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Thursday, July 11, 2013

EMI Calculator for Home Loan, Car Loan & Personal Loan


We were in the Process of Updating the current site thats why we have not published any post for last few weeks. We really appreciate your feedback and continuous support to this site . Here we are presenting you a post on EMI (Equated Monthly Installment). Being a Banker and if your are specially working in Credit Processing,  you have to deal frequently with this term. We are also presenting you EMI Calculators so that you can download the same from here by which u can calculate EMI for Home Loan, Car Loan & Personal Loan easily.

Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be repaid monthly. The interest component of the EMI would be larger in the initial months and gradually reduce when compared to the principal amount. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won’t change, the proportion of principal and interest components will change with time. With each successive payment, you’ll pay more towards the principal and less in interest.

The formula to calculate EMI:

Where

E is EMI
P is Principal Loan Amount
r is rate of interest calculated on monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
n is loan term / tenure / duration in number of months

For example, if you borrow Indian Rupee 10,00,000 from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then EMI = Indian Rupee 10,00,000 * 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)120 – 1) = Indian Rupee 13,493. i.e., you will have to pay Indian Rupee 13,493 for 120 months to repay the entire loan amount. The total amount payable will be Indian Rupee 13,493 * 120 = Indian Rupee 16,19,220 that includes Indian Rupee 6,19,220 as interest toward the loan.

Computing EMI for different combinations of principal loan amount, interest rates and loan term using the above formula by hand is time consuming, complex and error prone. Therefore we are providing you EMI calculator automates this calculation for you and gives you the result in a split second along with visual charts displaying payment schedule and the break-up of total payment.

 Download EMI Calculators: 



Feedback on this post is always welcome.

Team Finacle Commands

Wednesday, March 13, 2013

TDS (Tax Deduction at Source) in Finacle Part -I , furnishing Form 15G and 15H to NIL/ Low Deduction of TDS on interest on Fixed Deposit in Banks

Dear Readers, First of all Thanks to team Finacle commands  for allowing me to be part of their team. before going in to the topic I would like to introduce myself . Myself Rajesh Kumar , From a leading Nationalized Bank and working in Banking Sector since 2007. 

I will cover the TDS module of the Finacle i.e How to Deduct the Tax at Source (TDS) and refund the TDS. The complete module will be covered in two part . In the first part  we will discuss what  is the Income tax slabs 2013-2014 for General tax payers and Women, and then we will discuss what TDS is and what are the various forms specified by Govt of India , required to be furnished for exemption of Tax to be deducted at source.

Let us discuss what is the Income Tax Slabs for General Tax Payer and Womens for financial year 2013 -2014 as announced by Govt.

Income Tax Slabs for General Tax Payer and Womens for financial year 2013 -2014

  Income tax slabs 2013-2014 for General tax payers and Women
Income tax slab (in Rs.)
Tax
0 to 2,00,000
No tax
2,00,001 to 5,00,000
10%
5,00,001 to 10,00,000
20%
Above 10,00,000
30%

Income tax slabs 2013-2014 for Senior citizens (Aged 60 years but less than 80 years)
Income tax slab (in Rs.)
Tax
0 to 2,50,000
No tax
2,50,001 to 5,00,000
10%
5,00,001 to 10,00,000
20%
Above 10,00,000
30%

Income tax slabs 2013-2014 for very senior citizens (Aged 80 and above)
Income tax slab (in Rs.)
Tax
0 to 5,00,000
No tax
5,00,001 to 10,00,000
20%
Above 10,00,000
30%

- In addition an rebate of Rs 2000 will be available for income less than Rs 5 lakhs.
- Income above 1 crore to attract 10% tax surcharge.
simply, we can see from the above chart that If someone will have total earning upto  200,000/- in the financial year 2013-2014 (1st April 2013 to 31st March 2014) , then he will be exempted from Paying Tax . Simillarly if the earning will exceeds Rs. 2,00,000/- , then he/she has to pay Taxes to govt.   

Now lets discuss the TDS part which are mainly concerned about. lets get acquainted with the TDS and various related terms.

What is TDS
In simple terms, TDS is amount of tax getting deducted from the person (Employee/Deductee/Assesse) by the person paying (Employer/Deductor).

