Use ATM to e-verify Income Tax Return

Use an ATM to e-verify your income tax return

Recently, State Bank of India and Axis Bank have started offering this facility

Every year, when the last date for filing IT returns approaches, income tax assesses crowd tax-filing kiosks and the income tax department's website.

The usual last date is 31 July. During the assessment year (AY) 2015-16, more than 1.4 million returns were filed on 31 August (8% of all the returns filed till then). That year the deadline was extended by a month to 31 August and then again to 7 September.

Similarly, about 1.7 million returns (13% of all the returns till then) were filed on 31 July during AY2014-15, when the last date was not extended. In the last-minute rush, as in other spheres of life, what can go wrong, will go wrong.

Plus, the process of filing the return is not complete till you verify it. Ideally, this verification should be done after uploading your return, so that you have a chance to rectify any errors. With last-minute filings, you miss out on this last chance, which could cost you in the not so distant future.

Thankfully, this verification is pretty simple to do.

You can do it electronically or by sending a signed copy of the ITR-V (acknowledgement-cum-verification) form over ordinary post. Without one of these, your ITR will not be processed by the department.

Generating the EVC
To verify electronically you need an electronic verification code (EVC), a 10-digit alphanumeric code. When you have it, you should log in to the e-filing website

http://incometaxindiaefiling.gov.in/ and enter it in the 'e-verify Return' section. Your tax filing process for the year is complete only after you do so.

An EVC can be generated through various methods. Once generated, it is valid for 72 hours. In case the code lapses, you can generate it again.

You can use this code to e-verify during or after uploading your return on the e-filing portal.

To e-verify after uploading the ITR, log in to the e-filing website and click the "e-Verify Return" option. Here you can choose how to generate the EVC. To generate it using Net banking, log in to your tax account with your bank or demat account number. The EVC will be delivered to your mobile or e-mail, which is registered with this account.

If you don't want to use Net banking, link your e-filing account with your Aadhaar. Once this is done, you can get the EVC on your mobile.

Generating EVC through ATM
The department also allows e-verification using ATMs. Recently, State Bank of India and Axis Bank have started offering this facility. Other banks are expected to follow

To use this facility, swipe your ATM card and you will see the option 'PIN for income tax filing'. Select it to receive the EVC on your mobile number and email.

For further information contact SaveTaxGetRich on 94 8300 8300

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You can write to us at

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Mutual Funds vs Fixed Deposits

When it comes to saving money, people often opt for fixed deposits (FD), considering them to be risk-free. The security of having money in the bank is apparently a significant factor and with FDs, it is highly unlikely that you will lose your money. However, with other factors at play, notably inflation and taxes, do FDs provide more bang for your buck?

Let us take a closer look at this phenomenon. You invest Rs. 10,000 in an FD for five years at an interest rate of 7.5% compounded every quarter (Most Indian banks offer 7-7.5%). After five years, the maturity value is 14,499 rupees. However, with an inflation rate of 5.8%, the purchasing power of 10,000 rupees has fallen. The interest on FDs are also taxable, the more one invests in FDs, the more tax one has to pay (on the returns). However, FDs give fixed rate of interest, and mutual fund schemes do not guarantee returns. With rising inflation, a fixed interest rate can seriously undermine the value of long-term investments.

In the case of Mutual Funds (MF), the scenario is a wee bit different. Although MFs are affected by market volatility and do have a level of risk depending on the portfolio, they seem like better options. During positive market conditions; MFs have the potential to earn high returns whereas FD rates are unaffected. Concerning risk; equity mutual funds carry high market risk, and debt mutual funds carry lower market risk than equity. Thus, an investor can design his portfolio based on his risk appetite, or even diversify to manage risks better. Besides, MFs are managed by professional fund managers, who do their best not only to protect investments but also to grow it.

Meanwhile, as the name suggests, FDs have a fixed period and have little liquidity till the tenure of the deposit ends. If you withdraw money from your FD prematurely, most banks will impose a penalty on the final amount.

In the case of MFs, most of them offer high liquidity on the condition that the minimum holding period has passed and subject to lock-in period as applicable. If the investment is withdrawn within a short duration (under a year), an exit load may be charged. Some MF schemes allow withdrawals at any given point of time, without any exit load or extra charges.    

A crucial factor to be considered before choosing between FDs and MFs should be the tax status.  When it comes to FDs, the tax levied is at the maximum rate depending on your current tax slab, irrespective of the tenure of the fixed deposit. On the other hand, the tax status of MFs depends on its category. Equity funds held for long term (more than a year) are not taxable. Short term equity funds are taxable at 15%. Long-term debt fund gains are taxable at 20% with indexation, and 10% without indexation and short-term capital gains are taxable according to investor's tax slab. Hence, we can say that MFs are tax friendly compared to FDs. Especially gains on long-term equity funds, which are not taxable at all.  

In the end, the decision to invest between an FD and an MF is based on the risk capacity and the horizon of the individual. When the economy is booming, MFs can give great returns, and when the markets are volatile, they can provide a secure platform that can help grow your money in the days to come.

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For further information contact SaveTaxGetRich on 94 8300 8300

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Free Credit Report every year

Get one credit report free of cost every year





In a move that is set to benefit consumers, the Reserve Bank of India (RBI) has mandated that all credit information companies (CICs) should provide one credit report free of cost to customers once a year.

The customer can access it from the company's website and the CICs need to start the service from 1 January 2017.

"We see the move by the RBI to introduce the free credit report in India as a positive step for consumers. Similar to other markets, we also believe that this will represent the next level in the Indian consumer's awareness and involvement in their individual credit information, the health of which has become critical to accessing credit," says Mohan Jayaraman, Managing Director, Experian Credit Bureau, India.

The credit report contains score based on one's credit history. This information is used by the banks and financial companies in giving approval to any loans you may apply for.

For further information contact SaveTaxGetRich on 94 8300 8300

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You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

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Call us on 94 8300 8300