Costs of veg, non-veg thalis dip 13% in November amid easing vegetable prices: Crisil

'Apology and Regret': IndiGo CEO & COO state 5 factors that led to disruption—DGCA studying airline response

India-US Trade Deal: Rick Switzer-led delegation set to visit India this week

Maharatna PSU stock to buy: Brokerage turns bullish on BHEL, target indicates nearly 40% upside

Want Samsung Galaxy now? Quick commerce platform ties up with tech giant, offers instant delivery in select cities

DGCA steps up safety oversight, tackles 19 airline violations in 2025

Starlink India Price Revealed: What it is, how much it costs and what users get

Govt measures boost spending, push GDP higher: Finance Minister

Stock to Sell: This Auto stock may fall another 11%—Do you still hold it?

Hours after Trump's '8 wars ended' claim, Thailand launches airstrikes on Cambodia—Latest updates

Public Provident Fund (PPF) investment: What is the best instrument to invest one's hard-earned money? The answer to this question may vary from person to person. But if you are looking for an option that won't put your money at much risk, PPF may be an option. The subject matter of this article - Public Provident Fund - comes across as one of the safest investment avenues sans market risks and with triple tax benefits. You can invest up to Rs 1.5 lakh per year in PPF for 15 years to accumulate a huge lump sum and enjoy freedom from tax on the invested amount, interest earned and the amount withdrawn on maturity.&nbsp;

You can make a monthly investment in PPF or once in a financial year. Currently, the interest rate offered on PPF is 7.9 percent and this is revised by the central government on a quarterly basis. You will be surprised to know that by saving small amounts daily to invest in PPF account at the end of the month, or once in a year, you can accumulate a big lump sum. Take a look:

Rs 200/day

By saving Rs 200/day, you can save at least Rs 6000 in a month and Rs 72,000 in a year. Investing Rs 72,000 per year in PPF for 15 years can give you over Rs 21 lakh at the current rate of interest.&nbsp;

Rs 333/day

By saving Rs 333/day, you can save at least Rs 9990 in a month and Rs 1,19,880‬ in a year. Investing Rs 1,19,880‬ per year in PPF for 15 years can give you over Rs 35 lakh at the current rate of interest.&nbsp;

PPF account can be opened at the Post Office or leading commercial banks. Lenders like HDBC Bank also provides online PPF account opening facility.&nbsp;

(Disclaimer: Online PPF calculators have been used for this article, which is aimed for information purpose only.&nbsp;Readers are advised to make an informed decision before investing money)

Public Provident Fund (PPF) investment:&nbsp;What is the best instrument to invest one's hard-earned money? The answer to this question may vary from person to person.


Public Provident Fund investment: Rs 333/day can grow to Rs 35 lakh; Rs 200/day to 21 Lakh - Here's how

Post Office Time Deposit vs SBI Fixed Deposit: For the second time in a month, the largest lender State Bank of India decided to cut fixed deposit rate this week. The SBI cut retail FD rates by 10 to 50 basis points across tenors. There was also a 30-70 basis-point cut across tenors in case of bulk deposits. While the revised rates will come into effect from August 26, the largest commercial lender blamed falling interest rate scenario and surplus liquidity as the reason for the FD rate revision.&nbsp;SBI fixed deposit investors are at a loss because of the rate cut. The bank had last cut FD rates on August 1.&nbsp;

In the wake of the Reserve Bank of India (RBI) slashing repo rates regularly for last many months, commercial lenders like SBI are compelled to pass on the benefits to customers in the form of rate cuts on loans. To balance off excess liquidity, however, it has been reducing interest on FD as the low rate will discourage depositors.&nbsp;

The RBI is expected to further cut the repo rate in the upcoming MPC to address the liquidity crunch in the market and boost economic activities.

