Advisory

WHAT IS THERE IN A NAME?

But all is in the name when it comes to important documents like PAN, Aadhar, driving license, voter ID, passport etc. It is important that the information in all the documents is consistent; any mismatch can create problems. Get it corrected immediately.

WORDS: SANGEETA SINHA

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back to check his voter ID and realised that he had not got it updated for long and it had his old address. Then he decided to verify his father’s name from his passport, but here also there was a mismatch; the name had his grandfather’s also added.
His driving license also did not have the complete name of his father.
The problem was not his father’s name; it was that his father’s name was written differently in all his documents.

Many did not realise that name mismatch could be a problem till linking PAN with Aadhar was made mandatory. There should be no disparity in PAN and Aadhar details; be it name, date of birth, or other personal details.
Many, particularly those from the southern states, are having problems linking their PAN with their Aadhaar card as they have two different names on both the cards. Some have initials of surname in their Aadhar and expanded version in their PAN with the result the Income Tax department’s software is not accepting the integration of the two cards.
Some states like Gujarat automatically add your husband’s/father’s name in your PAN and later if your Aadhar is without your husband’s/father’s name it will again lead to mismatch.
The IT department can give only one solution – apply for a correction in one of the two cards.
Vikas Khanna, 49, decided one fine day to streamline his finances.

He looked for a good broker and was told that it is a simple process provided all his papers are in place. Vikas had all his documents online along with his PAN, Aadhar and passport for any kind of verification.
Little did he realise though that a simple process of KYC, which could have taken few minutes will make him run around to get his documents in order.
The problem – the name of his father in PAN did not match with the one in the Aadhar card. The name of his father had a spelling mistake in his PAN card and it did not match with the spelling in other documents. So it needed a correction.
To correct that he needed to apply for a fresh PAN and for that Aadhar is mandatory now; a new notification has been released recently whereby Aadhaar has to be quoted mandatorily while applying for PAN.
His Aadhar had only year of birth and not date of birth. So he had to get his Aadhar updated. Vikas went

NAME MISMATCH
So there was a complete name mismatch. Name mismatch can lead to lot of trouble and it is important that you make sure that all your documents are consistent in terms of your name, father’s name, date of birth etc.

To illustrate with another example: Deepa’s father died in a hospital in New Delhi.

The death certificate had his name in short form, with initials only, while all his other documents like bank accounts, PAN card had his name in full.
Deepa had a tough time trying to prove to banks and others that the name in the death certificate and the one in the account belonged to the same person. Everywhere she had to produce an affidavit to prove that the name in the death certificate and the one in other bank documents were of the same person.

POINTS TO CHECK
» Check all your documents for information consistency
» Your name should be written in the same way with same spelling in all your documents
» Your passport, driving licence, Aadhar, PAN, voter Id, bank accounts, mutual funds, stocks, insurance, and any other document should have your name written in the same way
» Check for other details too like father’s name, mother’s name, date of birth, place of birth for any mismatch.
» If you find any mismatch get it corrected immediately
» Name mismatch or any other mismatch can create trouble for you later
» Even if you are not facing any problems due to any mismatch it is advisable to get it corrected and keep all records in order
» For any death in the family, make sure that the name is spelled correctly in the death certificate; you will need the death certificate for later transactions
» Corrections/changes in documents have been made simpler and can be done online
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ASK THE EXPERT

‘Make sure information in all your documents is consistent’
Rabindra Kumar, a financial adviser with more than 17 years of experience, spoke to us about why it is important to keep your documents in order. Excerpts:

Why it is important to keep consistency in your name in all your documents?
It is very important to have same name in all your documents, be it your voter Id, driving license, PAN card, Aadhar, passport or any other document. Sometimes the husband’s name is added as middle name in some documents while in others the father’s name is added.
Nothing wrong in it but make sure that the same name you use in all your documents including your bank accounts so that you don’t have any problems in any kind of financial transaction.aadharone

How do I change my surname after marriage?
Any change in surname after marriage can be done through a court affidavit. Even otherwise if you wish to change your name it can be done by providing two evidences: school leaving certificate is considered the most primary evidence, but you can use other documents also like voter ID or driving license. You can even correct your father’s name by providing two evidences.

