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Nov 26, 2018

Credit Card Use Abroad- Everything you Should Know

2:51 PM 0
Credit Card use abroad-Planning that long overdue trip oversees this winter vacation? Wherever you are off to, one thing essential apart from your passport and luggage is your mode of payment. You don’t want to carry a lot of cash, as it’s cumbersome and unsafe. There’s also the headache to convert the exact amount you require in foreign currency. This is where a credit card comes into the picture — it’s convenient, secure, boosts your purchasing power and offers discounts and cashbacks on purchases. While a credit card simplifies your transactions in more than one way, it’s prudent to know the difference in using it abroad from using it in India. Let’s look at a few things you must keep in mind to make the most of it if you are traveling overseas.

Not all cards are accepted everywhere

Your card may be acceptable to most merchants in India, but that may not be the case in another country. So check with your credit card company if your card is valid in the country you are travelling to. You don’t want to be stranded in an alien land with a very useful card otherwise but not accepted in that part of the world. If you are not sure of the acceptance of your card, it’s best you apply for a more widely accepted card or carry multiple cards. Also, speak to your card provider and intimate them of your travel so that your card usage abroad isn’t seen as suspicious, leading to a card block.

Charges on international transactions

Swiping your card abroad can attract some additional charges. The three main types of charges are Foreign Currency Conversion Fee, Foreign Transaction Charge and Cash Advance Fee. Foreign Currency Conversion Fee involves a fee of approximately 1–2% to convert your card balance in Indian rupees to the concerned currency. A Foreign Transaction Charge is 2.5–3.5% of the transaction amount, charged by your credit card issuer. Further, you have to pay a cash withdrawal fee of nearly 1–4% in addition to the standard fee you pay every time you withdraw money using your credit card.
Credit Card Use Abroad- Everything you Should Know

Know your spending limit

You must know your credit card limit before you go on a trip. Foreign trips are expensive and if you don’t have a big enough credit limit, your transactions could be declined if your credit limit gets exhausted. Increase the credit limit on your card or carry multiple credit cards to have a smooth trip.

Get a card protection plan

You can protect your card from the risk of fraudulent transactions, theft, loss etc., by opting for a card protection plan from your credit card provider. Not just your credit card, your debit card and other documents can be protected through a card protection plan. Upon loss of a credit card while on a trip, CPP would help you get emergency assistance on travel and hotel worth the amount assured in the plan.

Keep the card’s customer service number handy Your credit card issuer has a dedicated customer service number to assist you in case of any trouble with the credit card, which includes misplacing it or loss or damage. Keep this number handy so you can block your card or report immediately in case of loss of the card. This will help you protect yourself against any fraudulent activities Credit card use abroad

Nov 25, 2018

Time Bank Fd to Post office and Corporate Bonds Take to Double Money

1:51 PM 0
Everybody is keen to know time taken for double the investment. We want to double our investment in short span of time. For getting money double in 5 years, required CAGR( Coumpund annual growth rate) is 15%.

However, there is no guaranteed-return product that offers such a high rate of return and the only possible way to achieve this is by taking risk. But there will be no guarantee that the objective will be achieved, which means the capital may get doubled or be more in five years or may even get halved or be less or may remain stagnant. 
As very few people want to see their capital erode due to fluctuations in the markets, let us discuss how much time the amount invested in fixed-return instruments would take to get doubled.

Bank Fixed Deposits 

The rate of interest on fixed deposits (FDs) vary from bank to bank and tenure to tenure. The highest interest rates irrespective of tenure vary between 6 and 7 per cent in top 10 banks. The following table shows how much time it will take to double the amount invested taking the highest FD rates. Assumed that the rate of interest will be constant. It is also likely to reinvest maturity amount to achieve the goal
Time Bank Fd to Post office and Corporate Bonds Take to Double Money

Post Office Time Deposits 

The investments in Post Office time deposits are considered better due to the sovereign guarantee and higher rates. The interest rate on Post Office also varies from tenure to tenure and the highest rate for normal citizens is 7.8 per cent for 5-year time deposit. At 7.8 per cent your capital will get doubled in 9 years 3 months. 

Corporate Bonds 

Companies also raise funds from public at attractive rates through corporate bonds. It is advisable to study the offer documents carefully and take note of the rating given by rating agencies to assess the risk factors associated with the investment. Here also the rates of interest vary from company to company and from tenure to tenure. The following table shows how much time it will take to double the amount invested, taking the highest rates.Assumed that the rate of interest will be constant. It is also likely to reinvest maturity amount to achieve the goal
Time Bank Fd to Post office and Corporate Bonds Take to Double Money

Nov 23, 2018

All About Kisan Vikas Patra from Account Opening to Death Claim

2:33 PM
Kisan Vikas Patra (KVP) is a small savings scheme for interest. Government regulates Kisan Vikas Patra investment scheme in which the principal money gets doubled during the tenure of investment. KVPs are available at Post Office branches.

