UNION BUDGET 2016-17

Finally Union Budget 2016-17 Arrived ! HERE are the HIGHLIGHTS OF BUDGET 2016

1. Rs. 35984 crores allotted for agriculture sector.

 2. Rs. 17000 crores for irrigation projects.

 3. Two new Organic farming scheme for 5 lakh acres.

 4. Rs. 19000 crores for Gram Sadak Yojana 

5. Rs. 9 Lakh Crores Agriculture Credit Target. 

6. Rs. 38500 crores for MANREGA, highest ever. 

7. Rs. 2.87 Lakh crores to be spent on Villages in total. 

8. Rs. 9000 crores for Swach Bharat Mission. 

9. Rs. 97000 Crores for Roads. 

10. Total Outlay on Roads and railway Rs. 2.18 Lk Crores. 

11. Rs. 2.21 Lakh Crores on Infra Projects. 

12. NHAI to raise Rs. 15000 crores via NHAI Bonds. 

13. More benches for SEBI Appellate tribunal. 

14. Registration of Company in One Day for Start-ups. 

15. Rs. 25000 crores for Banks rehabilitation. 

16. 100% FDI for food processing. 

17. Non planned expenditure of Rs. 14.28 Lk Crores. 

18. Planned expenditure increased by 15.3% . 

19. Relief Section 87A Rs. 2000 to Rs. 5000 

20. Relief Sec 80GG Rs. 24000 to Rs. 60000 

21. Section 44AD limits Rs. 1 crores to Rs. 2 crores. Rs. 50 Lakh for professional 

22. Accelerated depreciation limited to 40% 

23. New manufacturing companies will pay tax @ 25%. 

24. LTCG on unlisted securities limited to 2 years. 

25. 100% tax deduction for companies building houses upto 30 sq. mtrs. 

26. Additional interest deduction for first house. 

27. No service tax for building houses upto 60 sq mtrs. 

28. 10% dividend tax for recipient over Rs. 10 lakh per annum. 

29. TCS on purchase of asset over Rs. 2 Lakh in case and luxury cars. 

30. VDS Scheme @ 30% + surcharge, Ist June to 30th September 2016. 

31. Dispute resolution for appeal pending before Commissioner(Appeals). 

32. Penalty for concealment of Income from 100-300% to 50-200%. 

33. Rationalisation of TDS provisions. 

34. 11 new benches for Income Tax Appellate tribunal. 35. No face to face scrutiny.

Please pay your valuable comments !

Regards

SHRI BALAJI ASSOCIATES

Critical Credit Card Mistakes You Didn't Know You Were Making

9 Critical Credit Card Mistakes you should avoid !

Credit cards are lovely. They give us the freedom to experience things without stressing too much about the money aspect of it. Credit cards really help us out, whether it's buying the awesome television we always dreamed of or taking that vacation we longed for. 

But the convenience it offers also aids in clouding our judgement. Acting as a safety net for our desires in life, credit cards are also big time trouble makers. It is like a honey-trap that often lands us in situations we try our best to avoid. 

Here are some really helpful credit card hacks that'll help you walk the fine line without unknowingly tipping over to the dark side of greedy banks. 

1. Late bill payments

It is, of course, better than not paying your bill at all, but not a lot. Two things happen when you pay your bills late. You are levied a penalty worth a substantial amount, most often costing more than your minimum payment amount. Secondly, not paying up on time affects your credit score, which might not be a problem now, but will be a big problem when you apply for loans of a large sum, like a house loan or car loan

2. Making minimum payments

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Banks do give you the option of paying a nominal sum as a 'minimum payment' on your purchase every month but it's not something you should fall for. The interest that banks charge on your outstanding amount is quite high, and if you keep paying just the minimum amount, you would end up shelling out a lot more as interest. Many times even more than the actual value of the product. So best practice would be to save by cutting costs on other things and pay as much of the bill as you can. Remember, more the amount, more the interest. 

3. Some of us get way too many cards

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Credit cards are a boon when in need. But the greedy bunch that we are, we always 'need' more. Which is great for the banks, but definitely not for us. It is simple logic, more credit cards means more spending, more spending means deeper debt. Additionally, it also affects your credit score and the annual fees also adds to your expenditure. Having one card is ideal because it's much easier to track with all your expenses in one place. Credit is not an added income so getting another card when you max out your limit on one is not the solution. It'll only make things worse. 

4. Using a credit card for everyday items

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Until and unless you're caught in a massive shitstorm in life, you should be able to pay for your basic necessities with your monthly salary. Using your cards for purposes like buying groceries and paying off utility bills is often the first step of losing control of your spending. You don't wish to make the Rs 100 you spent buying vegetables cost you Rs 1000 with interest, do you? Not using your card will also help in keeping your expenses under control. Keep your cards for a purchase that you perhaps don't wish to make with the money you have. Like buying electronics or getting flight and hotel tickets. 

5. Ignore the T&Cs

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Scratch that. In fact, never ignore the T&Cs of card companies. Actually, never ignore the T&Cs of anything that involves money because more often than not, the devil is in the detail. Most often, we only end up signing for additionals we didn't know and definitely didn't need. So make sure you read all the documents thoroughly, even twice for that matter, just so it doesn't backfire at a later stage. 

6. Exceed your credit limit

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It's self-explanatory really. Like mentioned before, a big amount means a bigger interest rate. So never bite off more than you can chew. 

7. Ignoring monthly statements 

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Never, ever ignore your monthly statements. Not knowing how much you owe to the bank can very quickly land you in a lot of trouble. Be aware of your monthly statements to know where and what you're spending on, if you're being charged for something you didn't purchase, and to keep a check on your budget. It is always important to know where you stand and the monthly statements will help you get a grip on things. 

