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Income Tax e-filing in five easy steps, The Indian Express, e filing of income tax

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Income Tax e-filing in five easy steps

E filing of income tax return

It has almost become a ritual for people to delay filing their income tax returns till the last date and for the government to extend the same due to popular demand . However, the long queues that used to be another annual feature of the tax filing week has become a thing of the past due to the growing popularity of income tax e-filing.

The incometaxindiaefiling.gov.in has made it really easy for people to file their returns from the comfort of their homes. But remember to do so by August 5, the extended deadline for filing your income tax returns. Assessees in Jammu and Kashmir have till August 31 to file.

With the whole of this week left for people to finish this process, we tell you how to file your tax online.

Step 1: Select the right form: You have to select the form based on your source of incomes. So ITR-1 is for salaried individuals whose get a salary or a pension along with income from a house/property or from other sources, things like lottery. This is not for those with multiple houses/properties, income from winning a lottery, agricultural income of above Rs 5000, income from business. Tax payers filing for double tax relief should also not use this.

ITR-2A, introduced this year, is for those individuals who have income from more than one house property. ITR-2 can be used by individuals with no income from business/profession. ITR-3 is for individuals partnering in a firm, but not for those earning income from a proprietorship form. ITR-4 is for those individual earning income from a proprietorship firm. ITR-5 and 6 are for use by companies alone.

Step 2: Get your Form 16 ready: This form given by your employer shows your saving as well as the tax deducted. There will be multiple forms if you have changed jobs over the assessment year/

Step 3: Additional documents: You might need your bank statements, interest certificates, and your housing loan certificate (in case of housing loan).

Step 4: Download Form 26AS from the e-filing website to see which taxes are deducted at source

Step 5: Filing/uploading: Individuals with over Rs 5,00,000 income have to e-file their tax returns. You will get an automatic acknowledgement once the return is successfully uploaded. Verify this and submit the acknowledgement online, ideally with e-verification. This completes the process of filing your income-tax return.

Income Tax Return Filing by IndiaFilings, filing of income tax return.#Filing #of #income #tax #return

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Income Tax Filing

Its is mandatory for individuals, NRIs, partnership firms, LLPs, Companies, Trust to file income tax returns each year. Individuals and NRIs are required to file income tax return, if their income exceeds the exemption limit. Partnership firms are required income tax return – irrespective of amount of income or loss. All companies are mandatorily required to file income tax return. Finally, it is mandatory for most types of trust to file income tax every year, while some types of trusts are required to file return of income if its gross total income exceeds the exemption limit.

Income tax return form can be e-filed or manually filed. Income tax returns do not have the ability to accept any attachment while efiling or manually filing. Hence, all relevant documents pertaining to the income tax filing like proof of investment, TDS certificates, pay slip, rent receipt, etc.) must be retained by the taxpayer and should be readily available if requested by tax authorities during assessment, inquiry, etc.

IndiaFilings is the largest business services platform in India, offering a variety of services like company registration, trademark registration, GST registration, income tax filing and more. IndiaFilings can help you file income tax returns. Get a free consultation for income tax filing through IndiaFilings by scheduling an appointment with an IndiaFilings Advisor.

Top Income Tax Return Types


Income Tax Form ITR-1 (SAHAJ) is for individuals having income from salaries, one house property and other sources like interest, etc., This is the most used income tax return type.


Income Tax Form ITR 4 is for individuals and Hindu Undivided Families having income from a proprietary business or profession. This form is used by proprietorship firms.


Income Tax Form ITR 5 is used by most partnership firms as it is intended for persons other than individuals, Hindu Undivided Families, companies and person filing Form ITR-7.


Income Tax Form ITR 6 ​is used by companies like one person company, private limited company, public limited company and other for-profit companies.


Income Tax Form ITR 7 is used by persons, political parties, news agencies, universities and entities in receipt of income from property held under trust for charitable or religious purposes.

