June 13, 2024

Financial security is vital to spend your post-retirement life in peace and fully enjoy it. This is where retirement planning comes in. There are many ways to plan for retirement but one popular way to go about it is a superannuation scheme. Superannuation funds allow you to save effortlessly for retirement during your working years. Most employers provide various retirement benefits to their employees either due to a statutory mandate or voluntarily to retain employees for a longer period. Such retirement benefits include provident fund, gratuity, National Pension System etc. Superannuation benefit is one such retirement benefit offered to employees by their employers.  Many times employees ignore this retirement benefit. In fact, many may not even know that they have been provided with superannuation benefit as the contribution to the benefit does not go out of their pocket. Some may also be unaware of the superannuation amount they are entitled to at retirement. Given this, it becomes imperative to understand what the superannuation benefit is in order to help individuals have better financial planning and plan retirement efficiently Superannuation Meaning A superannuation scheme is a pension plan a company or employer offers to its employees. The employer contributes towards a superannuation fund that helps provide steady income to the employee on retirement. Employee contributions are voluntary. As an employee, you can withdraw your superannuation amount on retirement or under conditions like death, disability or a financial crisis. Superannuation is also known as a company pension plan. It is an efficient tool through which you can accumulate a significant retirement corpus without tax implications. How Does Superannuation Scheme Work? You may also voluntarily contribute to the scheme. If you wish to contribute to the superannuation plan, the amount is deducted from your salary. You must note that superannuation is usually detailed in the employees’ Cost to the Company (CTC). You can withdraw up to one-third of the accumulated corpus as a lump sum on reaching the superannuation age. The balance is used to provide annuity returns at regular intervals. You can also transfer the superannuation corpus to your new employer in case of a job switch. The accumulated funds are transferable if the employer offers a superannuation scheme. If there are no superannuation benefits offered by the new employer, you can keep the amount invested until retirement or withdraw it. However, if you wish to withdraw the accumulated money, it won’t be eligible for a tax exemption. Types Of Superannuation Benefits Defined Benefits A defined benefit plan is a fixed benefits superannuation plan. As the name suggests, the benefits under this plan are already fixed regardless of the contribution amount or the fund’s investment performance. The calculation of the benefits is done on a predetermined basis. Several factors like your salary, the number of years of employment in the company, age at which you will start receiving the benefits, your position, etc., determine the superannuation benefits. Since your employer is responsible for the predetermined benefits you will receive under the plan, the terms under which the defined benefits plan operates will be subject to the policy terms and conditions stipulated by your employer and the insurer. However, it ensures financial certainty as you will receive a predetermined amount at regular intervals. Public sector and government organisations usually provide this type of superannuation benefit. Defined Contributions A defined contributions plan on the other hand is the opposite of a defined benefits plan. While a defined benefits plan has pre-determined and fixed benefits, a defined contributions plan involves fixed contributions. The benefits under this plan are not fixed but rather based on factors like the contributions made, the fund’s investment performance and market fluctuations. As an employee, you bear the risk of market fluctuations and investment performance. It is a more common superannuation scheme since it is better to manage. However, researching the market dynamics is essential to optimise your returns. A defined contributions plan is usually offered by the private sector and corporate entities. Types Of Superannuation Plans Hybrid Plan As the name suggests, a hybrid superannuation plan is a mix of a defined benefits plan and a defined contributions plan. In this plan, a part of the superannuation benefits is guaranteed and fixed. The remaining portion of benefits are determined by the market performance of the investment. A hybrid plan is a suitable option if you want income stability while also benefiting from the potential of higher returns. Employee Choice Plan Employee choice plan acknowledges that every employee has unique needs, financial objectives and risk tolerance. This superannuation plan allows you to tailor the most suitable retirement plan that suits your financial goals and risk appetite. In this plan, you can choose between a defined benefits plan or a defined contributions plan. I If you are a young employee who wants to make long-term market gains, a defined contributions plan can help you achieve your retirement goals. On the other hand, you can choose a defined benefits plan if your retirement is near and you want to ensure income certainty. Group Superannuation Cash Accumulation Plan A group superannuation cash accumulation plan is another type of superannuation that works on collective contributions. This plan involves contributions from both employer and employee towards the superannuation fund. The accumulated cash is then used for investments in multiple financial tools. The market gains and the compound interest let your retirement funds grow. When you retire, you receive the accumulated funds and also the returns from the investments made. Types Of Annuities Under Superannuation Schemes Pension for life Payable for life at fixed intervals of 5, 10 or 15 years Lifetime pension with a Return on Capital (ROC) Payable jointly on an employee’s and spouse’s life Income Tax Benefits Of Superannuation Like other retirement schemes, a superannuation plan also offers tax benefits to both the employer and the employee. However, the tax benefits are offered on approved superannuation funds. Let’s discuss the tax benefits of superannuation for the employer and the employee in detail below:

