Can I Change My LIC Agent ?

One of my client ask me that their LIC agent is not cooperating / assisting to them if he is in need of any query of help, so transfer my policy under your agency name. I told them it is not possible right now because LIC has not provided Agent Portability. So if you are in need of any assistant tel me if I can do so.

During the time of buying the policy, all insurance agent claims big promises like they always take care of your policy, any other services related issue or ready to serve you in case of sudden demise of a policyholder. But the reality is little different. There are many reasons for that. One of them are mostly agent do this profession as part time job. Hence all agent not committing full time to their service. And this may be possibly that policy holder may not get proper service from their agent. 

Majority of Insurance agents does not care for after sales service however, few of them take care of their clients with a hope for further policy or references. 

LIC agent is a salesman who just acts as an intermediate between the customer and LIC of India. Once the plan is sold by the agent to the customer, then you are only a customer of LIC of India and the agent has no liability towards you. So, if your agent is not assisting you in depositing LIC Premium, or some other help then you can not do any thing. 

The only exception is being that if a plan is sold to you with improper information you can withdraw your insurance policy within 15 days.

As of now there are no such rules set either by Insurance Companies or from IRDA regarding change / port of Agent.

But if your agent has died then you can write an application to the branch and ask them to assign your policies in the name of your new agent. But it is possible only if your policy becomes an Orphan Policy. 

The policy (ies) initially effected by an Individual Agent whose services were subsequently terminated or removed from LIC are qualified as Orphan Policy (ies) and are qualified as Orphan Policy for the purpose of Agent Portability Rules. Except the policies whose effecting agent is entitled to renewal commission under section 44 of the Insurance Act , 1938 and The policies falling under proviso of Rule 10 (4) of LIC of India (Agents) Rules, 1972.

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Can I Change My LIC Agent ?

One of my client ask me that their LIC agent is not cooperating / assisting to them if he is in need of any query of help, so transfer my policy under your agency name. I told them it is not possible right now because LIC has not provided Agent Portability. So if you are in need of any assistant tel me if I can do so.

During the time of buying the policy, all insurance agent claims big promises like they always take care of your policy, any other services related issue or ready to serve you in case of sudden demise of a policyholder. But the reality is little different. There are many reasons for that. One of them are mostly agent do this profession as part time job. Hence all agent not committing full time to their service. And this may be possibly that policy holder may not get proper service from their agent. 

Majority of Insurance agents does not care for after sales service however, few of them take care of their clients with a hope for further policy or references. 

LIC agent is a salesman who just acts as an intermediate between the customer and LIC of India. Once the plan is sold by the agent to the customer, then you are only a customer of LIC of India and the agent has no liability towards you. So, if your agent is not assisting you in depositing LIC Premium, or some other help then you can not do any thing. 

The only exception is being that if a plan is sold to you with improper information you can withdraw your insurance policy within 15 days.

As of now there are no such rules set either by Insurance Companies or from IRDA regarding change / port of Agent.

But if your agent has died then you can write an application to the branch and ask them to assign your policies in the name of your new agent. But it is possible only if your policy becomes an Orphan Policy. 

The policy (ies) initially effected by an Individual Agent whose services were subsequently terminated or removed from LIC are qualified as Orphan Policy (ies) and are qualified as Orphan Policy for the purpose of Agent Portability Rules. Except the policies whose effecting agent is entitled to renewal commission under section 44 of the Insurance Act , 1938 and The policies falling under proviso of Rule 10 (4) of LIC of India (Agents) Rules, 1972.

