How does debit card works?

A debit card is one of the most popular electronic modes of payment in this digitalized world. It is a plastic card linked to your savings account and gives access to your account whenever you want. 

The fundamental difference between a credit card and debit card is that;

• In debit card, you spend the money you have in your savings account.
• In credit cards, you get instant credit or loan when you make the purchase, each transaction attracts interest, and it has to be repaid. Credit card bills are generated monthly.

 Although a debit card is not free of charges either. Some of the common fee in regards to a debit card are:
1. After a certain number of transactions in a month, next transactions on other bank's ATMs attract a fee.
2. In case you forget your debit card PIN, then a nominal fee is charged to regenerate it.
3. Banks also charge an annual maintenance fee for the debit card from Rs. 100 to Rs. 500 depending upon the type of card.
4. In case you want to replace the old card with a new one or get the card reissued due to the previous card being lost, then a card replacement fee is charged.

Couple of things that you must be mindful of while using a debit card are that firstly always ensure the safety of the platform before performing the online transaction through a debit card. Next, never cause any physical damage to your card, it may destroy its magnetic chip.
Read more: A Detailed about Debit Card

What is the process to apply for PAN card?

Permanent Account Number is a ten-digit identification number provided to every individual and entity who is an eligible taxpayer. It is compulsory to have a PAN card if an individual's income falls under the taxable income devised by the government. The PAN card was launched in India with a primary purpose to curtail and prevent tax evasion by the taxpayers. It is done by keeping a record of all the financial transactions of every individual and entity. Importance of PAN card:

1. It is mandatory for filings income tax.2. It is compulsory to submit a PAN card as an identity proof for applying for a loan.3. It is needed while opening a new bank account.4. It assist the government to keep track of payments and transactions.

PAN Card for Resident Individuals:
Resident individuals, Non-resident individuals and undivided Hindu families fall under this category.
Resident individuals and undivided Hindu families have to fill form 49A to apply for this Permanent Identity card.
PAN Card for Foreigners:
Foreigners are required to get the PAN for conducting business India.
They can apply for the form by filling form 49AA form. PAN Card for Foreign Companies:
Foreign companies conducting business in India are required to get the PAN card. They can get the PAN card by filling the form 49AA. PAN Card for Companies:
1. It is mandatory for companies, trusts, partnership and firms registered in India to get PAN Card.
2. Companies can apply for the PAN using NSDL, UTIITSL or MCA portal.
3. Companies are required to fill Form 49A to apply for a PAN card if applying through NSDL or UTIITSL portal.
4. Companies applying through the MCA portal has to fill the common SPICe-INC 32 form. Read more about: What is PAN card and How to apply for a PAN card?

DEBIT CARD EMI FROM FLIPKART — A Detailed Guide

A debit card EMI is a credit facility provided to selected customers to make the payments in instalments using their debit cards when they don't have sufficient balance in their balance accounts.

Debit card EMI from Flipkart: Banks provide pre-approved credit facility to the selected customers based on the previous payment record. Presently, Flipkart has provided debit card EMI facility in partnership with four banks, which are Axis bank, State bank of India, HDFC Bank and ICICI bank. Banks determine the interest rate based on the customer's credibility and payment record. It may also provide zero cost debit card EMI to its credible customers.

The customers can use this facility if they have made the minimum purchase using their debit card. The minimum limit for the card varies from bank to bank ranging from ₹5,000 (ICICI Bank) to ₹8,000 (Axis Bank and SBI) and ₹10,000 (HDFC Bank).
Availing the EMI option for making purchases:  To check the eligibility for a debit card EMI facility, you can send an SMS DCEMI to 57575. At the payment gateway, you will find the option of 'NO COST EMI' or 'Pay using debit card EMI', if you are already pre-approved for the EMI. Choose the EMI option, and the bank account for availing the EMI. In the next option, you will be asked to select the EMI amount and tenure. You can pay the EMI in 3- 12 months, depending on your repaying capability. After choosing the EMI instalment, enter your debit card CVV number and similarly complete the transaction. Read more: How does debit card works?

Debit Card: How does Debit EMI work?

Getting a credit card is not always easy as it requires a good credit score,however, if you want to make the purchase using EMI, you can still do it without having a credit card. You can use your debit card to make any purchase above the balance in your bank account by using the overdraft facility of your debit cards—this facility to make the payment in easy installments known as Debit EMI.

