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Income tax calculator

Posted in Finance.

The excel based Income tax calculator can be used for computing income tax on income from salary, pension, gifts, fixed deposit and bank interest, house rent and capital gains(short and long term gains). This tool cannot be used for computing income tax from business or profession.

Income tax calculator

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File Income Tax Return Online

Posted in Finance, Income Tax, India.

From assessment year 2013-14, E-filing has been made compulsory for the person who is an individual or a Hindu undivided family (HUF), if his or its total income, or the total income in respect of which he is or it is assessable under the act during the previous year, exceeds Rs. 5 lakh rupees for the assessment year 2013-14 onwards. It clearly states total income and not taxable income.

Please read below to know how you can file income tax return online yourself.

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Investment Planning for Wedding: What (Knot) to Do

Posted in Finance, Investment.

We got to agree that Indian weddings are not a ceremony, but a phenomenon. The phrase “Big Fat Wedding” is used only with India, though there are six countries richer than us. While it is a fun experience to attend an Indian wedding, hosting one is an altogether different story. The desire of making it a memorable evening, and the pressure of meeting expectations of hundreds of people, is intimidating, unnerving and of course, expensive. Very expensive.

The beginning of every wedding investment planning

The beginning is – in most cases – started from the the birth of the child and goes on for up to two decades. The infamous Indian inflation makes it necessary to start saving early. Sadly, the amount required to marry a daughter is still more than that for marrying a son.

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Beginner’s guide to Retirement Investment Planning

Posted in Finance, Investment.

Retirement planning should – in an ideal world – begin with your first paycheck. Yet, there are several reasons that keep us from it, lack of awareness being the biggest. In this post, I’ll run you through the basics of retirement planning, what you are doing wrong, and how to start, or do some course correction with some handy tips. Let’s start with the most important question:

How much do you need on retirement anyway?

Let me illustrate this with an example. Let’s say you are 30, and expect to retire at 60 (not very obvious in private jobs thought). Your current monthly expenses are INR 50000 per month today. If you live till the age of 75, you need a whopping INR 7.7 crore in those 15 years. So thirty years to save 7 crore. Which – without compounding –  means INR 23 Lakhs a year.

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Natives and Expatriates guide to Systematic Investment Plan (SIP)

Posted in Finance, Investment, Mutual Funds.

expats

Expatriates working up their investments in India are often too occupied or not informed enough to get the better of Indian investment ecosystem. I’ve written this post to give them some pointers that might come handy. First, you must keep in mind the inflation rates in India v/s the country you’re working/were working in. Indian inflation, which has never dropped below 5%, went as high as in double digits in the past 10 years, but is now apparently tending back to around 5%.

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The finer points of Health Insurance and why you need it

Posted in Finance.

There are quite a few people out there who would consider health insurance a luxury; then again, there are those who don’t consider it at all. Insurance, especially health insurance, is extremely important. More so these days than ever before. To read more please click here.


Open Letter to Narendra Modi

Posted in Education, Finance, Government, Income Tax, India, News.

Respected sir,

Before anything else, I’d like to thank and congratulate you on furthering the Swachh Bharat Abhiyan with the master stroke of cleaning the black money menace. It is a very good exercise and will eliminate the existing black money to a great extent.

While all noble ideas emerge from our mann (heart), it often takes our dimag (mind), to execute them to fruition. Therefore, here I humbly propose some ideas to ensure that demonetization brings forth the impact you and your team visioned, while minimizing the trouble for the common man.

Now, we should try to restrict the methods for generation of new black money and identification of jugaads (hacks) done by people to convert their black to white in these famous 50 days.

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Never too late to buy a life insurance plan

Posted in Finance, Insurance.

If you are the one who had always procrastinated the decision to buy a life insurance plan or a protection plan then it’s time you buy it now. There are various kinds of life insurance policies available, some are sold through life insurance agents and some are sold online. The most famous and purest form of insurance sold online is term insurance. Term insurance plans are plans which provide protection to your family members in case an unfortunate event of death occurs to the nominee.

Why you should buy a term plan?
If you would ask me I would say a term plan is a must for everyone who has dependents like parents, spouse, kids, young siblings so that their future is secured even in your absence. Term plans are pure protection plans, they provide a higher sum assured at really low premiums.

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Do you need a critical illness insurance

Posted in Finance, Insurance.

Do you need a critical illness insurance if you have health insurance?

The answer is yes ! MediClaim or health insurance and a critical illness insurance works differently and has different utility. A few of the differences between MediClaim & Critical Illness insurance are:

  • Medical insurance operates on the concept of reimbursement of medical expenses unlike Critical illness insurance cover provides a lump-sum amount on diagnosis of a predefined critical illness.
  • On an average MediClaim cover is generally taken for less than 5 lacs which is mostly adequate for normal hospital and surgical treatments. However, the amount generally ends up being grossly insufficient for treatment of critical illnesses.
  • Critical illness insurance is cheaper than MediClaim . A limited number of illnesses are covered under Critical Illness insurance and the probability of those illnesses hitting a person is much lower than the general category of illnesses which are covered by MediClaim policies.

Critical illness insurance

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New Age Unit Linked Insurance Plans

Posted in Finance, Insurance.

Unit Linked Insurance Plan:
Unit Linked Insurance Plan (ULIP) is type of insurance product, which gives policy holders both insurance and investment under same plan. A part of the premium is utilized to provide insurance cover to the policy holder while the remaining portion is invested in various equity and debt schemes (depending upon chosen plan). Policy holders can select the type of funds (debt or equity) or a mix of both based on their investment need and appetite.

Next Gen – ULIP Version 2:
Thanks to internet, insurance companies are now selling directly to customers and this helped in bringing cost down by eliminating middle man commissions.
Some low cost ULIPs which are directly available online are Aviva i-Growth, Bajaj Allianz Future Gain and Edelweiss Tokio Wealth Accumulation.

Some new ULIPs have lower costs than what many mutual funds charge. It makes sense to invest in the new and much-improved version of ULIPs. As ULIPs have longer lock-in (of five years), fund manager have at least five years, and returns can be higher considering a longer view. Plus they add risk cover also which mutual funds don’t have. Like Wealth Accumulation Accelerated cover (WAAC) from Edelweiss Tokio Life is already 5 star rated by MorningStar

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The best critical illness insurance plan

Posted in Finance.

The occurrence of illnesses has grown tremendously in India. Health insurance also known as mediclaim has become an integral part of an individual’s insurance plan. Most of us have a mediclaim policy which provides us a specific amount as sum assured. These mediclaim policies cover many illnesses ranging from minor to major. Now, it’s important to understand that mediclaim covers only hospitalisation costs and not any other cost incurred by you or your family but what if you need a lump sum amount for your immediate expenses or for an advanced treatment? That’s when you’ll need a critical illness insurance plan. Critical illness insurance plans cover certain predefined critical illnesses. Now when you have a mediclaim why should you opt for a Critical illness plan? Assume Raj suffered from Malaria so his entire treatment came up to Rs 75,000. Ten years later Raj was detected with cancer the expense for the treatment was around 15 lakhs altogether. Hospital charges for the surgery were only Rs 5,00,000 which was paid by his mediclaim policy.

It is important to understand that the treatment for a critical illness is more expensive, when one is diagnosed with a critical illness the income earning capacity is hampered, there could be a need to travel abroad for advance treatment, etc. and hence all this may require a lump sum amount which is provided by critical illness insurance plan.

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