How important is Aadhar?
It is very important to keep your Aadhar updated with all the correct information. People are finding difficulties in linking their PAN to Aadhar because of information mismatch.
Aadhar is the key point for any financial transaction. Policies change from time to time and now you need to link your Aadhar to your phone, gas connection, bank and PAN. If there is any mismatch in information your transaction can be rejected.
You can easily update your Aadhar online, so make use of the online service or go to any Aadhar centre and get all information updated including your mobile number. It is important to keep your mobile number updated as for any transaction through Aadhar you will have to provide OTP which will come on your phone.

What are the problems faced by people?
Since policies are changing it is creating a lot of problems. Like earlier when Aadhar was made, only the year of birth was given; it was only later that date of birth was added. So people who don’t have date of birth in their Aadhar need to get it added.
Though the government is trying to streamline things, till everything is in order there can be issues.
Also, in the latest KYC form it is mandatory to give the name of both father and mother, while for PAN mother’s name is optional but father’s name is mandatory.

Any advice for our readers?
Make sure information in all your documents is consistent. Though you may find it tedious, spare some time and go through all your documents and get the corrections done.
The time you spend now in getting all information corrected will help you in the future. It is important to do it now, to avoid hassles later on.


INVESTING IN STOCK MARKET

To trade in the stock market you need a trading as well as a demat account. The process is not as complex as it looks to some of us. All you need is to understand the basics. Read on to know more.

Words: SANGEETA SINHA

To trade in a stock market you need demat and trading accounts. Demat (dematerialized) account is mandatory for trading in stocks. It is through a trading account that you buy or sell shares, while a demat account is like a bank where you deposit your shares and sold shares are taken from. Some banks offer the facility of saving, demat as well as trading at one place.
Now before we go into the details of trading and demat accounts let us understand what stocks are as explained to a layman. In simple words once any company lists on stock market, the shares of the company become available

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for trading on the stock exchange; just get registered with the stock exchange and start trading. Opening a trading account is simple; it can be done online through a broker. It is important that you select a good broker because expertise is crucial in stock market as within minutes rates change. It is a good idea to compare brokerage rates but it is advisable to go for brokers who provide good service rather than ones who charge you less. Once you decide on the broker contact them, fill up the forms, submit the necessary KYC documents and get ready to start trading in the stock market. After verification of your application you will be given your trading account details.
So with your trading and demat account in place you can easily do your trading. Make sure that you link your trading and demat accounts so that you avoid providing demat account details every time you trade.

Process is simple, place your order (buying or selling) through your trading account, the stock exchange will process and verify your order and then the shares will be either debited or deposited in your demat account.

INVESTOR VS TRADER
The goal of an investor and a trader remains same – trying to make profit in the financial markets, but the methods differ. The process of investing and trading differ in the way one operates; investing involves holding on to the investments for long periods of time taking advantage of interest, dividends etc. while trading involves regular buying and selling of stocks.
SOME HANDY TIPS

» Before planning to invest in stock market make sure you have some security money in case of any emergency

» Choose a good broker

» Don’t get carried away by advise given on whatsapp or Facebook, do your own study and invest

» Learn to time the stock market; don’t get carried away by short gains

» Review your portfolio at regular intervals

» Don’t allow your broker to trade; signing forms blindly and handing over to your agent may backfire

ASK THE EXPERT

Manoj Chaturvedi has rich experience of banking having worked both in India and Europe during last 16 years. Presently he is working with HDFC Bank Limited as Deputy Vice President in Wholesale Credit Risk. He is by qualification an MBA from XLRI, Jamshedpur and LLB from Faculty of Law, Delhi University.

What is Depository and Depository Participant (DP)?
A Depository is in fact similar to banks, where securities are held in electronic (dematerialised) form. In India, we are having two Depositories -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

Depository Participant (DP) is the place, where shares in physical form used to be deposited for the dematerialization purposes i.e converting the same to electronic form. DP is very akin to the bank branches.

