How to redeem Fixed Maturity Plans??

Fixed Maturity Plans (FMP's) are essentially closed ended debt schemes with a fixed Maturity. The tenure could be 30 days, 90 days, 180 or 365 days and even 3 to 5 years time frame.



Whether Exit is possible before Maturity
Though an investor is supposed to stay invested till maturity in FMPs, fund houses also list FMP on stock exchanges so,  yes, investors can exit if they need money urgently. 

When one exit before Maturity

However, liquidity is a problem. Though these schemes are compulsorily listed on the stock exchange, it’s not easy to exit a scheme before maturity as there are few buyers. So ensure that you are pretty certain you will not need the money for the duration of the FMP as this does not guarantee enough liquidity and attractive price. 

How one can redeem before Maturity
Investor wishing to exit may do so by selling their units through stock exchange, however FMP units cannot be directly redeemed from the fund, until the maturity date of the plan.

On Maturity, how will you redeem
On maturity, units will be redeemed on the basis of the applicable NAV on the date of redemption and your investment along with the appreciation is automatically returned back to you.(means directly credited to your registered bank account in that scheme, if direct credit option is available in your bank account else redemption warrant will be issued to you).

 

Also refer Taxability of Fixed Maturity Plans

Submission of Form 15G or Form 15H

Form 15G and Form 15H is Self declarations by the depositor not to deduct tax on the fixed deposits(mainly dividend /interest from securities, Interest on fixed deposits, Interest on units of National Saving Schemes)



Any one whose income is below the taxable limit has to fill form 15G / 15H and submit in the bank. You cannot submit the Form 15G/H if your income is taxable.

Form 15G and Form 15H are forms to be filled by an Individual or a person(not being a company or firm) which help an Individual to avoid TDS (Tax deducted at Source) in case one does not have to pay income tax at the end of the year. 

Important points related to Form 15G/Form H

• Only persons with income below taxable limits can only make use of this form.
•  As per the provisions, only persons with NIL tax liability only can give these forms. 
•   These forms should be submitted to each and every branch where you hold the deposits. For example, if you hold deposits in 3 different branches of State Bank of India, this declaration shall be given for each branch separately.
•  These forms can be used only for payments in the nature of Interest / dividend  from securities, Interest on fixed deposits, Interest on units of National Saving Schemes of  For other types of payments, these forms cannot be used.

What other documents are required along with form 15G/H

Copy of the Pan card to be attached (If it is not updated in bank records) PAN details are compulsory for TDS eligible payments as per this wef 01.04.2010(u/s 206AA), in absence of PAN details, Form 15G/H and other exemptions certificates will be invalid even if submitted and Penal TDS will be applicable. Section 206AA is related to "every person who receives income on which TDS is deductible shall furnish his Pan, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits and 30.90% in case of NRO depositis"


Forms (Revised)

Form 15G 

Form 15 H

When to Submit this form

This form shall be submitted every Financial year at the beginning of the Financial year.

Who can Submit Form 15G/15H 

Form 15G shall be given by persons below 60 years of age.
Form 15H shall be given by persons above 60 years of age. (Senior Citizens)


“Person” means Individual (or) a person (not being a company or a firm). Hence even HUFs and Association of Persons can also make use of these forms.

Income exemption limits have been revised as per the latest finance Bill, 2012 as follows

 

How to avoid tax deducted at source on Fixed Deposits

 If the investor submits Form 15G stating that he has no taxable income, then the bank would not deduct any TDS from the interest earned. For senior citizens, the requisite form is 15H to avoid TDS.

When will you have to pay tax on Fixed Deposits?

 If the interest earned under FD exceeds Rs 10,000 in a financial year, then it would be eligible for tax deduction at source (TDS) at 10 per cent plus 3 per cent education cess i.e total 10.3 per cent of the interest earned.

How to receive tax deductions if you invest in Fixed Deposits?

The 5-year tax-saving bank deposit gives tax benefit under Section 80C as the amount you invest in the 5 year FD is deducted from your taxable income. However interest received on the FD is taxable. The interest earned under the FD is taxable under the head 'Income from other Sources'.

The investment in a recurring deposit is not considered for deduction u/s 80C
There is no income tax benefit available for a recurring deposit, also note that sec 80C benefit is not available even if the recurring deposit is for a period of 5 years or more.

How to fill form 15G or 15H (FOR FY 2013-14)

Also refer

While filling the Form 15H - asking Area code and Ao code, How to get that??

How to get Mutual Fund Capital Gains Statement

Redeeming mutual funds is easy, but maintaining account statement of capital gain and loss is difficult for many investors, they keep calling advisor if he can help them to get that capital gain statement or if not at least can provide them account statement to help them to prepare Capital Gain and Loss Statement for Mutual Fund Units. 

But surprisingly many investors and even distributors don't know this option which is available on line and which actually help them to get quick access to Mutual fund Capital Gain/loss statement.  

