains from EPF are also tax free.
The current interest rate on EPF is 8.65%. National Saving Certificate (NSC)The NSC is a guaranteed income investment scheme that you can open at any post office.
The tenure of this scheme is fixed at 5 years and the interest rate is guaranteed in them. The current interest rate on NSC is 8%. However, the gains from the NSC returns are taxable as they are added to your income.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY)This scheme is designed to provide a bright future for the girl child. The SSY account can be opened at the post office and designated banks for a girl child.
The account can be opened for the girl child before she turns 10 years old. The interest offered on this account is guaranteed and is currently 8.4%.
Like the PPF, the interest earned in this account is tax free. 5-year Tax Saving Fixed DepositThese are bank deposits for a 5-year term in which the savings up to Rs 1.5 lakh in a financial year qualify for tax deduction under Section 80C.
The current prevailing interest rate in such deposits is in the 6.85-7.5% range. However, like the NSC, gains from this deposit are taxable as they are added to your income.
Senior Citizens Savings Scheme (SCSS)
Senior Citizens Savings Scheme (SCSS)To address the tax savings needs of senior citizens, the SCSS was introduced by the government for those who are 60 years old or more.
The deposit matures after 5 years from the date of account opening but can be extended once by an additional 3 years. In this scheme the returns are guaranteed and currently 8.6%.
Equity Linked Saving Scheme (ELSS)
Equity Linked Saving Scheme (ELSS)The ELSS is an equity mutual fund category in which investments qualify for tax deductions under Section 80C up to the Rs 1.5 lakh limit in a financial year.
The ELSS is a market-linked product and doesn’t guarantee any returns and comes with a three year lock-in, which is the shortest among the tax savings options under Section 80C.
As the ELSS is a mutual fund, there is convenience to start an SIP with ELSS to make tax savings a regular exercise with just Rs 12,500 SIPeach month.
National Pension System (NPS)
National Pension System (NPS)The NPS is a voluntary retirement scheme through which you can create a retirement corpus or your old age pension and available to all Indian citizens (resident or non-resident)between 18 and 65 years old.
The investments under Tier I of the NPS qualify for tax deductions under Section 80C up to the Rs 1.5 lakh limit in a financial year. There is an added advantage of saving additional tax with the NPS.
NPS subscribers can claim an additional deduction for investment up to Rs 50,000 in a financial year under Section 80CCD (1B) over and above the Rs 1.5 lakh deduction under Section 80C. The gains from NPS investments as well as the final corpus are full tax free.
Life Insurance Premium, pension plans and ULIPs
You can claim premiums paid for life insurances for self, children or your spouse under Section 80C.
The gains from these savings and investments are tax free under Section 10(10)D if the premium is not more than 10% of the sum assured or the sum assured is at least 10 times the premium.
However, if the sum assured is less than 10times the premium, you can claim a deduction under Section 80C only up to 10% of the sum assured.
Repayment of Home Loan
There is something for home buyers servicing a home loan. If you are repaying the principal component of a home loan, then that amount is eligible for deduction under Section 80C.
This tax exemption also includes payments made towards stamp duty and registration.
Tuition Fees Deduction Under Section 80c
If you are a parent, you can claim fees paid for admission of your child in schools, colleges or universities in India for full-time courses only.
The tax exemption under Section 80C can be claimed for up to two children for that particular financial year.
Infrastructure bonds Within the Section 80C, sub Section 80CCF is a deduction available for taxpayers who prefer to invest in the government approved bonds.
The deduction limit is up to Rs 20,000 per year and applicable on long-term bonds having a minimum tenure of 10 years with a lock-in period of 5 years.
While the interest rate is fixed with these bonds, the gains on maturity are taxable. Having seen how each of the products in which savings and investments qualify for tax deductions under Section 80C, you can decide on those that meet your needs.
You should also know that to claim the tax deductions under Section 80C, you need to produce proof of savings and investments inthe products that you choose.
The tax savings options within Section 80C is exhaustive and overwhelming that many forget how much income tax they actually save.
For instance, at the highest 30% tax bracket,a taxpayer who exhausts the entire Rs 1.5 lakh deduction under Section 80C can save Rs 46,800 including 4 per cent cess.
In the 20% tax slab, the savings works toRs 31,200 and at 5% tax slab it is Rs 7,800. As we said in the beginning, it is our belief that tax savings should be done with some planning and thinking.
You should not get into the herd mentality of saving tax in an instrument just because your father does it or a friend thinks it is good.
I mean, just because you can save tax on insurance policy, doesn’t mean you take a policy to save tax. Think if you need insurance cover and take an adequate cover with tax savings as an additional benefit.
Another aspect that you should be watchful of is the tax savings on home loan repayment. Just because there is a tax saving window,do not go into taking a home loan to purchase a house.
But, when you do buy a house on a loan, use the available tax benefits under Section 80C towards loan repayment. We think there are essentially three must have tax saving products that every taxpayer should consider.
You need life insurance, especially a term life policy to make sure your dependents live comfortably in your absence. A term insurance policy provides pure life cover which is very affordable compared to other life insurance covers.
For instance, a 30-year old healthy male will need to pay about Rs 20,000 annually for a Rs 1 crore term insurance plan. At less than Rs 2,000 a month not only do you get peace of mind, you also get the tax benefit under Section 80C.
The second product which will work for you and help you to build a retirement corpus is the National Pension System (NPS). Retirement is a financial goal that everyone one needs to plan for.
The NPS with its long term lock-in, choice of investment options and growth possibility is a powerful tax saving cum retirement planning tool.
Lastly, there is scope to create wealth and save income tax with investments in ELSS. The mutual fund structure of ELSS lets you plan and automate your investment in them for the whole year through SIPs (systematic investment plan).
You could use the ELSS as the first step towards wealth creation along with the available tax deduction that you could claim under Section 80C.
To recap; Section 80C of the income tax allows individual taxpayers and HUF to claim a deduction of Rs 1.5 lakh from the total income by saving and investing money in the products that are listed under Section 80C towards tax benefits.
And, the best way to leverage tax savings under Section 80C is to plan for it and align it smartly to your financial needs and goals. Doing so, will help you save tax and also realise your financial goals.