Banking Fundamentals Training

SESSION-8

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

INTEREST & TAXES

INTEREST AND TAXES

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

INTEREST & TAXES

HANDLY TOOLS

• Accrual• Booking/Ammortization• Application/Actual Run

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

INTEREST & TAXES

CONCEPTS

• Interest Table Code, Versions, Slabs• Base Interest Rate• Differential Interest• Preferential interest – Customer & Account Level • Pegging of interest, review of pegging

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

TDS

AN OVERVIEW

• Tax Deducted at Source• Account level TDS• Customer Level TDS• Withholding Tax %• Withholding Tax Floor Limit

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

TDS

RELATED MENU OPTIONSTDSCALC 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

Universal Banking Solution from InfosysConfidential and Proprietary to Infosys Technologies Limited

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