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Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

PMJJBY

Highlights of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – for Life Insurance:

  • Eligibility: Available to all the people in the age group of 18 to 50 and must have a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
  • Premium:  Rs 330 per annum.
  • Payment Mode:  The premium will be auto-debited by the bank from the subscribers account.
  • Risk Coverage: Rs. 2 Lakh in case of death for any reason. The amount will be paid to the Nominee.
  • Terms of Risk Coverage: A person has to opt for the scheme every year.
  • Who will implement this Scheme?: The scheme will be offered by Life Insurance Corporation and all other life insurance company who are willing to join the scheme and tie-up with banks for this purpose.

Termination of assurance:

  • At the time of attaining the age of 55 years.
  • Closure of account with the Bank or insufficiency of balance for debiting premium.
  • In case of multiple coverage under the scheme, the cover will be restricted to Rs.2 lakhs and other insurance covers are terminated and premium shall be forfeited.

Application and claim FORM: http://www.jansuraksha.gov.in/Forms-PMJJBY.aspx

FAQ: http://www.jansuraksha.gov.in/Files/PMJJBY/English/FAQ.pdf

Rules: http://www.jansuraksha.gov.in/Files/PMJJBY/English/Rules.pdf

PMJJBY

Pradhan Mantri Suraksha Bima Yojana

PMSBY

In his budget speech on 1 Mar 2015, Finance Minister Shri Arun Jaitley said,

A large proportion of India’s population is without insurance of any kind, health, accidental or life. Worryingly, as our young population ages, it is also going to be pension-less. Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana (PMJDY), I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age,”.

The Schemes were launched by Prime minister on 9 May 2015.

In this article we are discussing the details of the scheme named Pradhan Mantri Suraksha Bima Yojana.

  • Eligibility: The scheme is available to people in the age group of 18 to 70 years holding a bank account.
  • Premium: Rs 12 per annum.
  • Policy period:The cover shall be for one year period starting from June 1, 2015 to May 31, 2016 for which option to join / pay by auto-debit from the designated Savings Bank account on the prescribed forms will be required to be given by May 31, 2015 – extendable up to August 31, 2015. For the saving A/c holder joining after May 31, 2015 and on or before August 31, 2015 the cover shall end on May 31, 2016.
  • Payment Mode:The premium will be deducted by the bank from the subscribers account through auto-debit process. There is no alternative mode avaiable.
  • Risk Coverage:  Total coverage (sum-insured) under the scheme is Rs. 2 Lakh.
Sl. No Conditions Sum Insured
I) Death Rs. 2 Lakh
II) Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of one hand or one foot Rs. 2 Lakh
III) Total and irrecoverable loss of sight of one eye or loss of use of one hand or one foot Rs. 1 Lakh
  • Who will implement this Scheme?: The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.
  • Tax Benefit: The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).But if the proceeds from insurance policy exceed Rs.1 lakh , TDS at the rate of 2% from the total proceeds if no Form 15G or Form 15H is submitted to the insurer.
  • Exclusions: Major Exclusions: Intentional self injury, suicide or attempted suicide whilst under the influence of intoxication liqour or drugs, Any loss arising from an act made in breach of law with or without criminal intent.

Application Forms and Claim Forms can be found here:  http://www.jansuraksha.gov.in/FORMS-PMSBY.aspx

FAQ: http://www.jansuraksha.gov.in/files/pmsby/ENGLISH/FAQ.pdf

RULES: http://www.jansuraksha.gov.in/Files/PMSBY/English/Rules.pdf

 

PMSBJ

  •  Resources:

Official website of the scheme: http://www.jansuraksha.gov.in/Default.aspx National Toll-Free – 1800-180-1111 / 1800-110-001

List of Banks in India

Banks in india

Many of us want to know how many Banks (Public Sector Banks, Private Sector Banks, Foreign Banks) are operating in India. Below find the list of all the banks with their website link.