Income Statement Analysis Practice With Microsoft, example of an income statement.#Example #of #an #income #statement

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Practice Income Statement Analysis With a Real Statement

Example of an income statement

The best way to learn how to read and analyze and income statement is to pick up an ​annual report or Form 10-K of a real company and practice reading the financial statements. It s good to simply get your hands on a couple, see how they are similar or different, examine some of the unique lines you might see on one company s income statement but not that of another firm. You will notice how certain businesses, in certain sectors or industries, have completely different economic characteristics, resulting in completely different profitability pictures that tend to result in some sectors and industries producing much better outcomes over decades for shareholders.

You will begin to be able to see the business through these income statements, especially in conjunction with the other financial statements and the footnotes. You start to understand the things driving profitability and how rigid the cost structure is.

To match up with what I did in my lesson on balance sheet analysis, in this income statement analysis lesson I m retaining the original sample income statement I first published more than fifteen years ago. It comes from Microsoft s 2001 annual report and it shows the full fiscal year income statement figures for 2001, 2000, and 1999. Although the world has changed significantly since then, the big concepts and principles you are about to learn haven t been modified much. I hope, also, that seeing the timelessness of fundamental analysis will make you realize the power of a good long-term investment. Truly great businesses have a certain stability in their core economic engine that makes them enjoy certain advantages.

A firm like Microsoft, one of the best businesses of all time, is inherently less secure than a firm like Hershey as the activities that produce the numbers in Microsoft s income statement are changing all the time, subject to technological advancement and competition that attack on all fronts. As Microsoft founder Bill Gates once said, the firm s next biggest competitor could be a kid in a garage.

Income Statement Definition – Example, InvestingAnswers, example of an income statement.#Example #of #an #income #statement

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Income Statement

The income statement is one of the three primary financial statements used to assess a company’s performance and financial position (the two others being the balance sheet and the cash flow statement ). The income statement summarizes the revenues and expenses generated by the company over the entire reporting period.

The basic equation on which an income statement is based is:

Revenues – Expenses = Net Income

All companies need to generate revenue to stay in business. Revenues are used to pay expenses, interest payments on debt and taxes owed to the government. After the costs of doing business are paid, the amount left over is called net income . Net income is theoretically available to shareholders, though instead of paying out dividends, the firm’s management often chooses to retain earnings for future investment in the business.

Income statements are all organized the same way, regardless of industry. The basic outline is shown in the following example:

Income Statement for Company XYZ, Inc.

for the year ended December 31, 2008

Total Operating Expenses ($ 30,000)

Operating Profit (EBIT ) $ 50,000

Earnings before tax ( EBT ) $ 40,000

Why it Matters:

Anyone interested in active investing , picking stocks or investigating the financial health of a company must know how to read financial statements , including the income statement. The importance of the information contained in the income statement cannot be overemphasized.

A firm’s ability or inability to generate earnings over the long term is the key driver of stock and bond prices. Operating profit ( EBIT ) is the source of debt repayment , and if a company can’t generate enough EBIT to pay its debt obligations, it will have to enter bankruptcy or sell itself. Net income is the source of compensation to shareholders (owners of the company), and if a company cannot generate enough profit to compensate owners for the risks they’ve taken, the value of the owners’ shares will plummet. Conversely, if a company is healthy and growing, higher stock and bond prices will reflect the increased availability of profits .

Please note that earnings/net income/ profits are not the same as cash or cash flow . It is possible for a firm to be profitable on the income statement, but not be generating cash flow , and vice versa. To see a company’s cash flow , you will need to examine its statement of cash flows.

What is term life insurance? Ultimate Guide to Retirement, definition of term life insurance.#Definition #of

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What is term life insurance?

Term insurance is basic, inexpensive and easy to understand. It gives you all the coverage you need and none that you don’t. That’s why it’s the best choice for almost everyone.

As the name implies, a term insurance policy is good for a specific period of time; that can be one year, 10 years, 20 years or even up to 30 years. Given that you generally need life insurance only until you’ve managed to save up money elsewhere, just pick the term that dovetails with the time you need coverage. If you die during that term, your beneficiaries get a payout, known as the death benefit. If you die after the term expires, there’s no payout.

Term policies typically have maximum issue ages. If you’re past age 80, you’ll have a hard time getting term insurance. (You almost certainly won’t need it at that age anyway.)