Karnataka Government issues ration cards to the households in the state as an official document to obtain food grains at subsidised rates. The issuance of ration cards comes under the National Food Security Act. Ration cards in Karnataka are issued by the Department of Food and Civil Supplies. Apart from providing food grains at subsidised rates, a ration card also serves as identity proof while applying for a PAN card, driver’s licence, income certificate, etc. Karnataka ration card is issued only to the citizens of the state. You can visit the official Food, Civil Supplies, and Consumer Affairs Department website of the Karnataka Government to apply for a ration card online. Ration Card in Karnataka The Karnataka Government gives ration cards for eligible households, an official document to get subsidised food grains. It issues ration cards under the National Food Security Act. The Food, Civil Supplies and Consumer Affairs Department issues ration cards in Karnataka. The Karnataka Government distributes ration cards to the weaker sections of society identified by various sources and provides food security to them. The ration card serves as identity proof while applying for an income certificate, domicile certificate, PAN, etc.  How to View Karnataka New Ration Card List? Step 1: Visit the “Ahara” website – ahara.kar.nic.in and click on the ‘e-services’ tab Step 2: Now, click on “e-Ration” and select “Villages List”. Step 3: Choose your district, taluk, gram panchayat, and village. Step 5: Click on “Go”. Step 6: Now you can view the ration card list of the selected village Types of Ration Card in Karnataka Priority Household (PHH) Ration Card- The PHH ration card is issued to the households in the rural areas. Under this category, the cardholders will receive food grains at a subsidised price every month. The cardholders will receive rice at Rs.3 per kg, wheat at Rs.2 per kg and coarse grains at Rs.1 per kg per month. Annapurna Yojana (AY) Ration Card –The AY ration card is issued to the underprivileged citizens living in the state who are above 65 years. They will get up to 10 kgs of food grains every month from the government. Antyodaya Anna Yojana (AAY) Ration Card -The AAY ration card is issued to families with an annual income of less than Rs.15,000. They receive food grains at subsidised rates from the government. The cardholders will get rice at Rs.3 per kg and wheat at Rs.2 per kg per month. Non-Priority Household Ration Card (NPHH) -The NPHH is issued to families with a sufficient and stable annual income. However, these cardholders are not eligible to get food grains at subsidised rates from the government. It serves as identity proof for the cardholders. Documents Required for Karnataka Ration Card Identity proof Address proof Age proof Income proof Passport size photograph of family members Certificate from the Ward Councillor or Pradhan Tenancy agreement (if the applicant is a tenant) Eligibility Criteria to Apply for a Ration Card The applicant must be a permanent resident of the state of Karnataka. The applicant should not have a ration card. How to Apply for Karnataka Ration Card Online? Step 1: Please visit the official website of the Karnataka government. Step 2: Click on “e-Services”  which is displayed on the homepage. Step 3: Select “New ration card (APL)” from the e-Ration card option. Step 4: On the next page, select “New Ration Card Request” to apply for new ration card. Step 5: Now, the applicant has to select the type of ration card. Step 6: Enter your Aaadhar number for successful verification of your Aaadhar number. One Time Password Authentication Step 7: The applicant will receive OTP to the registered mobile number. Step 8: After entering the OTP, the Aadhar details will be displayed. Finger Print Verification Step 9: The applicant has to capture a single fingerprint or multiple fingerprints verification according to the selected option. Step 10: On successful verification, the entered Aadhar details will be displayed. Generation of Application Number Step 11: Click on ‘Add’ Button for the application number generation. Step 12: If entered Aadhar card number contains existing family members, then the applicant has to delete duplicating member to apply for a new ration card. tep 13: Select “Add Member” to update the relationship of all the members in the family. Step 14: Click on “ Next stage” to enter the contact details of the applicant. Step 15: Finally click on ‘Save’ to save your application successfully. How to file a complaint via the Karnataka Ration Online Grievance System? Initially, proceed to the official online portal of the Food Department of the Karnataka State Government. Next, go to the ‘e-Services’ tab. Click on Public Grievance and Rewards and then choose the ‘Lodge Your Grievance option’. File your grievance by providing a thorough account of the issue and submit it through the portal. FAQs Can newly married couples in the KA state apply for the ration card? Yes, newly married couples in Karnataka (KA) state can apply for a ration card to receive food grains at a subsidised rate. How long does it take to receive the APL card after applying? The total time depends on the submission, verification, and allotment process, but it takes 10 to 15 days from the date of application. 