No exemption on meal vouchers & coupons - New Income Tax Slab

Rules changed : No exemption on meal vouchers & coupons - New Income Tax Slab

1. Under the new income tax regime for FY 2020-21, employees cannot claim tax exemption on meal coupons given by way of paid vouchers
2. The income tax department considers free meal or beverages provided by an employer to employees during office hours to be a personal benefit to employees

For those employees who is opting for the new income tax slab which offers a lower tax rate, the income tax department has changed rules for claiming exemption on free meals provided by the employer to employees.

In a notification, the income tax department has said that employees opting for the new tax slab under Section 115BAC will not enjoy the benefit of tax exemption on meal coupons or vouchers.

"Under the new tax regime effective FY 2020-21, an employee can no longer claim an exemption for meal coupons given by way of paid vouchers. The exemption value is Rupees 50 per meal.

The following exemptions are, however, available to all employees:

1) The cost of free food and non-alcoholic beverages given by an employer during working hours at the office or business premises.

2) Tea and snacks provided during working hours.

3) Free food and non-alcoholic beverages provided during working hours for work in a remote area or an offshore installation.

No exemption on meal vouchers & coupons - New Income Tax Slab

If you lost your Job Tomorrow, How long you can survive Financially

If you lost your Job Tomorrow, How long you can survive Financially

According to Robert Kiyosaki :

What is Wealth : " The number of days your can survive without physically working and Still maintaining your standard of living"

Simple Formula to Check : If you lost your Job Tomorrow, How long you can survive Financially :

Formula = A/E-PI

A = Liquid Asset

E = Expenses    

PI = Passive Income or Other Source of Income

Real Time Example

Liquid Asset = 100,000

Expenses = 30,000

Passive / Other Source of Income = 10,000

Real Time Example = 100,000/30,000-10,000

5 Months on the above scenario

Consider you don't have any other source of income

Real Time Example = 100,000/3000

Just 3 Months on the above scenario

According to Warren Buffet :

" If you don't find a way to make money while you sleep, you will work until you die"

" Never depend on one income, make investment to create a second source"

Top 10 Passive Income Ideas :

• Blogging
• Rent your house
• Data Entry
• Youtube Channel
• Invest in Dividend yielding stocks 
• Ride Sharing
• Online Course
  
• E-Book
• Mutual Funds
• Car Renting
  

If you lost your Job Tomorrow, How long you can survive Financially, The best solution

"Financially Literacy" and Plan your future with Passive Income that will take you "Financially Independent"

Rakesh Jhnunjhunwala Indian billionaire investor | Sultan of Indian Share market | King of Dalal Street | Big Bull of Dalal street | Warren Buffet of India

 

 

Rakesh Jhnunjhunwala Indian billionaire investor | Sultan of Indian Share market | King of Dalal Street | Big Bull of Dalal street |  Warren Buffet of India

Name : Rakesh JhnunJhunwala

Rakesh JhnunJhunwala Often referred  as Sultan of Indian Share market, King of Dalal Street, Big Bull of Dalal street,  Warren Buffet of India etc.,

Who is Rakesh Jhunjhunwala :

Jhunjhunwala is an Indian billionaire investor, Charted accountant, He was born in the year 1960 at Hyderabad. Later studied at Sydenham college, Later completed Charted accountants (ICAI). According to the report he is the 48^th Richest man in India with $1.8 billion net worth as on 2019.

Jhunjhunwala when he was a small boy he often part of his father discussion with friends on share market. He got inspired a lot from those conversation when he was young . The King of Dalal Street soon got motivated and asked his father about his passion. Jhunjhunwala father advised him to complete his college studies .  

how did Jhunjhunwala become a billionaire ?

He is a risk taker from the beginning and that paid off on his investments. Initially  Jhunjhunwala  invested in TATA TEA be bought 5000 shares for Rupees 43 rupees and stock rose 143 within a span of three months  it was a threefold success for  Jhunjhunwala. Within few years with his strong knowledge on share market and risk taking attitude Jhunjhunwala earned 20-25 Lakh

 

Rakesh Jhunjhunwala Investment Philosophy:

He is very well known for his long term investment in companies

 1) “One should always rely upon the knowledge readily available in the market to become a successful investor,”  

2) "One has to make mistakes and learn from them"

3) “If you do not believe the markets are supreme, you will never admit that it was your mistake. If you don’t admit that it is your mistake, you will never learn. To succeed in the stock market, one not just needs the ability to learn from mistakes, but also to blame only oneself for it,” he says.

4) “I don’t blame promoters of companies. I blame myself. The promoter is what he is. I have to recognise it if he is not what I expect him to be,” he remarks.