In a growing low-interest scenario, are you wondering where to invest in FD if not SBI or other commercial lenders? Well, the humble post office near you may provide the answer.&nbsp;

Post Office is considered to be one of the best places for small investors who want good and safe returns on their deposits. Also, the FD rates offered by the Post Office is higher than the SBI.&nbsp;

Currently, on a five-year deposit at the post office, you can get a 7.8% interest. if you invest Rs 1,00,000 in 5-year post office FD today, it will grow to Rs 1,40,155 on maturity. Similarly, Rs 50,000 will grow to Rs 70,080 in five years and Rs 2,00,000 to Rs 2,80,310.&nbsp;

In contrast, Rs 50,000 in SBI fixed deposit will grow to Rs 68,179 at 6.25% interest rate from August 26; Rs 1,00,000 will turn into Rs 136353 and Rs Rs 2,00,000 will give just Rs 2,72,707 in five years.&nbsp;

From the above numbers, you can see that the post office will give higher returns. The rate of interest on other tenors at post is also higher than the SBI.&nbsp;

Post Office Time Deposit vs SBI Fixed Deposit:&nbsp;For the second time in a month, the largest lender State Bank of India decided to cut fixed deposit rate this week.


Time to forget SBI Fixed Deposit? Post Office gives this with Rs 50,000,  Rs 1,00,000, Rs 2,00,000 

Social Stock Exchange is a platform which allows investors to buy shares in social enterprises vetted by an official exchange. The Union Budget 2019 proposed setting up of first of its kind Social Stock Exchange in India. During her maiden Budget speech, Finance Minister Nirmala Sitharaman had said, "It is time to take our capital markets closer to the masses and meet various social welfare objectives related to inclusive growth and financial inclusion. &nbsp;I propose to initiate steps towards creating an electronic fundraising platform – a social stock exchange - under the regulatory ambit of Securities and Exchange Board of India (SEBI) for listing social enterprises and voluntary organizations working for the realization of a social welfare objective so that they can raise capital as equity, debt or as units like a mutual fund." 
 
It is clear from Sitharaman's statement that the Social Stock Exchange will function as a common platform where social enterprises can raise funds from the public. It will function on the lines of major stock exchanges like BSE and NSE. However, the purpose of the Social Stock Exchange will be different - not profit, but social welfare.&nbsp; 
&nbsp; 
Why Social Stock Exchange?

India needs massive investments in the coming years to be able to meet the human development goals identified by global bodies like the United Nations. This can't be done through government expenditure alone. Private enterprises working in the social sector also need to step up their activities. Currently, social enterprises are very active in India. However, they face challenges in raising funds. One of the biggest hurdles they face is, apparently, the lack of trust from common investors.&nbsp;

A Brookings India report in July this year had noted, "India has a thriving social enterprise ecosystem; many organisations, however, struggle to access the capital they need. In a survey of Indian social enterprises, 57% identified access to debt or equity as a barrier to growth and sustainability."

"And despite the developing ecosystem and potential of the impact investment space, the literature on impact investing in India is limited," it added.&nbsp; 
 
Social Stock Exchange would try to provide a platform where investors would invest in social enterprises authorised by the exchange. Such enterprises would have to share with the public the details of their activities and investments in a transparent manner.&nbsp; 
 
Will Social Stock Exchange benefit social enterprises?

The transactions on the Social Stock Exchange would likely be online, on the lines of other stock exchanges. However, no details have been declared by the government, apart from the announcement of the proposal. It remains to be seen how investors respond to the exchange when it is set up by the government.&nbsp;&nbsp;

Social Stock Exchange: What is it? Will it benefit social enterprises in India?

As many as 7,50,400 new subscribers have joined the National Pension Scheme&nbsp;(NPS) within a span of one year. As per the latest data released by Ministry of Statistics &amp; Programme Implementation National Statistical Office, as many as 7,50,400 new subscribers joined NPS between April 2018 and March 2019. Among the subscribers, there were 1,10,555 central government employees; 5,42,504 state government employees and 97,341 non-government subscribers.&nbsp;The total number of new NPS subscribers between September 2017 and March 2018 was 4,53,446.

