Income Tax Calculation and Tax Savings

Everyone wants to and needs to file taxes. The problem is there is lack of proper knowledge on how taxes are calculated

Basically, there are 4 slabs in Income tax. In a financial year, if your Taxable Income is
Up to Rs. 2.5 lakhs -- No tax
Rs. 2.5 lakhs - Rs. 5 lakhs -- 10%
Rs. 5 lakhs - Rs. 10 lakhs -- 20%
Above Rs. 10 lakhs -- 30%

You all know this very well, but there is a misconception

For example: If your yearly Income is Rs. 15 lakhs, then we assume that it is more than Rs. 10 lakhs so, 30% of Rs. 15 lakhs (Rs. 4.5 lakhs) is the tax payable. But, tax deduction doesn't work like that

Government takes
10% of 2.5 lakhs = 25,000
20% of 5 lakhs    = 1 lakh
30% of 5 lakhs    = 1.5 lakhs

So you have to pay 2.75 lakhs not 4.5 lakhs so you still have 12.25 lakhs to enjoy;)

But who want to give there hard earned money to the government. So, people prefer to do tax savings..

To do proper tax savings first you have to know about Taxable Income

Taxable Income=Total Income-Tax Deduction

The more Tax Deduction , less the Taxable Income. Tax Deduction can be done by investing in Tax Saving Investments like Insurance, PPF, Mutual funds,etc and make tax savings up to 1.5 lakhs (if your income is above 10 lakhs you save around 45,000 and if your income is below 10 lakhs you save about 30,000.. It may not seem as much but it's very good savings)

The Best and Common Tax Saving Investments are:

Public Provident Fund(PPF)
Mutual Funds/ELSS

PPF is risk free but returns are less
MF/ELSS has high returns and also highly risky

Different types of Number Plates Permitted by RTO in India

You know that recently, The Police Department gave a notice on number plates design and gave nominal fonts and design for number plates and few examples of defective number plates

So, I thought of telling you about different Patterns of number plates permitted by RTO in India

Basically there are 6 Patterns of Number plates

1. Black over White background : Private Vehicles

2. Black over Yellow background : Commercial Vehicles

3. Yellow over Black background : Commercial Self Drive Vehicles

4. White over Black background : Military Vehicles

5. White over Blue background : Foreign Diplomat's Vehicles

6  White over Red background : Demo/Test drive Vehicles

And we have one car in India which is not tagged with any of these Pattern or Numbers i.e The Car of President of India it only has Indian Emblem (Four Lions) on it

CAPTCHA | What?.. Where?.. Why?

I am sure you have encountered CAPTCHAs while filling forms, signing up, etc.. Ever wondered why is it for? If yes, i hope you have got the answer!

If you have not got the answer, here you go!!

CAPTCHA is the acronym for Completely Automated Public Turing test to tell Computers and Humans Apart, which means a test which seperates Humans and Computers automatically.

CAPTCHA is security measure against Bot attacks. It avoids scripts which performs automatic Sign-ups and form fill ups, which can overload Servers and Data Centers and make them vulnerable.

Imagine a hacker(script kiddler) or spammer who wants to open 1 Lakh Gmail accounts, without CAPTCHA he can do it in One hour( since computers are faster). With CAPTCHA his code cannot work because computer cannot think independently.

Turing Test is a process in which you Identify, if the user is a Human or a Computer. It includes test like Entering Text given in the box, Performing simple Calculation or Selecting pictures from grid which matches the question given. The basic Idea behind this test is the ability to think independently, which computer lacks.

Ideally, Turing test for Humans Should be easy i.e you can easily clear in one go.. But few times it is hard to perform it properly and we sometimes find it difficult so the average success rate for Humans is above 80% but success rate for Computers is less than 0.01%

Since, we humans fail to Complete the test successfully few times 'reCAPTCHA' - A Google Company, which gives free API for CAPTCHA for your site and Biggest CAPTCHA provider is all set to launch its Latest Version of CAPTCHA - Invisible reCAPTCHA

The new reCAPTCHA looks promising, lets hope for the best :)

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BHIM | How to Send and Receive Money using BHIM app | Happy New Year!!

Wishing You A Happy and Prosperous New Year 2017!!

PM Narendra Modi has Launched a rebranded version of Unified Payment Interface (UPI) app at Digi Dhan Mela camp in Delhi, Which is Small in Size and Easier than Wallet. The new app is called Bharat Interface for Money(BHIM), this app is developed by National Payment Corporation of India(NPCI) and is available for Android Smartphones via Google Play Store. BHIM app for iPhones and Windows Phones will be coming soon.

How to Setup BHIM app on your Android phone

When you Install BHIM app on your device, you will be asked to enter your Mobile number to create an account (Make sure the number is the same number that is linked to your bank account for ease of use). The app only sends an SMS from your phone to verify your number. No sensitive data is shared. Currently only two languages (English and Hindi) are available.