Deductor
Under the process of TDS, Deductor is a person/company who is liable to deduct the Tax at source, from the payment being made to the party/ Customer. Deductor is also termed as Employer in cases where the payments are under Salaries . In Bank, if a Customers having Fixed Desposit at Bank , then Bank acts as Deductor as deduct Tax and pay taxes to Govt on behalf of the Customers.

Deductee 
Deductee is the person, from whom the tax is being deducted or accrued for deduction. Depending on the nature of the deduction being made, deductees and respective submission forms are categorized to 3 types:
  1. Salaries: In case of salaried person, the deductee is termed as an Employee. All the information of deductions and payments in this category should be submitted in Form 24Q to the government.
  2. Non-Salaries - Resident: In case of non-salaries and the payment is made to a resident in India, the deductee is termed as a Deductee or a Party or Assesse. All the information of deductions and payments in this category should be submitted in Form 26Q to the government.
  3. Non-Salaries – Non-resident: In case of non-salaries and the payment is made to a non-resident of India, the deductee is termed as a Deductee or a Party or Assesse. All the information of deductions and payments in this category should be submitted in Form 27Q to the government....
Furnishing Forms 15G and 15H  by Asssesse/ Customer to Bank:

Being a Banker I think you are well versed with two forms such as Form 15G & Form 15H  if you have experience working in Operation (Deposit) side in a Bank. The 15G and 15H are the self-declaration forms required to be submitted  by the Customer (Assessee) to his Banker for Nil Deduction/Lower Deduction of TDS on Interest on Fixed Deposit / MIC(Monthly Interest Certificate) for a particular Financial Year . Form 15G is simillar to Form 15H , the only difference is only that form 15G is for every individual below  60 years of age.

As per Section 194A of the Income Tax Act, 1961, all Banks and Financial Institutions have been mandatorily instructed to deduct TDS on all Interest Payments exceeding Rs. 10,000 in any Financial Year. Simply we can say Bank will deduct tax at source on the interest earned on Fixed Deposits/MIC an if it is above Rs. 10000 Per Annum. Thus, whenever any customer receives more than Rs. 10000 as Interest from a Bank, the Bank will have to deduct Tax on such Income arising in the hands of the customer and will directly pay this Tax to the Govt. on the behalf of the customer.

The TDS is deducted at the rate of 10% (w.e.f.1-4-2010 If PAN will not be furnished then TDS will be deducted @ 20%). if TDS has been deducted due to non submission , then the Customer can get the income tax refunded. in this case he  has to file the income tax return. 

To avoid this process, you have to declare that you have not any taxable income. The main and only purpose of these forms is to submit declaration in writing in duplicate that there is no tax payable on his total income. In this case the payer (Bank ) shall not deduct any tax at source.

On payment of TDS to Govt, The Bank has to issue a TDS Certificate in Form 16A for the TDS so deducted mentioning the details of TDS Payment with the Govt.

While filing  Income Tax Return, the Assessee shall furnish the details mentioned in his Form 16A which should be in accordance with the TDS Reflected in Income Tax Form 26AS
Where the Tax Liability of the Assessee (Customer)  is Nil and TDS on Interest is liable to be deducted as his Interest Income is more than Rs. 10000, in that situation ,  the Assesse can furnish Form 15G/Form 15H for Nil/Lower Deduction of TDS.


Form 15G
Form 15G can be submitted by non-senior citizens i.e. individuals who are less than 60 years of age (From 1st July 2012 Age limit for senior citizen is reduced to 60 years from earlier 65 years and who satisfy the following criteria:-

n order to be eligible to furnish Form 15G, the non-senior citizen investor needs to fulfill the following two conditions:

1. The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and
2. The aggregate of the interest etc. received during the financial year should not exceed the basic exemption slab which is Rs 2,00,000 for men and  women.


If both these conditions are satisfied, Form 15G may be furnished to the bank  and the entire interest income can be received without tax deduction.

The above conditions can be explained with the help of an example. For eg: Ramesh, who is 48 years of age is earning Rs. 1,75,000 p.a. from Salary and Rs. 70,000 from Interest which makes a total of Rs. 2,45,000 p.a. Ramesh also invests Rs. 1,00,000 in Tax Saving Instruments under Section 80C and thus his Net Taxable Income is Rs. 1,45,000 which is less than the amount chargeable to tax and thus the tax payable would be Nil

Can Ramesh Furnish Form 15G for Nil Deduction of TDS on Interest?