Commercial Banks:

List of Public Sector Banks in India :- (Click to visit the website of the Bank)

Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
IDBI Bank Limited
Indian Bank
Indian Overseas Bank
IDBI Bank (Industrial Development Bank of India)
Oriental Bank of Commerce
Punjab & Sind Bank
Punjab National Bank
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Syndicate Bank
UCO Bank
Union Bank of India
United Bank Of India
Vijaya Bank

List of Private Sector Banks in India : – (Click to visit the website of the Bank)

Axis Bank
Catholic Syrian Bank Ltd.
IndusInd Bank Limited
ICICI Bank
ING Vysya Bank
Kotak Mahindra Bank Limited
Karnataka Bank
Karur Vysya Bank Limited.
Tamilnad Mercantile Bank Ltd.
The Dhanalakshmi Bank Limited.
The Federal Bank Ltd.
The HDFC Bank Ltd.
The Jammu & Kashmir Bank Ltd.
The Nainital Bank Ltd.
The Lakshmi Vilas Bank Ltd
Yes Bank


List of Private Sector Banks in India : – (Click to visit the website of the Bank)

Abu Dhabi Commercial Bank Ltd.
American Express Bank Ltd.
Arab Bangladesh Bank Limited
Antwerp Diamond Bank N.V.
Bank Internasional Indonesia
Bank of America N.A.
Bank of Bahrain & Kuwait BSC
Barclays Bank Plc
BNP PARIBAS
Bank of Ceylon
Calyon Bank
Citibank N.A.
Cho Hung Bank
Chinatrust Commercial Bank Ltd.
City Union Bank Ltd.
Coastal Local Area Bank Ltd.
Deutsche Bank AG
Development Credit Bank Ltd.
J P Morgan Chase Bank, National Association
Krung Thai Bank Public Company Limited
Mashreqbank psc
Mizuho Corporate Bank Ltd.
Oman International Bank S A O G
Societe Generale
Standard Chartered Bank
Sonali Bank
State Bank of Mauritius Ltd.
The Bank of Nova Scotia
The Bank of Tokyo-Mitsubishi, Ltd.
The Development Bank of Singapore Ltd. (DBS Bank Ltd.)
The Hongkong & Shanghai Banking Corporation Ltd.
The Royal Bank of Scotland N.V.

 

Financial Institutions
National Bank for Agriculture and Rural Development
Export-Import Bank of India
National Housing Bank
Small Industries Development Bank of India
Industrial Investment Bank of India Ltd.
North Eastern Development Finance Corporation

Efficient financial planning tips for growing children

child financial planning

Every parent wants their children to get the best education possible and be successful in life. However, life is uncertain and the path to fulfilling all your desires may be a convoluted one. Hence you need to implement a sound investment strategy. With proper planning and a variety of investment options, your child will have a good journey to a valuable college degree. Follow these tips for an efficient planning for growing children.

1) Creating a financial plan and know where to end: When you are planning for your children’s education, work out an estimate of all the costs involved. Keep this estimate as a guide and start piercing together your investment plan. You will see a variety of education planning options each with its own risks and benefits and you will use it accordingly to achieve your goals.

  • a. To get started, make an education saving plan in the early days. You will have money available when your child enters college. These education savings plan come with different protection benefits to the child and the parent.
  • b. If you have property, it will provide rent and capital appreciation and this can be used in your child’s education. Rent money can be used to pay for your child’s tuition fees and other related expenses. And when the value of the property increases, it can be sold to obtain capital gains. When you invest your money in the property market, do a thorough research because this market will fluctuate and you may not get the selling price as anticipated.
  • c. Unit Trusts and Structured Investments can also be a part of your investment planning.

2) Set up an automatic system to invest regularly: Make an action plan where your savings or investing can be made automatic. Many savings, investment linked plans and unit trust funds can be operated monthly, quarterly, half annually or annually. When you are investing regularly, you will also benefit from Dollar Cost Averaging. It is an average of highs and lows of an investment and lower the total average cost per share of the investment.

financial planning

3) Reviewing the plan: When you reviewing the plan regularly, you will stay on track with your target goals. Make sure that you review it at least once in a year and with any major change in your life, such as a new child, career advancement or move to a bigger house, find ways to top up if it is not up to the mark in reaching your investment goal.