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Procedure To Change LIC Service Branch

Many of my clients says that I am from Bihar / Bengal, can i change my policy from Delhi to Bengal / Bihar at my nearest LIC branch. I say yes to them. Person who has taken LIC insurance policy (/ies) can change their policy (/ies)  service branch. Service Branch means the branch from where LIC Policy bond has been issued. We all know that LIC of India is India's biggest life insurance company operating  since 1956 and having more than 2000 branches across the country. Mostly people who has taken LIC insurance policy and then if they have to shift to some other city or state, and if they feel need to shift their LIC service branch they can do so. For example Ram is doing job in Delhi and he hails from Patna and has taken LIC's Life insurance policy (/ies). Now Ram is thinking to shift to their home town (Patna, Bihar). One thing to remember all LIC insurance policy taker that they have to visit their home branch if it comes some critical matter pertaining to policy. But maximum work can be done at any LIC branch so, don't worry. Now Ram is thinking to transfer their LIC Policy to their nearest branch situated at Patna (home town). 

There are three methods to change / port LIC Branch. So, Ram can opt any one procedure to change LIC Branch. 

1. By Visiting Current Policy Servicing Branch :

You can go directly go to your current Policy Servicing Branch with an application and photocopy of LIC policy (/ies) about to transfer your policy from current servicing branch to your nearest branch. Remember to get receiving of your application submitted at branch.

2. By Sending Request Through Email :

You can send an email to the branch manage of your current LIC policy serving branch regarding the change of serving branch of your policy. You need to attach scan copy of all your policy you wants to transfer with your ID proof and address proof with valid reason. Email id of the branch is clearly written on your First Premium Receipts (FPR) and on your Policy Bond in Service Branch Column.

3. By Sending Request Through Post :

Write a letter to your LIC Branch about to change the new service branch of your policy ( you must provide them Branch Code and complete address). Attach photocopy of your policy(ies) you want to shift to new branch along with policy holder's self attached ID proof and address proof with a valid reason. Post it through courier / post office, keep the receipt of post and keep tracking with your LIC branch.

But there are some restriction of Transfer of Policy : -

1. Policy can not be transferred within one year from date of commencement of such policy.

2. Premium of such policy (ies) must of showing paid for one year.

3. Lapsed policy can not be transfer / shift. It can be only after revival of that policy.

4. Policy which are to be mature within one year can not be transfer to any other branch office.

5. Only policy in-force can be transfer.

6. Policy under convertible Guaranteed Triple Benefit Plan , Whole life Plan and Children's Deferred Endowment Assurance plan where date of exercising option/adoptions under the policy's fall due in the course of one year following the date of request for transfer should not be transferred unless the option/adoption in the case of GTB / CDA policy has been exercised/ completed.

7. Salary Saving Scheme (SSS) policy, can be transferred to another branch office or Division office even though it is in lapsed condition with specific request made by policy holder that he will revive such policy after transfer to the new office. 

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Wrong Filed Income Tax Return ! Revise It.

Normally when we file Income Tax Return (ITR) we try to keep full precautions to avoid any mistakes. But sometimes mistakes may happen. Like given wrong bank account details or left considering interest income received on saving bank account or claim wrong deduction or fill details under wrong head etc. But don't worry law gives us permission to revise it as per Section 139(5) of Income Tax Act.

Section 139(5) says if return filer get noticed that they have done mistakes in filing Income Tax Return then they can file revise return before completion of Assessment Year or Completion of Assessment Process. Remember Assessment Year is the next year for which ITR has been filed, for example If we have filed ITR for the financial year 2017-2018 then Assessment Year will be 2018-19.

What Is Revised Return?

Revised return is the refiling of Return of same Financial Year (F Y) in which we had made mistakes and now willing to correct it. In Revised Return you need to provide details as per Original Return.

Who Can File Revised Return?

Section 139(5) Income Tax Act gives permission to file Revised Return to all those Tax Payers who already have filed their Income Tax Return (ITR) before its due date. If you have filed late ITR means filed after its due date,  then you are not permitted to file Revised Return.

What is the Last Date To File Revised Return?

Earlier law permits to revise ITR within one year after completion of its Assessment Year it means assessee gets to year to file correct ITR, suppose you file ITR for F Y 2014-15 (A Y 2015-16) then you can file Revise Return within F Y 2016-17 (A Y 2017-18). But it is reduced last year. Now you have to file revised return within it Assessment Year.