In the above scenario, the 1st condition is satisfied that the final tax payable is Nil but the 2nd condition is not satisfied as the aggregate of total income (i.e. Rs. 1,75,000 + Rs. 70,000 = 2,45,000) is more than the basic exemption limit ( Rs. 2,00,000/ -)as per the Income Tax Slab and thus Form 15G cannot be furnished for Nil Deduction of TDS on Interest. He has to file Income Tax Return and claim for return as he invested in Tax Savings Instruments.



Form 15H
Form 15H can be submitted by senior citizens only i.e. those who are above 60 years of age (From 1st July 2012 Age limit for senior citizen is reduced to 60 years from earlier 65 years ) and satisfy the following criteria:-

1.   The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil

The above condition can be explained with the help of an example. For example: Suresh, who is 61 years of age is earning Rs. 1,75,000 p.a. from Salary and Rs. 70,000 from Interest which makes a total of Rs. 2,45,000 p.a. Suresh also invests Rs. 1,00,000 in Tax Saving Instruments u/s 80C and thus his Net Taxable Income is Rs. 1,45,000 which is less than the amount chargeable to tax and thus the tax payable would be Nil. 

Can Ramesh Furnish Form 15H for Nil Deduction of TDS on Interest?

In the above case – the 1st condition is satisfied that that final tax on estimated income shall be Nil. Moreover, there is no 2nd condition in this case as was present in the case of Form 15G and thus Suresh can furnish Form 15H for Nil Deduction of TDS on Interest

Difference between Form 15G and Form 15H
 
Although both these forms are for Nil/Lower Deduction of TDS on Interest and require that the final tax liability on the estimated income shall be Nil, there are some differences in these forms with respect to their use-
 
1.   Form 15H is required to be furnished by Senior Citizens who are above the age of 60 years  whereas Form 15G is required to be furnished by Individuals other than Senior Citizens
2.   Form 15H cannot be furnished by HUF whereas HUF’s can furnish Form 15G
3.   Form 15H can be furnished even if the aggregate total income is more than the basic exemption limit as per the Income Tax Slabs but Form 15G can only be furnished if the aggregate income is less than the basic exemption limit

Issuing TDS Certificates:   

A tax deductor , here Banks  are also required to issue TDS certificate to the deductee/ Customer  within specified timed under section 203 of the I T Act. The deductee should produce the details of this certificate, during the regular assessment of income tax, to adjust the amount of TDS against the Tax payable by the Customer/Deductee /assessee.

Types of TDS certificates

  • Salaries — Form 16: In case of Salaries cu, the certificate should be issued in FORM 16 containing the Tax computation details and the Tax deducted & Paid details. This refers to the details submitted over Form 24Q.
  • Non-salaries — Form 16A: In case of Non-Salaries , the certificate should be issued in FORM 16A containing the Tax deducted & Paid details  
 How to get 15G and 15H :

Form 15G and Form 15H are available at all Bank Branches and you can request your Banker for this Form at the Counter. These forms can also be downloaded online 

15G finacle commands
Form15G http://www.incometaxindiapr.gov.in/incometaxindiacr/ppt_html20081017/TDSTutorial/15G.pdf

Form 15H : http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form15H.pdf




Role of PAN number with 15G / 15H :

 A new section 206AA has been introduced in the Finance (No.2) Act 2009, which comes into effect from 1st April 2010.

As per the new section 206AA of the Income Tax Act w.e.f.01.04.2010 , Customer has to quote PAN NO in Form 15G / 15H compulsorily.

Hence from 01.04.2010 depositors/customers who are entitled to submit Form 15G /15H are required to mention their Permanent Account Number (PAN) in the Form 15G/15H by enclosing the photocopy of the PAN Card.  


As a Banker, you have to obtain Photocopy of PAN Card along with 15G/15H if a customer is eligible to furnish 15G/15H.  Quoting of Permanent Account Number (PAN) has been made mandatory.

In absence of PAN, bank will deduct TDS of 20% or at the prevailing rate, whichever is higher (instead of the normal 10%). Further, bank will not issue TDS certificate. Form 15G/15H and other exemption certificates will be invalid in this case.


As per the above section, with effect from 01. 04.2010, (other than 15-G/15H cases) if the interest paid/payable on term deposits  exceeds Rs.10000/- p.a quoting of Permanent Account Number (PAN) has been made mandatory.