4) Top up annually or whenever you can: You can always increase your contributions annually or top up your contributions when there is an increase in your income or you get a bonus or increase in your pay. You will be able to meet your target quicker and achieve a large fund.

5) No dipping into the funds: Choose the right plan that will lock your funds for your children’s education until they are ready to go to college. You should not be able to withdraw the fund easily otherwise you will use the money for other emergencies or needs that may come up.

Financial planning for child

6) Contributions from family members: You can encourage grandparents or other relatives in your family to not to spend money in gifts but opt for a cash contribution towards their education fund instead.

7) Making a team effort: Encourage your children to do savings for their future education. While you are reviewing your investments for their education funds, you can discuss it with them so that they know how hard you are working and putting your efforts towards achieving their goals. If they want to contribute a small portion towards their education fund, appreciate it. And when they are ready to leave for university, make sure that they have learnt good money management habits so that they are able to live within their means.

How to increase your control over bank overdrafts

Bank overdraft

Bank overdraft happens whenever you execute a debit, check or credit card transaction and there is no sufficient balance in the checking account it is connected with. Bank will immediately reject the transaction whenever an overdraft happens.

You can protect yourself from frequent overdrafts by enrolling in an overdraft protection program offered by the bank. Whenever a merchant or an individual hits your checking account and there is no sufficient balance in your account, your bank or the credit union will cover the overdraft amount by paying the required amount to the merchant or the individual. The bank will usually charge a fee for such services. And if there are multiple transactions in a day, you might end up paying a hefty amount to the bank in overdraft charges.

In most cases, it is the banking customer who has overdrawn his bank account should be liable to pay for the fees to the bank, provided he has been informed of the fees. But if you dig a little deeper, the reality is a bit different.

Many banks usually do transaction stacking, where they process the larger transactions first in a given day before processing the smaller ones. As a result, it will increase the chances of the account getting overdrawn because of insufficient funds and thus more fees being incurred. This is one easy way for the bank to increase their fee based income. It can cost up to $25 billion per year business for the banks.

Banking

Many a times, people find it confusing to understand the bank online statements. You might have to manually track and do back-of-the-envelope calculations to figure out the actual account balance at any given time. Even though you might see a positive balance in your account, but because of uncashed checks, pending credit card transactions, your balance will run low or into the red in no time, and before you realize, the bank has already charged you a fee for the overdrawn transactions.

Once there is an overdraft, you will notice a charge in your statement. It can be $20, or $30 or even $35 in the red. First you have to clear this fee to the bank before your account balance turns black.

  • So how to control these bank overdraft charges? Follow these tips and you will be able to keep a check on your account.

1. Whenever you incur any overdraft charges, you should call the bank and clarify it. It is worth a shot, especially if you are a new customer to the bank or if this is your first overdraft in a very long time. If you are not satisfied with their services, you can close this account and open a new account with another bank. There are chances that they might waive off the fee because they don’t want to lose your business.

2. Contact the bank’s customer service department and request for a refund of the entire overdraft fee if you notice any error by the bank that led to an overdraft.

3. Shop for a bank that does not charge any overdraft fee.

Getting the Best Short Term Loan in a Hurry

Loans

Sometimes bad finances happen to good people. An unexpected car repair, an emergency medical expense or a leaky roof can throw your careful budget for a tailspin. When these money emergencies happen, it’s good to know that there is somewhere you can turn for extra cash. Getting a short term has never been easier or quicker.

How Short Term Loans Work:

Short term loans are intended for one-time events that require you to come up with a lump sum of cash. When these situations arise, you can apply for a quick loan and have money delivered to your bank account quickly. Repayment terms for these loans vary, but in most cases, you can make weekly payments that allow you the flexibility of paying back your loan over time.

