Tax Planning - 2009/2010

Tax Planning Procedure,

I think this is the right time to dicuss some details regarding Tax-planning.
First we know about the different Tax-Slab available in India hereby,

up to 1.6 lakhs - No Tax
1.6 lakhs to below 3.0 lakhs - 10%
3.0 lakhs to below 5.0 lakhs - 20%
Above 5.0 lakhs - 30%

First thing in this calculation is calculating Taxable-Amount.

Taxable Amount = Gross Salary - Investment(Tax Rebate)

Gross salary is the Take-Home Salary, not your offer-letter salary.

So, we need to concentrate over the Investment part.

1. First thing is the 80c/80cc's maximum limit is 1.0 lakhs
2. Next we can deduct out HRA amount starightly.
3. There is a limit of Rs.10000 for preminum paid to Medical Insurance.

Its our responsibility to utilize the 80C limit fully by investing in periodic basic,

Below example are made according to monthly-basis investment,

Provident Fund - 1600.00
Public Provident Fund - 2000.00
ELSS - 3000.00
ICICI Pru Tax Plan (G) - 1000.00
HDFC Tax Saver (G) - 1000.00
SBI Magnum Tax Gain Scheme (G) - 1000.00
Insurance - 1500.00
Money Back Insurance - 1500.00


For example if your Gross salary is 4.5lk

Investments
80c/80cc
Provident Fund - 19200.00
Public Provident Fund - 24000.00
ELSS(Mutual Fund) - 36000.00
Insurance - 18000.00
----------------------------------------
Total - 97200.00
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HRA
Total(7000*12) - 84000.00

Medical Insurance
Total(800*12) - 9600.00

So, Taxable Amount = 450000 - (97200.00+84000.00+9600.00) = 259200.00

This amount will come under the Slab-2, so tax to be paid is 25920.0(annually)

Popular Google Search 2009

These are the list of "Google Search words" mostly searched by India last year(2009).They can be categorized into different level and shown below.

Fastest rising

1. budget 2009
2. kambakth ishq
3. irctc
4. satyam share price
5. bhuvan
6. michael jackson
7. twitter
8. election results
9. windows 7
10. nokia 5800

Most popular celebrities

1. katrina kaif
2. michael jackson
3. salman khan
4. aishwarya rai
5. shahid kapoor
6. kareena kapoor
7. shahrukh khan
8. angelina jolie
9. megan fox
10. sachin tendulkar

Most popular movies

1. love aaj kal
2. harry potter
3. slumdog millionaire
4. kaminey
5. kambakht ishq
6. ghajini
7. hannah montana
8. dev d
9. wake up sid
10. dostana

Most popular

1. gmail
2. youtube
3. yahoomail
4. orkut
5. indian railways
6. yahoo
7. google
8. rediffmail
9. facebook
10. rediff

Most popular politician

1. rahul gandhi
2. indira gandhi
3. sachin pilot
4. sarah palin
5. p chidambaram
6. mayawati
7. barack obama
8. sonia gandhi
9. rajesh pilot
10. maneka gandhi

How to

1. how to kiss
2. how to hack
3. how to meditate
4. how to study
5. how to swim
6. how to draw
7. how to flirt
8. how to chat
9. how to concentrate
10. how to download

Thanks for reading

Savings vs Investment vs Property

Most of them struggling in understanding difference between Savings,Investment and Property.

Before getinto these three giants we need to keep keep ourself in a safer side.For that ensure these following points carefully,

1.Take term-policy for all members of your family.Since term policy is not come under money-back policy, premium paid will be somewhat negligible only.
2.First close all your standing debt like personal-debt,personal-loan and credit-card loan.Exception is there for home loan only.
3.Take Medical-Insurance for all your family members.(Carefully read the documents before signing in it)

Once all the above above things are successfully achieved,then we get into 3 Giants.
Savings is the excess-money attained after spending to our monthly needs.(Eg. Bank-deposit,Bonds)
Investment is the process of allowing our money to grow, in order to attain some long-time goal.(Eg. Stock-Market,Mutual Fund,Currency Trading)
Property is some what like permanent-product that is owned by us.(Eg.Land,Home,Gold,Vehicles,Household things)
Now we can easily relate the 3-Giants as,
Savings and Investment are done in-order to buy a Product.