EPF subscriptions:

Total new EPF subscribers between April 2018 and March 2019 was 1,39,44,349. In the same period, as many as 1,22,96,941 numbers of members ceased to be EPF subscribers. However, out of those who exited EPF, as many as 44,64,815 rejoined, says the official data.&nbsp;

Since April, 2018, the &nbsp;Ministry of Statistics &amp; Programme Implementation has been releasing the employment-related statistics in the formal sector covering the period September 2017 onwards. The data is released using information on the number of subscribers who have subscribed under three major schemes, namely, the Employees’ Provident Fund (EPF) Scheme, the Employees’ State Insurance (ESI) Scheme and the National Pension Scheme (NPS). 
 
[[{"fid":"98912","view_mode":"default","type":"media","link_text":null,"attributes":{"height":294,"width":1060,"class":"media-element file-default"}}]] 
*Source: Ministry of Statistics &amp; Programme Implementation National Statistical Office

What is NPS

NPS is looked after by the Pension Fund Regulatory and Development Authority (PFRDA). Under the NPS, the individual contributes to his retirement account and also his employer co-contributes for the social security/welfare of the individual.

The ministry said in a statement, "NPS is designed on defined contribution basis wherein the subscriber contributes to his account, there is no defined benefit that would be available at the time of exit from the system and the accumulated wealth depends on the contributions made and the income generated from investment of such wealth."

As many as 7,50,400 new subscribers have joined the National Pension Scheme&nbsp;(NPS) within a span of one year.&nbsp;


National Pension Scheme: 7,50,400 new subscribers put TRUST in NPS! 

Pensioners enrolled in the Employee Pension Scheme (EPS) 1995 have more reasons to rejoice. The Central Board of Trustees (CBT) of the Employee Provident Fund (EPF) has now cleared a decision that will provide pensioners freedom to decide on how they want to encash their pension money. This decision is set to benefit over six lakh pensioners.&nbsp;Earlier, EPS subscribers could opt for a lump sum (which is a commuted portion of the pension money) and the remaining amount was paid as monthly pension. When a pensioner opted for a lump sum, his/her monthly pension amount was reduced and it was lower than the amount of pension without commutation.&nbsp;

What CBT decided

The CBT has approved a proposal for the restoration of commuted value of the pension to pensioners after 15 years of drawing commutation under the EPS 1995 scheme.&nbsp;

"In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the proposal to recommend for amendment in Employees' Pension Scheme (EPS) 1995 for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long pending demand of the pensioners," Ministry of Labour and Employment said in a statement Thursday.

How CBT decision affects pensioners

Now, if you will opt for commutation of pension, you will get a portion as a lump sum and your pension will begin on the rest of the amount. After 15 years, the original amount of pension, which you would have got without commutation, would be restored. With this new decision, the employee would have the freedom to decide on how to use his/her pension money. One can opt for commutation and invest the lump sum in other instruments, or use it for personal use. Or, continue enjoying higher pension without commutation. &nbsp;

What is commutation of pension?

Commutation of pension basically means paying out a lump sum to an employee from his/her earned pension. If one opts for commutation after retirement, he/she gets monthly pension on the amount remaining after commutation. Naturally, this reduces the monthly pension amount.&nbsp;

Under commutation, the lump sum is paid to the employee from his/her earned pension on its present-day value.&nbsp;

How to calculate pension

You can calculate pension on the government of India's official pensioners' portal -&nbsp;https://pensionersportal.gov.in/PensionCalculators/Calculator.asp

Pensioners enrolled in the Employee Pension Scheme (EPS) 1995 have more reasons to rejoice


How recent EPS 1995 amendment by Employee Provident Fund Organisation benefit pensioners - Explained

Income Tax for Startups: There has been confusion on whether small start-ups with turnover up to Rs 25 crore will continue to get tax relief or not. The Central Board of Direct Taxes (CBDT) has now issued a clarification on this issue. In an official statement, the CBDT has said that small start-ups with turnover up to Rs 25 crore will continue to get the promised tax holiday as specified in Section 80-IAC of the Income Tax Act, 1961. The Income Tax Act provides a deduction for 100 per cent of the income of an eligible start-up for three years out of seven years from the year of its incorporation.&nbsp;

CBDT has also clarified that all the start-ups recognised by DPIIT, which fulfilled the conditions specified in the DPIIT notification, did not automatically become eligible for deduction under Section 80-IAC of the Act.

