Tax implications of SIP: Know all about how tax is calculated on mutual fund SIPs

SIP (Systematic Investment Plan) is the best way to invest your money in mutual funds (MFs) for creating wealth over a long period and achieving your long-term goals. However, to make the most of SIPs, it is also necessary for you to be aware of its various tax implications.

When you redeem mutual fund investments, you are liable to pay capital gains tax in that year. Capital gains on SIPs are applicable on a First-In-First-Out (FIFO) basis. What this means is, the gains are calculated against each instalment, starting from the first one.

Suppose you have a monthly SIP of Rs 10,000 in an equity fund, running from 1st March 2017. You decide to redeem Rs 50,000 on 10th June 2018. Investments from the earlier months will be redeemed until the amount specified is reached.

For equity funds, redemption made beyond 12 months of purchase attracts Long Term Capital Gains (LTCG) tax while redemption up to 12 months attract Short Term Capital Gains (STCG) tax. So, in this case, LTCG tax will be applicable  on gains from the first three months and STCG tax on gains of the fourth month of your SIP, as illustrated below:

Date NAV Units allotted(10,000/NAV) Value of units sold @ NAV 27.5 on 10thJune 2018 Gains/Profits Tax
1st Apr 2017 21.25 470.59 12,941 2,941 LTCG
1st May 2017 21.68 461.25 12,685 2,685 LTCG
1st June 2017 22.41 446.23 12,271 2,271 LTCG
1st July 2017 22.72 440.14 12,104 2,104 STCG
1st Aug 2017 23.04 434.03 11,936
1st Sep 2017 23.45 426.44 11,727
1st Oct 2017 23.89 418.59 11,511

However, you will have to pay the tax only if your aggregate gains from equity exceeds Rs 1 lakh in a year. This includes gains from both equity mutual funds and direct investment in shares.

The same principle of tax calculation applies to SIPs in the non-equity funds. The only difference is in the investment holding period; for non-equity funds LTCG is applicable beyond 36 months and STCG up to 36 months.

Some more pertinent things to note:

# Your equity fund SIP redemptions are taxable only if your gains from equities exceed Rs 1 lakh in a year.

# Tax rates are different for equity and non-equity funds. They are higher for non-equity funds by 10-15%.

# If you have invested in the dividend option, Dividend Distribution Tax (DDT) will be applicable.

# TDS is applicable for NRI (Non-resident Indians) investors.

Tax rate ready reckoner:

Equity funds 10% 15% 10%
Non–equity funds 20% with indexation 30% 25%


Source by:-financialexpress

Around 1 million bank employees to go on 2-day strike from May 30

Around 1 million bank employees will go on a two-day strike this Wednesday as the conciliation efforts by the Union government failed to convince bank unions to call off protests against the proposed low wage hike. Additional Chief Labour Commissioner (CLC) Rajan Verma met the bank unions, under the banner of the United Forum of Bank Unions (UFBU), finance ministry officials and bank management, represented by the Indian Banks’ Association (IBA) in an effort to avert the strike.

“The CLC tried his best to sort out the strike-related issues but there is no positive development. Though the bankers, through the IBA, said they are willing to reconsider the proposed wage hike, there was no concrete proposal.

Hence, the strike stands,” All India Bank Employees’ Association General Secretary C H Venkatachalam said.

D T Franco, general secretary, All India Bank Officers’ Confederation said about 1 million bank officers are expected to participate in the strike on May 30 and May 31. During the conciliation proceedings, the bank unions told the CLC that a 2 per cent wage hike was proposed in a meeting held between bankers (IBA) and unions (UFBU) on May 5 “which was not at all acceptable, considering the rise in cost of living.”

“The officials from the IBA stated that they have had several rounds of discussions in respect of wage negotiations…in view of the huge non-performing assets or bad loans in the banks, only 2 per cent of wage increase was offered.

But they also stated that they are still not closed and ready to negotiate further,” according to the minutes of the meeting.

Bank unions, however, argued that the wage hike should not be linked to bad loans of banks since it is “not disputed that employees are contributing significantly (towards functioning of banks) through their hard work.”

In the last wage revision in 2012, which was for the period between November 1, 2012, and October 31, 2017, bank employees got a 15 per cent wage hike and AIBOC Joint General Secretary Ravinder Gupta said the unions were expecting a better salary increase this time.

“The volume of business and the volume of work of the employees and officers have gone up enormously in the recent years… In addition, bank employees and officers are compelled to undertake so much of non-banking business and all the burden of doing various government schemes have fallen on the shoulders of the bank staff,” the strike notice issued by UFBU, an umbrella body which represents nine unions, said.

