Most people use their talents and skills to earn money. People get money for making goods or providing goods and services. Some work for others and get paid at the end of the day or month. Some people earn money by working for themselves by running their own business. Businesses come in all shapes and sizes. Fruit seller, Maruti are both examples of business but of different size. This explains about earning . We shall know
What are your kids going to do this summer? Will they spend endless hours on mobile, gadgets or go to the usual camps or the specialty camps like dance or art camps. You might want to consider a different type of camp, one that will pay off down the road, a summer camp that provides kids with invaluable money-management skills and purpose. This article is about the summer camp, called Camp Millionaire to be organised in Bangalore to teach children about Money and give them a sound Financial Foundation.
With Camp Millionaire, children get the financial education foundation they need to meet and exceed their financial goals when they grow up. They learn the critical financial concepts, habits, principles they need to grow into financially responsible adults. No camp is a quick fix. Just as going to cricket camp does not turn every child into Sachin Tendulkar, money camp is not going to create financial wizards. So What will your kids learn?
At the very least, your child will leave Camp Millionaire with a heightened awareness of the financial world around him. Most of them will leave with much more!
- How to make their money ( jobs & businesses )
- How to manage their money (budgets )
- How to multiply their money ( investing in business, stock market & more)
- How to think like, and develop the habits of, a financially sound person.
- When to use other people’s money and when NOT to!
- How money can be used to give back and help communities
Camp Millionaire is a 5-day workshop and is based on simple money management and wealth creation principles such as:
Prior to the launch of budget 2017, only specific categories of business and professionals were liable for the TDS on rent paid. Budget 2017 has announced that now salaried employees and other individuals paying rent of over Rs 50,000 per month would have to deduct 5% as TDS. This provision will come into effect from June 1, 2017. This article will explain what is rent, when TDS on rent has to be deducted or nor deducted, the new changes for TDS on rent paid in Budget 2017, by when to file TDS. How to Pay TDS on Rent using Challan 281, How to show Rent received in ITR.
Understanding TDS on Rent
What is rent?
Rent defined under Section 194I of the Income Tax Act, 1961 is any payment under lease, sub-lease, tenancy, sub-letting or any other agreement for use of land, building, land appurtenant to building/factory building, machinery, plant, equipment, furniture or fittings. Any advance payment or security deposit, given to the landlord on the condition that the amount will be returned at the time of vacating the property is NOT considered as rent.
For example, Anand pays Rs. 10,000 per month as house rent but has paid Rs. 1,00,000 as the security deposit to the landlord on the promise that Rs. 1,00,000 will be reimbursed to Anand once he vacates the premises. So, TDS need not be deducted on Rs. 10,000.
Who is liable for TDS on rent under section 194I?
Professionals and Business falling who have to get Tax Audit
Professionals and Business who have to get their tax audited under the scope of Section 44AB have to deduct TDS @ 10% and if the total amount of rent credited or likely to be credited exceeds Rs. 1,80,000 in a financial year. The limit was raised from Rs. 1,20,000 to Rs. 1,80,000 from 1 Jul 2010.
Businesses and Professionals who are not required to get their Tax Audit conducted are not required to deduct any TDS on Rent irrespective of the amount of payment made during the year. As a business or professional, you will not be obliged to avail tax audit if,
- You are carrying on a business whose total sales/turnover has not exceeded Rs. 1 crore in any previous year
- If as a professional your gross receipts do not exceed Rs. 25 lakhs in any previous year. (Applicable from FY 2016-17 onwards.)
- If your business or profession is not covered under section 44AD, 44ADA, 44AE, 44AF, 44BB, 44BBB and income from such business/profession is less than deemed gains.
Salaried or others tenants not mentioned above
Earlier, salaried or HUF individuals were exempted from TDS on rent.
- However From 1 Jun 2017 if rent paid is more than Rs. 50,000 per month then under new Section 194IB, TDS is 5% of the total rent paid or payable is applicable to the payer of rent. The tenant has to deduct 5% from the total rent payable and pay the balance amount to the landlord. This amendment will be effective from 1 Jun 2017 for AY 2017-18.