Is it mandatory to dematerialize the physical share certificates?
No, it is not mandatory to dematerialize the physical share certificates. But all features of demat now can be accessed on mobile banking and easy to operate. Bonus / right shares gets easily credited to these account and transaction cost is also lower than it used to be in physical forms.

Can a person have more than one demat account in his name?
Yes, a person can have more than one demat account in his name; there is no restriction on that. An investor can open more than one account in the same name with the same Depository Participant (DP) or different DPs provided all KYC documents are submitted.

Can a demat account holder authorize another person to operate the same? If yes then how?
Yes, a demat account holder can authorize any person to operate his/her account by executing a power of attorney (POA) to this effect.

In case, any demat account holder wants to re-operate the account on his own, it can be done after having revoked the POA in writing.

Can I transfer shares to another demat account?
Yes, it is very much possible to transfer shares between demat accounts. The duly filled slip has to be submitted to the concerned DP and the transfer is done by NSDL or CDSL after receiving the document forwarded by the DP on behalf of the client. But the shares transferred from and the shares transferred to should fall under the same depositary i.e NSDL to NSDL and CDSL to CDSL.

I have some non-demat shares. How do I transfer them to demat account?
Open a demat account in the name of the person who has shares in the physical form and then ask the broker to demat the physical shares.

Can I have a joint trading account?
A trading account is always a single account that means there cannot be a second holder for a trading account, though you can have a nominee for a trading account. You can have demat account with a second holder and link multiple demat accounts to a single trading account.

Can I have multiple trading accounts?
Yes, you can have multiple trading accounts though not with the same broker. Though a second trading account would give you different trading platforms but it will add to your account opening charges and you will also have burden of keeping track of two accounts.

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CAUTION IS NEEDED

» It is important that you have understood the terms and conditions of the demat agreement before opening an account. Often people give power of attorney (POA) to their broker which he/she can misuse.
» Read all clauses properly before you give any POA or other instructions to your broker.
» Always keep your DIS in safe custody; every broker has to provide their client with a pre-numbered book-let.
» Check that your DIS book is in a serial order; in case of any missing page get it changed.
» DIS has to be filled every time a transaction is done; don’t give blank signed slips to your broker as it can be misused.
» You can protect your account by using the freeze option.

EDUCATION LOAN It’s simple, provided you are aware of all options

Planning to take education loan…read on to get the basics of this facility before you venture out in the market

WORDS: SANGEETA SINHA

Getting education loan is not very difficult as banks do not discriminate between toppers or average students. All that a bank looks for is that you have a strong guarantor and your documents are in order. The student should have an inclination to learn and should have the potential to repay.
Education loan options are plenty and even government is making efforts to make it simpler and easier for students. But before you finally apply for this loan you need to be clear in your requirements.

The most important point is to be sure about the loan amount you would require. The expenses would not only include the course fees but all other costs like travelling, boarding, food, books etc. Check out your own savings and then decide on the loan amount you would require. Students planning to study abroad should check on the currency rate too. Many banks/financial institutions offer loan for full expenses, so if you wish to take loan for all expenses look for banks which cover all.
Once you are sure on the loan amount, the next important point would be to compare the interest rates. Do your homework well and also figure out whether the interest amount will be invariable or will it change according to market trends.

And most important never default in your payments of education loans. If you do that you may have problem getting other loans in future as banks may mark you as defaulter. A default will spoil the credit score of both the student as well as the parents (co-borrower). If your EMI gets over due for more than 90 days the bank classifies the loan as a non-performing asset. In case of higher loan amount (more than 7.5 lakh) even the collateral will be at risk.
Repayment usually starts after the ‘moratorium period’, that is usually one year after end of your course or six months after the job whichever is earlier. You even have the option of repaying your interest during the study period; this helps lower the EMI. Some banks even give concession to those paying interest during the moratorium period. It is always a good idea to be prepared with a repayment strategy.
Though banks usually grant loan based on the capacity to repay; employment potential of the student is checked but still it may happen that you are not able to get a job. In such a scenario banks have policies for tenure extension but it may be little difficult to convince. As per the guidelines, the tenure can be extended up to 10 years for loans up to Rs 7.5 lakh and 15 years for loans above it.