Another point of contention for the unions was the IBA’s decision to restrict wage negotiations to scale-III officers or up till the senior manager-level. However, bank unions are demanding a wage hike for officers up to scale-VII which will include general managers, deputy general managers, assistant general manager and divisional managers. The CLC told the bank management to consider wage negotiation for these officers too, as has been a practice in the past.

Banks are divided over the level of officers that will be covered in the wage negotiation. Without naming them, the IBA representative told the CLC that the six banks were opposed to the move of covering general-manager level officials.

The CLC advised the bank management to offer a fresh wage hike and said “as in the past, wage settlements, the officers from scale-IV to scale-VII were also covered so this time also they may be a part of the wage negotiations because excluding them may cause a fresh controversy which may not be conducive for amicable industrial relations.”

Strike Alert

Trade unions oppose…

  • Bank management’s proposal for a 2 per cent wage hike
  • Decision to negotiate wages for up to senior manager-level officers, thereby excluding general managers
  • Centre’s ‘casual approach’ to wage revision of bank employees

Unions demand…

  • Early wage revision settlement
  • Wage revision should include all bank officers
  • Adequate increase in salary and improvement in other service conditions

Labour Commissioner tells banks to…

  • Cover all officers in wage negotiation
  • Revise wage hike proposal

Source by:-business-standard

Send WhatsApp messages without saving the contact

Image result for Send WhatsApp messages without saving the contact

WhatsApp sends a message to your contacts and saving a number in contact list isn’t that compulsory now as a new feature serves it.
WhatsApp comes with a
‘Click to Chat’ feature that allows users to begin a chat with someone without having their phone number saved in your phone’s address book. However, knowing the number of the person you want to chat with is a must.
WhatsApp lets you create a link that will allow the user to start a chat with them.
To create the link, use and insert the person’s full phone number in international format, after eliminating any zeroes, brackets or dashes. For example:
Don’t use:
By clicking the link, a chat with the person automatically opens. This ‘Click to Chat’ works on both phone and WhatsApp Web. Readers must note that this functionality works only in individual chat cases and does not work in case you want to engage in a Group chat.
Recently, WhatsApp added new features and updates…………..Read More>>
Source by techiyogiz

No free Jet Airways tickets, says airline as it alerts flyers about fake contest

Jet Airways on Wednesday clarified it has not come up with any special offers on its 25th anniversary. It was in response to a fake message being widely shared on social media and WhatsApp claiming that the airline is offering two free tickets to every family to celebrate its 25 years.

In a statement on Twitter, the airline alerted its customers and also advised them to trust information that is shared on its verified accounts. “#FakeAlert There’s a fake link being circulated regarding ticket giveaways for our 25th Anniversary. This is not an official contest/giveaway and we advise caution. Genuine contests & giveaways are hosted only on our verified social media accounts, indicated with a blue tick,” the tweet read.

The free air ticket message that had gone viral on social media asked users to share the message with 20 other friends on WhatsApp. It also claimed that once the message is forwarded, the users will receive tickets within 48 hours by mail. Similar fake messages claiming free air tickets from Air Asia and Emirates went viral in the past.

Jet Airways, the second largest airline in the country after Indigo, operates over 300 flights daily to 65 destinations. It began full-fledged operations in 1995 with international flights added in 2004. The airline went public in 2005 and in 2007, it acquired Air Sahara. The airline flies to various destinations, including New Delhi, Hyderabad, Ahmedabad, Bagdogra, Coimbatore, Bangalore and Pune.



Source by:-indianexpress

How To Change Passengers Name In Your Booked IRCTC E-Ticket

Want to change name of a passenger in your e-ticket? IRCTC (Indian Railway Catering and Tourism Operation) now offers the facility of changing name of e-ticket passenger. This can be done by approaching the nearest railway reservation office, said IRCTC on its official website- For availing this facility, customer can now approach the nearest Railway Reservation Office with ‘electronic reservation slip’ print out and photo identity proof in original of one of the passenger traveling in the ticket at least 24 hours before the scheduled departure of train as per extant railway rules, IRCTC added.
1.    The reservation offices can change passenger’s name against a request from the passenger as per extant railway rules applicable to other face to face counter booked tickets.

2.    Facility in the name change of passenger holding confirmed e-reservation has been permitted as per extant Railway rules noted as under:-

a. Where the passenger makes a request in writing 24 hours before the scheduled departure of train to the nearest railway reservation office. It can be transferred to an-other member of his family, meaning, father, mother, brother, sister, son, daughter, husband and wife. He/she should bring the ‘electronic reservation slip’ print out along with photo identity card proof in original and a proof for blood relation desired to be changed.

b. Where the passenger is a Government Servant proceeding on duty and appropriate authority, makes a request in writing 24 hours before the scheduled departure of train.

