TanmayCreations
Monday, 11 December 2017
Thursday, 2 June 2016
CIAZ- The so-called competitive model that can be fatal for its customers!!
“All that glitters isn’t gold!! has been truly proved by this deceptive model under discussion.
Coming to my tragic story of possessing one:
We had been an ardent fan of the brand Maruti, and we can say that owing to our possession of 3 back to back cars of the same brand ( viz. Omni, Swift & Ciaz). We never ceased to praise our newly bought car, which is just 4 months old now, after having done a tremendous level of research and consulting people. Every time we gazed at our car, it made our eyes glitter with pride and we couldn’t stop staring at it. Also, used to recommend people through a positive word of mouth about the same. However, our misconception bubble bursted when we very recently encountered an accident on the highway. Little that we knew our praise wasn’t worth it, as the heart (so-called high-end and robust parts/accessories) of the car were ugly and awful!!
The bike rider came out of the blue from the main road on a no two-wheeler road zone. That too when we had maintained a speed of 60-70 km/hr (which is quite less for a highway)!! The bike had hit our front left hand side of the car and didn’t stop for few meters, while the bike got dragged on the road much before the car’s breakdown halt. To our utter shock by god’s grace the bike rider and pillion were absolutely safe (expect a small bruise on the driver’s hand) and were sound along with the unaffected bike, who rode back to their destination after few moments of the accident. Whereas, we were jeopardized in an absolutely new city sigh along with our family. Experiencing this kind of nerve wracking incident we had a slight idea that external parts would have been damaged, but on the contrary, when somehow managed to source the contact number of the Maruti service station, it was observed that there were major losses in our precious possession. The fender, the drive shaft and the shock absorber got disfigured, the arms lost their shape and got teared, the bumper got disfigured, ORVM cover broke, left fog light & the headlight got broken from inside and what not. We jumped off our skin when the estimated amount of damages was over INR 50,000.
Like really??? Is that price tag with high-end features incorporated in the range with such faulty, fragile yet expensive parts was worth a buy! I don’t think so, on the deceptive alluring and head-turning appearance lies a highly incapable and undependable vehicle for a family. What if something would have happened to the third party or our family for that matter?? Who would have been answerable for the indispensable loss!
It takes years to build trust, but one blow of air can sweep away everything. The same has happened with us, we won’t ever suggest anyone buying a Maruti product/this specific model after such a traumatic suffering.
It’s not a loss of merely our original parts/embellishments of the car, but also on the brand that had deep rooted bond with its customers. We feel that with the passage of time, the company has turned blind-folded in the competition to create a copied version of competitive brands but with the lack of quality. We wonder if there had been any Car Crash Tests done for this highly marketed and celebrity endorsed model! It boils our blood that we did a blunder mistake to spend years of our hard earned money (bank loan) for the beauty without the content car. The tall claims stood all in the dark when the reality took the stage.
Author: Priyanka Agarwal (Former Content Writer at CarDekho.com)
Image Courtesy: Maruti Suzuki & www.ecardlr.com
Thursday, 28 April 2016
Essential Income Tax Provisions for Medical Doctors
Medical Doctors' Profession is among the noblest and busy professions. Having said that does not mean that they are spared from filing income tax returns (ITRs).
Here is the summary of the legal and documentation requirements for the medical doctors in India as per the Income Tax Act, 1961 and amendments thereof, implementation of which may help in avoiding payment of unnecessary taxes, interests and penalties.
Books of Account: Section 44AA read with Rule 6F, mandates the maintenance of books of account for the medical doctors for the Income Tax purpose, where the Gross Receipts / Collections exceed INR 1,50,000 per annum. Books includes the following:
- Cash Book (For Cash System): A book in which receipts and payments of money are recorded OR Journal (For Mercantile System): A record of the financial transactions in order by date.
- Ledger: An accounting book that facilitates the transfer of all journal entries in a chronological sequence to the individual accounts.
- Issued Bills: Carbon copies of all the issued bills exceeding INR 25 needs to be maintained (whether machine numbered or otherwise serially numbered).