Eligibility for tax HOLIDAY

A start-up has to fulfil the conditions specified in Section 80-IAC for claiming this deduction. Therefore, the turnover limit for small start-ups claiming deduction is to be determined by the provisions of Section 80-IAC of the Act and not from the DPIIT notification.

CBDT dispelled the confusion created by some media report claiming discrepancy that the I-T law was yet to reflect DPIIT’s higher turnover threshold of Rs. 100 crore.&nbsp;

CBDT said, "there was no contradiction in DPIIT’s notification dated 19.02.2019 and Section 80-IAC of the I.T. Act, 1961 because in para 3 of the said notification, it has clearly been mentioned that a start-up shall be eligible to apply for the certificate from the Inter-Ministerial Board of Certification for claiming deduction under Section 80-IAC of the Act, only if the start-up fulfils the conditions specified in sub-clause (i) and sub-clause (ii) of the Explanation of Section 80-IAC. Therefore, the turnover limit for eligibility for deduction under section 80-IAC of the Act, as per the DPIIT’s notification is also Rs. 25 crore."

Startup Definition

CBDT has said that Section 80-IAC contains a detailed definition of the eligible start-up which, interalia, provides that a start-up which is engaged in the eligible business shall be eligible for deduction, if:

(i) it is incorporated on or after 1st April 2016

(ii) its turnover does not exceed Rs. 25 crore in the year of deduction.

(iii) it holds a certificate from the Inter-Ministerial Board of Certification. 
&nbsp;

Income Tax for Startups:&nbsp;There has been confusion on whether small start-ups with turnover up to Rs 25 crore will continue to get tax relief or not.


Will small start-ups continue to get three-year tax HOLIDAY or not?

Income tax on income from lottery, competition: No income goes untaxed in India! Of course, there are some exemptions provided by the tax department to give relief to people in low-income categories. Tax liability increases as the person starts&nbsp;earning more. In case of a win from lotteries, the tax you will have to pay may surprise you.&nbsp; 
 
As per the Income Tax rules, money won in a lottery or any competition is taxable. You will have to pay a flat 30 per cent of the winning amount and there is no basic exemption limit.&nbsp; 
 
So, if you have won Rs 1 crore in income tax, you will have to part ways with 30 per cent of it - that is whopping Rs 30 lakh!&nbsp; 
 
In case you have Rs 1 lakh, you will have to pay Rs 30,000 as tax.&nbsp; 
 
The Income Tax department says "such winnings &nbsp;(from lottery or competition) are liable to flat rate of tax at 30% without any basic exemption limit." 
 
Lottery or competition winners have to deduct TDS from the winnings and take home the balance amount. "In such a case the payer of prize money will generally deduct tax at source (i.e., TDS) from the winnings and will pay you only the balance amount," says Income tax department.&nbsp; 
 
The Tax department suggests people to maintain proof of earning from every source to stay out of trouble. "​​For every source of income you have to maintain proof of earning and the records specified under the Income-tax Act," says Tax department.&nbsp;

"In case no such records are prescribed, you should maintain reasonable records with which you can support the claim of income," it adds.&nbsp;

Won Rs 1 crore, Rs 1 lakh or Rs 1000 from lottery, competition? Here's the TAX you must pay

You may feel that several Fixed Deposit schemes of banks are overrated when compared to the high interest rates and other benefits offered by several Post Office schemes. Consider the National Saving Certificates offered by the post office. The scheme currently offers an interest rate of 7.9 per cent, which is compounded annually, on deposits for five years. It also comes bundled with certain income tax benefits. At the current rate of interest, Rs 100 invested in NSC today can turn to Rs 146.25 after just sixty months (five years). Similarly, if you invest Rs 10,000 in NSC today, it will grow up to Rs 14,824 in sixty months; while Rs 1,00,000 can grow up to Rs 1,48,246 in the same time period.