3.    Such request can be granted once only, said IRCTC.

Source by:-ndtv

NPS vs PPF: Which one helps you save more money for future

NPS vs PPF: Whenever it comes to saving for retirement, Public Provident Fund (PPF) and Provident Fund (PF) are the first two things which come to the mind of a salaried person. However, the National Pension Scheme (NPS) has been gaining a lot of popularity among salaried people after the Narendra Modi government provided an additional tax deduction of Rs 50,000 in Budget 2015-16. NPS has two types of accounts: Tier 1 and Tier II. On one hand, Tier 1 account is non-withdrawable until the subscriber turns 60, while on the other hand, under Tier II account a subscriber can voluntarily withdraw funds from the account.

What is the difference between PPF and NPS:

– Who can invest in the schemes?

A PPF account can be opened by anyone. A minor account can also be opened under PPF. However, an NPS account can only be opened by people of the of 18 or above and less than 60. NRI’s can also open an NPS account. However, they cannot open a PPF account.

– Maturity:

The maturity period for a PPF account is 15 years and a subscriber can extend the term in the multiples of five once the account matures. However, the time period for NPS is not fixed. A depositor can contribute to the NPS account until s/he turns 65. The tenure can be extended up to 70 years of age with an option to invest in the account.

– Tax benefit:

NPS subscribers can get a maximum of Rs 2 lakh deduction in total, according to the Income-tax (I-T) Act. NPS offers tax saving at the first two stages of contribution and interest accrual, but withdrawals are taxable. The lumpsum withdrawal in NPS will be exempt up to 40 percent of such withdrawals. PPF enjoys an EEE or ‘exempt, exempt, exempt’ status, where the amount you contribute (up to Rs. 1.5 lakh), the return you get and the maturity amount, all are tax exempt.

– Investment options:

In a PPF account, a subscriber has to contribute a minimum of Rs 500 annually with the maximum limit set at Rs 1,50,000. A maximum 12 contributions per year are allowed in PPF accounts. As for NPS, the minimum contribution is Rs 6,000. There is no maximum limit for contribution, but it cannot exceed 10 per cent of the depositor’s salary.

Source by:-financialexpress

What you don’t know about Aadhaar

NEW DELHI: The 12-digit unique identity, Aadhaar, provides identification to more than a billion Indians. Its ability to uniquely identify individuals and its digital interface have made it a compelling identification platform.

Even though the government is taking various measures make it a necessity to avail of financial services, subsidies and so on, not many people are aware of the Aadhaar related nitty-gritties. A recent study, State of Aadhaar, conducted by IDinsight, a global development analytics firm, found that only 7 percent were aware of the full Aadhaar authentication process.

The survey covered 2,947 rural households in 21 districts across the states of Andhra Pradesh, Rajasthan, and West Bengal.

While 85.1 percent of the people surveyed were aware of fingerprint authentication, less than half of them, i.e., 41.6 percent, know that Aadhaar enrolment is free of cost.

With regards to safety of data, although many are afraid about the possibility of misuse of information linked and stored, not many know about the precautionary measures that can be taken.

To prevent misuse of Aadhaar data, the Unique Identification Authority of India (Uidai) provides a mechanism to lock the biometric information. Biometric information refers to the iris and finger prints scans which are used for authentication. The survey notes that only a lowly 3 percent Aadhaar cardholders are aware of biometric locking and unlocking.
Here’s a snapshot:

High number of self-reported errors
The study found that the Aadhaar has more self-reported errors than the voter ID database. According to the study, 8.8 percent of Aadhaar holders reported errors in their name, age, address, or other information on their Aadhaar letters. Compared to this, the error-rate of the voter ID database is 5.7 percent. What this means, is that the error-rate on Aadhaar was 1.5 times higher.

e-KYC, update Aadhaar card and all that you can do with government's mAadhaar app

This is of significance because of the since the government made it mandatory to link PAN card with Aadhaar for income tax returns to be processed, many were unable to do it due to mismatch in data in both the IDs. Further, since many people couldn’t comply to this directive, the government had to extend the Aadhaar-PAN linking deadline a few times. As per the UIDAI website, the turnaround time for Aadhaar updation is 90 days.

Exclusion from Public Distribution System due to Aadhaar related issues
Not just the errors, the report also highlights that exclusion from receiving benefits due to Aadhaar-related factors have been significant. While the government has repeatedly insisted that no beneficiary should be denied benefits due to lack of Aadhaar, the IDinsight report suggests that on the ground this is not what is happening.

According to the study, 0.8 percent, 2.2 percent, and 0.8 percent of Public Distribution System (PDS) beneficiaries in rural Andhra Pradesh, Rajasthan, and West Bengal, respectively, are excluded from their entitlements due to Aadhaar-related factors. This extrapolates to about 2 million individuals a month. However, non-Aadhaar reasons, such as ration unavailability, contribute much more to exclusion from PDS. Aadhaar-related issues refer to non-seeding of Aadhaar and mismatch in biometric data.