8. Using card to withdraw cash

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This is the worst of the lot. A number of people still use their credit cards as debit cards to withdraw cash from the ATM. Any cash withdrawn from the ATM is considered 'cash advance' by the banks. It's considered more like a short term loan. A loan doesn't come without interest and cash withdrawals attract a mammoth interest rate. So don't even think of touching your credit card at an ATM unless it's a matter of life and death. Stick to your debit cards otherwise. 

9. Thinking foreign transactions are the same as domestic ones

Each bank has different exchange and transaction rate. So before you make a transaction while traveling abroad, make sure you check and use the card that gives you the best rates.

Regards

SHRI BALAJI ASSOCIATES

Banking Awareness

Beware

Regards

Shri Balaji Associates

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Employee Provident Fund Withdrawals Simplified

SBA

Were you thinking of withdrawing your Employee Provident Fund? There’s good news for you. The Employee Provident Fund Organization (EPFO) has recently announced a simplified process for the withdrawal of EPF. Now you need not worry about getting the forms attested by your employer. The new process is simpler, faster and more secure. Read on to learn all about it. We’ll take you through the process, one step at a time.

What’s New?

The EPFO has introduced a revised set of forms to facilitate smooth, hassle-free EPF withdrawals.

Did you find the old process that required the employer’s verification and attestation very cumbersome? Not anymore. As a result of the new changes, the withdrawal process will be much faster because now you do not need to get the withdrawal forms attested by your employer.

Read more about the new EPFO Guidelines.

The EPFO has introduced three new forms.

• Form 19 UAN – At the time of retirement, or when you leave a job, you can use this form to withdraw your Employee Provident Fund. Remember, withdrawing money from the Employee Provident Fund is permitted only if you are unemployed for a period of 2 months.
• Form 10-C UAN – This form can be used to withdraw money from your EPS account. The EPS account is a separate account that is linked to your Employee Provident Fund. This EPS account covers your pension. You are allowed to make a withdrawal from the EPS account only if your EPF account is less than 10 years old.
• Form 31 UAN – You can submit this form if you wish to make a partial withdrawal from your EPF account. A partial withdrawal can be made for marriage, medical emergencies or if you plan to buy a house.

Who Can Use the New EPF Forms?

Did you think everyone can use the new EPF forms? The new EPF forms can be used only by those employees who fulfil the following two conditions.

• Your Universal Account Number (UAN) must be linked with your Aadhar number.
• Your KYC details and bank account number should be verified by your employer using a digital signature.

Got a New Job?

If you just got a new job and want to withdraw your Employee Provident Fund, you cannot make a withdrawal. What do you do then, you ask? Apply for a transfer of your EPF.

A Guide to Withdrawing Money from your Employee Provident Fund Account

We’ll walk you through the process of withdrawing money from your EPF account.

1. Ensure your UAN is Active & KYC Information is verified. You must first make sure your UAN is active and all your KYC information is verified by your employer. Login to verify that you are eligible to use the new forms. Review your KYC details under Profile > Update KYC Information. 

If you have more than one UAN assigned to you, use the one given to you by your present employer. 

2. Fill the EPF Withdrawal Form. On verification of your UAN status and KYC information, complete the EPF Withdrawal forms.

You will need to provide the following information:

• Your mobile number
• UAN number
• Date of leaving
• Reason for leaving service
• PAN number & complete postal address

Remember to attach a cancelled cheque of the bank account mentioned in your KYC information.

3. Send the form to the EPF Jurisdiction Office. Now all you need to do is submit the completed form by courier to the EPF office that falls under your jurisdiction. Locate the address of the regional EPF office.

Want to withdraw your entire EPF amount?

If you want to withdraw your entire EPF amount, you need to complete Form 19 UAN & Form 10-C UAN and send them both to the EPF office.

Source: Bank Bazaar.com

Regards

Shri Balaji Associates

Money Transfer to Spouse ! Gift Or Loan ??

Can you save tax by transferring money to wife's account?

Do you transfer money to your spouse’s account so he/she can meet personal expenses, does that money earn an income. Or do you consider it loaned. Let’s understand today, how the income from such transfer is treated from income tax standpoint.

How gifts are taxed in India

Money is Invested in Shares or Fixed Deposits or other Assets– The shares may have been purchased in your wife’s name or fixed deposits made in her account – but the income from such fixed deposits or gains from the wife’s shares transactions shall be clubbed with your income. As per clubbing provisions of Income Tax, this is considered as your own income and taxed at slab rates applicable to you. Even if there are capital losses from sale, those get added too.

Money is considered Loaned – There could be a situation where you have genuinely transferred money to your wife’s account to meet her financial needs, for e.g. to help her start a business. The amount is considers loaned and is planned to be returned and interest is charged as well. In case you are charging a reasonable interest and also showing the interest as your income in your return, income earned by your wife may not be clubbed. However, in cases where amount is shown as loaned to your wife and she is investing that money in shares to earn an income, and thereby you end up saving significant tax by avoiding clubbing of income (gains) on shares, it may be hard to convince the tax authorities about the lender borrower arrangement, given the close relationship of the parties and the tax save involved. Usually in most cases - it's misused as a tax saving avenue and that is what the tax authorities want to be careful of.

Only to meet Personal Expenses – When one of a couple is a home keeper and is not earning an income, it is commonplace this person receives some money to take care of personal expenses. This has no income tax implication and is not considered an income in the receiver’s hands. However, any interest earned in the bank account may still be clubbed.

Source: Yahoo.com

Regards

SHRI BALAJI ASSOCIATES

Google Online Security Blog: Ads Take a Step Towards “HTTPS Everywhere”

Ads Take a Step Towards “HTTPS Everywhere”

Google Online Security Blog: Ads Take a Step Towards “HTTPS Everywhere”