Wealth management

Wealth management 

Managing your wealth is not easy, it was never be easy. There are various aspects of wealth management, and one has to invest in various instruments in order to better once money.

Make an estimate

First your primary needs to be satisfied, and that's your living expenses. You have to calculate based on your current family needs how much you spend on a month. Make a rough estimate by writing down your one months each and every expenditure and next month keep the exact same amount of money to be spend without doing much calculations. This will first help you estimate how much of money you need as your living expense for your family. And in the second month, while you try to make up with the exact same amount money, it gives you a sense of awareness and need for saving more money, and trying to make up with the money you have in hand.

Try not be to too optimistic in your spending in the first money, make average estimate for the very first month to get the realistic estimate.

Use of credit cards

While you are setting your bar in the initial estimate for the monthly expenses do not forget to add up your credit card expenses while will only be billed in the next month or so. This is something might account a major portion of your expenses.

Tax and NRIs

If you are an NRI, you would have to file your income tax returns for 2012-2013 in India, if you fulfill either of these conditions: - Your taxable income in India during the year 2012-2013 was above the basic exemption limit of Rs 2 lakh OR - You have earned short-term or long-term capital gains from sale of any investments or assets, even if the gains are less than the basic exemption limit. What about short term capital gains, like gains from stock market equity sells that you hold for less than a year? NRIs do not get the benefit of differential exemption limits on basis of age or gender that is available to Resident Indians. Estimating a flat rate of 10% in fixed deposits, then if you have invested 20 Lakhs in FD, then your annual income from FDs is 2 Lakhs. So, if you hold FDs upto 20 Lakhs, you still no need to pay tax on them. But, if you cross that limit, then definitely you do.

Tax on Dividends

There is no tax on dividends earned from stocks in India, but the same is not true in USA.

Expectations of commeners from the Union Budget

For the salary earning tax paying class of commoners, their are a lot of expectations from this years Union Budget. First and formost the Income Tax limits should go up:

Expected New Income Tax Slabs for 2013-2014

Expected New Income Tax Slabs for 2013-2014:
1. Income < 3 Lakhs = NIL tax
2. Income > 5 Lakhs = 10%
3. Income > 10 Lakhs = 20%
4. Income > 15 Lakhs = 30%.
Medical/Health Insurance limit should go upto 50,000.
Investment limit should go upto 2 Lakhs.
Home loan interest should be raised to 3 Lakhs.

Personal finance reforms

There has been a couple of reforms that has been seen in the personal finance arena in India. Unification of accounts or portability is one of the most important this that is happening in India, unlike many advanced countries in the world. Here are few to list:
a) portability of mobile numbers:
Now one can retain the same old mobile number irrespective of how you roam around in India due to job related transfers or for other business trips. The same mobile number can be ported across regions/states, and across providers.
If you are not satisfied with the service of one telecom company then you can easily switch to other telecome provider, with your mobile number remains the same.

b) portability of bank account:
After SBI launched it core banking facility, now one can deposit, withdraw money from one's SBI account anywhere across India, without the ATM card by visiting to the branch. Once the Aadhar card is accepted as the single document to prove one's identity, this will be even simple to prove ones identity while withdrawing money from ones own account. The same has been followed by other banks and now the bank account number portability is in place. No need to change your salary account details in your home loan in your native state or anywhere else in India. The same details works since your bank account number has never changed. No worry of cheque bouncing, no defaulting.
So, as an effect if you change your job and now the new company does not provide salary deposit into your previous bank then you can simply switch to the new bank for salary account with the same old account number.

c) Health insurance policy portability:
Now if you are not satisfied with the health insurance policy of one company, you can easily switch or try another health insurance provider.

d) Here comes the brand new portability, the PF account portability:
Coming 2013 March, your PF account will be portable across the country. What does it mean? It simply means that if you change your job, which is the trend now a days with Indian youths unlike the olden days when your father has served 20 years in the same company, you do not have to change your PF account. A well thought initiative by PF organization of India, EPFO. Your PF account number will be your permanent PF account number.

Now just log on to EPFO website to check your monthly balance

Over 50 million subscribers of the retirement fund body EPFO can obtain e-passbook along with details of their updated accounts online from on Wednesday.

"The EPFO subscribers can get their statement of accounts online from today," Central Provident Fund Commissioner R C Mishra said while addressing a seminar on Employees' Provident Fund Act by the PHDCCI here.

In order to avail this facility, the active subscribers would have to register themselves on the EPFO portal by furnishing their account details.

The facility to obtain e-passbook will be available only for active members of the Employees' Provident Fund Organisation (EPFO) and would not be extended to those whose accounts are inoperative, settled or have negative balance.

The members of exempted provident fund trusts regulated by the EPFO, too will not be entitled for this facility through its portal. The e-passbook will also have additional information like name, date of birth and account number.

Mishra also informed that the EPFO is in the process of introducing the facility of online settlement of provident fund claims in a couple of months.

At present, the subscribers who are either superannuated or applied for withdrawals, can apply only manually and is time consuming. As per the EPFO citizen charter, such claims should be settled within a month, though it takes longer than that.

Mishra said in order to provide the facility of online application of claims, EPFO would require a central database. At present, all regional EPFO offices maintain their database separately.

"These works including fund transfers, settlement of PF accounts and withdrawals constitute over 80 per cent of our work," he said, adding online claim settlement will save time and improve efficiency.

Income Tax: No need to file returns if salary not exceeding Rs 5 lakh

NEW DELHI: Salaried employees earning up to Rs 5 lakh a year need not file income tax returns from this year, the Finance Ministry said today.
The exemption from filing I-T returns is applicable only if "the total income of the employee does not exceed Rs 5 lakh ... (and) the annual interest earned from savings bank account is less than Rs 10,000" for assessment year 2012-13.

Filing I-T returns is, however, necessary to claim refunds.
The last date for filing tax returns is July 31. There are about 85 lakh salaried persons in the country whose yearly income, including earnings from other sources like bank deposits, does not exceed Rs 5 lakh.
The exemption will be permitted only if the assessee has received a certificate of tax deduction in Form 16 from the employer. The employees have to report income from interest on savings bank account to the employer to become eligible for exemptions.
Earlier, it was obligatory for all salaried persons to file income tax returns under the Income Tax Act, 1961.
Meanwhile, the tax department said special counters will be set up in Delhi and 'Tax Kiosks' in various parts of Mumbai to assist people in filing income tax returns.
Unlike the previous years, the tax department will not set up any return receipt counters are at Pragati Maidan in New Delhi.
"Instead returns will be received at Civic Centre, opposite Ramlila Ground, New Delhi, from July 26 to 31.
The Mumbai Income Tax Department will set up 'Tax Kiosks', manned by Tax Return Preparers, at various locations in city to assist individual and HUF taxpayers in preparation and filing of the returns. A tax payer will have to pay Rs 250 to avail services of TRPs.
'Tax Kiosks' will be functional in certain residential areas on July 22 and in certain offices on July 24 and 25.
At present, income of Rs 2-5 lakh attracts 10 per cent tax, Rs 5-10 lakh 20 per cent and above Rs 10 lakh, 30 per cent.