Definition of term life insurance

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Definition of term life insurance Definition of term life insurance

Revenue and Sales on the Income Statement, example of an income statement.#Example #of #an #income

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Total Revenue or Sales

Example of an income statement

The first line on any income statement or profit and loss statement is an entry called total revenue or total sales. This figure is the amount of money a business brought in during the time period covered by the income statement. It has nothing to do with profit. If you owned a pizza parlor and sold 10 pizzas for $10 each, you would record $100 of revenue regardless of your profit or loss. If you owned a furniture store and sold a bedroom set for $25,000, you would record $25,000 regardless of your profit or loss.

If you owned a hamburger joint and sold 100 cheeseburgers for $3.99 each, you d record $399 in revenue regardless of your profit or loss.

The total revenue figure is important because a business must bring in money to turn a profit. If a company has less revenue, all else being equal, it s going to make less money. For start-up companies that have yet to turn a profit, revenue can sometimes serve as a gauge of potential profitability in the future.

Many companies break revenue or sales up into categories to clarify how much was generated by each division. Clearly defined and separate revenue sources can make analyzing an income statement much easier. It allows more accurate predictions of future growth. When I first wrote this investing lesson 14 or 15 years ago, I originally shared a copy of the Starbucks 2001 income statement with you, saying it was an excellent example. It is reproduced at the bottom of this page in Table STAR-1.

(If you really want to get a kick, go check out the total sales figures for Starbucks as of the most recent year ended 2015 in its annual report or Form 10-K filing. For those of you who don t mind me sharing the punchline, revenue grew to $15,197,300,000 over that span. In fact, a $100,000 investment at the time this lesson was originally published until today, in March of 2016, would have grown into more than $1,071,000 on a total return basis.

That doesn t even assume you reinvested your dividends. For Starbucks, exponentially growing sales also meant exponentially growing profits — something that isn t necessarily true at all firms — and the owners were richly rewarded for their patience, enjoying a CAGR about which most people could only dream.)

As you see in the original, archived 2001 chart at the bottom of this page, sales at Starbucks came primarily from two sources: retail and specialty. In the annual report, management explains the difference between the two several pages before the income statement. Retail revenues refer to sales made at company-owned Starbucks stores across the world. Every time you walk in and order your favorite coffee, you are adding $3 to $5 in revenue to the company s books. Specialty operations, on the other hand, consists of money the company brings in by sales to wholesale accounts and licensees, royalty and license fee income and sales through its direct-to-consumer business . In other words, the specialty division includes money the business receives from coffee sales made directly to customers through its website or catalog, along with licensing fees generated by companies such as Barnes and Noble, which pay for the right to operate Starbucks locations in their bookstores.

From the perspective of an owner, there is often a mistaken belief that growing sales are always a good thing. While this is generally true, there can be exceptions. In an industry such as property and casualty insurance, growth is almost always achieved by lowering policy costs, which can hit profits hard if management isn t careful, though it may not show up for several years as there is a delay between when the policy is priced and when the losses are incurred. Likewise, if growth is financed by diluting existing stockholders, taking on excessive amounts of debt, or engaging in riskier activities, it can result in a partial or total wipe-out down the line. History is full of companies that are cautionary tales, from former blue chip banks and thrifts such as Wachovia and Washington Mutual, insurance conglomerates such as AIG, and investment banks such as Lehman Brothers and Merrill Lynch.

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Growth in sales or revenue should not be the goal by itself. Growth in profitable sales and revenue, adjusted for risk, and in a way that rewards the existing owners, is the objective. As you learn more about the income statement, this will make more sense. The short version is that you should only want a business to generate more sales if it is going to benefit you in some capacity over the long-run. After all, it s your hard-earned money that is at risk in the enterprise.

Depending upon the business and its economics, the revenue or sales figure on the income statement may be reduced by what is known as a reserve for allowance of returns . What that means is a business that knows, traditionally, 1 percent of its sales end up being returned by customers might go ahead and include that 1 percent reduction in the revenue figure as that is what experience shows is likely to happen. When your financial analysis skills become more advanced, you will need to study these ​five methods of revenue recognition management can use to smooth the way they report sales.