- From 1 Jun 2017 Any taxpayer paying a monthly rent of Rs 50,000 or more will now have to deduct 5% TDS to make sure that the recipients of large rental incomes declare full rental income in their tax returns.
- When TDS is applicable for individual or HUF tenants, TDS is not required to be deducted every month, it can be collectively deducted at the end of a financial year i.e. in March.
- In case, the tenant vacates the property in the same financial year before the end of the year, then TDS @ 5% of the total amount paid until the vacancy month is required to be deducted in the last month of tenancy.
- The tenant need not obtain TAN to deduct TDS.
When TDS on rent paid should be deducted under section 194I?
On 20 Feb 2017 EPFO(Employees’ Provident Fund Organisation) has introduced Composite PF Claim Forms (Aadhar based and Non-Aadhar based) which replaces existing Forms No. 19, 10C, 31, 19 (UAN), 10C (UAN) and 31 (UAN). This is to simply the form for claiming the partial and full withdrawal from the EPF. This article explains the EPF New Composite Claim Forms by EPFO both Aadhar based and Non Aadhar based for partial and full withdrawal from the EPF . It talks about the differences between the Aadhar based and Non aadhar based EPF Composite claim form. It explains earlier EPF Forms for Withdrawal and Partial Withdrawal.
EPF New Composite Claim Forms by EPFO
On 20 Feb 2017 EPFO(Employees’ Provident Fund Organisation) has introduced Composite PF Claim Forms (Aadhar based and Non-Aadhar based) which replaces existing Forms No. 19, 10C, 31, 19 (UAN), 10C (UAN) and 31 (UAN). This is to simply the form for claiming the partial and full withdrawal from the EPF.
For Full Withdrawl, it has done away with two separate forms for claiming EPF(Form 19) and EPS (Form 10C). So now one form can be used which will withdraw from both EPF and EPS. We think it is a simple but excellent move.
There are two versions of the form Aadhar based form and Non-Aadhar based Forms.
Aadhar Based Full Withdrawal Forms: These forms are applicable in cases where employee’s Aadhaar Number and Bank Accounts details are available on UAN Portal and UAN has been activated. So one can withdraw by submitting these forms directly to EPFO without the attestation of the Employer. These forms were earlier called as UAN-Based Forms.
Non-Aadhar Based Full Withdrawal Forms: These forms can be used when Aadhar has not been attached with UAN. So one needs to get attestation of the employer and then employer will submit Full Withdrawal form to EPFO. But even in these forms, one need to provide the Aadhaar number as shown in the image below.
BharatQR code, the world’s first interoperable payment acceptance solution, was launched on 20 Feb 2017 as part of efforts to move towards less-cash economy at an insignificant cost. It will make payments seamless for buyers as they just have to “scan to pay” for transactions instead of swiping their credit/debit cards. This article explains what is BharatQR code? Why is it needed and how to pay using BharatQR code? How does it help merchants to reduce costs? How is it different from other digital mode of payments like PayTm, Freecharge etc.
Basics of BharatQR
What is Need for BharatQR?
Over the past few months, the government has been aggressively pushing for higher usage of digital payment mechanisms, including launching BHIM app and increasing penetration of PoS machines. BharatQR code is an important step in going cashless and solves the problem of merchants who can now get payment using credit/debit cards or digital payment without PoS(Point of Sale) machines. It helps the merchant to save the transaction costs. The main reason for this is, it is ideal for small roadside merchants who find it tough to invest in point-of-sale terminals for card payments. For them, BharatQR is an asset-light and cheap payment solution. There is no need to invest in a terminal hardware, the merchant just needs a smartphone and a QR code printed sticker to accept digital payments.
There were 24.5 million credit cards and 661.8 million debit cards being used in the country in March 2016, according to the Reserve Bank of India (RBI). But only 700,000 merchants accept card payments. And there are only 1.4 million card-swiping machines attached to cash registers in the country.