Rakesh Jhunjhunwala Companies in which Rakesh Jhunjhunwala invested :

The Mandhana retail venture

Rallis India

Escorts

Geojit Financial Services

Bilcare

Autoline Industries

Ion Exchange (India)

Multi Commodity exchange of India

CRISIL

VIP Industries

Auto line industries

Sterling Holiday Financial services

Agro tech Foods

Etc., These are some of the companies in which Rakesh Jhunjhunwala invested

 

Rakesh Jhunjhunwala Titan Investment:

Rakesh Jhunjhunwala and Wife sell 1 Crore Titan Shares in March : Jhunjhunwala held 6.69 per cent share in the company. They together sold 1.03 crore worth of shares during last December

 

EPF Contribution reduced and Take home increase

EPF Contribution reduced and Take home increase  India's Finance Minister Nirmala Sitharaman has eased down the contribution an employee and employer makes towards provident fund account amid Covid-19 crisis.

It is important to provide more take-home salary to employees and also to give relief to employers in payment of provident fund account. It will allow more take home for employees and less burden on employers 

What it means:

The statutory contribution of both employees and employers to 10% each from the existing 12% for all establishments covered by EPFO

The FM highlights that, such will provide relief to about 6.5 lakh establishments covered under EPFO and about 4.3cr such employees.

New income tax slab for FY 2020-21

5-7.5 lakh: 10% income tax
7.5 lakh to 10 lakh: 15% income tax
10 lakh-12.5 lakh: 20% income tax
12.5 lakh-15 lakh: 25% income tax
15 lakh, 30% income tax

Those earning 5 lakh will not pay any tax

HDFC Ultra short term fund

Please do research before you invest in any plan 

Let your short term surplus work for you! Don’t let your short term surplus lie idle. Your short term surplus is optimally utilized when you invest it wisely. Make a smart choice by investing in HDFC Ultra Short Term Fund.

HDFC Ultra Short Term Fund is suitable for investors: Desiring a high degree of liquidity and lower interest rate risk Having an investment horizon of 2-6 months Investors with a need to park short term surpluses Using it as a channel to transfer funds systematically to other schemes

Portfolio Statistics as on 31st December, 2019 Average Maturity Macaulay Duration Yield to Maturity AAA and Equivalents 122 days 120 days 5.71% 100.00%

Future Investment is here - Robo Adviser

What is Robo Advisor (Introduction)
How Does it Work
Advantage
List of Robo Advisor In India


What Is Robo Advisor: 

He is Automated & Online Financial Adviser, It provides financial advice to investment management with moderate to minimal human intervention. That makes Robo Advisor "Super Cool"

The first robo advisor was used in the year 2008. With the help of robo advisor, a middle-class person can also use the services for managing their finance and investment. These services are very costly and the only few of them can afford it.

The main aim behind the robo advisor is to bring the financial services to the wide range of people with low cost as compared to the traditional human advisors.

How Does It Work:

It basically works based on few set of rules and Algorithms. They are programmed in such way that by allowing few input and deliver the expected or the best outputs.

Basic Inputs Like mentioned below :

Age
Goals
Your Risk appetite
Current Financial Situation
Investment Time Period etc.,

Out Come :

The advice given by robo advisors are divided into multiple parts such as tax planning advice, insurance advice, health insurance planning, investment advice etc.

Advantage:

As we can see the robo advisor is beneficial to any individual who wants to invest on his own with minimal investment knowledge at the low cost. Robo advisors can automatically select the investment schemes and build a diversified portfolio based on your financial goal and risk appetite.
Not only that, it automatically makes changes to the investment based on the market condition to ensure you achieve your goals. If you have a knowledge of the stock market, you can use this robo advisor to build your portfolio as well.

List Of Robo Advisor In India:

5Paisa.com
Anglebroking.com
invezta.com 

What is Passive Income

"If you don't fine a way to make money while you sleep, You will work until you die," - Warren Buffett

There are two different type of Income:

1) Active Income - Example - Salaried employee

2) Passive Income - Example - House Rent from your rented property

Definition : 

"Passive income is income that is earned from rental property or an enterprise in which the investor is not actively involved."

How It works:

Example Passive Income : 

1. Interest income
2. Dividend income
3. Rental income
4. Royalty income
5. Gift received from person other than relatives
6. Income from winning of lottery, puzzles, batting, horse races etc
7. Income from capital gain
8. Sell ebook
9. Creating online course
10. And like all such income from any source that do not require physical and or mental exercise

Why Its Important:

Passive income is quite possibly one of the most important and central ways that the rich get richer. It’s how you detach your ability to earn from the time that you do have in a day. If you’ve ever heard the term, "If you don't fine a way to make money while you sleep, You will work until you die," - Warren Buffett,  With passive income, you do make money while you sleep. You also make money while you’re awake. It’s automatic and simply keeps coming in.