If PAN is not furnished, tax will have to be deducted at a higher rate of 20%
 
I hope this post will give you the idea of TDS and various TDS exemption criterias and requirement of furnishing Form 15G and 15H by the customers, These concept will make you easily understand our next part which is  TDS module in finacle i.e entry of 15G and 15H in Finacle , TDS deduction , and Refund of TDS for the Customers..
Your feedback/Comments on this post are welcome , so you are requested to drop your comments / feedback.

Wednesday, March 6, 2013

Weekly Reports to be Generated and checked in finacle in UCO Bank

Dear friends , Thanks for your response to my first ever post in this Forum about Daily Reports to be generated and checked in Finacle for my Banker Friends working in UCO Bank .Again I would like to present the Summarized Reports to be checked and generated in finacle for WEEKLY  basis.

WEEKLY REPORTS

1
Reconciliation of a/c with other banks and with service branch(ACT4)
production
ACLI-From to date/ ACLPOA-for generation of report

2
ACT1
report
Misrep-VIR-ACT1SOL-SOLID-DATE
Every friday
3
GL REPORT ON ANY DATE
report
Misrep-VIR-GLRPTSOL-SOLID-DATE

4
KYC REPORT(compliant/non-compliant)
production
KYCREP-KYCSUM(KYC SUMMARY REPORT), KYCLST(list), NOKYC(non-complaint rep)


5
 Signature status
MIS
SIM-BRANCHES-Signature status

6
MISSING MIS Code position
MIS
SIM-BRANCHES-Missing code position For updation use-menu-MISCD,CMGUPDEP,CMGUPADV

7
ATM CARD Issued between  two dates-branch wise-on  new accounts
MIS
SIM-E_BUSINESS-a/c opened and No. of Cards issued between dates-branch wise

8
Existing CASA Deposit a/c and ATM card issued/not issued  as on any date
MIS
SIM-e_business- Existing CASA Deposit a/c and ATM card issued as on date

9
List of a/cs without Mobile No.
MIS
SIM-e-business-list of a/cs without Mobile No.-zone-date-RUN

10
E-banking user List
IRPS
EB Request-e-banking user list zone wise

11
Savings,- OD Balance
report
Misrep-VIR-SBTOD-SOLID-DATE


12
Savings, CA –OD Balance
production
ACSP-min. bal.Cr.(-99999999999.99)-max bal(0)-f6-scheme type-SBA/CAA


Posts Category wise :

      CBS Manual – Finacle Menus/ Commands for your ready reference

 

·         Huge Collection of 938 Finacle Menus

·         286 Selective Finacle Menu options

·         Category wise Commonly used Finacle Menus

·         Finacle Menu options/ Commands for Bank Auditors

·         Frequently used Function keys in Finacle

 

      Customer ID & Account Opening related Menu Options / Commands

 

·         Customer ID creation and Verification in Finacle by using CUMM menu

·         Customer ID creation in finacle in short by using CUMM menu

·         Changing Customer ID of a Customer

·         Account Opening (Savings/Current) in Finacle using menu option OAAC

·         Account opening in Finacle – in short

·         Frequently asked questions related to Customer ID  and Account Opening

 

      Demand Draft / Pay Order related Menu Options / Commands

 

·         Issuing a Demand Draft using Finacle Menu options TM

·         Issuing Multiple Demand Draft / PO using Finacle menu option TM

·         Printing Demand Draft / PO using menu option DDPRNT

·         Cancellation of Demand Draft  in Finacle using menu option DDC

·         Marking a Demand Draft Lost and issuing Duplicate DD

·         Inquiry and Reports finacle Menu related to Demand Draft

 

      Miscellaneous Finacle Menu Options / Commands

 

·         Standing Instruction Maintenance using Finacle Menu Options SIM.

·         Creating a Memo Pad in Finacle Part - I.

·         Creating a Memo Pad in Finacle Part - II.

·         Deleting Memo Pad in Finacle

·         Mass Transaction Posting in Finacle using Finacle Menu option TTUM.

·         Freezing & Unfreezing of accounts in finacle using Finacle Menu AFSM

·         Passbook Printing in Finacle

·         Finacle Teller Cash account Maintenance using Finacle Menu GECM

·         Finacle Menu option TM  for Transaction Posting and Maintenance