- Original Bills: Wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed INR 50, payment vouchers prepared and signed by the person. All the expenditure bills (with some exceptions) claimed while computing the income, are to be mandatory paid by account payee cheque / draft or electronically, if the payment exceeds INR 20,000 as per section 40A(3) of the Income Tax Act, 1961.
- Form No. 3C: Maintain this form as a daily case register.
- Inventory Record: An inventory as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his/her profession.
Record Tenure: The books of account and other documents should be kept and maintained for a period of six years from the end of the relevant assessment year. A penalty for non-maintenance of books of account is INR 25,000 as per section 271A of the Income Tax Act, 1961.
Accounts Auditing u/s 44AB: If the practicing medical doctor achieves a gross fee collection of INR 25,00,000 (Revised to INR 50,00,000 for FY 2016-17 & onwards) or more during the financial year, then books of account need to be audited by the practicing Chartered Accountant. As per section 271B of the Income Tax Act, 1961, on non-compliance, a penalty of INR 1,50,000 or 0.5% of gross receipts (whichever is lower) is applicable.
Due Dates:
- Normal ITR Filing: July 31st Every Year
- ITR Filing with Audit: September 30th Every Year
Note:
- For the Individual, HUF and Partnership Firms where gross receipts are below INR 50,00,000, Presumptive Tax Scheme u/s 44AD is available w.e.f. FY 2016-17 as an option to reduce the compliance burden on maintaining books of account and tax audits, by simply paying 50% of the gross receipts or total income assessed, as income tax.
- If the anticipated annual tax liability is more than INR 10,000, then the advance tax is required to be paid. The due dates for the advance tax are 15th September, 15th December and 15thMarch with payments of 30%, 30% and 40% respectively. If the advance tax is not paid fully or partially within the due dates specified, an interest @ 1% per month is payable, u/s 234C & u/s 234B of the Income Tax Act, 1961 (as applicable).
- The author is an ITD Certified ITR Filing Practitioner reachable on agarwal.tanmay@gmail.com.
Labels:
Accounts Auditing,
advance tax,
bhupati.org,
Bills,
Books of Account,
Cash Book,
Doctor,
Form No.3C,
Income Tax,
income tax return,
Journal,
Presumptive Tax,
Sec 271A,
Sec 44AA,
Sec 44AB,
Sec 44AD,
section 40A(3)
Location:
Jaipur, Rajasthan, India
Wednesday, 27 April 2016
Time Wasters
"Time Wastage" means time spent by someone on non-productive activities or that do not serve any useful purpose.
In day to day life generally, one may not waste his/her time knowingly on any activity(s) that do not serve any purpose. However, there could be certain factors that may crop up during useful or productive activities, which may lead to wasting of the time. These factors may be termed as "Time Wasters", which may be generically applicable everywhere, or may be specifically applicable.
Below are some of the key time wasters that are not classified for any specific duration or for any location (like office or home):
Interruptions: It means when a person is involved in some activity and some external agency (living or non-living) attempts to get the attention of this person on an another activity that is unrelated to the original activity hampering to the progress of the original activity that was being carried out by the person, then that another activity is an interruption for the person involved in the original activity. Examples of such interruptions could be the ringing phone, barking of a dog, doorbell, loud music in the neighborhood, etc.
Unclassified Task: When a person involves him/herself randomly on a task that has not been classified for some priority criteria, which may have been judged on the basis of Urgency and Importance, such a task is a time waster unclassified task. For example, if a person has to go to the office, or has to prepare food, or has to clean the bookshelf, or checking social media messages, or has to read a book. S/he needs should prioritise these tasks on the basis of urgency and importance. However, if s/he randomly selects one of these activities, there is a likely possibility of selecting a wrong task, leading to time wastage.
Dis-organised Place: If the place of carrying out the activities is not organised in a specific manner, it may lead to extra time involvement for searching an item, which may to the spending of extra time then the regular time needed to search that item. Then such a place poses to be a time waster.
Unnecessary Breaks: If the time gaps taken during the execution of an activity are more than the required gaps in terms of count &/or durations, then such breaks pose to be time wasters. For example, checking social media messages, coffee breaks, etc.
Social Media Messaging: If a person involves him/her regularly on checking and posting the messages on the social media like Whatsapp or Facebook, etc. in an uncontrolled manner, then such messaging becomes a time waster.