Table STAR-1 (Archived Illustration from Original Investing LessonSee Text for Explanation)

For nostalgia s sake, let s use the archived sales/revenue figures from the original article I wrote almost two decades ago. You can easily replace these with figures from Starbuck s current 10-K filing or annual report. In fact, I d encourage you to try as it will allow you to practice finding and researching financial disclosures.

Consolidated Statement of Earnings – Excerpt

What is Term Insurance – Definition by HDFC Life, definition of term life insurance.#Definition #of

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Term Insurance – Definition Meaning 2016-11-07

Definition of term life insurance Definition of term life insurance

Definition of term life insurance

Definition of term life insurance Definition of term life insurance Definition of term life insurance

Definition of term life insuranceDefinition of term life insurance

Term insurance, a type of life insurance, provides coverage for a certain period of time or years. If the insured dies over the policy tenure a death benefit (or sum assured) is paid out. No payout is made if the insured survives the tenure.

The purpose of taking life insurance is to provide life cover to the policyholder and financial security to his family.

There are two ways the individual can take life insurance:

1. By opting for a pure life cover, also known as term insurance

2. By taking life cover with a savings component built-in,also called endowment insurance

Why term insurance is better

Term plans provide pure life cover. This means there is no savings / profits component. They are basic plans which make life insurance more affordable vis-à-vis other options. It is possible for the policyholder to opt for a larger life cover at a lower premium when compared to a similar endowment plan.

Some of the key features that make term plans indispensable include

Since term life insurance plans are more affordable it is possible for an individual to opt for a higher life cover for the same premium as an endowment plan. For e.g. a 30-year old can get a term plan with a cover of Rs 1 crore for a 30-year term by paying a premium .

The Rs 1 crore endowment plan will most likely out of bounds for most 30-year olds. However, taking a term plan for a similar cover is relatively more feasible.

The policyholder can attach riders to the term plan, thereby enhancing the utility of the policy. So by opting for a critical illness rider or a critical illness plan, for instance, he is entitled to receive the sum assured on being diagnosed with the critical illness. This is in addition to the death benefit of an equal amount on death over the term of the policy. There are other riders to choose from like – loss of employment cover,disability cover, waiver of premium cover, among others. The policyholder should select riders based on his specific needs to make the life cover more suitable and meaningful.

Certain insurance companies offer the flexibility to enhance the life cover during critical stages of the policyholder’s life. For instance, the policyholdermay be permitted to enhance life cover by 50% at the time of marriage and by 25% at the time of turning a parent. This makes it possible for him to start with a modest cover and then enhanceit as responsibilities increase as also the ability to pay higher premium.

While insurance companies have been quick to innovate in general, they have been most innovative with regards term plans. For instance, companies have been quick and proactive in cutting premium rates even offering extra discounts to certain categories like non-smokers, for instance. Buying term plansis now quite convenient thanks to the internet. It is possible for a healthy individual, as defined by the insurer, to buy a term plan over the internet without taking a medical test.

Multiple Streams of Income, A GOOD MAN, multiple streams of income.#Multiple #streams #of #income

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Multiple Streams of Income

Multiple streams of income

In one of my private study sessions recently, I was listening to a set of tapes by Bishop T. D. Jakes titled “10 commandments of working in a hostile environment.” The Bishop briefly took a digression in theme of the series to share a thought about “new streams” from the book of Genesis.

8 The Lord God planted a garden eastward in Eden, and there He put the man whom He had formed. 9 And out of the ground the Lord God made every tree grow that is pleasant to the sight and good for food. The tree of life was also in the midst of the garden, and the tree of the knowledge of good and evil. 10 Now a river went out of Eden to water the garden, and from there it parted and became four riverheads. 11 The name of the first is Pishon; it is the one which skirts the whole land of Havilah, where there is gold. 12 And the gold of that land is good. Bdellium and the onyx stone are there. 13 The name of the second river is Gihon; it is the one which goes around the whole land of Cush. 14 The name of the third river is Hiddekel; it is the one which goes toward the east of Assyria. The fourth river is the Euphrates. 15 Then the Lord God took the man and put him in the garden of Eden to tend and keep it.