Unlike other UPI app there is no need to enable Mobile Banking to use BHIM

If the phone number you have entered is linked to your Bank account, the BHIM app will automatically fetch details of your bank account(s). if not you can even add your account Manually 

Unlike other UPI apps where you have messy interface, BHIM app's interface is neat and simple. On top of the screen, you have option to Send Money, Request Money or Scan and Pay using QR code. By default, Your registered Mobile number is your UPI address (example: If your Mobile number is 9876543210, Your default UPI address willl be 9876543210@upi). you can also customize your UPI address.

If you have two or more bank accounts of different banks, you can easily switch between banks in just a few clicks

Features

• SImple, Secure an dFast transfers
• Send, Recieve & Request money conveniently
• Single app for all Banks
• Scan QR code to pay instantly
• Check Bank Balance INstantly

How to Send money with BHIM app

1. Click Send on Main Screen
2. Enter Mobile/Payment address and Verify
3. Enter the Amount
4. Click on Pay button
5. Enter your UPI PIN

You can also Send Money by scaning QR code

1. On top od main screen click on 'Scan & Pay'
2. camera opens and sends the amount.

How to Request money using BHIM app

1. Click Request an Main Screen
2. Enter Mobile/Payment address and Verify
3. Enter the amount
4. Click Reuest

In the reciever's phone, a notification about the request pops up.

You can also request by sharing your QR code. For this,

1. In main screen, Select Profile
2. Choose amount and remarks
3. Click on generate.

you can download the QR code or Share via Social netwok

Talking about limits, You can transfer as low as Re. 1 to maximum of Rs. 20,000 per day. However, in single transaction you can transfer maximum of Rs. 10,000

Apart from BHIM government has introduced Aadhar Payment app for Merchants, which allows you to pay using Aadhar and Fingerprint.

List of banks which support BHIM

All the Bank which as support for UPI, can be used in BHIM

• South Indian Bank
• Standard Chartered Bank
• State Bank of India
• Allahabad Bank
• Andhra Bank
• Axis Bank
• Bank of Baroda
• Indian Bank
• Indian Overseas Bank
• IndusInd Bank
• Karnataka Bank
• Karur Vysya Bank
• Kotak Mahindra Bank
• Oriental Bank of Commerce
• Punjab National Bank
• Bank of India
• Bank of Maharastra
• Canara Bank
• Catholic Syrian Bank
• Central Bank of India
• DCB Bank 
• Dena Bank 
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• IDFC Bank
• Syndicate Bank
• Union Bank of India
• United Bank of India
• Vijaya Bank
• RBL Bank

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What is UPI? | What are the uses? | Last Blog of the Year

From Last few day, You probably have heard about UPI.. If you have not heard it, i'm going to tell you about it  because coming days you will hear about it a lot. so firstly

What is UPI?

UPI is the short form for Unified Payment Interface, which can be used to transfer money from any of your Bank Accounts to anyone Instantly

Digital India is most aspired dream for modern day India.. Even though there are more smart phone users in India Mobile Banking as not been implemented as forcasted.. NEFT, IMPS have there own limitations. UPI will eliminate those.

UPI is the Idea of National Payment Corporation of India(NPCI) with support of RBI

NPCI is the institute currently maintaining ATM's and in-charge of Inter Bank Transfer.

How to Use UPI?

UPI is mainly concerned with mobile banking, so for the convenience all major Banks have UPI apps available on respective stores/market places. I strongly recommend to download these apps from stores itself.

Is there difference between NEFT, IMPS and UPI

Yes, there is.

• National Electronic Fund Transfer: To transfer amount you should add all bank details, get approved then you can transfer which also depends whether bank is open or closed. So it is very time consuming.

• IMmediate Payment Service: It is a very good services and gives faster transfer(almost immediate). But same as NEFT you have to enter all the credentials of others bank account and this is also used only for bank to bank transfer not other services

• Unified Payment service: This similar to IMPS but with more features. when you register for UPS you will get an ID which can be shared to others to get money transferred no need of account no, full name, IFSC code etc. the id is enough and fund transfer is immediate

What is the difference between Wallet and UPI?

the difference is very simple

you add money to the wallet through the bank account and use money through wallet and if you want that money back you need to transfer/withdraw to your bank account

in UPI the money is directly transferred from bank accounts.

Where UPI can be used?

 UPI can be used everywhere, from grocery stores to bill payment. You can send and recieve money instantly with any business/merchants/sellers

The transaction limit is 1 Lakh Rupees and transaction fees per transaction is 50paisa

currently this service is in starting pace and is currently used for Inter-bank or Intra-bank transfer only.. In coming days you can pay hotel bills, college fees, taxi fares instantly using UPI

This is an wonderful initiative for cashless India and Truely Digital India

What about the security?

After lot if news about Hacking this days. the first question is how is my money secure while I'm using very vulnerable device

It is maintained by NPCI so no fear about security, because it gives world class encryption

add-on to that you get strongest measure in cyber security Two-Factor Authentication(email verification and OTP verification)


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