Author - Kapil

February 2019

Interim Budget 2019-2020, Tax Implications for Salaried

Interim Budget FY 2019-20 Highlights ! for Normal Salaried

Interim Budget – Highlights !

1. Full tax rebate for individuals earning up to Rs.5 lakh.

Tax savings largely for people earning about 5-10L annually.

Minimal impact for people in the higher tax slabs or earning say 15L+ etc. They still save about 3K annual for the savings on tax on 10K  increase in standard deduction

Tax Calculations with Provisions (Example of 10L+ Income and how it can go tax free.. Now)

Total Salary: 10.25 lacs *
Housing Loan Interest 200k
Standard Deduction 50k
Sec 80C 150k
NPS 50k
Mediclaim Self 25k
Mediclaim Parents 50k*
Total Deduction 525k
Net Income 5 lac
Tax 12.5k
Rebate 12.5k
Net tax to pay ZERO

*80G and other deductions (as applicable) not taken into effect
*The above deductions are taken as example as majority of salaried people avail the same

2. TDS relief: There will be no TDS on interest earned up to Rs.40000 from savings bank account and post office savings schemes.Also, there will be no TDS on rental income of up to Rs.2.40 lakh per annum.

3. Higher standard deduction limit: Salaried individuals can claim standard deduction of up to Rs.50,000 (up from Rs.40,000) in lieu of transport and medical reimbursement.

4. Higher tax free gratuity: A good news for private sector employees. The government has proposed to double the approved ceiling limit for gratuity payouts from Rs 10 lakh to Rs 20 lakh. That means, gratuity of up to Rs.20 will not be taxable anymore.

5. No income tax on notional rent: So far, if an individual owned a second house, even if his house is vacant, he had to pay income tax on notional rent (i.e. market value of rent of the property in a particular location). However, individuals having unoccupied second house will not be required to pay tax on such a property.

6. Amending Section 54EC: Individuals can invest up to Rs.2 crore in two residential properties under Section 54 EC. At present, Section 54EC of the Income Tax Act lists the cases in which capital gains tax from long- term assets (held for more than three years) need not be charged if the gains are up to Rs. 1 crore and are invested in certain specified areas.

Points 5/6 are trying to give a boost to the sagging real estate market by introducing incentives for home purchases. I don’t think salaried people will start buying just yet considering that the prices in cities like Mumbai are still sky high. However it is good proposal for people with 2 houses or in the mode of selling etc.

Some interesting statistics

6.85 crore individuals have filed income tax returns last fiscal

The government has collected close to Rs.12 lakh crore from direct tax


November 2018

Stay Hungry ~ Stay Foolish ~ An Inspirational Speech by Steve Jobs

Drawing from some of the most pivotal points in his life, Steve Jobs, chief executive officer and co-founder of Apple Computer and of Pixar Animation Studios, urged graduates to pursue their dreams and see the opportunities in life’s setbacks — including death itself — at the university’s 114th Commencement on June 12, 2005…. Inspirational Stuff….

I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I’ve ever gotten to a college graduation. Today I want to tell you three stories from my life. That’s it. No big deal. Just three stories.

The first story is about connecting the dots.

I dropped out of Reed College after the first 6 months, but then stayed around as a drop-in for another 18 months or so before I really quit. So why did I drop out?

It started before I was born. My biological mother was a young, unwed college graduate student, and she decided to put me up for adoption. She felt very strongly that I should be adopted by college graduates, so everything was all set for me to be adopted at birth by a lawyer and his wife. Except that when I popped out they decided at the last minute that they (more…)

February 2018

Smart Goals, Achieve ,Success, Financial Goals

How to Achieve Goals? The SMART Way…..

How to Achieve Goals? The SMART Way…..

SMART ways to realize goals … (applicable to Life / Health / Financial Planning/ Career …. )

Specific Goals, Success Mantra

S – Specific. Be Specific . For example, “I want to lose weight.” Or “I want to become rich” This is wishful thinking. It becomes a goal when I pin myself down to “I will lose 10 pounds in 90 days.” Or “I will save 3 lacs in 1 yr” etc

Peter Drucker Quotes, What gets Measured Gets managed.


M – Must be measurable. Something which cannot b measured cannot be achieved. Measurement is a way of monitoring our progress. For example, 10 pounds/90 days  or achieving a savings of say 3 lacs/ year etc….is measurement.

Be Flexible, Adjustable for Successful achievement of goals


A – Must be adjustable.  Goals are not meant to be win or lose situations. Goals are just goals. You can achieve them 100%, or 85% or 50%. You can achieve them early, or late, or if things go exactly according to plan – right on time. …. Often people make the mistake of setting goals that are too rigid, where any unforeseen event can throw the goal off course and destroy the goal achiever’s motivation to keep going …..

Be adjustable and realign , refocus and start afresh when thrown off track … so make your goals adjustable according to new situations as all goals should be …Smart Goals, Achieve ,Success, Financial Goals

• R – Realistic. We’re an achieving generation. We want to take care of our families, to do well in our careers, get Best education for children ,to have fun, to travel. We want to buy the new car, wear the new watch, check out the new holiday destination…..etc…. Have your priorities, know your capabilities, and stretch yourself a little bit to get that extra edge.

But remember, don’t take risks where you can’t afford to, and don’t set yourself up for disappointment. Don’t wet unrealistic goals e.g.:: Losing  30 pounds in 30 days is being unrealistic. Doubling investments every year….. is unrealisticTime Quotes, Success Mantra , Achieving Goals

• T – Time-bound. There should be a starting date and a finishing date. With no time frame, there’s no sense of urgency, or yardstick to measure your progress.

Your goal must be achievable. You must have the mental and physical capacity to reach the goal. It would, however, be important for your goal to cause you to stretch beyond normal self-imposed limits. You will find a goal that causes you to stretch and grow will be the goal that gives you the most satisfaction. Don’t be afraid to challenge yourself to go beyond old limits! Let Success be yours….

financial planning, financial freedom, Bad investment products to avoid, Retirement Planning, Child Plans