You can buy 5 Years National Savings Certificate (VIII Issue) from post offices.&nbsp;

Putting money in NSC could be a win-win opportunity for you as the deposits also qualify for tax rebate under Section 80C of Income Tax Act. Under this section, investment up to Rs 1.5 lakh/per annum are exempted from tax. If you invest Rs 1.5 lakh in NSC today, it can grow up to Rs 2.2 lakh in sixty months and also help you save tax.&nbsp;

NSC rules:&nbsp;

- A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor. 
Deposits in NSC&nbsp;

- The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.&nbsp;

- In case of NSC VIII , transfer of certificates from one person to another can be done only once from date of issue to date of maturity.

- At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of old holder shall be rounded and name of new holder shall be written on the old certificate and on the purchase application(in case of non CBS Post offices) under dated signatures of the authorized Postmaster along with his designation stamp and date stamp of Post office.

- Minimum and Maximum deposit: Minimum of Rs. 100/- and in multiples of Rs. 100/- No Maximum Limit. (With inputs from India Post website)

You may feel that several Fixed Deposit schemes of banks are overrated when compared to the high interest rates and other benefits offered by several Post Office schemes.&nbsp;


Better than Fixed Deposit! Turn Rs 10000 into Rs 14824; Rs 100000 into Rs 148246 with Post Office in months! 

With the growing penetration of internet and the government's determined focus on schemes like Digital India and Startup India, scores of online retailers have sprung up across the country. Their single dream: To earn like online giants Flipkart and Amazon. But not many dreams succeed. As only glitzy website or a modern app are not sure-shot recipe for success in online marketplace. One of the biggest reasons for the failure of new online marketers could be poor customer service. At least, this is what a recent study shows.&nbsp;

The 2019 UPS Pulse of the Online Shopper study shows that 48 per cent of consumers in India completely cut off an online retailer on account of poor perceptions. The study says, "Globally, nine out of 10 online shoppers stop purchasing or purchase less frequently due to poor customer service. Shoppers take poor service especially hard in South Korea, where 70% say they stop purchasing completely from a site."

"Chinese online shoppers are more forgiving, but only barely. Just under half (45%) of shoppers stop using a retailer completely aµer poor service. In India, 48% of consumers completely cut o’ a retailer," it adds.&nbsp;

The study notes that the "online shopper absolutely believes he/she is right even when a retailer isn’t so sure." Hence, the tips for a booming online business for you could be (the key takeaways of the study):

- Leave the shopper believing in you, or risk losing business. &nbsp;

- Communicate with consumers the way they prefer.

- &nbsp;"Prevent a poor experience from ever happening. Think of any customer complaint as a gift – it alerts you to what must be repaired so another customer doesn’t have the same poor perception.&nbsp;

Looking forward, the study says in the next three years, " The companies that succeed in e-commerce will understand the needs and desires of consumers so well that they energetically reflect the consumer’s personalities, preferences and styles."

The UPS Pulse of the Online Shopper study evaluates consumer shopping habits from pre-purchase to post-delivery. The study was conducted in early 2019 and is based on a PwC survey of more than 18,000 online shoppers worldwide. Respondents made at least two online purchase in a typical three-month period.

With the growing penetration of internet and the government's determined focus on schemes like Digital India and Startup India, scores of online retailers have sprung up across the country.&nbsp;


How to grow rich like Amazon, Flipkart founders online: Check these golden tips

Planning to invest in gold in the upcoming festival season? You can do it right&nbsp;now despite gold price hitting all-time high. This you can do by&nbsp;purchasing&nbsp;paper gold that has been&nbsp;made available by the Reserve Bank of India (RBI). The central bank has issued Sovereign Gold Bond 2019-20 Series III at price of Rs 3,499 per gram (Rs 3,449 per gram if purchased online). The current issue of SGB, which opened on August 5, 2019, will close on August 14, 2019.&nbsp;

In a statement last week, Finance Ministry had said, "Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 3,449 (Rupees Three Thousand Four Hundred Forty Nine only) per gram of gold."

How much you can save?

The current price of gold in the market is hovering around Rs 38,000 per 10 gram. If you buy 10 units of SGB (which will be equivalent to 10 gram of gold), then you can easily save over Rs 3000. Here's a calculation:

Price per unit of SGB on offer is Rs 3499.&nbsp; 
Price of 10 SGB units = 10 x3499 = Rs 34,990. 
Current market price of Gold = Rs 38,000 (approx).&nbsp; 
Your savings = Rs 38,000 - Rs 34,990 = Rs 3010.&nbsp;

Other benefits!

