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Banking Fundamentals Training

Banking Fundamentals Training. SESSION-8. INTEREST & TAXES. INTEREST AND TAXES. INTEREST & TAXES. AN OVERVIEW Interest earning is the primary source of income for banks Banks need to plan for future interest expenses and interest income

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Banking Fundamentals Training

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  1. Banking Fundamentals Training SESSION-8

  2. INTEREST & TAXES INTEREST AND TAXES

  3. INTEREST & TAXES AN OVERVIEW Interest earning is the primary source of income for banks Banks need to plan for future interest expenses and interest income Banks need to reflect them in their Profit & Loss projections

  4. INTEREST & TAXES HANDLY TOOLS Accrual Booking/Ammortization Application/Actual Run

  5. INTEREST & TAXES SALIENT FEATURES Different interest codes for Different Periods Different rates for different amount slabs Scheduling of Interest Calculation Frequency Specifying operative a/c as Interest credit/Debit account which can belong to any SOL. Tax Deduction as part of interest calculation for a/c level tax Automatic Creation of transaction and posting

  6. INTEREST & TAXES SALIENT FEATURES(Contd.)‏ Automatic granting of TOD while posting interest transactions. Facility to set-up various interest related parameters at scheme level Facility to specify interest compounding frequency for any period Provision for rounding off Leap year Adjustments Local calendar based interest calculation

  7. INTEREST & TAXES SALIENT FEATURES(Contd.)‏ Facility to specify penal interest, additional interest or interest for delay in submission of stock statement Facility to specify ceiling limit on penal interest Facility to freeze the interest rate for a specific period Batch processing of interest accrual/booking/ application

  8. INTEREST & TAXES CONCEPTS Interest Table Code, Versions, Slabs Base Interest Rate Differential Interest Preferential interest – Customer & Account Level Pegging of interest, review of pegging

  9. INTEREST & TAXES INTEREST SET UP Common set up across scheme types SB/CA Scheme Specific CC/OD/RPC/BIA/FBA scheme Specific TDA Scheme Specific LAA scheme Specific

  10. INTEREST & TAXES RELATED MENU OPTIONS HRRCDM For Creation of nterest Table Code HIVSM For creation of versions and slabs for all modules except Term Deposit module HTVSM For creation of version and slabs for the Term Deposit Module HSVSM For creation of version and slabs for the Loan Account Module INTSI Interest Slab Inquiry

  11. INTEREST & TAXES RELATED MENU OPTIONS TVSI Term Deposit Interest Slab inquiry INTTM Interest Table Maintenance INTTI Interest Table Inquiry ACACCR Accrual for accounts BIACCR Accrual for Bills ACBOOK Booking for accounts BIBOO Booking for Bills

  12. INTEREST & TAXES RELATED MENU OPTIONS ACINT Interest calculation for accounts CIPPRPT Customer Interest Preferential and Pegging report AICR Advanced Interest collected Report IARM Interest adjustments Register maintenance

  13. TDS AN OVERVIEW Tax Deducted at Source Account level TDS Customer Level TDS Withholding Tax % Withholding Tax Floor Limit

  14. TDS TDS REQUIREMENTS Set up an environment for TDS Do actual interest calculation Deduct TDS Remittance of tax & Incorporating tax Remittance particulars Generation of Tax Deducted Certificate Refund of Tax

  15. TDS RELATED MENU OPTIONS TDSCALC For calculation of TDS RFTS Refund of TDS RECSHF For Recovering shortfall amount - TDS RMTDS For entry of remittance details REGFLOW Batch flow regeneration for term deposit accounts TDSM TDS Table Maintenance HTDSIP TDS Inquiry and Printing HTDSPROJ TDS Projects for the financial Year UPLTDS Upload for TDS Phase I

  16. Thank You

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