How does Debit EMI work? 1. Several banks such as HDFC, SBI, Axis, ICICI, Federal and Kotak Mahindra allow you to avail the pre-approved overdraft facility on your debit cards. 2. You can use the debit EMI option on merchant websites such as Flipkart, Amazon, Paytm, Makemytrip etc. 3. Banks automatically deduct the EMI every month from the bank account. 4. To avail the debit EMI on your debit cards, you need to make a minimum purchase, which varies from bank to bank. 5. While you can avail the zero-cost EMI, with no extra charges; however, under the zero-cost EMI, banks will automatically adjust the interest amount in the purchase amount. Zero-cost EMI is available on specific products. 6. If you want to close the EMI facility on your debit cards before the determined tenure by paying the penalty charges. 7. You can choose the tenure of paying the EMI ranging between 3 months to 12 months. Read more about: How Does a Debit Card Works?

What is the eligibility criteria and uses of PAN card?

PAN (Permanent Account Number) is a unique account number provided to each entity who applies for it. PAN Card is mandatory for all individuals and non-individuals who are liable to pay income tax. Some of the important areas where PAN card is mandatory are: 1. While filing for IT return. 2. While purchasing a vehicle other than a two-wheeler. 3. For making investment more than Rs. 50,000. 4. While applying for a credit card or any loan. 5. To purchase jewelry after a certain amount. 6. It is accepted as an ID proof wherever required. 7. For deposits more than Rs. 50,000.

All those who need to submit tax or file IT returns must have a PAN card. The application for it is submitted in Form 49A. The basic eligibility for applying the PAN card are:

1. The companies must apply for the PAN Card after getting registered as a copy of the Certificate of Registrar is required while applying for it.

2. A minor is mandatory to have a PAN in case he/she is nominated to a property. Form 49AA is submitted for applying for the PAN card of a minor.

3. An individual can get the PAN card after submitting identity proof, date of birth proof and address proof.

4. A HUF is also a separate entity and the head of the family, or the ‘Karta’ can apply for the PAN card by submitting his identity proof, address proof, date of birth proof and the name of the fathers of all members of the family along with their addresses.

Read more: Know Eligibility Criteria for Applying for PAN Card

What is PAN card and How to track your PAN application?

PAN is the unique account number of an individual with the Income Tax Department. You can track the application on NSDL or UTI, irrespective of the fact that how did you file the PAN card application.

Steps to track the PAN card application on NSDL are: 
1. Visit the official website of NSDL and go to track applications.
2. Now, choose the type of application as ‘PAN-New/Change Request’.
3. The next step is to enter the acknowledgement number.
4. Follow it up by filling the captcha and clicking on ‘Submit’.

As a result, the window will appear showing you the latest status of your PAN card application.

Track the application through UTI; the steps are: 
1. Visit the website of UTI and open the tracking application option.
2. After that, enter the application number in the given box if you applied for a PAN card first time. Otherwise, enter the PAN number if the application is for change in any information.
3. In the next box, fill in your ‘Date of Birth’.
4. The last step is to fill the captcha and click on submit.

Apart from the above ways, you can also track your PAN card application through a call by calling on 020-27218080, and by sending an SMS ‘NSDL’ followed by the 15 digit acknowledgement number to 57575.
Read more: Step-by-Step Guide to Check PAN Card Status

What are advantages of Debit card and Credit card?

Debit cards 

Debit cards are the cards which are directly linked to an individual's bank account. If there are funds in one's bank account, a debit card will help one to get the money as and when required.

Advantages of debit cards:

1. No extra cost is involved with debit cards. 2. It assists one to keep track of his spending patterns and helps to no spend beyond one's limits. 3. There is no extra cost charged on making payments.

Credit cards: Credit cards are aplastic card issued by a bank and financial institution, allowing the cardholders to purchase goods or services on credit.

Advantages of credit cards:

1. It assists an individual in building a credit card score. A credit score is a three-digit number which helps one to secure loans. 2. Credit cards also provide rewards like free or discounted price in travel, movies and shows.

Features	Credit Cards	Debit Cards
Linked with bank	The issuing Bank	The individual’s bank account.
Credit limit/ spending limit	Credit limit assigned on a monthly basis. Based on credit score	Cash withdrawal and POS limit assigned on a daily basis. Some debit cards do not have that limit.
Interest charged	Charged if in case an individual has not cleared his bill on time	No interest charged

Read more: Debit Card vs Credit Card: Features & Benefits

How to calculate Income TAX?

The season of tax filing is ongoing. In case you haven't filed your income tax return then it's better to start soon as you wouldn't like to scramble around during the last minute. The income tax law is complex, and it is not everyone's cup of tea. Thus, it is even more important that you give yourself enough time to find the answers to your questions or figure out the unknowns.

As for the calculation of your tax is concerned, the best option is to use an Income Tax calculator, it will do the complex calculation for you and help you avoid the possibility of filing erroneous tax returns.