Extension is also allowed in case the student takes up higher studies immediately after completing the course or if the student is unable to complete the course on time for reasons beyond his/her control.
It is also a good idea to take loans in installment because banks charge interest on the amount of money disbursed. If you have to pay fees semester wise then it will be smart move to take loan when required so that you save on the interest that accumulates.
Lastly, keep all documents related to loan in safe custody.

VIDYA LAKSHMI

Vidya Lakshmi is a first of its kind portal for students seeking Education Loan. This portal has been developed under the guidance of Department of Financial Services, (Ministry of Finance) , Department of Higher Education (Ministry of Human Resource Development) and Indian Banks Association (IBA).The portal has been developed and being maintained by NSDL e-Governance Infrastructure Limited. Students can view, apply and track the education loan applications to banks anytime, anywhere by accessing the portal. The portal also provides linkages to National Scholarship Portal.


Now that your loan amount and the interest rate are finalized, it is time to decide on the repayment time. Longer repayment tenures will help if you want low EMI but keep in mind that in case of longer tenure you will have to pay more interest. Make the down payment keeping in mind your budget and paying capacity; certain percentage is decided by the bank which you will have to pay mandatorily.

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SCHOLARSHIP AND LOAN

Education loan sanctioned by any bank remains independent of any scholarship. You are free to apply for any scholarship even after you have the loan sanctioned. The extra in the form of scholarship will help in reducing the loan burden.

ASK THE EXPERT

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Pushkar Karni Sinha, Senior Associate with Legal Consultus, a New Delhi based Law Firm, specializes in Civil, Corporate and Consumer Laws. An alumnus of National Law School, Jodhpur, he practices in the Supreme Court of India and Delhi High Court.

1. How much loan amount can I get?
It depends from bank to bank. However, the banks in India are providing need based education loans. For example, few banks are even providing education loan up to INR 1.5 crores for pursuing higher studies abroad (subject to compliance of Exchange Control Regulations).

2. Any guidelines to students applying for education loan.
The education loan applicants should approach the nearest branch of their choice, preferably where the loan seekers are having their bank account, along with requisite documents. This minimizes the queries with respect to the credentials of the applicants.
Generally, the Applicants need to furnish the following documents along with the completed application form of the student, guardian (when the loan is jointly taken) as well of the guarantor (as the case may be):
» Mark sheet of last qualifying examination for school and graduate studies in India
» Proof of admission to the course
» Schedule of expenses for the course
» Scholarship documents, if any
» Passport size photographs
» Statement of bank account for the last six months of borrower
» Income tax returns
» Government approved proof of residence

3. How is the educational loan disbursement made?
The loan has to be disbursed in stages as per requirement/demand directly to the Institutions.

4. Does education loan also include travelling and other expenses like food, boarding, books etc or only the course fees?
It depends on the bank policies. Some banks even include two wheeler loans in an education loan with some maximum cap.

5. What is the age criteria required while applying for an educational loan?
There is no ‘minimum age criteria’. However, in case of minors, loan will be jointly in the name of parents and the student shall ratify the borrowing by acknowledging the debt on attaining major status i.e. 18 years of age.

6. Is there a penalty for pre-payment?
No prepayment penalty will be levied for prepayment of loan any time during the repayment period.

7. Is education loanee ‘a consumer’?
Yes. A loanee does come within the definition of ‘a consumer’ as defined in the Consumer Protection Act, 1986. An aggrieved loanee may also approach the Consumer Fora under the Consumer Protection Act, 1986 for the redressal of one’s grievance against such Insurance Company.

LOAN CONDITIONS

• A co-applicant is a must, could be a parent or a sibling
• Loans below 4 lakhs do not require a guarantor
• Loans above 4 lakh need a third party guarantor
• Loans above 7.5 lakh need a collateral
• Insurance is mandatory to study abroad
• For studying abroad it is better to look for part time job or sponsorship as the loan amount may not be sufficient.