Overall, monthly exclusion from PDS in Rajasthan is 9.9 percent, whereas it is 1.1 percent in Andhar Pradesh.

Ajay Bhushan Pandey, CEO of Uidai, said, “PDS exclusion due to failure of local administration, should be taken very seriously by the concerned agencies. They should ensure that not a single beneficiary is denied. The Aadhaar Act and Government instructions provide for alternate means of identification for genuine beneficiaries who encounter problems in authentication.”

Section 7 of the Aadhaar Act states that Central or State Governments can make possession of an Aadhaar number or Aadhaar authentication mandatory for receipt of subsidies, benefits or services funded out of the Consolidated Fund of India. At the same time, the section also states that an individual who has not been assigned an Aadhaar number, shall be enrolled for Aadhaar and offered an alternate and viable means of identification for receipt of subsidy, benefit or service till the 12-digit biometric number is assigned to him.

Aadhaar based e-KYC has limited reach

The study found that Aadhaar’s digital usage for financial inclusion (e-KYC) has had limited reach, while its analogue version (the letter or card) has been an enabler of inclusion, particularly in opening bank accounts. The physical Aadhaar card is much more widely used to open bank accounts than its digital version. As per the survey, 67 percent of bank account holders used their Aadhaar letter to open their most recent account, while only 17 percent used e-KYC. Ronald Abraham, partner at IDinsight, says “While the ease of Aadhaar based e-KYC needs to be promoted, the government also needs to safeguard the data of analogue users, which is as high as 67 percent.”

People are still okay with Aadhaar

Despite all these issues, the study found that 87 percent of people approved of the government’s mandatory use of Aadhaar, while 76.9 percent approved Aadhaar’s mandatory use by the private sector. 77 percent of respondents approved of the mandatory linking of Aadhaar to services, including mobile.
Although the respondents are fine with mandatory linking their Aadhaar with various services, they do value their right to privacy over everything else. Over 96 percent of respondents valued privacy and think it is important to know what the government will do with their Aadhaar data.
Source by:-gadgetsnow

Passport changes from June 2018

Passport office at Mundhwa. Besides changes in address, MEA is also considering changes in colour of passport.

A day after Hindustan Times published a report that passports may no longer be valid proof of address as they may not have the last page, regional passport officer in Pune said that the changes will come into effect from June this year.

HT in its Friday edition had reported that passports may no longer be a valid proof of address for the reason that they may not have the current last page with the address of the passport holder. However, all the information will continue to be possessed by the passport office and the immigration department or security agencies.

JD Vaishampayan, regional passport officer, Pune said that the new passports will be issued from June 2018 once the existing lot is distributed.

“Basically at the time when the financial allocation is done, we decide an estimated number of passports that would be required for the entire year. So, by May 2018, the existing stock of passport will end. Consequently, by June we will start issuing new passports,” said Vaishampayan. The new passports will be printed at the India Security Press, Nashik, said Vaishampayan.

Earlier, confirming that changes could happen from “next series” of passport being issued, Surendra Kumar, under secretary of policy and legal matters and visa division at ministry of external affairs, said that the new decision has been taken to protect details of passport users. “The decision to keep the last page of passport blank has been taken to protect the details contained,” said Kumar.

According to officials, the details of the passport holders are in the back-end with the officials. Since 2012, all the passports have had a bar code and by simply scanning them, the information can be accessed. Currently the first page of passport has the photograph as well as other details of the passport holder; the address is printed on the last page.

Speaking about whether these changes in the passport are being done to make Aadhaar the only residence proof , Vibhuti Kumar Bhushan, regional passport officer, Kolkata said, “These changes have nothing to do with the importance of Aadhaar card. Passport is basically a travel document.”

Besides the changes in address, the MEA is also considering changes in colour of passport.

Currently, passports are issued in three colours: white for government officers or to those people who visit other countries for official work of the government; red for diplomats; and blue for all others across two categories — those who require emigration check (ECR) and those who do not (ECNR).

Soon, however, those in the ECR category will have orange passports, Kumar said. This will increase the speed of the process of emigration as the colour of the passport will make it clear whether the emigration check is required or not. The printing of the new ECR passports will be done at the India Security Press at Nashik. In this case too, existing ECR passports will be valid.


Dr Kiran Shinde, paediatrician, a Pune resident who practices in Saudi Arabia said, “The decision by the Government of India should be welcomed. In peak hours when I travel to Kingdom of Saudi Arabia from India, average time required to clear the process of emigration is one hour. Different queues should be made for the ECR and the ECNR category of passport holders to avoid any confusion. With proper planning and execution, this is certainly a good change and will be quite helpful for the passenger”.

