My Money Book
Hey! I got this prized possession
yesterday. It’s not money that I got, but perhaps the next best thing to it. My
money book, a book in which I can keep a record of money, or whatever little of
it that I have. So, whether you have enough money to keep you happy, as what
would be your definition of happiness with money, I am sure of one thing, this
book would be a great companion for a long and happy journey called life.
The guys who sent me this book,
yeah! The guys at Exide Life Insurance, it is. The mission and motto that these
guys have is to help their customers prepare financially for a long and happy
life. And why would they do it? It is because it is a life insurance company
serving over 10 lakh customers in over 200 cities in India, at present the
leading life insurance company in south India and slowly but steadily spreading
its wings by growing its franchise in other parts of the country.

That’s the reason they sent me
this Money Book so that I am happy, prepared financially for a long life. And
when I am happy, I blog, and here I am blogging the absolutely amazing reasons
why this “My Money Book” is important to you, me and each one of us.


Reasons why this Money Book is
important to me are many, but to list a few, it would be:
1.       It
helps me stay organised: And that’s needed for the disorganised me, who live at
the mercy of my daughter. My personal organiser that she is, I get to hear from
her every day what would be my fate, once she gets married and goes away and
has her own family and errands to take care of. This book would get me have all
my information in one place. It would help me put together the comprehensive
summary of all my financial information like a one stop shop.
2.       It’s
useful when I most need it: Absent minded that I am, my wife’s biggest
nightmare, I forget things when it is most needed. This book is what will allow
me to live my legacy without fear much to her happiness. This is just the right
kind of legacy book which will allow me to keep a reference of all the
financial records of myself as well as my family members.
3.       It
is useful to my family too: Absent minded and disorganised sure I am, but not
someone who wouldn’t be worried about my family’s financial needs and their
needs when I may not be around. So, all those investments and savings for and
on them, I can record here in this book, just in case they need to access them.
Yeah, let me be candid to admit, perhaps, when I am not around, my already overburdened
wife shouldn’t have the inconvenience of searching for documents or remembering
payment dates.
4.       It’s
easy and simple: I don’t know how my daughter keeps it so easy and simple,
which I find it so difficult. My portfolio manager and accountant that my
princess is, she keeps my financial records update in a jiffy. With this book,
I can relieve her little to be in her childhood pranks, because it has covered
almost all the important information that could be required by me.
5.       It’s
a comprehensive record: The only thing I can be proud of is being a
comprehensive Dad to my daughters, being their friend and confidante wherever
and whenever they need me. And I can give this book a few marks to get close to
what I am. Ha! Ha!, that’s true. This book is quite specially designed to help
me create a consolidated, comprehensive record of all my financial engagements,
making me thrive to be a better Dad.


The Exide Life Insurance, the
brain behind this “My Money Book”, a company which commenced operations in
September 2001, a Company 100% owned by Exide Industries Ltd., India’s largest
manufacturer of electric storage and its biggest power storage solutions

And when such a company, which is
the foremost and the most trusted battery brand in India, a name which has
almost become synonymous with the term battery, would their life insurance
company be any less good. Exide Life Insurance has over 35 thousand advisers,
alliances with various regional co-operative banks and corporate agents and a
bankassurance partnership with ING Vysya Bank, having over 500 branches across


So here it is my review of “My
Money Book”. Like the book, or the amazing life insurance plans on offer by
Exide Life Insurance, please do get in touch with them on email at
or visit for further



I would appreciate a honest
feedback to my blog at
from all my readers as to what else can be incorporated in this book in the
next edition, so that we all can have a still longer and happier journey called

This review is a part of the biggest <a href=”” target=”_blank”> Sponsored Review Program </a> for <a href=”” target=”_blank”>Indian Bloggers.</a> Participate now to get free Products!

