Proposed Surcharge – Apne Sar pe ek aur charge
When the
Government decides to charge, they hit the nail straight on the honest tax
payer’s head. When new taxes don’t find favors, they still have their way out.
Surcharges on the existing taxes, simple and still an effective way to empty
our pockets.
 
 
 
The
Maharashtra Government’s latest bill to amend the Maharashtra Municipal
Corporation Act to allow the government to levy a surcharge on transactions of
immovable properties is the latest smart move in this direction.
 
 
And how do
they plan to go about this. The extra money that the government now plans to
snatch away from us would in all probability be introduced in the form of a
surcharge on the stamp duty that we pay on every property transaction.
 

 

 
So here we go,
the dear sweet home that we were eyeing for would become even dearer.
 
Just a 2%
surcharge on stamp duty, sounds simple and cheap! A person paying Rs.100/-
would need to pay just Rs.102/-. Not a bad deal, right? But work out the
whooping numbers. The annual stamp duty revenue of the Maharashtra Government
today stands at Rs.20,000 crores and so a 2% additional collection gets Rs.400
crores into the kitty. Simple mathematics, that’s it.
 
 
Government
promises this money would be used to boost urban infrastructure such as Metro
Rail, Freeways and Sea-Links in various cities across the state, but how much
of it will be utilised for the real cause is anybody’s guess.
 
The
Government says it is really concerned about the farmers who commit suicide and
has plans to take complete responsibility for their children’s education and
ensure food security to their families. Seriously!
 
 
 
No, the
politicians are not letting go of their allowances and he freebies that they
enjoy from the Government. How could we even take such a wild guess?
 
When they
have gullible tax payers at their mercy, why should they worry? Who cares
whether we are agriculturists or not, but we all would now be required to pay
an agricultural tax. The government bill suggests collecting this through sale
of goods or through value added tax.
 
 
The
Government needs money to dig up 3 lakh wells, to create 1 lakh artificial
lakes, power connection and water pumps, they say. The leaders need to dig up
wells and ponds to hide their wealth, that’s what they didn’t say and we need
to read between the lines.
 
 
The proposed
agricultural tax is no child’s game either. The government plans to make the
tax payer poorer by at least Rs.500 crores annually over the next five years.
 
 
So let us be
prepared for another bolt on our head, another one of those Sarpe charge.

 

Surcharge or
VAT, hum tax payers ki lag gayi hai vatt!
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Planning for our retirement – Lambi Innings Ki Taiyari
All of us experience many events
during our lifetime, be it marriage, birth of a child, marrying off our
children, death of a loved one and so many. Some of these events bring immense happiness
and some profound sadness. Whatever may be the emotions that these events bring
about in our lives, the memory of it fades over time and we become oblivious of
the fact in such a way that it gets absorbed in our lives.

 

We all need to work for some or
major part of our lives to earn a livelihood and then retire for different
reasons. Reasons for retirement may vary from attained satisfaction to not
being able to work any further due to ill health or just the compulsory
retrenchment due to attainment of a certain age.

 

Oh retirement!
 
Retirement is perhaps one of the
most important events in our life that we may ever experience.  Of course, we all wish to retire comfortably,
but how many of us really achieve the privilege of doing so considering the
complexity in building up a retirement plan built up with extensive and
sensible planning and years of persistence.

 

A little homework, a systematic
and attainable savings and investment plan and of course a long term commitment
is all it needs to ensure that you carry it well into your golden years.
 
Do I need to plan?
 
For many of us who are earning a
decent salary with an even decent and seemingly reasonable savings in our bank
account to splurge on necessities and luxuries alike, this may seem to be a
trivial question.

 

Though we may consider ourselves
to financial wizards in our own count, what we don’t realise is that our
popular belief about the best way to save for the future could be totally
contrary to what the key components of retirement planning properly implemented
should be to guarantee a financially secure retirement.
 
The flexibilities of life to deal with
 
Life surely tends to keep
throwing us a curve ball every now and then. It may be a Googly, a Doosra or
may be a Yorker, but we need to be prepared well to face the ball as it comes
beaming at us. These spinning balls may be in the form of unforeseen illness,
the financial needs of our children or dependents or the uncertainty of the
returns from risk bearing investments.