In order to get mutual fund capital gains statement for all you investment in mutual funds you need to register your email address in mutual fund records.

 

 You can request a statement of "Investment Performance", which will contain actual withdrawals made by you in your fund account, realised gains/losses on a FIFO basis and segregated as long term and short term. The statement will also contain a summary of the dividends paid out in respect of the account. 

The statements will be provided for the previous and current financial year. This is an email-only service; if you have not provided an email address in your application form, this request cannot be responded to.

 

Now how to get Mutual fund capital gains statement

1.  visit Camsonline.com  https://www.camsonline.com   OR

https://www.camsonline.com/InvestorServices/COL_ISGainStmt.aspx

https://www.camsonline.com/InvestorServices/COL_ISTransactionDetails.aspx

https://www.camsonline.com/InvestorServices/COL_ISGainStmt.aspx

2.  Click on on line service for Investors (which you observe top of page 2nd from left)

3. Click on Mail Back Services

 http://camsonline.com/InvestorServices/COL_ISMailBackServices.aspx

4. New Window opens

5. In that click on  Consolidated Realised Gains Statement

 

6.  Enter the Email address registered in the folio

7. Select the delivery option

8. Enter password of your choice to open the attachment (which you will receive in your registered email address)

 

Forthcoming Dividends in Equity and Hybrid Funds (April 16, 2012 to April 20, 2012)

Forthcoming Dividends in Equity and Hybrid Funds (April 16, 2012 to April 20, 2012)

 

How to access PPF account online...

Online PPF facility is currently available in SBI, ICICI Bank and IDBI Bank.

In order to get PPF online access:

1. You must have Saving Bank Account and PPF Account from same Bank.

2. Apply for netbanking access for saving bank account.

3. Request Bank to link your Savings Bank Account to your PPF Account.

In SBI Bank you can link your SBI PPF account with your Saving Bank account and can transfer funds and check your PPF balance online. 

 What is required to get online access to PPF

Login id and password for net banking and then link you accounts and get the access.

Also refer:

 SBI PPF Online Transfer

But some banks permit PPF online transfers . For example, if you have your PPF account with SBI and your salary/savings account with ICICI Bank, you can log into net banking and add the SBI PPF account as a payee for transfer from your ICICI account. This option is for fund transfer from your bank to your ppf account,but you can't able to check your PPF Account Status)

ICICI very recently started PPF online Facility. (Here you can check PPF Status + Transfer funds to your PPF Account.

How to apply online PPF account in ICICI Bank:

If you have access to your ICICI NetBanking, in that click on PPF Account online

Step 1: Fill in the details required for opening a PPF Account

Step 2: Take a print out of the pre-printed form, affix your photograph and sign on the form

Step 3: Submit the application form and the nomination form to any one of our branches

The PPF account will be opened only in a designated branch of ICICI Bank authorised by the ministry of finance. To view the list of these branches please click here . Please mention the name of the branch where your wish to open your PPF account on the application form

If you have PPF account in any other bank or Post office, you can request for transfer of PPF account and  transfer account to SBI or ICICI.

But to get  PPF account on line you must have bank account linked + net banking facility.

How to link your SBI PPF to your ICICI Bank Account

This facility is not yet started, so you can't link your SBI PPF Account with your ICICI Bank account and check your PPF Status.

But still if you want to link Your PPF Account  then you need to transfer your SBI PPF Account to Your ICICI PPF Account and then link your icici bank and PPF account to get the online Access+fund transfer option.

But if you want only Fund Transfer option and don't want to Transfer your PPF Account then:
  
You need to Link your SBI PPF as Payee in your ICICI Bank for your yearly contribution in PPF in "Fund Transfer to Non ICICI Bank across India."
 


How to use Fund Transfer option in your ICICI Bank Account:

1. Login to your ICICI net banking account
2. In that click on "Fund Transfer"
3. In Fund Transfer select - "Fund Transfer to Non ICICI Bank across India"
4. Register SBI PPF Account as Payee
5. Add Payee Details and then click confirm
6. If your mobile number is registered, in such case, six digit URL will be sent to your registered mobile Number
7. Enter URN received on your mobile, and click on "Confirm Payee"

8. Once your Payee details are confirmed, you can able to transfer funds to your registered and confirmed Payee that is SBI PPF.

9. Then for Transfer of funds - Select SBI PPF as Payee, enter the amount you want to transfer along with transaction remarks and click continue

10. Verify the details and now its time to enter Transaction password to confirm your transaction for transfer.

11. Last page will be adding ATM/Debit card details as prompted, click OK to confirm. And after that within few hours amount will be transfered to your SBI PPF Account.

You can also refer this demo for fund Transfer

http://www.icicibank.com/online-demo/fundstransfer.html

 

 

For Transfer of PPF account refer this Link

How to transfer PPF account from one branch to the other of ( bank or post office)?