SOME HANDY TIPS

» Ensure that you have conditional offer of admission before approaching banks
» Look for a bank that offers best moratorium period, less interest rate and customer friendly terms
» Make sure that there are no penalties for prepayments or part payments
» If you have the capability, then it is always a good idea to go for short tenure and higher EMI rather than long tenure with low EMI
» Long tenure loans get expensive as you end up paying more interest
» Try paying the interest part during the moratorium period so that you have less burden later
» Opt for loan in installments so that you save on interest
» Try clearing the loan as fast as possible; use any extra money you earn to make part payments on loan so that you save on interest
» It is better to finish loan in first 8 years if you wish to avail the tax benefits on the interest you pay on your education loan
» The deductions are available only for the initial assessment years and seven years after
» Never default on paying your EMIs; it will hamper your as well as your co-borrower’s credit opportunities later
» And lastly don’t go by the false promises of agents
» Keep all documents handy including guarantor’s financial documents

RERA: Seeking Transparency

RERA or the Real Estate Regulations Act seeks to protect homebuyers and redress grievances as well as help boost investments in real estate industry

Words: TILLANA DESAI

Early last year, the RERA act was passed by the parliament and the Union Ministry of Housing and Urban Poverty Alleviation to formulate and notify rules for the functioning of a regulator. With an aim to bring about clarity, transparency and fair practices in the real estate industry, RERA will protect the interests of buyers and penalise errant builders.

KEY PROVISIONS OF RERA

The promoter of a real estate development firm must maintain a separate escrow account for every project. A minimum 70 per cent of the money from investors and buyers will have to be deposited. This money can only be used for the construction of the project and the cost borne towards the land.
 Buyers must be kept informed about developments of projects for their clarity
 Builders will have to submit original approved plans for their ongoing projects and any alterations that they make. They also must furnish details of revenue collected, where and how the funds were utilised, the entire timeline of the construction, completion and also the delivery certified by an Engineer/Architect/practicing Chartered Accountant.
 State regulators will register real estate projects and agents operating under RERA. These details will be open for public to access on web.
 Any reported issues in services will have to be rectified by the developer in 30 days.

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 Developers can’t invite, advertise, sell, offer, market or book any plot, apartment, house, building, investment in projects, without first registering it with the regulatory authority. Post registration, all the advertisement inviting investment will have to bear the unique RERA registration number which will be provided project-wise.
 After registration, developers will furnish details of their financial statements, legal title deed and supporting documents.
 If the promoter defaults on delivering the project within agreed deadlines, they will be required to return the entire money invested by the buyers along with the pre-agreed interest rate mentioned in the contract based on the model contract given by RERA.
 If the buyer chooses not to take the money back, the builder will have to pay monthly interest on each delay month to the buyer till they get delivery.
 Developers cannot ask more than 10 per cent of the property’s cost as an advanced payment for booking before signing a registered sale agreement.
 Any errant builders with complaints registered against them can be imprisoned for a project for up to 3 years.

EXPERTS SPEAK

The Editorial Team of Urban Vaastu asked a few industry experts their views on RERA.

advisory2Rahul Saha Sr. Town Planner and Architect Urban Development and Urban Housing Department Government of Gujarat

“The much talked about RERA Act has been long awaited.
I hope it will bring the much-awaited transparency and no discrimination in the Real Estate Market.
It should definitely be beneficial and bring encouragement among the genuine buyers and the end users who till now have always remained helpless and in doubt due to the volatile nature of the property market.
The Regulatory Authority will be set up at Central and State Levels, however it will be interesting to see how various sections of the Act are actually implemented as many sections do not favor existing Property Players.
There can be nothing better if the ‘Consumer First’ approach can be achieved in true sense.
The best part is that buyers will pay only for the carpet area.