You can often get short term loans regardless of your credit situation. Many companies that offer loans work a network of lenders that loan to a variety of applicants from a wide range of credit scores. This means that even people with less than perfect credit have a chance at getting approved for a short term loan.

Applicants usually have to pass minimum qualifications for getting a loan. This include being at least 18 years of age, earn a minimum annual salary and have an active checking account. You can get info here on how you can get a short term for all your financial needs.

Don’t let an unexpected expense throw you for a loop. Apply for a short term loan and get your money back on track today.

Financial tips to manage your home business

Home business

When you start a home business of your own, you will need to take a lot of responsibilities, because a lot of great opportunities will come your way. You are the only person to look after your business and make wise decisions and keeping a track of your finances.

While there is professional help available to take care of your business finances, but you can also try the different options to take care of it. Whichever option you choose, you will need something to take care of your budget, taxes, receipts etc.

Business bank account: when you start your own home business, you should a separate bank account for doing all the financial transactions related to your business. There is no need to mix your home finances with your business, especially when your business begins to lose money. Many people lose track when they are juggling with their finances from one account.

Your business will always look professional when it has a separate business account. You will have more options and rewards than personal bank accounts.

Finance software: it will be a wise decision to install a computer for your business with a software program. It will keep track of your money, bills, budgets, schedules and more. These programs are very easy to learn and will be very handy when your business starts growing.

financial tips

There are many programs in the market that can be purchased and installed to get alternative help for your business. They have optimum features to take care of all your services. Before purchasing any program, read the customer reviews to understand which program works the best for specific home businesses, computers and system requirements.

Cash on delivery: in the beginning days, you will have limited employees, and the money collected will be done by your hands. When you receive payments from your customers, make sure that you keep a proper track of it so that you can separate the non-paying customers and other money mix ups.

Home and business budget: it is important that every home budget has a fixed budget. Without a budget, there are chances that you end up spending more than your business can handle. And if you don’t have a separate business account, your business finances will get drained by your home expenses.

Whenever a business starts making loses, many business owners, having no other options, take out money from their personal accounts to cover the losses. This can be a very bad financial decision that will threaten both your business and home. Make sure that you create a solid budget so that you keep a close eye on your money and calculate the losses and gains on a weekly, biweekly or monthly basis.

Every owner is responsible for his own home business from the beginning to the end. And you should have a proper track of your money. A software program can make a lot of things easier for managing your business finances.

Indian Income Tax Slab/Rates for the F.Y. – 2015-16 and A.Y. – 2016-17

Income-Tax-Dept-India

On 28th of February 2015 Finance Minister Shri Arun Jaitley announced the budget of India for the Financial Year 2015-16. The Income Tax slabs/rates for the the Financial Year 2015-16 and Assessment Year 2016-17 is discussed below:
  
  

(I) For Individuals aged below 60 years (including Woman Assessees or any NRI/ HUF/ AOP/ BOI/ AJP):
 

Income

Tax Rate

Upto 250,000 Nil
250,000 to 500,000 10% of the amount exceeding 250,000Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-.
500,000 to 1,000,000 Rs.25,000 + 20% of the amount exceeding 500,000
1,000,000 & above Rs.125,000 + 30% of the amount exceeding 1,000,000

 


(II) For Senior Citizen (Individuals aged 60 years and above but below 80 years):

Income

Tax Rate

Upto 300,000 Nil
300,000 to 500,000 10% of the amount exceeding 300,000
500,000 to 1,000,000 Rs.20,000 + 20% of the amount exceeding 500,000
1,000,000 & above Rs.120,000 + 30% of the amount exceeding 1,000,000

 

(III) For Super Senior Citizen (For Individuals aged 80 years and above):

Income

Tax Rate

Upto 500,000 Nil
500,000 to 1,000,000 20% of the amount exceeding 500,000
1,000,000 & above Rs.100,000 + 30% of the amount exceeding 1,000,000

Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore.

Education Cess : 3% of the total of Income Tax and Surcharge.