Daud Khan, sales associate, Panasonic from Kuwait said, “In the larger context, the overall idea appears to be good. This will certainly help in crowd management and will save the time consumed in the immigration process. However, it will be too early to comment whether the decision is good or bad. What concerns me is the implementation of it and how well is it received by other countries. Government endeavors are infamous for grave mismanagement and preparation in India. The bearers of ECR Passports are uneducated people. Ergo, if anything goes wrong in another country or even in Indian airports people will panic which can invite some serious problem. Government of India should take such issues in cognizance while preparing the guidelines of implementation of this change”.

Pathan Atahar Khan, a resident of Beed said, “I visit Gulf countries quite often. This year I will be going to Haj Yatra. In this ‘Yatra’ many people belong to the ECR passport category. We are very happy with this customer friendly decision of the government of India. This decision will cut short the lengthy time taken for the process of emigration check. However, the government of India must ensure that for lacking the information of these changes, it does not create a chaos amongst the common man”.

RPO Pune said, “Now that the official decision regarding the changes in the passport have been taken, we will also formulate the policies regarding informing the same to our passengers. However, it will be very premature to speak on any decisions concerning the same.”

Source by hindustantimes

How to pay LIC premium online

Life Insurance Corporation, also known as LIC, is one of India’s most prominent, and oldest life insurance company. Established in 1956, LIC has been providing insurance solutions to millions of customers since the time it was the only insurance provider in the country altogether. Over time, the company has expanded not only its operations, but also its product suite to cater to the insurance needs of the ever increasing population. Following years of innovation and providing some of the best life insurance Plans, LIC is now counted among some of the most reliable, trusted, and popular life insurance providers in the country.

Online Payment Facility By LIC:

With the world of banking and insurance having shifted online, more and more people are now opting for the convenience of making payments online. With time and innovation, these channels of making payment have become more and more sophisticated. For the convenience of their customers, LICoffers a number of channels via which customers can make payments for their LIC policies. Payments for LIC policies can be done online in variety of ways such as from the LIC website, at authorised bank branches, at franchisees, or even at merchants. Here, we have prepared an exhaustive list of all the options via which customers can make payments for their LIC policy premium online.

LIC Online Payment Channels:

LIC Website Authorised Banks Franchisees Merchant
  • Net banking
  • Debit Card
  • Credit Card
  • Axis Bank
  • Corporation Bank
  • AP Online
  • MP Online
  • Suvidha Infoserve
  • Easy Bill Pay
  • Premium point
  • Life – Plus (SBA)
  • Retired LIC Employee Collection

Premium payment through LIC website:

To make payments for their plans and policies in a secure and convenient manner, LIC has set up a special portal known as ‘Online Payment Gateway’ which is an on-demand premium collection service. Through this portal, customers can easily make their policy payments in real-time, and in a secure manner via net banking. They can also make online payments for LIC policies via credit card or debit card. This facility can only be availed by customers who are registered and have had their LIC policies enrolled on the LIC website. Some important points to remember regarding payment via the Online Payment Gateway are:

  • Premiums can be paid only for policies which are in-force, and for ordinary policies under the yearly, half-yearly, quarterly, and monthly mode of premiums collection. Premium payment for Salary Savings Scheme (SSS) policies will not be allowed via this portal.
  • Payments via LIC’s online payment portal (net banking, credit card, or debit card) can also be done by customers from outside India.
  • This channel of making payments is extremely secure as no policy data is shared in the process. The amount to be paid is fully encrypted.
  • This online payment service can be availed by the customer without having to pay any fee or charge.
  • The payment gateway for payment via debit card or internet banking is BillDesk. For payment via credit card, the payment gateway is IDBI.
  • For net banking, customers can go to the LIC website to find out the banks which are supported by LIC for making online premium payments. All major banks are supported.
  • Customers can get the receipt for the premium paid on the portal itself. The receipt is sent to the policyholder via email, and can also be printed.
  • Premium payments can only be done 30 days before the due date, and until the policy is in-force. For term insurance plans, the advance payment period allowed is 15 days.
  • If premium payment is after due date, a late fee at the rate of 8% (minimum of Rs.5) will be levied.
  • Premiums cannot be paid for the coming financial year.

Authorized Banks for LIC:

LIC has partnered with two of india’s leading banks to provide added convenience to their customers in making premium payments online for LIC policies. LIC customers can make their policy premium payments at Axis Bank or Corporation Bank branches as well. Here are some points to remember regarding this online payment method.