How To File Revised Return?

You have give same details what you have already give in your Original ITR with its correction. But you have to select Revised Return U/s 139(5) in place of Original Return and need to provide Original Receipts Number along with filing date.

How Many Times You Can File Revise Return?

You can file Revise Return many times till you come with its correct details. But remember every-time you need to provide Original Return filing Receipts No and filing date. Don't Misuse It, assessing officer may ask you for doing this.

Most important every time you file Original Return or Revise Return you must need to complete verification process otherwise Income Tax Department will not accept it.

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Ease Your Tax Burden - Invest Now

An small investor (and tax payer) is one who manages his finances in such a way that the TDS is just equal to the tax he is supposed to pay for a particular year. You need to balance your needs based on need for liquidity in hand, investment returns and tax savings.

Every individual get more tensed in the month of February /March every year as in this month when they feels like they are being subject to extortion in form of Tax Deduction at Source or Advance Tax. And advised if not want to pay tax then go to invest in tax saving investments.

There could be moments when you feel that you have paid too much of taxes or too much of tax has been deducted from your salary. So to avoid such situation one should start planning their taxes from the beginning of the year itself so that you don’t end your year by paying more taxes.

When the employer deducts tax at source, more particularly, during last two months, as he would like to avoid defaults on his part, to save on interest and penalties, he shall consider all your investments which give you tax deductions or savings. While deducting tax at source, he shall consider investments such as in

Insurance premium,

Provident fund contributions,

National saving certificates,

Investment in pension plans,

ULIPs, Mediclaim etc.

Not only this, he shall also consider certain amounts spent by you on specified items and on your health such as 

Tuition fee of children (80C), 

Repayment of principal amount of home loan (80C),

Medical expenses (80D, 80DD), 

Expenses on specified illnesses (80DDB) (upto Rs. 40,000 and Rs. 60,000 for senior citizens (Rs 1,00,000 wef A.y 2019-20) and for super senior citizen Rs 80,000 from A.y 2016-17 to 2018-19 ( Rs 1,00,000 from A.y 2019-20)

Any amount of interest paid on educational loan (80E) etc.

Donations made to specified eligible funds etc are also eligible for allowance (100% or 50% depending upon type of donation.

Employer is also supposed to consider your house rent receipts but may ask for landlord’s PAN number also.

You can plan you taxes including TDS by integrating your tax planning and investment planning. The investments you make should also have a tax saving objective. If choosing between two options with similar returns and safety features, tax saving would play an important role. In such situations, investments like housing, provident funds, insurance, equity linked saving options etc. can give you some relax feeling.

However, if tax has been deducted in absence of investment or forget to inform the Deductor in time (like bank etc), and your tax liability does not arise as per your income details or tax deduction becomes more than actual tax liability, you should not worry much as it is now mandatory for tax payers to quote then bank account number and details in the return itself which makes refunds faster, safer and hassle free.

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Term Insurance Plan - Pure Life Insurance

What is Pure Life Insurance Plan? Best answer is Term Insurance Plan. What is the right time to get Term Insurance Plan? The short answer would be, “as early as possible.” But that doesn’t mean a child should also buy a term plan. There are various term & conditions that define the right time for anyone to buy a term insurance life cover. First of all, it is important that you understand ‘what is term plan after all? And what makes it important enough for such consideration?’

What is Term Plan?

Term plan or term insurance plan is a pure life insurance cover. The name term insurance (or term plan) refers to an insurance contract where an insurer agrees to compensate your nominee(s) for a specific premium cost.

Why Term Plan?

The purpose of insurance is to minimize the financial stress on the family or insured in case a specific loss occurs. For example, in case of life insurance, the insurer pays the sum assured to the family of the insured, in the event of the untimely demise of the insured. Thus, the family is saved from the financial problem after the death of that insured person.

The term insurance cover sustains the family’s financial stability in the worst circumstances.

Also Read : Term Insurance Plan Good or Bad Decision

How Will Term Cover Work?