You can not just save in terms of money by opting for gold investment via SGB but also get some more benefits than buying physical gold.&nbsp;

SGBs also offers an interest rate of 2.50 per cent per annum. RBI says, "The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value."

So, you can even make an earning on your gold investment, which you can't in case of idle physical gold at your home.&nbsp;

Besides, you won't have to worry about storage of gold.&nbsp;

Where to buy SGB?

According to RBI official website, the SGBs are "sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices (as may be notified) and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents."

Planning to buy gold? Save Rs 3,000 per 10 gram right now! Here's how you can make a killing!

If you have left, or are out of, job, you may be tempted to withdraw your Provident Fund (PF) money. However, you can choose not to withdraw the money and continue to earn high interest for a long time. In case you have left a job recently, it is better not to withdraw the PF amount you received at the previous company. If you withdraw the money, you end up losing on the investment for your better future. Also, your chance of getting a regular pension through Employee Pension Scheme (EPS) gets hit.&nbsp;

You should withdraw PF money after leaving a job only when it is an emergency. Even when you leave the job, the amount deposited in your PF account continues to earn interest. Also, it can be transferred to a new company as soon as you get a new job at a new firm.&nbsp;

According to the official EPFO website, an individual, who is out of a job, cannot contribute to the PF account. An employee cannot contribute to EPF after leaving the service as "any contribution by the member must be matched with the employer's share of contribution."

If you join a new company after leaving the old job then you can get your entire PF amount transferred to the new one. Your PF account will be treated to be running in continuity and it won't stop your pension scheme.&nbsp;

It is not compulsory to withdraw the pension benefit along with the PF amount.&nbsp;

After retirement, you can continue to earn interest on your PF deposit if you don't withdraw. Your account will become inactive three years after retirement.&nbsp;

There is no time limit for withdrawal of Provident Fund dues. Only in the case of resignation from service (not retirement), a member has to wait for two months for withdrawal of PF amount.&nbsp;

What happens when your employer doesn't attest withdrawal form?

EPFO says the employer must attest the application form for PF withdrawal. In case of any dispute, the member can attain attestation preferably from the bank in which he has maintained his account and thereafter submits the same to Regional PF Commissioner, explaining the reasons for not obtaining the signature of the employer.&nbsp;

"The Regional PF Commissioner will pursue the matter with the employer wherever necessary. If the member has activated his Universal Account Number and linked his bank account and Aadhaar then he can submit a composite claim (Aadhaar) which only requires the signature of the member." 
&nbsp;

If you have left, or are out of, job, you may be tempted to withdraw your Provident Fund (PF) money.


Provident Fund withdrawal rules: Left job? Don't withdraw PF. Enjoy interest benefit for a long time!

Prime Minister Narendra Modi-led Union Government has once again extended the deadline of the task force for the formulation of a new direct tax code. The Task Force was constituted by the Government in November, 2017 to review the existing Income-tax Act, 1961 and to draft a new direct tax law in consonance with economic needs of the country. The committee was required to submit its report by 31st of July, 2019.

The Ministry of Finance said in a statement on Wednesday that the "Government has allowed the Task Force to submit its report by 16th of&nbsp; August, 2019, in light of the fact that the new Members of the Task Force requested for more time to provide further inputs."

The task force set up to draft a new direct tax law to replace the existing Income Tax Act was earlier given two-month extension till July 31 to submit its report. Before this date, the task force was scheduled to submit the report by May 31.

In November last year, the Finance Ministry had appointed Akhilesh Ranjan, Member (Legislation), CBDT, as convenor of the task force after the retirement of Arbind Modi. Other members of the task force include Girish Ahuja (chartered accountant), Rajiv Memani (Chairman and Regional Managing Partner of EY), Mukesh Patel (Practicing Tax Advocate), Mansi Kedia (Consultant, ICRIER) and G C Srivastava (retired IRS and Advocate).