  • Premium payment can be done at any branch or extension counter of Axis Bank or Corporation Bank.
  • Premium payment at authorized bank branches will be accepted either in cash or via a cheque drawn on the particular bank.
  • Premium payment at authorized banks can only be done for LIC policies that are still active. Payments will not be accepted for Salary Savings Scheme policies.
  • Premium payment can only be done 30 days in advance for regular life insurance policies. However, for term insurance policies, advance premium payment can only be done 15 days before due date.
  • Premium payment for ULIP and Health policies will not be allowed.
  • For late premium payments, a late fee at the rate of 8% (minimum of Rs.5) will be levied.
  • Premiums cannot be paid for the coming financial year.
  • Upon receiving premium payment, the authorized bank will issue a signed receipt which fully valid. For such payments, no separate receipt will be issued by LIC.

LIC Franchisees/Authorized Collection Centres:

LIC has also partnered with a number of government and privately owned service providers and companies to facilitate premium payment for it’s customers. The 4 service providers under Franchisees include AP Online – official portal for the Andhra Pradesh government; MP Online – official portal for the Madhya Pradesh government; Suvidha Infoserve – an s-commerce organization which provides a multitude of bill payment services; and Easy Bill Limited –a one-of-a-kind alternate bill payment service which is secure and convenient, and offers bill payment services via traditional friendly neighbourhood stores. When making payment via any of these authorized collection centres, do remember:

  • Premium payment will only be taken in cash and not any other mode.
  • Premiums will only be accepted for policies that are active at the time of making payment. The collection centre will not accept payment for policies which fall under the Salary Savings Scheme (SSS).
  • This premium payment facility can be availed for free. there is no service charge or extra fee that is levied for the usage of this service.
  • If making payment via any of the government owned collection centres, premium can be paid only in that particular state.
  • For late premium payments, a late fee at the rate of 8% (minimum of Rs.5) will be levied.
  • Premiums cannot be paid for the coming financial year.
  • Upon receiving premium payment, the authorized collection centre will issue a signed receipt which fully valid. For such payments, no separate receipt will be issued by LIC.
  • Customers can find the collection centre around them on the LIC website.

Merchants/AgentsForPremiumCollection: LIC has also authorized select personnel, or agents who can collect premiums for LIC policies. Personnel authorized to collect premium include agents at premium points, Senior Business Associates (Development Officers), and Retired Employees. Here are some important details regarding premium collection by authorized agents:

  • Collection of premium by authorized agents will be done for ULIP policies also, but not for health insurance. Premium payment updating will be done in real time.
  • Premium payment to a Senior Business Associate will be done via the LIC portal. The payment will be done in real time and the SBA will issue a valid receipt for the payment.
  • The SBA is also authorized to issue policy status reports, revival/loan/surrender quotations, forms, certificates for income tax purposes, and ULIP statements to policyholders.
  • Retired LIC employees are also among the authorized personnel who can collect premium payments. The premium payment updating is done on a real-time basis and can be done for ULIP policies as well.
  • Premium payment can only be done for policies that are in-force, and for ordinary policies with monthly, quarterly, half-yearly, and yearly modes of payment. Payment will not be accepted for policies that have been issued under the Salary Savings Scheme (SSS).
  • Premium payment can be done not only in cash, but also via cheque to any of these 3 authorized agents i.e. SBAs, retired LIC employees, and premium point collection agents.
  • Advance premium payment can only be done 30 days before the due date of payment and until the policy is active. However, for some select term plans, the advance premium payment period is 15 days before due date.
  • If premium payment is done after due date, a late fee at the rate of 8% will be levied; subject to a minimum of Rs.5.
  • Policyholders cannot make premium payments for the coming financial year in advance.
  • The facility of making premium payments for LIC policies to authorized agents is offered free of charge. There is no service charge of fee levied for usage of this service.

LIC Online Payment – For Registered/Non-registered Users:

The facility to make premium payments online has been introduced by LIC to not just make the process of making payments quicker, and safer. The option to make online payments is offered not just to customers who have registered their policies on the LIC website, but also to those who may have not done so. While the process for both these types of users will be different, nevertheless, it provides the same convenience, of making payments anytime, and from anywhere. Users can pay their policy premiums with just a few clicks and enjoy uninterrupted life insurance coverage.

LIC Online Premium Payment Through Net Banking (Non-Registered Users):

The convenience of making transactions is a facility which almost every bank in India now offers to its customers. This facility can come in especially handy when you have to pay premiums for your LIC policy online. The process for this is quite simple and hassle-free and one can easily do it on their own. Here, we will list down all the steps that you need to follow to make your LIC policy premium payment via the net banking option.