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A promissory note is a debt instrument that contains a written commitment by one party (the note’s issuer or maker) to pay another party (the note’s payee) a specific amount of money, either immediately or at a later date. A promissory note usually includes all the details of the debt, including the principal amount, interest rate, maturity date, date and location of issuance, and the signature of the issuer. Although they may be issued by financial institutions, for example, you may be asked to sign a promissory note in order to obtain a small personal loan. Promissory notes typically allow businesses and people to obtain funding from sources other than banks. This source could be an individual or a business prepared to carry the note (and supply the funding) on the agreed-upon terms. Promissory notes, in effect, allow anyone to be a lender. What Is a Promissory Note? A promissory note is a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date. A promissory note typically contains all the terms involved, such as the principal debt amount, interest rate, maturity date, payment schedule, the date and place of issuance, and the issuer’s signature. How Promissory Notes Work Promissory notes can lie between an IOU’s informality and a loan contract’s rigidity. An IOU merely acknowledges a debt and the amount one party owes another. A promissory note includes a promise to pay on demand or at a specified future date, in addition to steps required for repayment (like the repayment schedule) Although financial institutions may issue promissory notes—for instance, you might be required to sign one to take out a small personal loan—they also allow companies and individuals to get financing from a non-bank source. This source can be an individual or a company willing to carry the note (and provide the financing) under the agreed-upon terms. In effect, promissory notes can enable anyone to be a lender. Necessities of a promissory note The document must contain an unconditional undertaking to pay. The undertaking must be to pay money only. The money to be paid must be certain. It must be payable to or to the order of someone in particular or to the bearer. The record must be signed by the creator. Parties in a promissory note Drawer or Maker: The promisor, also known as the maker or issuer of the promissory note, is the person who creates or issues the promissory note that specifies the sum to be paid. Drawee or Payee: It is the individual on whose behalf the promissory note is made or issued, also known as the promisee. Unless the note specifies a different person as the payee, the said individual is also the payee. Methods of repayment of a promissory note Lump-sum payment: This means that at the end of the period, the full note is paid in one payment. Only if you are interested. Interest-only: This means that the regular payments are applied only to the interest that has accrued, not to the principal. Interest and principal repayment:  The funds are being applied to both the accrued interest and the note’s principal amount. Advantages of a promissory note Flexibility: Flexibility is a crucial benefit of a promissory note, whether you are the borrower or the one supplying the funds. You can select how payments will be made in instalments, at a later date, or on-demand using a promissory note. You could, for example, make interest-only instalments with a balloon, a one-time payment, at the end. You can either fully amortise the loan and make monthly payments, or you can make equal quarterly or semi-annual instalments. This flexibility allows you to choose loan terms that best suit your or your company’s needs. Convertible: A convertible promissory note can be used to entice potential investors if your company operates as a corporation, LLC, or other separate legal entity. Investors may be interested in your firm if they believe you have sufficient cash flow to repay the principal plus interest. They may not believe in your firm enough to invest in its stock outright, or they may not know how to value it. An investor can convert a convertible promissory note into preferred stock or a preferred interest in your firm at a later date or when a specific event occurs. Brief and often unsecured: Unlike traditional loans, which can be hundreds of pages long, promissory notes are usually only a few pages long. As a result, the legal fees associated with preparing a promissory note are typically substantially lower than those associated with preparing a regular loan agreement. It is not necessary to have a promissory note notarized or recorded in order for it to be valid. As a result, you can use a promissory note as an unsecured loan while securing bank or other loans with your assets. Disadvantages of a promissory note Short-term service: It is only suitable for short-term services. It cannot be used as a source of capital for large projects. Detriment to new borrowers: For new borrowers, it is a dangerous credit instrument because the note’s seemingly short and straightforward language may conceal certain unfavourable provisions. As a result, the borrower may be forced to pay a large sum to cover the responsibilities incurred. Difference between a mortgage and a promissory note A ‘promissory note’ is like an IOU which includes the borrower’s agreement to pay off the debt as well as meet all the repayment terms. Only those who sign the promissory note are legally responsible for repaying the lender. The note is inclusive of borrowers’ names, property’s address, interest rate (fixed or adjustable), the late charge amount, amount of the loan, and term (number of years). The promissory note, unlike a mortgage, is not recorded in the county land records. While the loan is in progress, the promissory note is held by the lender. The note is marked ‘paid in full’ and returned to the borrower when