The task force has to draft direct tax laws in line with the norms prevalent in other countries, incorporating international best practices, and keeping in mind the economic needs of the country.&nbsp;

During the annual conference of tax officers in September 2017, Prime Minister Narendra Modi had observed that the Income-tax Act, 1961, was drafted more than 50 years ago and it needed to be redrafted.

Prime Minister Narendra Modi-led Union Government has once again extended the deadline of the task force for the formulation of a new direct tax code.


15 Days to FREEDOM! Proposals to get rid of old Income Tax laws may come on this date

In what turned out to be a nightmare for thousands of Truecaller users in India, it has come to light that a so-called bug automatically created their Unified Payments Interface (UPI) accounts with the ICICI Bank without their consent. This shocking event triggered panic and fear of hacking in ICICI Bank account holders. The affected users had received an SMS from ICICI Bank - starting from late Monday evening till morning hours on Tuesday - which said, "your registration for UPI app has started. If it was not you, report now to your bank. Do not share card details/OTP/CVV with anyone to avoid financial loss". The message scared several users who immediately approached the ICICI Bank customer care and blocked their netbanking and debit cards.

"It was like someone attempting to break into my Internet banking account. The ICICI Bank customer care staff told me there was some suspicious activity in my online account, hence I requested them to immediately block Internet banking and safeguard the funds," news agency IANS quoted an affected user as saying. The user further said, "It was a nightmare for me to wake up and see this message. Since it came from the bank, it was enough for me to believe it. I do not know if my smartphone data has also been hacked."

Is your money at risk? What actually happened?

According to Dilip Asbe, MD &amp; CEO of National Payments Corporation of India (NPCI), this was an enrolling mistake by the app that went ahead to sign up subscribers&nbsp;without the consent of the customers. However, the customers wouldn't be able to do UPI transactions even after receiving the message. "This is enrolling mistake by the app without customer consent. With this customer, can't do any UPI transaction. For&nbsp; onboarding, to UPI the customer has to still enter 2FA (issuer OTP and debit card), and set UPI pin. The workflow mistake is limited to enrolling which will not have any impact on any customer account whatsoever," Asbe told Zee Business Online.

NPCI is an umbrella organisation for operating retail payments and settlement systems in India. It is an initiative of RBI and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.

What Truecaller said

In an official statement, "We have discovered a bug in a recent update of Truecaller that affected the payments feature (India only), which automatically triggered a registration post updating to the version. This was a bug and we quickly discontinued this version of the app so no other users were affected. We're sorry about this version not passing our quality standards. We've taken quick steps to correct the issue by issuing a fix in the newest version, 10.41.7, and deregistered users that were previously affected."

In what turned out to be a nightmare for thousands of Truecaller users in India, it has come to light that a so-called bug automatically created their Unified Payments Interface (UPI) accounts with the ICICI Bank without their consent.


 Truecaller bug, ICICI Bank UPI Account row: Is your money safe? Here's what expert says  

How to increase pension under Employee Pension Scheme (EPS):&nbsp;Are you eligible for pension under Employee Pension Scheme (EPS) of the Employee's Provident Fund Organisation (EPFO)? You can increase your monthly pension amount, thanks to a Supreme Court decision of early this year. You may not be aware of the details of this decision for which the petitioner had to fight a long legal battle.&nbsp;

In April this year, the Supreme Court had upheld a Kerala High Court verdict on monthly pension from the Employees' Pension Scheme 95 (EPS 95). The Kerala high court had scrapped a 2014 notification of the Employee Provident Fund Organisation (EPFO), asking the pension body to give full pension to EPS subscribers.&nbsp;

<a href="https://www.zeebiz.com/personal-finance/news-national-pension-system-nps-calculation-investment-trick-rs-50000-pension-rs-18-lakh-cash-with-just-rs-211-per-day-106827" target="_blank">ALSO READ |&nbsp;Turn Rs 211/day into Rs 50,000/month pension, Rs 18 lakh cash!</a>

Earlier, the EPFO had capped the salary used for computation of pension at Rs 15,000/month. The EPS contribution was also capped at Rs 15,000. Hence, the EPS contribution limit was not 8.33% of the employer's contribution but Rs 15,000/year. The SC order in April scrapped this rule.&nbsp;

In the wake of SC verdict, EPS subscribers can get a higher pension. Now, employees covered by EPFO are eligible for pension according to their full last drawn salaries (based on their actual basic pay plus DA). But for this, they will have to give up a chunk of their provident fund balance. Confused? Let's explain this to you;

As per the Employee's Provident Fund rules, a part of the employer's contribution towards EPF is put in the EPS. Under the scheme, the pension of the subscriber depends on the number of years of his service and his last drawn salary.