Nowadays, insurers offer multiple pay-out options to make dependents life easier after the claim. Following are the most prominently offered pay-out options:

·         Lump-sum

·         Regular Income

·         Growing Regular Income

·         Lump-sum with regular income (fixed or growing)

The fourth option is quite useful if you think from your dependents’ perspective who may not want to manage a large investment. The lump-sum amount is useful in meeting the immediate financial needs, liabilities, etc. and regular income for future.

What is the Ideal Age to Buy Term Plan?

Most term plans consider 18 years of age as the minimum eligible age for availing a term cover. However, the ideal age for a term cover is defined by the income earning potential of the individual. For example, a 40 years old person who is not employed and financially dependent on another may not be eligible for a term cover, though at 20-year-old person earning Rs. 300,000 p.a. would be eligible.

Thus, whether your age is ideal for a term cover or not will depend on:

·         If you are above 18 years of age

·         Your annual income

Benefits of Buying Term Cover Early

The premium on term insurance cover is quite affordable, especially for younger buyers, since age is one of the major factors in premium estimates. Also, since the premiums will remain the same, early buyers may enjoy a very low term premium later in life.

How Much Life Cover You Need?

Since the purpose of term insurance is to meet your dependents financial needs, it is better that you choose a sum assured that is large enough for that. Usually, you can avail approximately 20 to 25 times of your annual income as maximum sum assured.

Example: Suppose Pradip had the annual income of Rs. 500,000 p.a. at the age of 30, thus maximum sum assured he could choose was about Rs. 25 to 30 Lakh. He can, however, increase the sum assured as his income increases or based on certain life events.

Term Insurance and Life Events

The life insurance need is not static throughout your life. It changes with your income, lifestyle, the number of dependents and other factors. After retirement, when you start earning out of your own savings from your working years, and your liabilities are over, your life insurance need could be zero.

Following life stages should make you revisit your term life cover:

·         Marriage

·         Addition of a life (Child birth)

·         Lifestyle changes/upgrades

·         Income increase/Job changes

Whatever your age at this moment, if you have not considered a term insurance so far, perhaps it is the right time to start.

Call me at 9958781151 or whatsapp to know more or book a term plan.

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Income Tax Slab Rates for the F Y 2017-18 (A Y 2018-19)

Income Tax rate are decided in budget in every year. Some time it come with some change in tax slab rate or some time some other levy of exemptions.

Here i come with Income Tax Slab Rates for the Financial Year 2017-18 (relevant to Assessment Year 2018-19)

INCOME TAX SLAB FOR INDIVIDUAL & HUF (Less Than 60 Years)

INCOME TAX SLAB	TAX RATE
Income Upto 2,50,000	NIL
Income from 2,50,000 - 5,00,000	5%
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

INCOME TAX SLAB FOR SENIOR CITIZEN ( 60 Year Or More but Less Than 80 Year)

INCOME TAX SLAB	TAX RATE
Income Upto 3,00,000	NIL
Income from 3,00,000 - 5,00,000	5%
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

INCOME TAX SLAB FOR SUPER SENIOR CITIZEN ( 80 Year Or More )

INCOME TAX SLAB	TAX RATE
Income Upto 5,00,000	NIL
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

Surcharge : 10% of Income Tax, where total income exceeds Rs.50, Lakh upto Rs.1 Crore.
                 : 15% of Income Tax, where the total income exceeds Rs.1 Crore.

Higher Education and Secondary Cess : 3% of Income Tax

# Rebate of Income Tax in case of Certain Individuals (Section 87A)

You can claim the rebate if you satisfy both the following conditions:

·   You are a Resident Individual; and

·  Your Total Income Less Deductions (under Section 80) is equal to or less than Rs 3,50,000. (Rs. 5,00,000 up to AY 2017-18)

The rebate is limited to Rs 2,500. (Rs. 5,000 till AY 2017-18) Which means if the total tax payable is lower than Rs 2,500, such lower amount of tax will be the rebate under section 87A. This rebate is applied on total tax before adding Education Cess.
# Penalty for Late Filing of Return [Section 234 F]

This change is one of the most notable changes done in Income Tax. There had been no late fee or penalty for delayed filing of Returns. Income Tax Department was quiet lenient in this regard.