Chit-Chats: If the person involves in chit-chats with some person or group, in-person or over any other medium like telephone or group discussion, which is expected to lead no constructive results, such chit-chats may be considered to be time wasters.
Miscellaneous: There could be other time wasters that may or may not be appreciably considered as time wasters. Such as ineffective multitasking of the activities, unnecessary travelling, extensive socialisation, unwanted/unnecessarily putting own views in some other person's matters, etc.
- The author is a management professional reachable on agarwal.tanmay@gmail.com.
Friday, 22 April 2016
Importance of ITR Filing After 31st May Every Year
Though, Indian Income Tax Department (ITD) may introduce the Income Tax Return (ITR) forms for the previous year in the month of April itself. The usual last date of filing ITR is generally 31st July for the individuals (not auditable u/s 44AB).
People may start filing ITRs from the month of April. However, there are certain benefits of filing ITRs after 31st May, especially for the salaried people, where employer issues Form-16 (Form-16A for professionals / others) and TRACES generated Form-26AS forms the basis for filing the ITRs.
Form-26AS is a statement of TDS deducted by the employer(s) or financial institution(s) or any deductor(s) who had paid some taxable amount to a person / entity for his / her / their services / products and had deposited in the ITD as per the prevailing IT laws. The credit of TDS in Form-26AS is reflected only after the filing of TDS returns by the employers / institutions / deductors.
These days Form-16 & Form-16A are directly generated from ITD TDS website known as "TRACES" after the filing of TDS returns by the employers / deductors. The due date of filing TDS returns for the January to March quarter is 31st of May. Therefore, one may not get his / her Form-16/16A from the employer before 31st May. So, it also means that one may not get the updated TDS entries in his / her Form-26AS before 31st May.
If one files his / her ITR before 31st May, it might be a possibility that there could be some differences in the TDS reflected on Form-26AS with the TDS depicted in the salary / payment slips. This could lead to the issue of notices u/s 143(1) issued by ITD stating the mismatch of TDS claimed in the ITR and TDS entries available in Form-26AS. This could further result in demand of tax and interest by ITD from the taxpayers.
So, the ideal duration to early file the ITRs without last minute rush is to file between 01st June to 15th July every year.
File your ITR well in time and relax!
- The author is an ITD Certified ITR Filing Practitioner reachable on agarwal.tanmay@gmail.com.
Labels:
Form-16,
Form-26AS,
ITR,
ITR Filing,
Salaried Class,
Tanmay Agarwal,
TDS,
www.bhupati.org
Wednesday, 20 May 2015
Tax Free Gifting!
Giving gifts to near and dear ones is very much prevalent in our Indian culture. Generally, gifts are given to express love and affection. Sometimes, we may also help the needy one by providing some monetary help. However, Gifts can also be good tax planning tools.
As per Income Tax Provisions the following income shall be chargeable to Income Tax under the head ‘Income from other sources', Where an individual or a Hindu undivided family receives, in any previous year, from any person or persons:
b) Any immovable property:
i) without consideration, the stamp duty value of which exceeds Rs.50,000/-, the stamp duty value of such property;
ii) for a consideration, which is less than the stamp duty value of the property by an amount exceeding Rs.50,000/-, the difference between the stamp duty value of such property and the consideration received.
c) any property, other than immovable property,:
i) without consideration, the stamp duty value of which exceeds Rs.50,000/-, the stamp duty value of such property;
ii) for a consideration, which is less than the stamp duty value of the property by an amount exceeding Rs.50,000/-, the difference between the stamp duty value of such property and the consideration received.
Provided further that this clause shall not apply to any sum of money or any property received:
(a) from any relative; or
(b) on the occasion of the marriage of the individual; or
(c) under a will or by way of inheritance; or
(d) in contemplation of death of the payer or donor, as the case may be;
Please, note that gifts received from following relatives (donors) are tax free for Donor as well as Donee.