He said there were four rivers or streams flowing into the paradise called the Garden of Eden and then went on to make the statement that for our lives to become the paradise God wants it to be we must have at least 4 streams or sources flowing into our lives particularly in the area of finances where our income from a job would be one stream or river!

This struck a home run with me since at that, time I had begun to believe we were entering into a season of harvest with breakthrough opportunities and prosperity like we had not seen or experienced as God s people. Unusual opportunities and situations would be available to us in this season to prosper and establish our lives, families, ministries and churches.

We needed to first of all, put ourselves in a position to plan, prepare and recognize these opportunities in order to take full advantage of them because after this season would come another season without these opportunities and those who were wise in this season would rest and even prosper more in the coming season regardless of the conditions.

These new streams in our lives, finances, and ministry would include not only the development of new ways and methods but also the discovery of new ways of doing old things and new ways of solving problems and overcoming challenges. It would also include investment opportunities and avenues to own and earn “portions” in businesses plus multi-dimensional approaches to ministry and divinely ordained relationships to fulfill God s desire for us.

A friend* Pastor Matel Okoh of RCCG, Jesus House, New Jersey, in America once gave an analysis of what these four streams of income could be in our lives today. It makes for interesting reading and application. It is time we broke the bible down into practical steps we can apply in our lives on a daily basis.

For you to have wealth in this world there are 4 rivers that must be the source of your income. For you to have abundant life, these four rivers must always flow into your life .

The first river is called Pison.

It is the river that flows round the land. The land of Havaliah has gold. Gold signifies wealth. For you to enjoy wealth in life there must be something that brings in a lot of money into your life. That is where witty inventions come in. here and now God can give you an idea. Christians are generally lazy people, even as human beings.

We don t want to think, nobody wants to think, but when you find out that something makes you to think, it is expanding your capacity to think. If you want to develop muscles, you go to the gym to carry weights. As you work out, it gives you pain and stress. But its the pains it gives you that is developing you.

When you are thinking, it uses your brain and intellect, it expands your capacity to think well, that is what we call” a weighty idea,” that is the Pison River, that will lead you to the place you have gold.

The second river is called the Gihon:

The Gihon River spreads through the land. It talks about investment. And you should start investing now. Don t just sit down and say your salary is okay. Let me tell you about the principle of investments. During the time of abundance in Egypt, the bible says that Joseph spoke to Pharaoh and said save 20%. As you are today, out of your salary make sure you can save 20% every month. Invest it into shares. There are a lot of shares that are good in this country. Buy shares. Deny yourself. Put yourself under a condition where you are buying the future in your present circumstance. Don t sell your future.

The third river is called Hiddekel:

Hiddekel is a river that represents where your job comes in. you have a job, that s your salary. An income stream

The fourth one is river Euphrates:

The river Euphrates represents the favour that God will use people to bless you. Has anybody ever thought about this, that you will stand up and say, God moved somebody to be a blessing today.

Think about that and expand your horizon. So that you have four rivers, and that is what scripture speaks about in the Psalms.

1 Blessed is the man Who walks not in the counsel of the ungodly, Nor stands in the path of sinners, Nor sits in the seat of the scornful; 2 But his delight is in the law of the LORD, And in His law he meditates day and night. 3 He shall be like a tree Planted by the rivers of water, That brings forth its fruit in its season, Whose leaf also shall not wither; And whatever he does shall prosper.

This is an extract from Rich Pastor, Poor Pastor available on this blog for free download

EVC – INSTEAD OF ITR-V Income tax Return E-Filing & do not need to send

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(EVC) INSTEAD OF ITR-V Income tax Return E-Filing do not need to send the ITR-V by Post

Filing of income tax return meaning

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Government is trying hard to go green but the necessity of sending signed ITR-V form to Bangalore was becoming an obstacle to make e-filing process completely paperless. Digital Signature has already been mandated for the companies to file and verify their returns but individuals were given an option to sign the physical copy of ITR-V and send it to CPC, Bangalore.