Builders will also have to maintain higher construction quality and keep better checks.”

advisory3Sahil Kapoor Executive Director RE/MAX India
RE/MAX is a member of the NAR (National Association of Realtors) and is one of the largest real estate consultant groups globally.
RERA is a great move in the right direction for end users, however, its implementation is the key. While Land laws come under the central government, RERA is state governed. A lot of confusion is thus caused. Unless it too is directed under Central laws, RERA will get diluted.
For example, the law was set to be implemented by the 1st of May 2017, but wasn’t and ongoing projects executed nevertheless. Thus, buyer’s interests may not be safeguarded. The state government must take strict and drastic steps to protect the interests of end users – which is actually the whole idea behind RERA. The act which should ideally have been implemented on day one itself irrespective of the status of the property.
RERA has the potential to bring in a great revolution and stop all the wrongly inflated prices of the property if enforced correctly. Why are properties more of an investment these days? It is simply because of this false inflation. With RERA, end users will be able to purchase properties for their use and not just as an investment.
In China for example, whole ghost cities were created due to false inflation. To avoid this happening in India, RERA is the key.
ASK THE EXPERT

Keyur Patel, CEO, Valencia Group

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With RERA, there will be a mandatory disclosure of project details, including those of the promoter, project, land status and clearances. This will increase the credibility of developers and protect consumer rights as well. So it is positive for industry transparency. These initiatives will contribute to organizing this sector that has been traditionally fragmented and unorganized while improving consumer confidence. The guidelines given in RERA are of prime importance for everyone related to real estate business as they will ensure complete transparency and discipline in the sale or purchase of a property. So on time possession, pay for what you get, construction warranty and many more trust factor for both ends is what one gets.

Property LOAN CLOSURE

Loan closure formalities are very important; make sure you don’t miss any point.
You paid your last EMI. What a relief, but did you bother to collect your NOC? If you did not do it you may get into trouble later. NOC is a must and needs to be collected and preserved for any future reference. Read on to understand the significance of loan closure formalities.

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JUST because you have paid full loan amount to the lender doesn’t mean that you are free. It is important to settle the records completely so that your records are straight and in future you have no issues getting another loan.

NO OBJECTION CERTIFICATE (NOC)
It is important for you to have NOC from the lending institution. No Objection Certificate is a document which states that you have no dues or outstanding against your name and this document is required when you approach any other bank for financing.

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CHECKLIST FOR PROPERTY LOAN CLOSURE
» Make sure you collect all original documents you submitted
» The documents should be in good condition
» Don’t forget to collect NOC
» Make sure that CIBIL is informed about the loan closure
» Get all liens removed after loan closure
» Get the new encumbrance certificate

NOC is a legal document mentioning that you have paid all dues to the lender. This certifies that the lending institution has no legal rights over your collateral. The document clearly mentions your name, account number and address of your property.

Make sure you get this document from your lender once you have paid the complete loan amount. Sometimes the NOC is dispatched to your mailing address and if your address has changed and you have not updated your address with bank there are chances of missing this important document. Though as a rule the lending institutions should give you NOC but often this step is not taken seriously and this may put you in trouble later.

NOC is important for your own safety too. In case the lender loses record of your loan closure they may send you letter to repay and this will put you in unnecessary hassle. NOC being with you can help to settle matters easily. So finally, the onus lies with you that you have this document with you.

COLLECT YOUR DOCUMENTS
You need to collect all your original documents you submitted with the bank or the lending institution. Make sure that all the pages are intact and in good condition; check important pages like sale deed and others. It is a good idea to collect the original papers personally rather than getting it through mail. That way you can personally check all the pages before acknowledging the receipt of documents.

KEEP CIBIL UPDATED
NOC is important for your financial credibility. Credit Information Bureau (India) Limited (CIBIL) needs to have your record straight and if NOC is not submitted to CIBIL, it will show your records with unpaid loan amount which will adversely affect your credit score. Make sure that the information gets updated on the CIBIL website.

GET YOUR LIEN REMOVED
This is a very important step which should not be forgotten – getting the lien on the property removed by the registrar’s office. You will not be able to sell your property if the lien is not removed. First check with the lender if a lien has been put on your property.