List of Male Donors:
Father, Brother, Son, Grand Son, Husband, Sister‘s Husband (Jija), Wife’s Brother (Sala), Husband’s Brother (Dewar), Mother’s Brother (Mama), Mother’s Sister’s Husband (Mausa), Father’s Brother (Chacha/Tau), Father’s Sister’s Husband (Fufa), Grand Father (Dada,Nana), Daughter‘s Husband (Jamai), Spouse’s Father (Sasur), Spouse Grand Father (Dada Sasur)
List of Female Donors:
Mother, Sister, Daughter, Grand Daughter (Poti) Wife, Brother’s Wife (Bhabhi), Wife’s Sister (Sali), Husband’s Sister (Nanad), Mother’s Sister (Mausi), Wife’s Brother’s wife (Sala Heli), Father’s Brother’s Wife (Chachi or Tai), Father’s Sister (Bua), Grand Mother (Dadi, Nani), Son’s Wife (Bahu or Putra Vadhu), Spouse’s Mother (Saas)
In other-words, any lineal ascendant or descendant of Individual or Spouse of Individual is a relative.
Keeping in mind the above provisions, we can plan our gifts so as to reduce final tax liability.
Tax Planning through Gifts to Wife or Son’s Wife:
Though gift received from a Relative is Tax Free, however, Gifts given to Wife or Son’s wife attract clubbing provision. This means any income arising from investment of such gifted sums will be clubbed in the hands of Donor i.e. Husband or Father-In-Law, as the case may be. So, it is always better to invest the gifted amount in such investment options, which are tax free. E.g. the amount can be invested in Listed Company Shares, PPF, ELSS Mutual Funds etc. As Long term Capital Gains earned on selling of these investments or any income accruing on these investments (like interest on PPF account) will be tax free, so it will not increase the tax liability of Husband. And later, wife can invest the earned income anywhere she likes and income on that investment will not be clubbed in Husband’s income.
Tax Planning through Gifts to Parents or Major Children:
If your income is taxable in 30% tax slab than you can plan gifts to your Parents, who are not having taxable income or the income is taxable in lower tax brackets. E.g. if one has surplus funds of 50 lacks, s/he can gift 25 lacks to his/her parents. And suppose his/her parents invest these funds in the bank FDR then each of them may get annual income of Rs.2,25,000/- (say @9%), which will not be liable to any tax. If the same income is taxed in the individual hands, the tax liability would have been Rs.1,35,000/- (@ 30% on 4,50,000/-). In this way, one may save substantial amount of tax year after year. Similarly, if one has major Childrenm who are yet to earn any income then money can be gifted to them. So, that an additional exemption limit and benefit of lower taxation slab can be utilized.
Tax planning through Gifts on occasion of Marriage:
1) Gifts received on occasion of marriage of an Individual are tax free in the hands of Giver and receiver both,
2) Clubbing provisions are not attracted,
So this provision can be utilized to its utmost benefit.
Gifts valuing below Rs.50,000/- (in aggregate during a year)
Gifts of aggregate value upto Rs.50,000/- can be accepted from any one without attracting any tax liability.
Gifts under a WILL:
Gifts to any person under WILL are Tax Free.
In Gist:
Gifts can always be planned from a person in a higher tax bracket to a lower tax bracket or Nil Tax bracket. Please note that the gifts should be reasonable and justifiable. It’s always better to prepare a Gift Deed for proper recording and valid proof of transaction. Duly incorporate therein the PAN and Address of the Donor, nature of Gift, Value of Gift, Reasons for Gifting, etc. Take the benefit of same before they disappear!
As per Income Tax Provisions the following income shall be chargeable to Income Tax under the head ‘Income from other sources', Where an individual or a Hindu undivided family receives, in any previous year, from any person or persons:
a) Any sum of money, without consideration, the aggregate value of which exceeds Rs.50,000/-, the whole of the aggregate value of such sum;
b) Any immovable property:
i) without consideration, the stamp duty value of which exceeds Rs.50,000/-, the stamp duty value of such property;
ii) for a consideration, which is less than the stamp duty value of the property by an amount exceeding Rs.50,000/-, the difference between the stamp duty value of such property and the consideration received.
c) any property, other than immovable property,:
i) without consideration, the stamp duty value of which exceeds Rs.50,000/-, the stamp duty value of such property;
ii) for a consideration, which is less than the stamp duty value of the property by an amount exceeding Rs.50,000/-, the difference between the stamp duty value of such property and the consideration received.