Originally introduced in 1988, KVP became very popular due to easy availability, no paper work, ease of transfer, sovereign protection, attractive rate of interest at the inception.

People used to treat it a valuable gift item as the maturity amount was payable to the holder of the certificate.

Kisan Vikas Patra was used rampantly for money laundering and cases of theft of KVP certificates also started rising due to easy transferability and lack of paper work. As KVP had became a money laundering instrument, it was withdrawn in 2011 following recommendation of a government committee.

How to Save Good Money from your Salary-Taxalertindia

KVP has been reintroduced in 2014. KYC norms are mandatory now for stopping money laundry cases

Here are some of the features of the new Kisan Vikas Patra KVP.

  1. To invest in KVP, you don’t have to open any account. You have to visit a nearby Post Office and pay the amount you want to invest.
  2. KVPs are available in the denominations of Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000, and have no maximum limit on investment.
  3. To invest Rs 50,000 or more in KVP, you have to submit proof of your PAN card.
  4. Currently, the rate of interest on KVP is 7.7 per cent per annum, which will make your principal amount double in 112 months, that is in 9 years 4 months.
  5. Investor can withdraw money after lock in period of 2.5 years.  KVP allows to withdraw money after lock in period before maturity.
  6. Nomination facility is also available in Kisan Vikas Patra. In the case of demise of the investor during the investment period, the nominee or the legal heir has to fill a claim application form, asking the Postmaster for settlement of the dues.
  7. The principal amount is completely safe as KVP bears sovereign guarantee of the Government of India.
    All About Kisan Vikas Patra from Account Opening to Death Claim
  8. Government Declares interest rate on Kisan vikas patra on quarterly basis with guaranteed payout.
  9. Tax benefits are not available in KVP. Income tax is payable on investment under Kisan Vikas Patra. Principal and interest both are taxable.
  10. KVPs may be used as a collateral to avail secure loans, which are cheaper than unsecured loans.

Nov 22, 2018

PAN Deadline for non-individual doing Transaction Above 2.5 Lakh

1:56 PM 0
Non-individual entities who have do not have PAN but conduct a transaction of Rs 2.5 lakh or more in a single financial year will now mandatory have to get a PAN before May 31 of the following financial year. This is as per a notification issued by the Income Tax Department dated November 19, 2018.

Full Notification is as follows about pan for non-individual is must 

In exercise of the powers conferred by section 139A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. Short, title and commencement.__(1) These rules may be called the Income–tax (Twelfth Amendment) Rules, 2018. (2) They shall come into force from the 5th day of December, 2018.

2. In the Income-tax Rules, 1962, __

(I) in rule 114,__

(A) in sub-rule (3), after clause (iv), the following clauses shall be inserted, namely:__

“(v) in the case of a person, being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year and which has not been allotted any permanent account number, on or before the 31st day of May immediately following such financial year;

PAN Deadline for non-individual doing Transaction Above 2.5 Lakh

(vi) in the case of a person, who is the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person referred to in clause (v) or any person competent to act on behalf of the person referred to in clause (v) and who has not been allotted any permanent account number, on or before the 31st day of May immediately following the financial year in which the person referred to in clause (v) enters into financial transaction specified therein.”;

(B) in sub-rule (6),__

“(i) for the words, brackets and figures “under sub-rule (4) or intimation of Aadhaar number in subrule (5)”, the words, brackets and figures “under sub-rule (4), intimation of Aadhaar number in subrule (5) and issue of permanent account number” shall be substituted;

(ii) for the words “number and intimation of Aadhaar number”, the words “number, intimation of Aadhaar number and issue of permanent account number” shall be substituted.”;

Nov 21, 2018

How to Save Good Money from your Salary-Taxalertindia

4:14 PM
How to save money from your salary is the biggest worry for a common man.  There are so much expenses now a days that saving money looks like impossible. But if we set some rules and change in style of expenses, we can easily do some savings each month. There are some rules and habits to follow to save money every month.  

Needs Vs wants

One should always distinguish between need and want. We simply more spend on our wants than needs. For example Ramesh wants to buy a new smartphone while he is having a phone which is also running and working good. We can post pone these expenses as much as we can. Remember the wants are unlimited and we can’t compromise with the need for paying for wants.  