Tax Credit U/S 87A: Finance Bill 2015 says nothing on the Section 87A. Hence this provision continues for AY 2016-17 as well and provides a rebate of Rs 2,000 for individual whose taxable income doesn’t exceed Rs. 500,000.

 

(IV) For Co-operative Society

Income

Tax Rate

i. Where the taxable income does not exceed Rs. 10,000/
10% of the income.
ii. Where the taxable income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-.
Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
iii. Where the taxable income exceeds Rs. 20,000/-
Rs. 3.000/- + 30% of the amount by which the taxable income exceeds Rs. 20,000/-.

Surcharge : Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the Income Tax and Surcharge.

 

(V) For Firm

Income Tax Rate

Surcharge

Education Cess

30% of the taxable income. Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable) 3% of the Income Tax and Surcharge. 

 

(VI) For Local Authority

Income Tax Rate

Surcharge

Education Cess

30% of the taxable income. Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable) 3% of the Income Tax and Surcharge. 

 

(VII) For Domestic Company

Sl No.

Particulars

Tax Rate

Surcharge

Education Cess

Effective Tax

1.

Domestic companies (with total taxable income less than 1 Cr.)

30%

3%

30.90%

2.

Domestic companies (with total taxable income more than 1 Cr. but less than 10 Cr.)

30%

7%

3%

33.063%

3.

Domestic companies (with total taxable income more than 10 Cr.

30%

12%

3%

34.608%

 

(VIII) For Company other than a Domestic Company or Foreign Company

Sl No.

Particulars

Tax Rate

Surcharge

Education Cess

Effective Tax

1.

Foreign companies (with total income less than 1 Cr.)

40%

3%

41.20%

2.

Foreign companies (with total income more than 1 cr. but less than 10 Cr.)

40%

2%

3%

42.024%

3.

Other foreign companies

40%

5%

3%

43.26%

Income-tax-individual

Helpful Resources:

http://www.incometaxindia.gov.in/Pages/default.aspx

https://incometaxindiaefiling.gov.in/

Selecting the best variable annuity

Annuity

Many people are worried about thinking how much money will they have once they retire? Many people have become a lot cautious after recession and they are forced to think about their future. Whenever they come to know about new options to investment, they will want to explore it in every possible way. In a situation like this, a changeable annuities is one of the best investment tools.

Variable annuities are a good source of steady return in the form of interest income. The rate of return changes every year is changing every year, hence they are also known as changeable annuities. Many people take is as a long term investment alternative. It will give you lifelong saving option with a steady stream of income.

Variable annuities are available in variety of schemes. All annuities are not the same hence you should have a perfect knowledge on how to choose the best one. Here are some factors that will determine the changeable annuities that is the most suitable for you.

Ratings : There are different companies in the market that offer variable annuities. These companies are given financial strength ratings according to their performance over the years. As per the ratings, the best company is preferred in the market. Be very careful in choosing the company because sometimes, you will find a company in the market that does not have a good reputation when it comes to paying claims.

Annuity

Expenses : variable annuities are not offered for free. You need to pay a certain charge in order to get their services. These fees come under different headings and they also vary from one company to another company. Therefore it is a good idea to shop with different company, read their terms and conditions and the fee structure before making the final decision.

Withdrawal : It is often advised that you hold your investments for the entire duration. But there may be times that you might have to make a withdrawal due to emergency. Hence you should look for a scheme in which the withdrawal is easy and straightforward. Sometimes you will find a company that has a very complicated withdrawal process and they also charge a special fee with taxes for early withdrawal.

Retirement : There are some variable annuities that may be not be very beneficial after retirement. So you should do a thorough research on the different schemes and check out the retirement benefits on offer. It will be an added benefit if the changeable annuities can be placed in a retirement account. This will allow you to get steady income after retirement. You can defer taxes on your variable annuity. The retirement benefits can make the changeable annuities plan ideal for you.