 

Life’s unpleasant uncertainties
force us to maintain a secure nest egg. This nest egg is what will help in
smoothing out the financial hiccups over the long run, so that we are not
forced to liquidate our assets to cover our expenses during our retirement
years. This golden egg will only ensure that rather than leaving a financial
legacy for our loved ones or worse still, becoming a financial burden on our
family, we can rather contribute to our children and grandchildren’s lives, be
it by splurging on their luxuries and needs, financing their education, by
gifting a portion our nest egg or just simply ensuring that the estate and
assets that we built up painstakingly are passed on to them in inheritance and
on which we assign so much sentimental value.
 
How would I know how much I need to retire?
 
At a first glance, this so much
relevant question seems to be unanswerable, plainly because the amount of money
we would need depends upon a number of factors including our desired standard
of living, our expenses, our medical needs and most importantly our target
retirement age.

 

But just a little thought
applied, all these seem so simple like a mystery unfolding by itself. If we
pose a few questions to ourselves and try to answer them, it becomes so much
easier to determine the reasonable money needed for our retirement needs.
 
We just need to answer for
ourselves a few simple questions and they would be:
 
(a)    When
do we plan to retire, i.e. at what age?
(b)   Assume
or decide how much monthly income we would need to sustain at present level of
earnings.
(c)    Scale
it up till the year of our retirement considering the annual inflation factor
(maybe safely and conservatively considered at 4-5%).
(d)   Total
up all our current savings and investment which earn us regular returns.
(e)   Determine
the monthly real rate of return on our investment today.
(f)     Scale
it up till the year of our retirement considering the annual inflation factor
(maybe safely and conservatively considered at 4-5%).
(g)    The
resultant figure is what we need for our monthly expenses post retirement.
If the resultant figure in (f)
above is equal to or more than the figure in © above, then we are securely
planned. If it is negative, we need to worry, for we are short planned for our
future.
 
From where will this shortfall money come from?
 
We have mentioned earlier and at
the cost of repetition, we repeat that we are earning a decent salary with an
even decent and seemingly reasonable savings in our bank account to splurge on
necessities and luxuries alike.

 

We just need to cut down on the
little luxuries a bit, maybe skip that extra movie a month, or that one
additional dine-out at the fine-dine restaurant, expenses which are dead cost
not providing any returns financially, and just deploy these finds in
reasonably moderate risk but decent returns yielding investments.
 
Here comes Reliance Retirement Fund:
 
This is an open ended notified
tax savings cum pension scheme managed by highly professional fund managers who
would invest the corpus in open income oriented funds giving us the benefit of draw
down as required during retirement.

 

Its advantages! Oh! There are
many, but few to list out here, it is a tax efficient SWP, has the potential to
grow corpus over time thus providing a scope for better returns. The
investments primarily focus on income generation, growth assets for fighting
inflation and enable draw-down without depleting the corpus.

 

Talking of key features, it
allows:
 
1.       Unlimited
switch between schemes
2.       Bare
minimum exit load of 1% on redemption before the age of 60, subject to a
lock-in period of just 5 years.
3.       Auto
transfer facility where the entire investment can be switched from wealth
creation plan to income generation plan according to our needs.
4.       Facility
to accumulate using both SIP and lump sum over the earning years.
5.       Facility
to use systematic withdrawal plan (SWP) to use only what is needed after
retirement.

 

 

The nagging Question, Can I afford it?
 
Reliance Retirement Plans by Reliance Mutual Fund answers the nagging question by explaining that it just takes a little sensible planning and a happy retirement is well within the reach of most of us. 



A little planning and we ensure that we need not spend our retirement days living frugally, whereas we can make it a life of joy and dignity, filled with the thrill of discovering new things, and pursuit of new interests and passion. In short, a second innings in our life, when we play the doosra, the googly, the yorker or the beam-ball with utmost comfort and dispatch it to the boundary with disdain.

The Bloggers Meet:


Reliance Capital Asset Management had joined hands with BlogAdda wherein select bloggers were called upon to be given an introduction to the various retirement plans.

