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Income tax calculator for financial year 2013-14

Posted in Finance, Income Tax.

Excel based computation tool is based on slabs and recommendations proposed by Finance Minister P. Chidambaram in budget presented on 28th Feb, 2013.

You can download excel based Income tax calculator for FY 2013-14 (AY 2014-15) and use it for computing tax on income from salary/pension, house rent and capital gains.

Income Tax Slab Rates for financial year 2013-2014 (Assessment year: 2014-15)

For Men
Upto Rs. 2,00,000Nil
Rs. 2,00,001 to Rs. 5,00,00010 per cent
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent
For Women
Upto Rs. 2,00,000Nil
Rs. 2,00,001 to Rs. 5,00,00010 per cent
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent
For resident individual of 60 years or above (Senior Citizens)
Upto Rs. 2,50,000Nil
Rs. 2,50,001 to Rs. 5,00,00010 per cent
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent
For resident individual of 80 years or above (Very Senior Citizens)
Upto Rs. 5,00,000Nil
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent

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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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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

Critical illness insurance plans review:

Even though you would want to take a Critical illness cover, at times it is not that easy in India to get this insurance. Not every insurance company provides a critical illness cover and many don’t provide stand alone plan. A few insurance companies will provide a Critical illness cover against just one illness like cancer.

Aegon iCancer and HDFC Life CancerCare provides a cover only against cancer and not other major illnesses. Some insurance companies provide it as a rider in which case you are forced to opt for a term plan.

Edelweiss Tokio Life – CritiCare+ provides cover against 17 critical illnesses like kidney failure, heart disease, cancer, blindness, organ transplant etc. It also provides a multi-claim option where the policy holder can claim thrice on the diagnosis of two more critical illness. The other benefit is that the premium amount gets waived off after the occurrence of the first claim. The plan provides complete security against critical illnesses at a low premium cost. One can opt for a cover as high as Rs 1 crore.

Secure yourself today so that if a critical illness catches you, you can bounce back immediately.


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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Invest for long run:
One advice for investor, even if new plans have lower costs, don’t invest for smaller term (2-3 years). Stay invested for at least 10 years.

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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.

The most prevalent illnesses in India are Coronary Artery Disease, Stroke, Cancer, Respiratory disease, Kidney failure. Heart disease stands as the number one killer followed by cancer. There are plans which only cover you against one disease like cancer, now cancer is prevalent but since you have thought of being protected against critical illnesses why protect yourself only against one why not against the most prevalent ones. Also Chronic Kidney Failure may need kidney transplant or dialysis of which one is expensive and the other requires continuous prolonged treatment. Pick a plan which covers illnesses that are most common and prevalent. Also there are few term plans in the market which provide critical illness cover as a rider. Some provide you with a rider along with their term plan that is as expensive as buying a separate plan itself. Now these riders cover you against 34 illnesses out of which few are Parkinson’s, Alzheimer’s which are not very prevalent in India.

Now if you buy a term plan without the rider the premium is Rs 6,884/- p.a. whereas if you add the rider the premium is Rs 31384/- p.a. ( both calculated assuming it’s a healthy male who is 25 years old with a policy term of 30 years, sum assured Rs 1 Crore). If you notice the rise in premium it is equivalent to buying a new policy and the drawback in this case is that once you claim Rs 1 crore your sum assured for the term plan is exhausted.

In such cases, it’s always better to opt for two different plans – term plan & critical illness plan because the need for both is different. You may be wondering whether there are any insurance plans that cover most severe illnesses. Yes there are such plans, like Edelweiss Tokio Life – CritiCare+ covers 17 critical illnesses. Also there is a multi claim option under which you can claim up to 3 times, which sounds like a blessing. The premium rate is also comparatively lesser which is around Rs 15,773 (assuming it’s a healthy male who is 25 years old with a policy term of 30 years, sum assured Rs 1 Crore). What makes it the best? – Stand-alone critical illness plan so if you want a term plan with it you may have to pay a premium of Rs 4950, the total will be Rs 20723 which is much lower than Rs 31384!

Make the right choice today and don’t shell out extra without thinking! Be financially prepared to BounceBack from a critical illness.


Things to consider when buying a life insurance policy

Posted in Finance, Insurance.

When disaster strikes, it is best to be prepared. Protection is the key when faced with danger, and life insurance policy acts as a shield that keeps the harm and loss at bay.

life insurance policy

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Fixed or Floating interest rate home loan, which one is better?

Posted in Finance, Home Loan.

Every potential home-buyer opting for a home loan is often faced with the classic dilemma whether to choose a fixed interest rate or a floating one. However, there is no straight answer to this confusion. Decision needs to be taken after monitoring the pros and cons of both alternatives. Let’s study them individually.

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Income Tax E-filing and its benefits

Posted in Finance, Income Tax, India.

What is E-Preparation of Income Tax Return?

E-Preparation of IT Return is the process of preparing your Income Tax Return using a software.

The E-Preparation  software can be of 2 types: Form-16

A. Manual Calculation:

Those that allow you to enter your Income Tax data but do not calculate the Income Tax & Refund etc. The individual user needs to calculate the above himself/herself

B. Auto Calculation:

Those that take the Income Tax related data that you have entered  to automatically calculate the Income Tax and Refund  using their  inbuilt  tax calculation engine that is updated for current rules

Auto Calculation Software  is more efficient and less prone to calculation errors.

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Be careful while operating ATM machine : A True incidence

Posted in Education, India.

This post has been written specifically to educate people of another kind of fraud at the ATMs.

The story narrated below is a real incident that happened today.

A sixty years old year man, living in a small town, visits a neighborhood ATM early morning to withdraw some cash. Like always, he inserts his debit card, enters PIN and requests for cash withdrawal. As machine does not have enough currency notes, machine informs that amount entered is large and requests him to choose a smaller amount. He tries 2-3 times and is able to only withdraw 2-3000. Now the old man is confused what to do.

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Instant interbank funds transfer through mobile phone (IMPS)

Posted in Finance, Government.

National Payments Corporation of India (भारतीय राष्ट्रीय भुगतान निगम, NPCI) has launched Interbank Mobile Payment Service (IMPS) on 22nd Novemeber, 2010.

This is first of its kind service in the world, which allows fund transfer between individuals through their mobile phones. It provides any time instant money transfer service through mobile phones to any other person registered for IMPS service in any of the participating banks.

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