Flexibility : Interest rates on the variable annuities changes every year. If the interest rate falls below a level, you will feel satisfied with your investment. You can easily change your investment strategy and does not have to necessarily agree to a lower interest rate. You can alter your investment if the company offers sub accounts. Check this feature before making your final decision.

Helpful Articles:

http://www.sec.gov/answers/annuity.htm

http://en.wikipedia.org/wiki/Annuity

The Benefits Of Using A Process Server

There are several benefits that are utilizing a process server to get legal issues settled quickly and efficiently. These individuals specialize in locating people who are resistant to going through this process is the traditional legal system. The persistence of these individuals is helpful for individuals who want justice to be served however they are having difficulty in locating any individual who is suspected of doing illegal activity.

Persistence:

These types of professionals are persistent and will do everything in their power to locate an individual is quickly and efficiently as possible. This means they may even spend time around where the individual is suspected to be in order to try to provide them with the necessary paperwork. This can save both time and energy for a person who has tried to utilize more traditional methods.

Understanding Of The Law:

An individual with this background will also understand how the law works in the reasons that individual might be resistant to going through the legal process. This means they will be more prepared for things to get out of control in the event of a disagreement during the service process. Individuals who need further information can click to learn more today. This will help leave any stress about legal issues in the past. The more knowledgeable person is about their rights the easier it will be for them to achieve justice in the most quick and simple manner imaginable for everyone involved in the legal proceedings.

How Far Back Can You Claim PPI?

There are quite a few things you can do to improve your financial situation. Transferring your existing credit card balance to a new card is one thing that can help move your financial situation forward. Another is to claim back the money that is rightfully yours from any mis-sold financial products.

Banks, brokers and lenders have a legal and moral duty to ensure you are sold products that are in your best interests and that put you in a better position than you would have been without it.

Payment protection insurance is one such product that was routinely mis-sold for many years and now hundreds-of-thousands of people are claiming their money back. But how far back can you claim PPI?

There’s a lot of misunderstandings about that question, which we’ll help to clarify now.

  • The Misconception of The Six Year Rule:

If you’ve heard you can only claim back up to six years on your PPI policies, then you may have been misled, and you’re not alone. This is a common misconception that has stopped thousands of people getting their money back.

First, let’s define what the six year rule actually is: it relates to how long your bank or lender has to keep copies of your records after your policy has ended and has nothing to do with how old your actual policy may or may not be.

The key point in that above statement is ‘after your policy has ended’. The rule only comes into effect when your policy has reached its natural end point or, if it was cancelled before that time, from the point of cancellation. It is from that point in time that your lender has to keep your records for a further six years.

However, if your policy is still live – regardless of whether it was taken out a year ago or 15 years ago – then you can still claim on it without any fears of having gone past the so-called six year stage.

  • What About Pre-2005 Policies?

PPI sold prior to 2005 also hits the headlines for being difficult, if not impossible, to claim on, which is also not entirely true. Sure, some pre-2005 policies can be trickier than others to claim on, but far from impossible.

The reason these policies have garnered this reputation is because the body that regulates financial institutions – the Financial Ombudsman Service (FOS) – aren’t able to adjudicate on these policies because the financial institutions were subject to different regulations at that time.

However, there is a loophole that means you can claim on pre-2005 policies, which is to claim against the company that underwrote the policy. There’s a caveat to that though: you have to be able to prove a link between the underwriter and the bank or broker that sold you the policy.

If you can’t prove a link, you’re less likely to be successful with your claim if you’re handling your claim by yourself.

  • In Summary

You can claim on mis-sold PPI far more than you may have been led to believe.
The six year rule is not related to how far back you can claim once you’ve taken the policy
out, but is in fact related to when the policy ended. If your policy is still live, regardless of
when it was taken out, you can make a claim.
The six year rule relates to how long your lender must keep hold of your file after the point
of expiry.
Policies sold prior to 2005 can be claimed on, but you may have to claim against the
underwriter rather than the seller of the policy and you must be able to prove a link
between the two. Prove the link and you should be on your way to receiving your refund.