A payment ledger is one of the basic tools of bookkeeping. It helps to record payments related to a specific purpose. This might be anything from a small project within a company to the full day-to-day cash activities of the entire company. A ledger allows you to record the item when it is conceived and then update it upon payment, which means you don’t forget about upcoming items or forget to follow through on the payment of previous items.  Payment ledgers can be used to track the money that your company owes or the money that is owed to the company. For example, a landlord might keep a payment ledger to record when the monthly rent is paid. Conversely, the same landlord might also keep track of all their maintenance expenses on a separate payment ledger to make sure that they aren’t paying contractors late. What Is a Ledger Balance? A ledger balance is computed by a bank at the end of each business day and includes all withdrawals and deposits to calculate the total amount of money in a bank account. The ledger balance is the opening balance in the bank account the next morning and remains the same all day. The ledger balance is also often referred to as the current balance and is different than the available balance in an account. If you log into your online banking, you may see your current balance—the balance at the beginning of the day—and the available balance, which is the aggregate amount at any point during the day. Formula and Calculation of Ledger Balance Ledger Balance = Opening. Balance + Credits – Debits In order to calculate your ledger balance, add all the credits (deposits, reversals, etc.) that go through your account during the day to the opening balance. Then subtract all the withdrawals, transfers, and other debits from that figure. This will give you the end of day or ledger balance. Create an Estimate or Invoice Create an estimate or invoice from LEDGERS with payment link enabled. Once the estimate or invoice is created, the customer will receive a payment link. When the customer clicks on the link, he/she will be directed to a payment page. In the payment page, if Google Pay is enabled, the customer will have the option to make payment using Google Pay. Google Pay Payment Flow – Mobile Phone Step 1: Customer selects Google Pay option in the estimate or invoice page. Step 2: Customer selects Google Pay option in the estimate or invoice page. Customer has the option to verify the payment amount. If OK, customer would click on Pay button. Step 3: Customer authorises payment on G Pay app In some mobile phones, the customer will be asked to verify on G Pay app, while in some apps, the customer will be taken directly to the UPI pin screen. Step 4: Payment completed Payment is complete and the customer is transferred to the receipt page. Ledger Balance vs. Available Balance The ledger balance differs from the customer’s available balance, which is the aggregate funds accessible for withdrawal at any one point. Because the ledger balance remains the same throughout the day, it does not include real-time transaction updates. The available balance changes frequently throughout the day as transactions hit the bank account. Neither balance includes outstanding checks just written from the account, but the available balance updates for recent automated teller machine (ATM) withdrawals, deposits, and other transactions as the information is received by the bank. Understanding the difference between ledger balance and available balance is a vital aspect of proper financial planning. After viewing the ledger balance, if a check is written or a transaction is made, an account holder may withdraw more money than is available. This may lead to bank overdraft charges as well as fees from the other party’s bank or business. Monitoring balances on a regular basis alerts a customer of any unauthorized transactions that occur or potential errors committed by the bank. Ledger Balance Opening balance at the start of the day Balance without pending transactions Doesn’t change as frequently Available Balance Real-time balance Changes throughout the day Money immediately available FAQs How Long Does It Take for a Ledger Balance to Clear? The ledger balance is often updated to reflect the available balance within a day. It generally takes less than 24 hours for the ledger balance to become available. What Is Ledger Balance and Available Balance? Ledger balance is the amount of money in your account that might not account for transactions made during the day, such as charges or deposits. The available balance is the ledger balance less transactions made during the day. 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The Indian state of Andhra Pradesh is situated in the south-eastern region of the country. Tirupati temple is one of the most popular tourist attractions of this coastal state. It has a mixed demographic of rich and poor, however, most families fall in low-income groups. One of the major challenges here is access to quality healthcare services. To combat this situation, the state government has introduced one of the most successful health plans – Dr. YSR Aarogyasri. It mainly caters to the medical needs of families that are not financially well equipped. The highlights of the Dr. YSR Aarogyasri scheme Universal Healthcare Access: The scheme aims to provide universal healthcare access to all eligible residents of Andhra Pradesh. It ensures that individuals and families, regardless of their socio-economic background, can receive quality medical care. Comprehensive Coverage: Dr. YSR Aarogyasri offers comprehensive coverage for a wide range of medical treatments, surgeries, diagnostic tests, and healthcare services. It includes treatments for critical illnesses, surgeries, maternity care, and more. Cashless Healthcare: Beneficiaries can access cashless healthcare services at empaneled network hospitals. This means they do not need to make upfront payments for