Then what is the relationship between the Savings and Investment?Why we are having these two things separately?
Before answering this questions we get some knowledge about the Inflation with one example.
For Example,By today you are buying a Product-1 for Rs.100 with inflation rate of 8.
So we need to pay Rs.108 for buying the same product after one year period.Reason for this is price appreciation rate will be equal to inflation rate.

If you make a close look on it inflation-rate and the bank deposit-rate will be some what equal.So Bank-deposit is meant to provide a money that suite to our current inflation-rate.That's the reason most of them are stepping into investment side inorder to attain some more profit as compared to inflation.
One dark-side of the Investment are, there may be possibility of getting our money deprecated in short-term.

If you started thinking about investment come-up with some long-term plan like 3-5 years inorder attain minimum guarantee.

Thank you for reading.

Need a change in School Education System

As per my perspective instead of making our people to accept free offer, We better offer them them free education.Eventhough this is previously available in our current system. Most of them preffer to put his steps into private schools.
There is two reason behind this, one is the "Quality of Education" and another one is "There Dignity among the society".By utilizing the mindset of parents, most of the private schools put-up the fees in the extream level.so Getting a seat in private school is became "Shining star in Sky" for finacially low-grade people childrens.And one-step-ahead some of the schools are providing the bills as govt specified amount by collecting extra amount.

In order to overcome these senarios we have to change two bullet-points they are,
1.Increasing infrastructure and normalizing the standards of Govt.Schools.
2.Normalizing the admission process in Private schools and create a slab for every financial-level.

Slab will consists of three level(Somewhat like DoTE in engineering admission)
a)Slab-2 will be the exact fees of what specified by schools(40%).
b)Slab-3 will be the double the fees of what specified by schools(30%).
c)Slab-1 will be offered free of education fees of what specified by schools(30%).

So that childrens from different financial level will get the same quality of education.And schools also getting same level of revenue.One important thing is creation of slab should be purely based on the financial-level only. We should not allow any caste-wise reservation here.I am not sure this will be implemented in our education system or not, This will be fully my imagination, about how to make my INDIA in Developed Countries list.

Thank you for reading.

Sukhoi Su-30 - Power of India Air Force

Clutch Less Bike from TVS

Japanese design now running on Indian roads. After the Street bike which came with a bang in 2000 was one of the best clutch less bike. Now after years of struggle TVS has come up with their own design which will be hitting on Indian road soon. The Jive which is 4gearsclutch less will be one of the hectic free bikes in India. It is a true commuter which has the capacity to convert every drop of fuel into useful resource. The Jive is targeted at economy segment which can give high average.


The bike is made from one of the simplest design which can yield good results. To make the commuter enjoy his ride the bike does not have aclutch. This means no more revving and hassle free ride.

It is stressful for the rider to use his clutch in heavy traffic. Well now onwards his ride is free from movement. The tensed clutch can no longer be in use as the engine is design with an automatic clutch. The Jive will be featured in the 2010 expo in Delhi. It is a true Japanese design which can deliver 50 to 60kmpl. It can affect the designs of Bajaj as it will no longer stand in the commuter segment. Jive will be available in the price range of 45,000 to 50,000 prices. It can change as this is the quoted price for the 110cc Jive.

Rotary gear transmission allows the bike to start in current gear. This is one of the added features which will attract more buyers than the speed. It delivers 8.4bhp at 7500Rpm which is decent according to the cost. Commuter segment is targeted by TVS for the launch of Jive. For every day use this is one of the ideal machines which can be used.

The Jive is one of the maintenance free bikes. After the absence of clutch the bike has few parts as the automatic clutch is activated when the engine is running. Sturdy in design and running is the main motive of the new Jive from TVS.