Keep the following points in mind while preparing your return:
1. Decide for the filing process you want to adopt whether it is a third-party tool, online method or offline method.
2. Make a proper assessment of the exemptions and deductions that you can avail. It is these deductions and exemptions which will decide how much tax liability you have.
3. Whatever the documents that are required to be submitted along with your return should be properly organized in advance.
4. Take the help of a tax expert if needed. Remember, you do not have to do everything by yourself; the help of an expert can ease the burden from your shoulders and also help in saving more tax.

Know more About: Tips to file your Income Tax Return.

Exemptions Under Section 80C of the Income Tax Act

Paying the tax as per the capacity to pay it, is the sole responsibility of all citizens. However, many people misunderstand the tax system and find it hard to pay tax out of their pockets. This is because many people consider paying a tax an expensive thing that reduces an individual's income. However, what comes to rescue is the tax exemption, that helps people to save tax on their earnings. There are many sections in the income tax act that provide various tax exemptions. One such section is section 80 C of the income tax act. Section 80 C provides the following tax exemption, as listed below:

Tax benefit on provident funds: Section 80 C provides exemptions up to Rs 1.5 lakhs on all PPFs, VPs, and EPFs accounts.

Tax benefit on saving schemes: Section 80C provides tax benefits up to Rs 1.5 lakhs on various savings and investment schemes that are regulated by the Government. These include the sukanya samriddhi saving scheme, National pension system, national saving certificate, and the senior citizens saving scheme.

Tax exemption on tuition fee: Section 80 C provides a tax exemption on education expenses like tuition fee made on children's education. Benefits up to Rs 1.5 lakhs can be availed as per section 80C.

Tax benefits on home loans: section 80C also provides various tax benefits on home loans. Exemptions up to Rs 1.5 lakhs can be made on principal amount paid on home loans. Also, exemptions can also be made on stamp duty and registration charges made on home loans.

Exemption on life insurance cover: The section 80C also provides tax benefits on life insurance cover, up to Rs 1.5 lakhs.

Thus, to save tax, it is better to know all benefits associated with section 80C of the income tax act. This will help one to save their hard-earned money which can be utilized on other important expenses.

Read more: Tax Benefits Under Section 80C to 80U.

All you want to know about Loan against Fixed Deposit

As the name rightly suggests, loans against property are the credits secured against the Fixed deposits. It helps one to solve the problem of the financial crisis.
Eligibility of Loan against Fixed deposits:
All the fixed deposit holders can avail loan against FD
FD in the name of a minor and Investors of 5-year tax-saving fixed deposits does not qualify for this facility.
How does loans against FD works:
1. The amount of credit provided against fixed deposit by banks is 80% to 90% of the total fixed deposit value.
2. The interest rate charged on a loan of FD usually is in the range of 2% and 2.5%
3. Banks typically do not charge any kind of processing fees on loan against FD.
4. Repayment of the loans can be either lump sum or in instalments. But, the loan tenure should not exceed the duration of the Fixed Deposit held with the bank.
5. No penalty in case of foreclosure of the loan against FD.

Pros of loan against Fixed deposits:
1. It helps one to avoid the chance of closing the FD prematurely
2. The interest rates on loan against FD are lower than the personal loans.
3. Loans against FD can be availed against most FD.
4. The loan approval process of the loan against property is quick
5. There is no processing cost involved.

Read more: What is Loan against FD and its features and how does it works?

What are the documents required for PAN?

PAN card or the permanent identity card is a 10 digit alphanumeric provided by the income tax department. It helps the authorities to keep track of all the payments made by the individual. PAN number is laminated in a card with the additional info like name, address, DOB, and the card is known as PAN card. An applicant needs to provide proof of identity, proof of residence and date of birth certificate to apply for the PAN card.

Hindu undivided family and individuals are required to provide any documents like voters Identity card, Aadhar card, Passport, Ration card, Driving License Photo Identity card which is issued by the central government and state governments​ like a job card, Central government health scheme card and Pensioner card as for identity proof. 

Documents for proof of residence are Domicile certificate allotted by the government, Driving license and Allotment letter of accommodation issued by Central or State Government of not more than three years old Property.

Further Documents which can act as Proof of Date of Birth are Birth certificate, Matriculation certificate from a recognized board, Aadhaar Card, Driving license and Passbook of Post office account containing the applicant’s address.

Companies are required to provide a different set of documents to apply for the PAN card. 

1. A company is required to provide the Copy of Certificate of Registration issued by the Registrar of Companies for applying for the PAN card.

2. Partnership firms need a copy of Certificate of Registration issued by the Registrar of Firms or Copy of partnership deed is required for applying for the PAN card. 