ASK THE EXPERT

advisory3 Vivek Singh, Advocate-on-Record, Supreme Court of India is an alumnus of Campus Law Centre, Delhi University and has 15 years’ experience at Bar. He is Standing Counsel for the State of Uttarakhand.

What is an NOC (No Objection Certificate)?

An NOC is a clearance certificate issued by the financial institutions/lender assuring that all dues have been cleared. This is one of the most important documents at the time of closure of a loan account. This certifies that the lending institution has no legal rights over the property on/for which the charge/mortgage/hypothecation/lien was created.

What precaution one can take at the time of receiving No Objection Certificate?

No Objection Certificate should clearly mention the address of Property against which loan was taken, Name of Borrower & Loan Account Number of the Borrower. Secondly, it should state that all the dues have been paid by the Borrower and Lender does not have any rights or claims on the Property. It is further advisable to collect all the original documents submitted to lender at the time of taking the loan and as well as the security cheques to avoid its misuse.

What kind of problems can I face if I don’t have an NOC?

NOC, from the previous lender with respect to a property, is a fundamental document before applying for a fresh loan facility. Borrower, who doesn’t provide No Objection Certificate in proper format, will not be able to get any further loan on the same property. Further, at times, lender also fails to send the requisite loan closure information to CIBIL, which may affect further loan prospective. In such a situation, No Objection Certificate becomes very handy to get the CIBIL record corrected and hassle-free. So, it is always advisable to secure such an important document at the time of closure of loan account only.

What is the significance of Encumbrance Certificate?

This is an indicator that whether there is existing loan facility availed on the respective immovable property or not. The same can be obtained from the Office of the Registrar of Property of the concerned area where the property is situated after making certain statutory fees.

A lien is a legal right granted by the owner of the property; it serves as a guarantee that in case the creditor does not pay the loan the bank can seize the property and if the loan is paid in full then the lien is released.

The procedure for getting the lien removed from property is different for registered properties and unregistered properties. For registered properties, you will have to get it done through the registrar’s office. A bank official will accompany you to the Registrar office to terminate this lien.

ENCUMBRANCE CERTIFICATE (EC)
Encumbrance certificate is a document that lists all the financial transactions performed on the property. This certificate should clearly reflect the closure of loan and lien removal. If it does not show get it done through the registrar’s office. Get hold of new updated EC; it is very important and should not be neglected at any cost.

e-filing of Income tax returns

Filing of ITRs is not as complex as it is perceived. Since it has to be done every year, after the close of financial year and before the due date, it is better to understand the basics so that you don’t have to run around to get it done.Words: Sangeeta Sinha

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Most of us wait till the last date to file our return of income and it often adds to lot of stress, running to banks and tax consultants. But if you keep your records straight along with bank statements and Form-16, it can be a simple affair. Why not do it yourself; just log in to the Income Tax department’s e-filing portal for e-filing your return of income.

As per the Finance Act, e-filing is now mandatory for any assessee filing ITR 1/2/2A having a refund claim in the return of income or having a total income of more than Rs 5 lakh. This has to be furnished electronically with or without digital signatures or by using an electronic verification code.

POINTS TO REMEMBER

Check Form 26 AS- Form 26AS is an annual statement disclosing the details of tax credits (Tax deducted at source (TDS), Tax Collected at Source (TCS), Advance Tax or Self Assessment Tax or payment of Tax on regular assessment) in the account of an assessee as per the database of the Income Tax Department. The assessee needs to verify the tax credits claimed in his return with those appearing in 26AS before filing his return of income; mismatches could lead to incorrect tax computation and assessment by the department. Income Tax Department generally allows a taxpayer to claim the credit of taxes as reflected in his Form 26AS.

Investment documents- In case you miss out submitting investment proofs to your employer on time you can still claim these while filing your tax returns. Make sure that you fill the specific schedules in the tax returns relating to those documents. You can also claim deductions under under Chapter VI-A even when these have not been shown in Form 16 by your employer.