  • Step 1 – to pay your premiums, you need to first go to the LIC website. The URL for the website is You can simply type in the address on your browser to visit the website.
  • Step 2 – Once the website has opened, you will see a box labelled ‘Online Services’ which has several options underneath such as Online Loan, Customer Portal, Pay Premium Online, etc.
  • Step 3 – Under ‘Online Services’, click on the ‘Pay Premium Online’ tab to initiate the premium payment process for your LIC policy.
  • Step 4 – When you click on the ‘Pay Premium Online’ tab, it will open a new tab altogether labelled ‘Pay Premium Online’. This page will display two squares, one labelled ‘No Registration Required – Pay direct’, and the other ‘Registration Required – Pay Premium through e-services’.
  • Step 5 – If you have registered your policy on the LIC website, you can click on the box labelled ‘Registration Required – Pay Premium through e-services’. However, if you have not registered your policy on the LIC website and simply want to pay your policy premium directly, you must click on the box labelled ‘No Registration Required – Pay Direct’.
  • Step 6 – Here, we will be showing you the online payment method where no registration is required. For this, we click on the ‘No Registration Required – Pay Direct’ box.
  • Step 7 – The next page you see will contain a box which reads ‘Pay Direct’. Inside the box, there will be 3 options in 3 separate boxes labelled ‘Pay direct – no registration required’, “Pay through e-services – Registration required’, and ‘View Transaction Status’. Inside the ‘pay direct’ box, you will see a drop down menu which gives 3 options – Renewal Premium, Loan Repayment, and Loan Interest Payment.
  • Step 8 – You must then click on the ‘Renewal Premium’ option from the drop down, which will take you to a new page which shows 3 boxes indicating the steps involved in the premium payment process. Below the boxes will be 2 tabs, one marked Back, and the other marked Proceed. Click on Proceed.
  • Step 9 – The next page brings you to the first step of premium payment, which is Customer Validation. Here you must provide some policy related information. Specifically, you will be asked to provide your LIC policy number, your date of birth, your registered mobile number and email ID, and the instalment premium amount to be paid. After you have entered all this information, you will be required to enter a captcha code in the designated box as well.
  • Step 10 – Once you have entered all the information and the captcha code, click on Submit.
  • Step 11 – Next, you come to the Payment Particulars page, where you have to basically verify the information you have entered about your policy. After you have done so, click on the tab labelled ‘Checkout’.
  • Step 12 – the following page will again display a box with multiple columns which include your policy related information, along with individual columns for additional charges (if any) that will be added over the payable premium amount. These could be Service Tax, Education Cess, Late Fee, etc. The total premium amount payable will be shown in the box, along with a column ‘Pay Prm’. You need to tick the box under that column and then click on Submit.
  • Step 13 – This brings you to the last step of the payment process where will confirm the premium details and also select the mode of making the payment. You can choose between making payment via net banking through the BillDesk Gateway, or via Credit/Debit card (IDBI Gateway).
  • Step 14 – Click on the BillDesk Gateway to make payment via net banking. This will bring you to a page displaying a list of banks to choose from. All major banks are supported by LIC’s online payment service so customers can easily make online payments.
  • Step 15 – Click against the bank with which you hold an account and want to use for net banking to make the premium payment. Click on Submit to confirm.
  • Step 16 – You will be led to your chosen bank’s net banking login page.
  • Step 17 – Enter your net banking user ID, and password to log in to your net banking account. Once you have logged in, you will be asked to verify the payment amount.
  • Step 18 – After doing that, simply follow the instruction that are given to you to make the payment. Most times, for net banking transactions, you will be asked to provide certain grid numbers that are mentioned on the rear of your debit/credit card that is linked to the account.

LIC Online Payment for Registered Users:

If you have registered your policy on the LIC website, you can choose to pay premium for your policy via the e-Services facility offered via the LIC website. The steps to make premium payments using that facility are as follows:

  • Step 1 – Visit the LIC India website On the home page, locate the ‘Online Services section’ and click on the ‘Pay Premium Online’ tab.
  • Step 2 – This will redirect you to a new page where you will find 2 options – ‘Pay Premium through e-Services’, and ‘LIC Pay Direct’. Click on the first option to select it.
  • Step 3 – You will be redirected to the LIC e-Services page where you must click on the option labelled ‘Registered User’.
  • Step 4 – The following page you see will ask for your LIC login ID and password. Provide the necessary information and click on the Submit button.
  • Step 5 – To get your policy details, you first need to enrol your policy on the website.
  • Step 6 – Under the e-Services section, you will find a tab labelled ‘Enrol policies’. Click on it.
  • Step 7 – Once you have clicked on it, you will be asked to provide your policy number and the premium amount payable.
  • Step 8 – Next, you must click on the tab labelled ‘View enrolled policies’ that is on the left side of the page.
  • Step 9 – Next, a page with a code will be displayed. Fill in the code and click ‘Submit. Following this, you can view your policy details.
  • Step 10 – After you have entered the online services portal, you can view all your enrolled policies.
  • Step 11 – After viewing the policy details in customer service, you will be able to see an option “Pay Premium online” to make the payment online.
  • Step 12 – Next, click on the tab labelled ‘LIC Pay Premium Online’ and you will be able to see the list of policies that you have enrolled in your LIC account.
  • Step 13 – From this page, select the policies for which you want to pay the premium and click on the Submit button to confirm your selection.
  • Step 14 – You will be redirected to the payment gateway page where you can select to make the payment either via net banking or via your credit/debit card.