covered medical treatments, ensuring immediate care, especially in emergencies. Protection Against Catastrophic Expenses: The scheme provides financial protection to beneficiaries by covering the costs of expensive medical treatments and surgeries. It safeguards them from facing catastrophic healthcare-related expenses that could lead to financial hardship. Focus on Preventive Care: Dr. YSR Aarogyasri promotes preventive care by including coverage for health check-ups and screenings. This encourages early diagnosis and treatment, reducing the burden of advanced disease management. Specialized Healthcare: Beneficiaries have access to specialised medical care, including surgeries, organ transplants, cancer treatments, and cardiac interventions, ensuring they receive the best available treatments for serious medical conditions. Rehabilitation Services: The scheme recognizes the importance of post-treatment rehabilitation and covers services such as physical therapy, occupational therapy, and speech therapy to support beneficiaries’ recovery. Financial Relief: By covering medical expenses, the scheme provides significant financial relief to individuals and families. This helps alleviate the burden of healthcare costs and allows them to focus on recovery. Support for Families: Dr. YSR Aarogyasri extends support to the families of beneficiaries by covering expenses like accommodation and transportation, ensuring that they can be with their loved ones during medical treatment. Prompt Medical Attention: In emergencies, beneficiaries can receive immediate medical attention without delay, as the scheme facilitates rapid admission and treatment. Transparent Billing: The scheme promotes transparency in billing and treatment costs, preventing beneficiaries from being overcharged for medical services. Continuity of Care: It ensures continuity of care throughout the healthcare journey, from diagnosis to treatment, recovery, and rehabilitation. Peace of Mind: Dr. YSR Aarogyasri offers peace of mind to beneficiaries, knowing that they have access to quality healthcare services and financial support during health crises. Government Initiative: The scheme is a government-backed initiative, making it credible and reliable. It reflects the commitment of the government to the well-being of its citizens. Efficiency and Accessibility: The scheme’s online and offline enrollment processes are designed for efficiency and accessibility, ensuring that eligible individuals can easily enrol and access healthcare services. Features of Dr YSR Aarogyasri Health Care Hospitalisation: All illnesses that are included in the programme and call for in-patient care are covered. Out-Patient Care: These services can be obtained cashlessly at health fairs and in network hospitals. Cashless Services: The beneficiaries have access to financial protection worth Rs. 5 lakh per household each year. Any registered family member can use it when they need medical attention. Pre-existing Condition Coverage: This plan offers coverage for conditions that a beneficiary may have had before enrolling in the programme. The majority of commercial health insurance plans do not include this provision. Coverage for Additional Operations: Completing additional procedures following hospitalisation will cost a sizable sum of money. The Dr YSR Aarogyasri plan also covers these procedures. Family-floater health insurance coverage: In these kinds of health insurance plans, the entire family may use the designated amount insured. There is no requirement to purchase a unique plan for every member. Key Entities Associated With The Successful Functioning Of The Scheme Beneficiaries: The scheme has been formulated targeting over 1.29 crore families across all the 13 districts of Andhra Pradesh to provide them access to quality tertiary medical care. Implementing Authority – Dr YSR Aarogyasri Health Care Trust: In order to ensure seamless and dynamic implementation of the scheme, the Government of Andhra Pradesh has established an independent body, namely Dr YSR Aarogyasri Health Care Trust. This trust enters into agreements with network hospitals and oversees timely execution. Network Hospitals: The hospitals and nursing homes in Andhra Pradesh or Telangana that have the required infrastructure and facilities for providing in-patient care and treatment are empaneled under the scheme to offer their services. They should meet registration and regulation compliances.  District Administrations: Committees constituted at the district level headed by the District Collector regularly review the on-ground implementation and drive beneficiary awareness through health camps facilitated by public representatives and field workers, thereby boosting scheme penetration. IT Company for Technology Solution: Customised IT software maintains end-to-end patient history and transaction data related to case registration, hospitalisation, treatment, discharge and follow-ups. This enables real-time information flow between parties. How to register for the scheme Step 1 – Determine Eligibility: Before initiating the registration process, it’s crucial to determine whether you are eligible for the YSR Aarogyasri Scheme. Eligibility criteria typically include factors such as income, residence, and specific medical conditions. Check the official website or contact the scheme’s helpline to confirm your eligibility. Step 2 – Visit the Nearest Enrollment Center: Once you’ve confirmed your eligibility, visit the nearest YSR Aarogyasri enrollment centre or Aarogyamitra centre. These centres are typically set up at government hospitals and healthcare facilities across the state of Andhra Pradesh. Step 3 – Document Verification: At the enrollment centre, meet with the Aarogyamitra or enrollment officer who will guide you through the registration process. You will need to provide the following documents for verification: – Proof