Government has come out with the Electronic Verification Code for verifying the income tax return to get rid of this last piece of paper and make the e-filing process completely paperless. Now, you just have to put an EVC after filing your return and you are done with e-filing, no need to send signed ITR-V to CPC, Bangalore within 120 days’ time frame.

What is Electronic Verification Code (EVC)?

Electronic Verification Code (EVC) is a 10 digits alpha numeric code to verify your income tax return and can be generated via various methods. Let’s see the features and usage of Electronic Verification code to e-verify your income tax return.

  • EVC is a 10 digit alpha numeric code which would verify the identity of the person filing the income tax return.
  • The EVC could be used to verify ITR 1 (Sahaj) / ITR 2 / ITR 2A / ITR 3 / ITR 4 /ITR 4S (Sugam).
  • EVC would be unique and can be used only with the PAN of the person furnishing the income tax return. This means one EVC for one PAN.
  • One EVC can be used to validate only one ITR whether it is original or revised return.
  • The EVC remains valid for 72 hours but can be generated various times through various modes.
  • In case the tax returns are already filed or uploaded, the verification needs to be done within 120 days of filing of return.

How to Generate Electronic Verification Code (EVC)?

CBDT has notified four methods to generate Electronic Verification Code (EVC). Before proceeding to generate EVC please ensure that the mobile number and email address registered with the CBDT is accessible by you.

1. Generate EVC through e-filing website

I consider this as the simplest method because you just need to click few buttons and you will get EVC on your mobile and registered email.

But this method is only available if your salary income is up to Rs.5 lacs and you are not claiming any tax refunds.

  • Simply login to your account with PAN number as user id and your password.
  • Click on the e-file tab and select Generate EVC as shown in the image below:
  • You would then receive EVC on your registered mobile number as well on your registered email address.Put the code in the box on the screen and the process of e-filing gets completed.

    2. Generate EVC through Linking Aadhaar Card with PAN

    Before generating EVC through Aadhaar Card, make sure that your mobile number should be registered with your aadhaar. (I faced this problem generating EVC).

    How to link your aadhaar with PAN?

    After login, you would see “Profile Settings” Tab besides downloads. Click on it and a drop-down menu would appear, select Link Aadhaar with PAN.

    Fill in the required details and click on Link Now to complete the process.

    Next Step would be to generate EVC and for that you have to select “I would like to generate Aadhaar OTP to e-Verify my return” at the time of e-verifying your tax return.

    3. Generate EVC through Bank ATM (Automatic Teller Machine)

    For this option you have to use the ATM card of the bank which is registered with the IT department. You can generate EVC by selecting “generate EVC for ITR filing” appears on the ATM Screen. The EVC would be sent to your registered mobile number with Bank.

    4. Generate EVC through Net Banking Facility

    Generating EVC using Net Banking requires you to route your process of e-filing through the bank which is registered with IT Department. You would have to login into your net banking account and seek the redirection to income tax e-filing website where you can generate EVC. The EVC would be sent to your registered mobile number with Bank.

    This option requires a valid PAN to be linked with your Bank account as per KYC norms and ITR should be for same PAN number.

    How to use Electronic Verification Code (EVC) to verify Income Tax Return?

    Electronic Verification Code (EVC) for e-verification process of Income Tax Return can be used while:

    1. Uploading of Return using Net Banking
    2. Uploading of Return without using Net Banking
    3. For already Uploaded Return

    1. In case you are Uploading Tax Return without using Net Banking than as soon as you are finished with uploading of return, a screen having following options would popup:

    • Option-1 – “I already have an EVC and I would like to Submit EVC”
    • Option-2 – “I do not have an EVC and I would like to generate an EVC”
    • Option-3 – “I would like to generate Aadhaar OTP to e-Verify my return”
    • Option-4 – “I would like to e-Verify later! I would like to send ITR-V”

    You can use any one of the above options (1 to 3) to e-verify your Income Tax Return and download the Acknowledgement (No Further action required).

    Option 1 requires you to put the EVC you have already generated and then download the Acknowledgement (No Further action required).

    Option 2 requires you to generate EVC either through AMT or E-filing website.

    Option 3 would use generating EVC through Aadhaar Card (As described above).