LIC Online Payment Through Debit/Credit Card:

Besides net banking, you can also make premium payment for your LIC policy using your debit card. The process for doing so is simple and easy to understand. Payments via debit card/credit card will be done via the IDBI Gateway. To start off on the process to make premium payment using your debit card, you can simply follow Step 1 to Step 13 listed under ‘LIC Online Premium Payment Through Net Banking’. The steps after that have been listed here:

  • Step 1 – Once you click the circle against ‘IDBI Gateway’, you will be re-directed to another page where you can see the Convenience Fee and Service Tax accompanying every Card Type. Identify your card type and the amount of premium you have to pay to find out the service tax applicable on your payable amount. Next, click on Submit.
  • Step 2 – Next, you will be redirected to the page where you will be asked to enter your card details to carry out the transaction. Most often, you will be asked to enter your debit/credit card number, card’s date of expiry, CVV2/CVC2 number, name on the card, email ID, mobile number. Also enter the captcha code displayed in the box. Alternately, you may also be able to make payment using an OTP, ATM PIN, or a password.
  • Step 3 – Click on Pay. You will receive a receipt regarding the payment made on your email id that you have provided or the one registered with your LIC policy.
Source  by:-bankbazaar

IRCTC Offer: This SBI Card Offers “Free” Train Tickets!

IRCTC Offer: This SBI Card Offers 'Free' Train Tickets!

IRCTC or Indian Railway Catering and Tourism Corporation offers free train tickets via a card of the largest lender of the country, State Bank of India (SBI). “Here’s announcing the arrival of exclusivity. Presenting the IRCTC SBI Platinum Card. The only credit card that gives you Free* Train Tickets… The IRCTC SBI Card is brought to you by IRCTC (Indian Railway Catering and Tourism Corporation) and SBI Cards,” IRCTC said on its website, The IRCTC SBI Platinum Card offers 350 reward points, 1.8 per cent transaction charges waiver, 2.5 per cent fuel surcharges waiver, and over 10 per cent value back on railway bookings, said IRCTC.

Benefits of IRCTC SBI Platinum Card

Get up to 10% ticket fare as reward points: Customers can get up to 10 per cent value back on AC1, AC11, CC booking as SBI Card Travel Reward Points for ticket purchases at

1.8% transaction charges waiver: Customers can save 1.8 per cent transaction charges (exclusive of GST and all other charges) every time they book their railway tickets online at with their IRCTC SBI Platinum Card.

Earn free train tickets: You can shop, dine, travel on your IRCTC SBI Platinum Card and earn one reward point for every Rs. 125 spent on non-fuel retail purchases, including railway ticket purchases at Customers can redeem all their reward points on against railway ticket purchases (s).

2.5% transaction fee waiver on fuel purchases: Customers can avail 2.5 per cent transaction fee waiver on fuel purchases across all petrol pumps for transaction amount ranging from Rs. 500-Rs. 3,000 (exclusive of GST and other charges). The maximum surcharge waiver that can be availed is Rs. 100 per statement cycle per credit card account.

Reward points on purchases: Customers get 1 reward point for every Rs. 125 spent on other retail purchases, including railway ticket purchases, at One reward point = Re 1. “Apply today get free 350 bonus activation reward points,” said IRCTC.

Offers from VISA: Customers also get “great offers” on travel, gold, dining, and other entertainment options from VISA, according to

How to apply for IRCTC SBI Platinum Card
Customers need to send an SMS typing “RAIL” to 56767. After that, a representative from SBI will contact him/her. You can also visit “Apply Now” section of to apply for this card.

IRCTC has been running special travel packages and trains across domestic and international destinations. IRCTC is offering a three nights and four days package to Nepal, a six-day flight tour package to Sri Lanka, a 10-day package to Gaya and Varanasi, a seven-day tour package to Gangtok and Darjeeling and a Chandigarh-Shimla-Manali air package, among many others. IRCTC is also running the Bharat Darshan tourist train which covers important religious and leisure destinations of the country.

IRCTC-operated Maharajas’ Express is offering ‘the Indian Splendour’ tour package that covers  destinations like Delhi, Agra, Ranthambore, Jaipur, Bikaner, Jodhpur, Udaipur, Balasinor and Mumbai.


Source by ndtv..

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