If a person who is compulsorily required to file Income Tax Return (ITR) doesn’t file return on time then he is liable to a penalty as follows

Amount Of Penalty

For person with Total Income of more than Rs. 5,00,000

1. If ITR is filed after due date but on or before 31st December 5,000

2. If ITR is filed after 31st December but upto 31^st March 10,000

3. No Return Filing is possible after 31^st March of AY.

For person with Total Income of less  than Rs. 5,00,000 – Rs. 1,000 (up to Mar 31^st of AY)

Penalty is not applicable if ITR is filed before due date but verification is done after the due date.

In addition to the penalty interest under Section 234A is also levied on late filing of Income Tax Return.

# Insertion of Section 269ST

PROVISION OF SECTION 269ST	No person shall receive an amount of two lakh rupees or more— (a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
EXCEPTIONS	(a) Government; (b) any banking company, post office savings bank or co-operative bank; (c) transactions of the nature referred to in section 269SS; (d) Such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.
PENALTY FOR NON COMPLIANCE SECTION 271DA	If a person receives any sum in contravention of the provisions of section 269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.

Section 269ST is introduced by Finance Act, 2017 with effect from 01.04.2017 and put a limit on Cash Transaction to put a check on Black Money and Tax Theft. Section is much talked about section as it provides penalty for any cash transaction above the value of Rs. 2 Lakh, equal to the Transaction amount.

Most of us would have heard this section as this was one of the highly discussed topic after the Budget Speech of 2017.

This section applies on the person receiving payment in excess of Rs. 2,00,000.

INCOME TAX SLAB FOR DOMESTIC COMPANIES

TURNOVER PARTICULARS	TAX RATE
Gross Turnover up to 50 Cr. in the Previous Year	25%
Gross Turnover Exceeding 50 Cr. in the Previous year	30%

In addition cess and surcharge is levied as follows :
Cess : 3% of Corporate tax
Surcharge : Taxable Income is more than 1 Cr. but less than 10 Cr. - 7%
                   Taxable income is more than 10 Cr. - 12%

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Income Tax Slab Rates for the Financial Year 2017-18 (A Y 2018-19)

Income Tax rate are decided in budget in every year. Some time it come with some change in tax slab rate or some time some other levy of exemptions.

Here i come with Income Tax Slab Rates for the Financial Year 2017-18 (relevant to Assessment Year 2018-19)

INCOME TAX SLAB FOR INDIVIDUAL & HUF (Less Than 60 Years)

INCOME TAX SLAB	TAX RATE
Income Upto 2,50,000	NIL
Income from 2,50,000 - 5,00,000	5%
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

INCOME TAX SLAB FOR SENIOR CITIZEN ( 60 Year Or More but Less Than 80 Year)

INCOME TAX SLAB	TAX RATE
Income Upto 3,00,000	NIL
Income from 3,00,000 - 5,00,000	5%
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

INCOME TAX SLAB FOR SUPER SENIOR CITIZEN ( 80 Year Or More )

INCOME TAX SLAB	TAX RATE
Income Upto 5,00,000	NIL
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

Surcharge : 10% of Income Tax, where total income exceeds Rs.50, Lakh upto Rs.1 Crore.
                 : 15% of Income Tax, where the total income exceeds Rs.1 Crore.

Higher Education and Secondary Cess : 3% of Income Tax

# Rebate of Income Tax in case of Certain Individuals (Section 87A)

You can claim the rebate if you satisfy both the following conditions:

·   You are a Resident Individual; and

·  Your Total Income Less Deductions (under Section 80) is equal to or less than Rs 3,50,000. (Rs. 5,00,000 up to AY 2017-18)

The rebate is limited to Rs 2,500. (Rs. 5,000 till AY 2017-18) Which means if the total tax payable is lower than Rs 2,500, such lower amount of tax will be the rebate under section 87A. This rebate is applied on total tax before adding Education Cess.
# Penalty for Late Filing of Return [Section 234 F]

This change is one of the most notable changes done in Income Tax. There had been no late fee or penalty for delayed filing of Returns. Income Tax Department was quiet lenient in this regard.