Alert- Never open phishing mails or download any attachment which is not from a trusted source.The Income Tax Department does not ask for your personal information through e-mails. It also does not send e-mails requesting your PINs, passwords or similar access information for credit cards, banks, etc.
Documents needed- Make sure you have last financial year’s tax returns, bank statements, TDS certificates, investment details, insurance details, loan papers and also balance sheet and audit reports wherever applicable.

Updated system- Most important your system must be updated with Java Runtime Environment Version 7 Update 6 or above in case where you are using the downloaded Java utility for filing your tax return.

Name mismatch- Make sure that the name in you PAN card matches exactly with the name in your bank account and other official statements because even a minor mismatch may create a problem. The portal will consider you as a different individual.

expert views

Vikas Srivastava is a practicing member of the Institute of Chartered Accountants of India. He is a partner with a reputed firm of Chartered Accountants and has over 14 years of experience in the fields of auditing & taxation.

Who should file income tax returns?
Filing of Income tax Returns is a legal obligation for every person whose total income for the previous year has exceeded the maximum that is not chargeable to tax under the provisions of the Income Tax Act, 1961.

Is it mandatory to file Income Tax Return after getting Permanent Account Number (PAN)?
No, the liability to file income tax return is governed by various provisions under the Income Tax Act, 1961. Filing of income tax return becomes mandatory when the total income of a person under different heads exceeds the maximum limit prescribed by the Income Tax Act, 1961
Can a return be filed after the due date?
Yes, an assessee can file a belated return within a period of one year from the end of the assessment year or before the completion of assessment, whichever is earlier. With effect from 1st April 2017, belated return for assessment year 2017-18 and onwards can be filed at any time before the end of relevant assessment year or before the completion of assessment whichever is earlier.
Can a belated return be revised?
A belated return cannot be revised. However, with effect from the assessment year 2017-18 and onwards a belated return can also be revised.

What precautions need to be exercised while filing your return of income?

  • Your return of income should be filed on or before the due date of filing.
  • The assessee should download Form 26AS and reconcile the TDS appearing therein with the actual TDS and sort out the discrepancies.
  • At present no documents are required to be attached with the return of income. However, the assessee should carefully compile and arrange documents such as Form 16, Form 16A, his updated bank statements, interests certificates, investment proofs, books of accounts, Profit & Los a/c, Balance Sheet, etc. so as to enable him to correctly disclose his income and file return properly.
  • The assessee should correctly identify the Form of ITR applicable in his case.
  • The assessee should carefully fill the ITR Form following the instructions contained therein.
  • If any tax is found due as per the return of income, the assessee should first pay the tax due otherwise the return of income would be treated as defective.
  • In case the return of income is filed electronically without the digital signatures and without the electronic verification code, the assessee needs to send the ITR-V duly signed by him to CPC Bangalore either by Speed Post or Ordinary Post.

What should I do if my tax deducted does not match with the amount in Form 26AS?
Every person deducting tax at source has to file TDS returns with the Income Tax department covering the details such as name of the deductee, PAN of the deductee, amount paid to the deductee, amount of Tax deducted,

At times it happens that the actual TDS and the TDS as per Form 26AS does not match.

This may be due to non filing of TDS returns by the deductor, incorrect information filed in the TDS returns related to the deductee, etc. Normally, the Income Tax department allows credit of TDS appearing in Form 26AS of the assessee.

In cases where the TDS as per Form 26AS is less as compared to actual TDS, the assessee should approach the deductor to get it rectified.

The assessees are, therefore, advised to reconcile the actual TDS with that appearing in Form 26AS before filing their return of income.

If a person dies before filing his return of income then who files the return?
Legal Heir of the deceased assessee can file the return of income and can view IT-V acknowledgement, the status of income tax return and other filing status related to the deceased assessee.

Do I need to declare assets and liabilities too?
All assessees whose total income in any financial year exceeds Rs 50 lakhs need to fill Schedule AL in the return of income mentioning therein the value of their Immovable Assets – Land & Building, Movable Assets – Cash in Hand, Jewellery, bullion, Boats, Yachts, Aircrafts and also the liabilities in relation to these assets.