Health Insurane Plan from SBI - Hospital Cash’

SBI Life Insurance has recently launched a health insurance plan called ‘Hospital Cash’. It provides fixed daily allowance for every day of hospitalisation, irrespective of the hospital bill. The plan is also available online. In case the insured is admitted into an ICU, twice the amount of fixed daily allowance is allowed. The plan is available for a fixed policy term of three years and has flexibility of premium payment, including annual, half-yearly and quarterly. It is offered for sum assured (SA) of Rs2 lakh to Rs5 lakh. The fixed daily allowance can range from Rs2,000 to Rs5,000. The ICU benefit varies from Rs4,000 to Rs10,000. A mediclaim policy reimburses only the expenditure incurred on the treatment of an illness at a hospital. There are several other expenses which mediclaim policies do not reimburse—travel, attendant’s lodging, loss of income (for patient and/or attendant), pre-hospitalisation diagnostic tests, medicines, etc, that can run up to as much as 30%-40% of the total treatment cost. The Hospital Cash plan—no substitute for mediclaim—is a supplement for these extra expenses.

Hospitalisation due to pre-existing diseases is not covered for the first two years of policy. The benefit illustration specifies annual premium of Rs3,240 for a healthy 32-year-old opting for Rs3 lakh SA which means fixed allowance of Rs3,000 per day for hospitalisation, subject to a maximum of 100 days (renewable till the age of 75). By way of comparison, the Bajaj Allianz General Insurance Hospital Cash 60-day plan (renewable up to the age of 65) offers daily allowance of Rs2,500 on premium of Rs1,985, while Tata AIG General Insurance HealthCare Level 4–180-day plan (renewable up to the age of 54) offers daily allowance of Rs3,000 on premium of Rs4,086.

How to verify TDS -Form 26AS details online

What is Form 26AS?
Form 26AS is a consolidated tax statement issued under Rule 31 AB of Income Tax Rules to PAN holders. This statement with respect to a financial year will include details of:
a) tax deducted at source (TDS);
b) tax collected at source (TCS); and
c) advance tax/self assessment tax/regular assessment tax etc. deposited in the bank by the taxpayers (PAN holders). Form 26AS details are available only from Financial Year 2005-06 onwards

It is the rule of Income Tax Act is to deduct tax at source (TDS) for certain type of income eg. In case the interest income earned on a bank deposit for a financial year exceeds Rs. 10,000.00, bank will deduct tax at source. In case your salary for a particular financial year is above the minimum taxable limit, your employer will deduct tax from your salary. When you deposit the advance tax or the self assessment tax with designated banks, Banks upload challan details to TIN (Tax Information Network) on a T+3 basis after the realization of the tax payment cheques .On the day after the bank uploads the details of self assessment/advance tax to TIN it will post these details into your Form 26AS. Actually we don’t know, whether the amount deducted as TDS is credited in Government Account (Income Tax). However, the Form 26AS will provide the complete details regarding the tax amount remitted to Government Account on your PAN. In case you do not find your tax deducted details in the Form 26AS, immediately you need to follow up with the bank or the employer or deductors. This could be because the bank has made error in data entry. You should take up the matter with your bank for rectification of amount or other details.

Every person/ entity that has deducted or collected tax at source is required to deposit the tax to the government account through a bank. Banks will upload this payment-related information to the TIN (Tax Information Network) a central system. These deductors are also required to file a quarterly statement to TIN giving the details of their TDS (Tax Deducted at Source)/TCS (Tax Collected at Soruc). The TIN central system will match the tax payment-related information in the statement with the tax receipt information from the banks. If both of these match TIN will create a comprehensive ledger for each PAN holder giving details of the tax deducted/collected on its basis by every deductor who has filed the statement.

How is Form 26AS useful for you

a) The credits available in the tax statement confirm that:
a) the tax deducted/collected by the deductor/collector has been deposited to the account of the government;
b) the deductor/collector has accurately filed the TDS/TCS statement giving details of the tax deducted/collected on your behalf;
c) bank has properly furnished the details of the tax deposited by you.

In future you will be able to use this consolidated tax statement (Form 26AS) as a proof of tax deducted/collected on your behalf and the tax directly paid by you along with your income tax return after the need for submission of TDS/TCS certificates and tax payment challans along with income tax returns has been dispensed with by the Income Tax Department (ITD). However as of now for claiming the credit for tax deducted/collected at source you may be required to enclose TDS/TCS certificates (Form 16/16A) issued to you by the deductor.

The following are the are the possible reasons for no credits in Form 26AS?
The possible reasons for no credit being displayed in your Form 26AS can be:
a) Deductor/collector has not filed his TDS/TCS statement;
b) You have not provided PAN to the deductor/collector;
c) You have provided incorrect PAN to the deductor/collector;
d) The deductor/collector has made an error in quoting your PAN in the TDS/TCS return;
e) The deductor/collector has not quoted your PAN;
f) The details of challan against which your TDS/TCS was deposited was wrongly quoted in the statement by the deductor or wrongly quoted in the challan details uploaded by the bank.

To rectify these errors you may request the deductor:
a) to file a TDS/TCS statement if it has not been filed;
b) to rectify the PAN using a PAN correction statement in the TDS/TCS statement that has been already uploaded if it has made an error in the PAN quoted;
c) to furnish a correction statement if the deductor had filed a TDS/TCS statement and had inadvertently missed providing your details or you had not given your PAN to him before he filed the TDS/TCS return;
d) to furnish a correction statement if the deductor had filed a TDS/TCS statement which had mistake in the challan details;
e) to take up with the bank to rectify any mistake in the amount in the challan details uploaded by the bank.

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