Saving plans

Simple formula of saving is to post pone your wants but never post pone saving plan. If you invest anywhere like in recurring deposit for a small amount every month, don’t let stop it and try to pay the installment on time. One should have an investment habit and try to invest every month instead of lump-sum. Investing  small amount every month will be a good amount in year and it will surely increase your savings. There are many plans in investing like SIP which gives good return compare to FDs. Investing every month can write off adverse effect of inflation with the interest you earn.
How to Save Good Money from your Salary-Taxalertindia
 

5 Points to Remember For Becoming Super Rich Soon

Financial goals

One must have financial goals as it will help in investing more and spending less. For example, if you want to purchase a new car in next 3 years, your financial goal is to cover as much as amount with your saving so you will not need to take a loan for your car and pay interest on the loan and save yourself from EMI. For Example you want to purchase a house of Rs. 20 Lakh in next 5 years, you should consider the amount will be 30 lakh in next 5 years for  home and start investing accordingly.
 

Saving vs investment

Saving money at home is not a good habit. It will decrease money value due to inflation. One must invest saving money to get interest on your saving. However, emergency funds should be kept at home.   Don’t spend big on sale and discount offers Sale and discount offers are normal things in market now a days. You can get discount 7 months out of 12. So don’t madly spent on sale and purchase only things of use. Like people purchase woolen cloths in summer just for sale offers. Fashion changes every day. One must behave rationally in spending.   Expenses on fun One must enjoy his/her life and fun, roaming, enjoying life is good. But one should set a limit of expenses for it. Sometimes we can save money by cooking a dish at home while cost hundreds at market.   Save where you can Every month review your expenses and make a chart where you could save money in it. This will give a better picture and implement on next month. It works.

Nov 20, 2018

Father Name Not Mandatory in Permanent Account Number PAN

11:39 AM 0
Mentioning father’s name may not be compulsory in future for obtaining Permanent Account Number (PAN), a key identification number needed for filing taxes and certain financial transactions, if the applicant’s mother is a single parent.

The government has proposed to amend rules and forms under Income Tax Act to ensure that children of single mothers do not face any hassle in securing the 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department. Mentioning mother’s name will be compulsory in such cases, according to a draft notification released for consultation by the tax department.

PAN, which serves as an identity proof, is compulsory for financial transactions such as receiving salary or professional fees, selling or buying assets above specified limits or buying mutual funds. At present, furnishing father’s name is mandatory for PAN allotment.

In April, the tax department had changed rules to recognise transgenders as an independent category of applicants for securing PAN. It allowed a new tick box in the PAN application form for transgenders. Till then, only male and female gender categories were available on the form.

The government has also proposed to amend the rules on the time-line regarding applying for PAN and its issuance. The department has given time till 17 September to public for making suggestions.

Nov 18, 2018

SBI will Block Net Banking by Nov 30 to Customers who Don't Do This

12:09 PM 0
The State Bank of India (SBI) has asked its customers to register their mobile number with the bank by the end of this month, failing which their internet banking access will be blocked. According to a banner on the bank’s corporate website, the customers need to register their mobile numbers with the lender by November 30 if they want to keep using internet banking. “Please register your mobile number by November 30.2018, failing which your internet banking access may be deactivated/blocked with effect from December 1, 2018,” SBI said on its website.

The order has been issued in line with the Reserve Bank of India (RBI) guidelines which make it compulsory for the commercial banks to ask their customers to mandatorily register for SMS alerts for electronic banking transactions.

A circular issued by the RBI in July 2017 stated that the banks may not offer facilities like electronic transactions, other than ATM cash withdrawals, to customers who do not provide mobile numbers. The SBI website adds that the customers can enjoy the service in an “uninterrupted” manner, by registering their mobile number with the bank.

How to register mobile number with SBI?
If the customers are yet to register their number with the State Bank of India, they can either do it by visiting the branch or through an ATM. To register the number through an ATM, follow these steps –

1. The customers need to swipe their card and choose the ‘Registration’ option.

2. Enter the ATM PIN.

3. Select the mobile number registration option.

4. Enter the number and select ‘correct’ option after re-checking the number.

5. Re-enter the number and select the ‘correct’ option.

6. A message will appear on the screen that reads – “Thank you for registering your mobile number with us”.

7. The bank will contact the customers within three days and a reference number will send to their mobile phone via SMS.

8. Verify personal details and the number will be registered with the bank.

The bank had reminded its customers to register the number earlier this year with a tweet. “Registration of mobile number for all SBI accounts is mandatory in order to avail of internet banking facilities and electronic transactions, other than ATM Cash Withdrawals,” it had tweeted.