Provided further that this clause shall not apply to any sum of money or any property received:
(a) from any relative; or
(b) on the occasion of the marriage of the individual; or
(c) under a will or by way of inheritance; or
(d) in contemplation of death of the payer or donor, as the case may be;
Please, note that gifts received from following relatives (donors) are tax free for Donor as well as Donee.
List of Male Donors:
Father, Brother, Son, Grand Son, Husband, Sister‘s Husband (Jija), Wife’s Brother (Sala), Husband’s Brother (Dewar), Mother’s Brother (Mama), Mother’s Sister’s Husband (Mausa), Father’s Brother (Chacha/Tau), Father’s Sister’s Husband (Fufa), Grand Father (Dada,Nana), Daughter‘s Husband (Jamai), Spouse’s Father (Sasur), Spouse Grand Father (Dada Sasur)
List of Female Donors:
Mother, Sister, Daughter, Grand Daughter (Poti) Wife, Brother’s Wife (Bhabhi), Wife’s Sister (Sali), Husband’s Sister (Nanad), Mother’s Sister (Mausi), Wife’s Brother’s wife (Sala Heli), Father’s Brother’s Wife (Chachi or Tai), Father’s Sister (Bua), Grand Mother (Dadi, Nani), Son’s Wife (Bahu or Putra Vadhu), Spouse’s Mother (Saas)
In other-words, any lineal ascendant or descendant of Individual or Spouse of Individual is a relative.
Keeping in mind the above provisions, we can plan our gifts so as to reduce final tax liability.
Tax Planning through Gifts to Wife or Son’s Wife:
Though gift received from a Relative is Tax Free, however, Gifts given to Wife or Son’s wife attract clubbing provision. This means any income arising from investment of such gifted sums will be clubbed in the hands of Donor i.e. Husband or Father-In-Law, as the case may be. So, it is always better to invest the gifted amount in such investment options, which are tax free. E.g. the amount can be invested in Listed Company Shares, PPF, ELSS Mutual Funds etc. As Long term Capital Gains earned on selling of these investments or any income accruing on these investments (like interest on PPF account) will be tax free, so it will not increase the tax liability of Husband. And later, wife can invest the earned income anywhere she likes and income on that investment will not be clubbed in Husband’s income.
Tax Planning through Gifts to Parents or Major Children:
If your income is taxable in 30% tax slab than you can plan gifts to your Parents, who are not having taxable income or the income is taxable in lower tax brackets. E.g. if one has surplus funds of 50 lacks, s/he can gift 25 lacks to his/her parents. And suppose his/her parents invest these funds in the bank FDR then each of them may get annual income of Rs.2,25,000/- (say @9%), which will not be liable to any tax. If the same income is taxed in the individual hands, the tax liability would have been Rs.1,35,000/- (@ 30% on 4,50,000/-). In this way, one may save substantial amount of tax year after year. Similarly, if one has major Childrenm who are yet to earn any income then money can be gifted to them. So, that an additional exemption limit and benefit of lower taxation slab can be utilized.
Tax planning through Gifts on occasion of Marriage:
1) Gifts received on occasion of marriage of an Individual are tax free in the hands of Giver and receiver both,
2) Clubbing provisions are not attracted,
So this provision can be utilized to its utmost benefit.
Gifts valuing below Rs.50,000/- (in aggregate during a year)
Gifts of aggregate value upto Rs.50,000/- can be accepted from any one without attracting any tax liability.
Gifts under a WILL:
Gifts to any person under WILL are Tax Free.
In Gist:
Gifts can always be planned from a person in a higher tax bracket to a lower tax bracket or Nil Tax bracket. Please note that the gifts should be reasonable and justifiable. It’s always better to prepare a Gift Deed for proper recording and valid proof of transaction. Duly incorporate therein the PAN and Address of the Donor, nature of Gift, Value of Gift, Reasons for Gifting, etc. Take the benefit of same before they disappear!
Thursday, 23 October 2014
Official Music Video: Anjana Main Chala
First musical love story video titled "Anjana Main Chala" produced by my sister Priyanka Agarwal under her own production house, Creative Sailor Productions.
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