What is QR Code?
QR code or Quick Response code is a two-dimensional machine-readable code made up of black and white squares and are used for storing URLs or other information. These can be read by the camera of a smartphone. It might be used as a sticker on a product which or on a shop window which has account details about the specific merchant. It is similar to barcode for books.
What is BharatQR?
BharatQR is a matrix of bar codes that has been developed by leading payment companies of the country -Visa, Mastercard, National Payments Corporation of India (which run RuPay), and American Express -to develop a complete digital payments infrastructure at retail merchant outlets. The QRCode would be printed on a placard at merchant outlets for customers to scan and pay. Similar to PayTm placards at the merchant outlets.
When looking for investment opportunities, it is wise to look beyond the local markets. The Indian stock market is one that many novice traders may not consider when making investments. India may not appear as elegant as other markets, but that is only a misconception that can cost you the opportunity to diversify your investments. The country has two main stock trading exchanges, which are the Bombay Stock Exchange and the National Stock Exchange. Recently, the Board of Directors of the NSE appointed Vikram Limaye as the new CEO and managing director. This change in leadership is one that is set to shake up the NSE and the stock market as a whole.
What to Expect
When the previous CEO exited suddenly, the NSE was left scrambling amid plans to take the exchange public. The bourse had already filed the prospectus for the IPO but had to postpone the process as it searched for a new CEO. NSE has been under pressure for a while to go public, especially from major shareholders like the State Bank of India. Various shareholders have also expressed interest in seeing the NSE listed. There have been talks to have the NSE listed on its own exchange instead of cross-listing, which refers to listing on a rival exchange. With Vikram Limaye at the helm, the exchange will proceed as planned. One advantage that investors get when a bourse is listed is the transparency of transactions. Publicly listed companies are also held to higher standards, which gives you peace of mind when trading on the stock market online with a broker like CMC Markets.
Vikram Limaye, if confirmed by shareholders and the Securities Exchange Board of India, will also have to deal with the regulatory challenges that the NSE is currently facing. Accusations have been brought forward that the NSE favoured particular brokers by giving them access to its algorithmic trading platform so that they had high-speed trading. Limaye said that he would cooperate with regulators and the government to ensure that the issues are resolved. Doing this will restore the high reputation of the NSE and give it more clout as India’s largest stock exchange. Traders will feel more at ease when buying and selling stocks on the bourse.
Although Limaye has not highlighted any concrete plans he may have for the NSE, he has hinted that his focus will be on market development. After the latest regulations from the RBI, which restrict the exposure that banks have to the corporate sector, Limaye figures that India’s growth will have to be funded from other fronts. For this reason, the NSE must develop markets in the region, which can then be the source of financing for the country’s future.
An Outside Take
Vikram will be the first NSE CEO who is not part of the NSE founding team. However, he does have the expertise and experience to head the bourse as he is the managing director and CEO of IDFC, an infrastructure financing firm. IDFC was among the first champions of the NSE and holds a stake as well. Limaye is an alumnus of Wharton Business School and holds an MBA in Finance and Multinational Management. For eight years, he worked at Credit Suisse First Boston in various departments, including structured finance, investment banking and capital markets. Before going to the U.S., Limaye worked with Arthur Andersen in Mumbai, Ernst & Young as well as Citibank. The Supreme Court also recently appointed Limaye as one of the members of the Board of Control for Cricket in India. These are a few of the accomplishments that sell Limaye as an ideal candidate. His experience in the finance sector cannot be questioned, not to mention that he has a reputation for being an institution builder, which is a trait that will help him grow the NSE.
NSE holds a dominant market share in spot trading, and as of 2009, it held about 98% of the derivative trading market allocation. As with the BSE, the NSE is an order-driven market, meaning investors place market orders that are then paired with the best limit orders. This type of trading mechanism has transparency to it, which is why traders love it. By fixing the problems at the NSE and guiding its IPO, Vikram Limaye will provide more opportunities for investors to cash in on India’s promising stock exchange.