<a href="https://www.zeebiz.com/personal-finance/news-public-provident-fund-ppf-interest-rate-2019-return-calculator-for-rs-1000-rs-2000-rs-5000-rs-10000-investment-106795" target="_blank">ALSO READ |&nbsp;Public Provident Fund interest rate reduced! Rs 1000, Rs 2000, Rs 5000, Rs 10000 per month PPF investment may give you this</a>

The formula for driving the pension amount is:

Per month pension = Total years of job x last drawn salary divided by 70.

As per now-scrapped EPFO rule, salary considered for pension calculation was just Rs 15,000. So, even if you earned Rs 50,000, only rs 15,000/month would have been used for pension calculation. Suppose you worked for 30 years.

Then as per the formula mentioned above, your monthly pension would be:

30 x Rs 15,000/70 = Rs 6428/month.

However, in the wake of SC order, your pension can go up manifold. It will be calculated based on your actual last drawn Basic + DA. But if you want to get a higher pension, you will have to shift a chunk of your EPF to EPS account.&nbsp;

You can apply via your employer to the EPFO to deduct a sum retrospectively equal to 8.33% of your basic + DA towards EPS and shift extra amount from the PF account to the EPS retrospectively! 
&nbsp;

How to increase pension under Employee Pension Scheme (EPS): Are you eligible for pension under Employee Pension Scheme (EPS) of the Employee's Provident Fund Organisation (EPFO)?


Employee Provident Fund (EPF) subscriber? Increase your monthly pension under EPS - Here's how

Vehicle Insurance Total Loss Claim: Cancellation of Certificate of Registration (RC) is a must for total loss claim, insurance regulator IRDAI has told insurers in a recent circular. Total loss claim can be made when the vehicle is destroyed or becomes permanently incapable of use.

The circular issued by Yegnapriya Bharath, Chief General Manager, IRDAI, says, "It has come to the notice of the authority that in case of total loss (TL) of the vehicle, salvage of the vehicle is being sold to scrap dealers without cancelling the certificate of registration (RC) of the vehicle"&nbsp;

IRDAI said documents of such vehicles were being misused by fraudsters to give new identity to stolen vehicles by forging the engine number and chassis number of destroyed vehicles under the total loss (TL) claims.&nbsp;

"It has been informed by the Law Enforcement Authorities that documents pertaining to such vehicles are being misused like giving new identity to the stolen vehicles by forging engine number and chassis number of destroyed vehicles under TL claims.

[[{"fid":"96253","view_mode":"default","type":"media","link_text":null,"attributes":{"height":592,"width":850,"class":"media-element file-default"}}]]

*IRDAI Circular

What law says

The circular mentioned Section 55 of Motor vehicle Act, 1988 which says:&nbsp;

1. If a motor&nbsp; vehicle has been destroyed or has been rendered permanently incapable of use, the owner shall, within fourteen days or as soon as may be, report the fact to the registering authority within whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, and shall forward to the authority the certificate of registration of the vehicle.

2. The registering authority shall, if it is the original registering authority, cancel the registration and the certificate of registration, or, if it is not, shall forward the report and the certificate of registration to the original registering authority and that authority shall cancel the registration.

In view of the law mentioned above, the IRDAI has advised all insurers to ensure cancellation of Certificate of Registration (RC) of the vehicle in case of total loss claim settlement. 
&nbsp;

Vehicle Insurance Total Loss Claim:&nbsp;Cancellation of Certificate of Registration (RC) is a must for total loss claim, insurance regulator IRDAI has told insurers in a recent circular.


Rajeev Kumar