    Option 4 would means you don’t want to use the new method of EVC and would like to go with the old method of ITR-V signing and sending it to CPC Bangalore.

    2. In case you have routed to e-filing website through net banking account then after you finish uploading tax return three options would be shown on your screen:

    • Option-1 – “I would like to e-Verify my return now”
    • Option-2 – “I would like to generate Aadhaar OTP to e-Verify my return”
    • Option-3 – “I would like to e-Verify later! I would like to send ITR-V”

    You can use any one of the above options (1 and 2) to e-verify your Income Tax Return and download the Acknowledgement (No Further action required).

    Option 1 would simply need you to confirm the verification of ITR by clicking on “Continue” button. Download the Acknowledgement (No further action is required).

    Option 2 remains same as in above case and ECV would be sent to your registered mobile number.

    Option 3 would be old method of ITR-V signing.

    3. Verification of Already Uploaded Returns requires you to verify them within 120 days of submission or uploading by following below mentioned steps:

    • Login to your income tax e-filing website.
    • Click on e-file button and select e-verify in the drop-down menu.
    • Remember: E-Verification of Income Tax Return through Electronic Verification Code (EVC) is available from the current assessment year i.e. 2015-16 (F.Y. 2014-15). If you are filing belated return of the last previous year u/s 139(4) or filing revised returns for past years u/s 139(5) than you would have to follow the old method of ITR-V signing and sending it to CPC, Bangalore within 120 days of filing of return.

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Glossary Of Life Insurance Terms, meaning of term life insurance.#Meaning #of #term #life #insurance

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Life Insurance Resource Center

Agent – An insurance company representative licensed by the state who solicits and negotiates contracts of insurance, and provides service to the policyholder for the insurer. An agent can be independent agent who represents at least two insurance companies or a direct writer who represents and sells policies for one company only.

Annuity – A contract that provides a periodic income at regular intervals, usually for life.

Annuity Certain – A contract that provides an income for a specified number of years, regardless of life or death.

Application – A statement of information made by a person applying for life insurance. It helps the life insurance company assess the acceptability of risk. Statement made in the application are used to decide on an applicant’s underwriting classification and premium rates.

Beneficiary – The person named in the policy to receive the insurance proceeds at the death of the insured. Anyone can be named as a beneficiary.

Bonus Rate Annuity – An extra percent of interest credited to an annuity during the first year that it is in force. The extra amount is above the interest rate to be credited beginning the second year and the remaining years that the annuity is in force. The extra rate is paid in the first year in an effort to attract new policyholders.

Cash Surrender Value – The amount available in cash upon voluntary termination of a policy by its owner before it becomes payable by death or maturity. The amount is the cash value stated in the policy minus a surrender charge and any outstanding loans and any interest thereon.

Direct Response – Insurance sold directly to the insured by an insurance company through its own employees by mail or over the counter.

Disclosure Statement – A comparison form required by New York Department of Financial Services Regulations to be given to every applicant considering replacing one life insurance policy with another.

Dividend – A return of part of the premium on participating insurance to reflect the difference between the premium charged and the combination of actual mortality, expense and investment experience. Dividends are not considered to be taxable distributions because they are interpreted as a refund of a portion of the premium paid.

Evidence of Insurability – A statement or proof of your health, finances or job, which helps the insurer decide if you are an acceptable risk for life insurance.

Expense – Your policy’s share of the company’s operating costs-fees for medical examinations and inspection reports, underwriting, printing costs, commissions, advertising, agency expenses, premium taxes, salaries, rent, etc. Such costs are important in determining dividends and premium rates.

Face Amount – The amount stated on the face of the policy that will be paid in case of death or at the maturity of the policy. It does not include additional amounts payable under accidental death or other special provisions, or acquired through the application of policy dividends.

Free Look Provision – A certain amount of time provided (usually between 10-30 days) to an insured in order to examine the insurance policy and if not satisfied, to return it to the company for a full refund.

Insurable Interest – For persons related by blood, a substantial interest established through love and affection, and for all other persons, a lawful and substantial economic interest in having the life of the insured continue. An insurable interest is required when purchasing life insurance on another person.