Image courtesy: Blogadda and fellow bloggers



It was truly an amazing interactive session with the top brass of Reliance Capital led by the ever-cool Mr. Sundeep Sikka, CEO,  the self-admittedly over-dressed but absolutely flawless Mr. Himanshu Vyapak, Deputy CEO, Mr. Ajay Jethi, CMO and Mr. Sharad Goel, CCO taking pains to lucidly explain the juggernauts of how to save early to retire happily to the largely young crowd of bloggers.


Image courtesy: BlogAdda and fellow bloggers



It was a very knowledgeable session with veterans like me or novices like my daughter and the other bloggers present understood  the simple tricks of planning for retirement.

 

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Ping Pay, the fun and easy way to transfer funds
Once
upon a time, not quite long ago in history, sending money to someone was such a
big exercise.
An exercise,
sure it was which involved issuing a cheque or even going to bank to get a
draft made, sending it across to the intended recipient, who again would make
that boring stride to the bank to deposit the instrument, and then wait till
eternity for the clearing system to work till the funds gets transferred to the
account.
Sounded like
a boring Bollywood story. Indeed it was, and tedious too. So tedious that the
transferor used to invent ways and means to avoid transferring funds.
I remember
my student days, perhaps three decades ago, when I used to run out of my pocket
money at my hostel towards to end of the month, and I would telegram my Dad,
And quite
expectedly, I would get a return telegram from my Dad,
Banking and
fund transfer, surely, has come a long way since then. And leading the way in it
is Axis Bank with its latest initiative, the Ping Pay.
It is a
unique multi-social payment solution which enables customers to transfer money
to anyone, including non-Axis Bank customers using the hugely popular social
and messaging channels like WhatsApp, Facebook, Twitter or even Email. The only
simple condition specified that the person needs to be on the transferor’s
phone contact list. And its not just money transfer, this can be used for
mobile phone recharges as well.
Ping Pay
offers instant, 24×7, absolutely safe and convenient interbank electronic
transfer service through our mobile smart phones. The fund transfer is instant
and real time using the NPCI’s Immediate Payment Service, more commonly known
as IMPS.
With a
present transaction and per day limit set for Rs.50,000, Ping Pay has been
introduced by Axis Bank with a strategic plan of bringing superior customer
convenience, embedded in a seamless and secure process, to finally realize the
dream of turning India into a paper money less economy.
Axis Bank
has been quite innovative in realizing and tapping the huge prepaid mobile
market including the facility of sending person-to-person mobile recharges in
this Ping Pay App.
The
technology for this amazingly wonderful App has come in partnership with Fastacash,
a Singapore based, venture-capital backed firm, which has the dream of bringing
its technology to end users by partnering with banks, mobile operators,
remittance companies, payment service providers and mobile wallets as its endeavor.
Any person
can download the Ping Pay App and sign up using their registered mobile numbers
to receive money, with the only condition that the transferor needs to a an
Axis Bank account holder.
The fund
transfer procedure has been made so hassle free that the App users need not
even type in the account number and IFSC Code. To send money, the account
holder needs to just choose any of the social or messaging channels available
on his mobile phone, select the name of the person to whom the money is sent, enter
the amount that he wishes to send, and set his own unique “ping code” which is
immediately shared separately with the receiver via SMS or email. As soon as
the transaction is confirmed, the money is immediately sent with the recipient
receiving a message on the social or messaging channel opted by the sender.
The receiver
has 15 days with him to accept and get the money transferred to his bank
account and if he does not do it within this specified time period, the amount
gets auto-reversed to the sender’s account.
If I had
forgotten to mention, there is an option to “Ask for Money” or “Ask for
Recharge” too, probably built into this “seamless” App for the “shameless” kids
demanding from their Dads, the way I used to do, three decades back. The receiver
needs to just put in a request for funds or seek recharge from their friends
and family across the social media. And I am sure; the sender would not have
such easy excuses as my Dad had at those times.
Smitten by
this App already? Then watch this video to be further amazed.

This post is about DigitalAxis meet conducted by Axis Bank in association with Blogadda.com

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