3. Limited liability partnerships are obliged to provide the Copy of Certificate of Registration issued by the Registrar. Read more: Know the process for Applying a PAN Card?

What is business debit card and its advantages and disadvantages

A business debit card has become a popular payment method for business owners in times of plastic money. It can be used to fund all business purchases, ranging from day to day requirements to bigger expenses like purchase of equipment or lands. Though many people tend to go for a business debit card, one must consider all the advantages and disadvantages associated with one. These are listed as follows: 

Advantages of a business debit card:

• A business debit card is used to make both small and large payments.
• Further, the application process to attain a business debit card is short and easy.
• One can opt for different types of a debit card as per their convenience.
• The payments made through debit cards need not be repaid through debit card EMIs, as in credit card EMI.
• The payments made through a debit card are safe and secure.
  

Disadvantages of a business debit card:

• A debit card allows expenses only as per the account balance. Therefore emergency funding is not possible.
• A business debit card may not impact your credit score in any form. Thus, debit card transactions can not be utilized to improve one's credit score.

Thus, on a concluding note, it must be identified by every business owner, that before any type of debit card, or even a credit card, one must be aware of all its pros and cons. This will help him, or her make a wise choice as per his or her business requirements.

Click here for more: Know more about business debit cards

How Debit Card helps in today's world?

Similar to a credit card, a debit card is also plastic money. You can swipe the card on the POS machine at any retail store and also use it for making online transactions. The debit card is linked to a savings account; thus, the money you spend from it is the money you already have. It also implies that the debit card does not contribute to increasing the debt burden. Although, you can avail overdraft facility on your savings account, subject to certain conditions. 

You can use the debit card on stores which accept card payment by swiping the card. You can also use it for making any online transaction. However, you should be careful with regards to where you are sharing your card’s information as if your card’s information gets stolen, then online thieves can drain your account very quickly. 

The debit card can also be used to withdraw cash from ATMs. However, you can also avoid carrying cash and use the card itself to make the transaction by swiping on the POS machine. Since it uses the money you already have, the debit card does not help in improving bad credit. 

In addition, you can also use the debit card to teach kids how to use the credit card. Both these cards have limits; the only difference is that the limit of credit card is much more flexible than that of debit card. The banks have also attached a ‘reward’ system with a debit card. So, if you know where you will be spending your money in future, then you can pick the card that will be most beneficial.

Know more about the details of Debit Card: What is Debit card and how to use it?

What is Debit Card and How to use it?

A debit card is a plastic payment card to make any transaction at the Bank ATM or to the merchant. Unlike another plastic card like a credit card any transaction done through a debit card transfers the money from the bank account of a cardholder.

A debit card offers the following benefits to card users.

1. With the debit cards, it has become possible to withdraw the cash 24*7.
2. A debit card has undoubtedly reduced the risk of money loss.
3. A debit card is easy to carry anytime and can be issued free of cost.
4. It can be used conveniently at our comfort zones for ATM withdrawals, Online shopping and making payment through Point-of-sale machines.
5. With the quick transactions and several bonuses and rewards, the debit cards have indeed become the preferred choice for making transactions.

Using and paying with debit cards:

A virtual debit card is used for online shopping, paying rents and other utility bills, ordering food etc. It can be used at the payment gateway by entering details such as Account number, Expiry date and CVV number. To use debit cards in the swipe machine, you will be asked to enter your debit card Pin after the merchant swipes the card in the swiping machine. The transaction is completed as you press enter in a few minutes. A debit card can also be used at ATMs to withdraw money from the bank account.

Read more about: What is Debit card and how to apply for debit card?

Is Long term Fixed Deposit Beneficial?

The long term Fixed deposits are investment vehicles which are deposited for a more extended period of time, usually for the period of more than two years to 10 years.

The rate of interest on long term FD is higher than the short term deposits.  The interest earned is most often just able to compensate for inflation during the tenure thus adding nothing to the actual wealth of an individual whereas the high rate of interest on long term FD allows one to create wealth. The Importance of saving money cannot be emphasised much, and life can take any turn at any time in a matter of seconds, to confront the unforeseen circumstance one must have a decent saving.
The long term tenure of the Fixed Deposit helps in creating a reasonable saving and creating wealth.
Further, it also provides the individual with an opportunity to deposit according to his requirement.

The long term investment is not just wealth creation but also about a rapport between the bank and the customer. When one commits his stake for a long-term, the banks consider his case before everyone else. There is mutual trust among the parties, and at the time when the person needs financial assistance, banks tend to favour.

Read more in Detail: Why Fixed Deposit Works For The Long Term?