Lapse Rate – The rate at which life insurance policies terminate because of failure to pay the premiums. When policies are lapsed before enough premium payments are made to cover early policy expenses, the company must make up this loss from remaining policyholders. Therefore, the lapse rate will affect the cost of the policy.

Life Expectancy – The probability of an individual living to a certain age according to a particular mortality table. This is the beginning point in calculating the pure cost of life insurance and annuities and is reflected in the basic premium.

Misstatement of Age – The falsification of the applicant’s birth date on the application for insurance. When discovered, the coverage will be adjusted to reflect the correct age according to the premium paid in.

Mortality – The incidence of death at each attained age; frequency of death.

Non-Forfeiture – One of the choices available if the policy owner discontinues premium payments on a policy with a cash value. Options available are to take the cash value in cash or to use it to purchase extended term insurance or reduced paid-up insurance.

Non-Participating – A life insurance policy in which the company does not distribute to policyowners any part of its surplus.

Participating Policy – A life insurance policy under which the company agrees to distribute to policyowners the part of its surplus that its Board of Directors determines is not needed at the end of the business year. The distribution serves to reduce the premium the policyowners had paid.

Policy – The printed legal document stating the terms of insurance contract that is issued to the policyowner by the company.

Policy Proceeds – The amount actually paid on a life insurance policy at death or when the policyowner receives payment at surrender or maturity.

Policyowner – The person who owns a life insurance policy. This is usually the insured person, but it may also be a relative of the insured, a partnership or a corporation.

Premium – The payment, or one of the periodic payments, a policyowner agrees to make for an insurance policy. Depending on the terms of the policy, the premium may be paid in one payment or a series of regular payments, e.g., annually, semi-annually, quarterly or monthly. The premium charged reflects the expectation of loss, expenses and profit contingencies.

Rating – The basis for an additional charge to the standard premium because the person insured is classified as a greater than normal risk usually resulting from impaired health or a hazardous occupation.

Reduced Paid-up Insurance – A form of insurance available as a non-forfeiture option. It provides for continuation of the original insurance plan, but for a reduced amount, without further premiums.

Reinstatement – Restoring a lapsed policy to its original premium paying status, upon payment by the policy owner, with interest, of all unpaid premiums and policy loans, and presentation of satisfactory evidence of insurability by the insured.

Rider – An endorsement to an insurance policy that modifies clauses and provisions of the policy, including or excluding coverage.

Risk Classification – The process by which a company decides how its premium rates for life insurance should differ according to the risk characteristics of individuals insured (e.g., age, occupation, sex, state of health) and then applies the resulting rules to individual applications.

Settlement Options – The several ways, other than immediate payment in cash, in which a policyholder or beneficiary may choose to have policy benefits paid. These options typically include the following:

  • Interest Option – death benefit left on deposit at interest with the insurance company with earnings paid to the beneficiary annually.
  • Fixed Amount Option – death benefit paid in a series of fixed amount installments until the proceeds and interest earned terminate.
  • Fixed Period Option – death benefit left on deposit with the insurance company with the death benefit plus interest paid out in equal payments for the period of time selected.
  • Life Income Option – death benefit plus interest paid through a life annuity. Income continues under a straight life income option for as long as the beneficiary lives or whether or not the beneficiary lives, under a life income with period certain option.

Standard Risk – The classification of a person applying for a life insurance policy who fits the physical, occupational and other standards on which the normal premium rates are based.

Substandard Risk – The classification of a person applying for a life insurance policy who does not meet the requirements set for the standard risk. An additional premium is charged on substandard risks to provide for the probability that such a person will have a shorter life span than a standard risk.

Supplementary Contract – An agreement between a life insurance company and a policyowner or beneficiary in which the company retains at least part of the cash sum payable under an insurance policy and makes payment in accordance with the settlement option chosen.

Underwriter – The person who reviews the application for insurance and decides if the applicant is acceptable and at what premium rate.

Underwriting – The process by which a life insurance company determines whether it can accept an application for life insurance, and if so, on what basis so that the proper premium is charged.

Meaning of term life insurance