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When the Finance Minister rose
to present the Union Budget 2015 in the Indian Parliament, there were high
hopes of the basic exemption limits being increased. To be honest, I too was
among the optimistic Indians.
However, minutes after dashing
the hopes of millions, the advocate in our Finance Minister cleverly slipped in
an interesting figure in his budget speech. It was a figure which left many
curious and wondering. With a sly smile, when he mentioned that after taking
into account the tax concessions given to middle-class taxpayers in his last
budget and this one, an individual tax payer will get a total tax benefit of
An amazing figure, he came up
with, which set the calculation boards and the mathematical minds at work. No
explanations were given and no clarifications mentioned by the Finance
Minister. He just mentioned this magic figure and left the common man to figure
it out himself.
Unfortunately being in the
finance profession, I too was flooded with calls from clients, friends and
their paraphernalia as to what light I can shed on this magic figure which
suddenly became worthier than a million dollars.
Needless to say, I had to put
my old accounting mind to use, my eldest daughter, fortunately pursuing her CA
under me, came of help, with a much fresher brain than the rustier mine.
And here is what we came out
with, amazingly satisfied as if we have done an Aryabhatta or a Ramanujam on a
mathematical theorem. For us, we needed to reply to our clients, and hence the
euphoria was nothing less than that.
So here is how it works,
according to us, and we needed to walk backward for the working, a kind of the
Michael Jackson moonwalk, you can say:
Taxable Income assumed as Nil
Add: Medical Insurance premia deduction u/s 80D
Add: Contribution to New Pension Scheme u/s 80CCD
Add: Contributions eligible u/s 80C
Gross Total Income
Add: Deduction for Interest on Housing Loan
Net Salary Income
Add: Deduction for Transport Allowance @ 1600 p.m.
Gross Salary Income
So, here is the magic figure
revealed. It is just an aggregation of the typical deductions that an
individual can now claim, after the budget proposals.
Dad and daughter smiled at
each other. Some unspoken words between us, but it were well understood by both
of us. We just had told to each other, wish the Finance Minister had been a bit
less dramatic.
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A detailed analysis of the amendments
proposed in the Income Tax Act, 1961 in the Union Budget 2015
1.       Reduction
of Corporate Tax Rate from 30% to 25%
The amendment is to be spread over the next four financial years. Though it is
a welcome move, it would have been more welcomed by the Corporate world had the
entire reduction in the tax rate be given with immediate effect. In fact, the
reduction will take effect only from next financial year which means that for
the financial year 2015-16, corporates will end up paying higher tax at 34.60%
due to the increase in surcharge.
2.       Increase
of surcharge for domestic companies
The proposal to increase the surcharge for domestic companies with total income
exceeding Rs.1 crore but not exceeding Rs.10 crores from the existing 5% to 10%
and for those exceeding Rs.10 crores from the existing 10% to 12% will take away
the benefits of the reduced tax rate and push up the corporate tax rate from
32.445% to 33.063% for the former category of companies and from 33.99%
to.34.61% for the latter.
3.       Increase
in the rate of Minimum Alternate Tax
Though there is no specific provision for increase in this tax rate, the
cascading effect of the increase in the surcharge rate would be felt here too
with the effective MAT rate for smaller companies having total income between
Rs.1 Crore and Rs.10 Crore from 20.01% to 20.38% and for the bigger companies
having total income above Rs.10 Crores from 20.96% to 21.34%.
4.       Additional
surcharge for income over Rs.1 Crore
Effect:  The rich would be taxed more, the mantra
behind this proposal. It will make the high net worth assessees pay higher tax
by way of this surcharge increased from the existing 10% to 12%. The maximum
marginal tax would go up from the present 33.99% to 34.61% considering the fact
the cascading effect of the education cess of 3% will now be computed on the additional
surcharge too. Smaller assessees would be spared.
5.       Abolishing
wealth tax
Effect: A
welcome move, because now you don’t have to go through the hassle of filing
another set of returns. However, for all those who felt that their high end
assets would not come under the scrutiny of the tax authorities, it’s no time
to cheer. All these assets will now have to be disclosed and declared in the
income tax returns.
6.       TDS
on interest paid by co-operative banks to members
Effect: It
will be a big set off for senior citizens and other assesses in the lower tax
bracket that hitherto had been getting a nominal membership of the co-operative
banks and being spared the hassle of TDS. It’s an additional burden for the
banks too. Co-operative credit societies, quite surprisingly continue to enjoy
this benefit.
7.       Increase
in exemption limit for transport allowance
This is a welcome move for employees since the limit of Rs.800 per month has
been considered too low and not at par with the increased cost of
transportation in the real sense. The increase to Rs.1600 per month would
certainly bring cheer to the working class.
8.       Making
employers responsible for obtaining evidence of deduction
The proposed amendment to Section 192 makes it mandatory for employers to
obtain evidence of deductions/exemptions/set-off of any losses that the
employees claim from their taxable salary. Additional burden on the employers,
the rules and the forms and the manner in which the employers are required to
collect this evidence is to be announced shortly.
9.       Increase
in the deduction for payment of medical premia
Effect: A
welcome move again, considering the high cost of medical treatment these days.
The increase in the limit from Rs.15000 to Rs.25000 under Section 80D will be
cheered by the individual tax payers.
10.   Increase
in the deduction for payment of medical premia for senior citizens
Effect: A
big cheer from the senior citizens for increasing this deduction under Section