If a person who is compulsorily required to file Income Tax Return (ITR) doesn’t file return on time then he is liable to a penalty as follows

Amount Of Penalty

For person with Total Income of more than Rs. 5,00,000

1. If ITR is filed after due date but on or before 31st December 5,000

2. If ITR is filed after 31st December but upto 31^st March 10,000

3. No Return Filing is possible after 31^st March of AY.

For person with Total Income of less  than Rs. 5,00,000 – Rs. 1,000 (up to Mar 31^st of AY)

Penalty is not applicable if ITR is filed before due date but verification is done after the due date.

In addition to the penalty interest under Section 234A is also levied on late filing of Income Tax Return.

# Insertion of Section 269ST

PROVISION OF SECTION 269ST	No person shall receive an amount of two lakh rupees or more— (a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
EXCEPTIONS	(a) Government; (b) any banking company, post office savings bank or co-operative bank; (c) transactions of the nature referred to in section 269SS; (d) Such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.
PENALTY FOR NON COMPLIANCE SECTION 271DA	If a person receives any sum in contravention of the provisions of section 269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.

Section 269ST is introduced by Finance Act, 2017 with effect from 01.04.2017 and put a limit on Cash Transaction to put a check on Black Money and Tax Theft. Section is much talked about section as it provides penalty for any cash transaction above the value of Rs. 2 Lakh, equal to the Transaction amount.

Most of us would have heard this section as this was one of the highly discussed topic after the Budget Speech of 2017.

This section applies on the person receiving payment in excess of Rs. 2,00,000.

INCOME TAX SLAB FOR DOMESTIC COMPANIES

TURNOVER PARTICULARS	TAX RATE
Gross Turnover up to 50 Cr. in the Previous Year	25%
Gross Turnover Exceeding 50 Cr. in the Previous year	30%

In addition cess and surcharge is levied as follows :
Cess : 3% of Corporate tax
Surcharge : Taxable Income is more than 1 Cr. but less than 10 Cr. - 7%
                   Taxable income is more than 10 Cr. - 12%

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LIC Maturity Claim Process

Mostly person before taking life insurance they think that how to claim maturity benefits from life insurance policies? Or What are the maturity claim procedure? How in my absence my dependents or spouse or nominee can take maturity claim?

Every insured person is entitled to claim the maturity benefits only when the policy is in force and all premiums have been duly paid. In life insurance policy with maturity benefits, the insured person will be entitled to claim maturity benefits if they have fulfill the term of the policy. A maturity claim is one of the simplest claim procedures with minimal paperwork require.

Normally the insurance company sends a Policy Discharge form about ninety days (3 month) before the maturity date of the insurance policy along with maturity intimation at insured persons address mentioned in policy. All instructions regarding the documents & procedures are advised their.

First of all, insured person should visit nearest LIC branch and understand the procedures.  Following list of documents require in Maturity claim process:

* Original Policy Bond
* Copy of Identity Proof
* Copy of Address Proof
* Bank Mandate Form with bank details
* A Cancelled Cheque leaf

Arrange all documents require to take maturity claim. The Policy Discharge Form (LIC Maturity Form No.3825) must be duly filed by the policyholder. The Maturity form needs to be signed by Policy holder along with two witness. 
The duly completed form with required documents must reach the insurance company at least one week before the maturity date of the policy for a seamless maturity claim settlement.

Once the documents are reach to the insurance company, they do verification and after that insurance company will process the maturity claim and make the payment to the policyholder. The maturity amount will be credited directly to the bank accounts of the policy holder after the policy maturity date.

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