80D from the present Rs.20000 to Rs.30000. Also commendable is the fact that
for the uninsured very senior citizens, above the age of 80, they can claim
this deduction for the expenses incurred for their medical treatment.
11.   Requirement
of furnishing PAN for all transactions above Rs.1 lakh
This move is certainly going to go a long way in curbing the black money menace
and bring in more transparency in all transactions.
12.   No
transactions relating to transfer of immovable property in cash above certain
The proposal to restrict acceptance of any loan and/or deposits from any person
as also repay any such loans/deposits above Rs.20000 relating to the transfer
of an immovable property, will also go a long way in curbing generation of black
money in immovable property transactions which today is quite rampant.
13.   TDS
on interest on recurring deposits
Effect: The
proposal to rope in interest on recurring deposits too at par with interest on
fixed deposits to be eligible for deduction of tax at source if it exceeds
Rs.10000 in a financial year is a move towards bringing both the forms of
investments in banks at par. This amendment is to be effective from 1st
June 2015.
14.   TDS
on premature deposits from provident fund
Effect: I
find no reason in this move when such withdrawals are anyway not subject to
tax. Premature withdrawals from PF will now be subject to TDS @ 10% (at maximum
marginal rate if employee does not furnish PAN) if the withdrawal amount
exceeds Rs.30000.The only explanation I can see in this proposal is that it
will ensure better tax compliance, though it is again going to burden the
employers with more compliance.
15.   Increase
in cap for deduction on contribution to prescribed annuity/pension plans
This proposal of increasing the cap for such contributions from Rs.1 lakh to
R.1.50 lakhs would enable assessees not to look for other avenues of
investments within the overall ceiling of Rs.1.50 lakhs under section 80C.
16.   Additional
deduction for contribution to the New Pension Scheme
Effect: This
proposal of providing another tax saving investment avenue under section 80CCD
for contribution to the NPS upto Rs.50000 will benefit individual assessees by
way of further tax savings.
17.   Deduction
for contribution to the Sukanya Samriddhi Scheme
Effect: An
opportunity to earn tax sops on philanthropic activities, contribution made to
this scheme, relating to the education of the girl child is a welcome move,
proposed to be introduced retrospectively effective from financial year 2014-15
under Section 80C. A great initiative in allowing even the payment received
from such schemes to be totally tax free. Now parents of a girl child can
rejoice that they not only get tax deduction for investments made under this
scheme, but also would not be required to pay any tax of payments received
under this scheme.
18.   Deduction
for donations made to certain funds
Effect: The
proposal to include donations made to Swachh Bharat Kosh and Clean Ganga Fund
under the ambit of section 80G is a welcome move, which again is made effective
retrospective from financial year 2014-15. Donations made to the National Fund
for Control of Drug Abuse also being included from financial year 2015-16. The
great news is that you get 100% deduction for donations to these funds.
19.   Furnishing
of details for payments to non-residents without TDS
Effect: Making
payments to non-residents and claiming foreign tax credit has been made a
little more cumbersome with now the assessees required to furnish various
details of the same. The required details are yet to be prescribed, but the
message is loud and clear that non-compliance will attract stringent penalty.
20.   Increase
in the surcharge on Dividend Distribution Tax
Effect: The proposal to
increase the surcharge on DDT and on the tax on income distributed by mutual
funds from 10% to 12% will make the declaration of dividend dearer to the
companies and thereby reduce the income received by the shareholder or the unit
21.   Increase
in surcharge on the tax on buy-back of shares
Effect: This
proposal will make corporates think again before venturing to buy back its
shares by increasing their tax liability on the same effectively from 22.66% to
22.   Reduction
of rate of TDS on royalty and fees for technical services to foreign entities
Effect: This
proposal to reduce the rate of TDS from 25% to 10% is a welcome move since many
DTAA already had 10% rate prescribed and hence it was logical to get the rates
under the Income Tax Act also at par with these tax treaties. The effective TDS
rate due to this amendment would reduce from 27.04% to 10.82%.
23.   Threshold
limit for domestic transfer pricing enhanced
The proposal to enhance the threshold limit from the existing Rs.5 crores to
Rs.20 crores would result in lesser compliance by smaller domestic companies.
24.   Scope
of levy of interest for default in payment of advance tax extended
Effect: The
proposal to extend the scope of the levy of this interest to even income
declared before the settlement commission will result in increasing the tax
burden in cases where application has already been filed before the settlement
commission for earlier years.
25.   Favourable
tax orders can now be revised by higher authorities
The proposal to allow favourable tax orders passed by the assessing officers to
be revised by the CIT (Commissioner of Income Tax) will come in as a shock to
many assessees who can end up finding orders passed in their favour being later
26.   Concealment
penalty to be imposed even if tax is paid
This proposed amendment to impose concealment penalty even to cases where the
disallowance or additions are made under the normal provisions and the
requisite tax thereon has already been paid under MAT or otherwise does not
auger well with the various case laws of the courts and hence will be a big
burden on the assessees.
27.   Future
proposal to levy 2% Swachh Bharat Cess on services
Though not directly relating to any provisions under the Income Tax Act, I find
it pertinently important to include this here since this proposed future
suggestion may result in pushing up the service tax rate from 14% to 16% thereby
increasing the cost of these services to the common man.
CA. Sanjay Thampy


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