Basics of EPF

Basics of Employee Provident Fund: EPF, EPS, EDLIS More »

Savings Bank Account is the most common account for individuals

Saving Bank Account:Do you know how interest is calculated and more More »

Income Tax : Basics and How to

In this world, nothing can be said to be certain, except death and taxes –Benjamin Franklin More »

Ways to invest in Gold

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Investing : Approaches, Plan, Psychology

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Rupay India’s payment network like Visa and MasterCard

RuPay is India’s own card payment network just like Visa and Master Card and provides a low cost alternative system for banks to provide debit card service. Dedication of RuPay to the nation is symbolic of the maturity of the payment system development in India said President Pranab Mukherjee said after formally launching the card at a function at Rashtrapati Bhavan on May 8 2014.  But what is Rupay? Who developed it? Why was it developed? Who developed it? What does it mean for India? History of Rupay.

What is Rupay?

RuPay is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI). RuPay, like any other debit card, works on ATMs, Point of Sales (PoS) and online e-commerce sites beside Aadhar-based micro ATM. The main objective of the RuPay payment network project is to reduce the overall transaction cost and develop products appropriate for financial inclusion. A Point of Sale (POS) typically is a little machine on which your card is swiped, but increasingly now it can mean just about any computer on any network, anywhere.

RuPay is 7th payment network in the world after Visa, MasterCard, American Express, Discover, Diners Club, and JCB. China already has its domestic payment network Union Pay, a benchmark against which RuPay may be compared.   31 scheduled commercial banks based in public and private sector, 49 regional rural banks and 175 co-operative have issued over 2 crore RuPay cards.

Rupay Debit Card

Rupay Debit Card

How does the Plastic Card Work?

A lot of things happen between the time you swipe your debit or credit card and sign the credit card slip.Those involved in each plastic card transaction are given below. Our article What happens when credit card is swiped? , What are MasterCard and Visa Card explains it in detail.  

Growth and Dividend Option in Mutual Funds

After finally choosing a particular mutual fund,based on performance or recommendation or rating etc, a  Mutual Fund investor faces question :

  • Should one go for the Growth option or the Dividend Option? Their NAVs are different and in most cases NAVs of dividend options are much lower than the growth option. So does it mean they are two different schemes? What is difference between Growth and Dividend option?Is Fund manager different? Is performance different?
  • Under the dividend option, there are two choices: Dividend Payout and Dividend Reinvestment. Getting dividends seems understandable, but what’s the purpose of having a dividend reinvestment option? BTW What is dividend reinvestment plan?
  • How should one choose the option?
  • What if I am unable to choose? Is there a  default option? What is it?

This article tries to answer these questions.

What is Dividend?

Definition of dividend is as follows :

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can either re-invest it in the business , or it can distribute it to shareholders. A corporation may retain a portion of its earnings and pay the remainder as a dividend

Can Women Have It All : Indra Nooyi, Anne-Marie Slaughter,Sheryl Sandberg

I don’t think women can have it all. I just don’t think so. We pretend we have it all. We pretend we can have it all. My husband and I have been married for 34 years. And we have two daughters. And every day you have to make a decision about whether you are going to be a wife or a mother, in fact many times during the day you have to make those decisions. And you have to co-opt a lot of people to help you. We co-opted our families to help us. We plan our lives meticulously so we can be decent parents. But if you ask our daughters, I’m not sure they will say that I’ve been a good mom. These are words of Indra K Nooyi, the CEO of PepsiCo . This question was preceded by a brief discussion of Anne-Marie Slaughter’s Why Women Still Can’t Have It All.  Let’s start from the beginning. Let’s look at Anne-Marie Slaughter’s article on Why Women Still Can’t Have It All . Then let’s read thoughts of Sheryl Sandberg COO of Facebook and complete it with Indra Nooyi’s complete article

Anne-Marie Slaughter’s Why Women Still Can’t Have It All.

Anne-Marie Slaughter is a professor of politics and international affairs at Princeton University, and the mother of two teenage boys. She served as the director of policy planning at the State Department from 2009 to 2011. Slaughter’s  left her demanding high-profile political career and returned to her full-time job as a professor at Princeton while also writing and speaking. This career change allowed her to live in the same city as her sons during the week and be there for them. She still had a demanding, fulfilling and important job but there were detractors who still felt she had somehow failed herself and women in general.  Despite what she had been raised to believe and what she had told herself throughout her career, Slaughter came to the conclusion that while women can have it all and they can have it all at once, it is not possible with the current structure of today’s society. In her article, Slaughter includes six solutions for creating a society that works for women.  LON…G article in July 2012 in Atlantic Why Women Still Can’t Have It All

Changing the Culture of Face Time

Why Mutual Funds in India are not popular

Following information In the Business Today article Survival in the crowded Indian mutual fund market just got tougher caught our attention

According to a recent survey of around 2,600 people in India by Nielsen, only nine per cent were found to have invested in mutual funds. It was the eighth preferred choice of investors when it came to ownership of financial products. Life insurance and bank fixed deposits were the top two preferred investment channels.

Interestingly, the reason cited for not investing in mutual funds was their poor performance. Most investors felt that money gets tied up in mutual funds and there is no regular income from the investment.

The survey revealed that investors choose a mutual fund scheme on the basis of its track record. The second criteria is the track record of the AMC (growth in AUM as well as returns of all the funds), while the third is the recommendation of sales agents. Compared to 2012, the track record of the AMC gained more focus, moving up from the seventh place to the second spot in the survey.

It is well known that mutual funds offer their investors benefits difficult to obtain through other investment vehicles. Benefits such as diversification, access to equity and debt markets at low transaction costs and liquidity are some such advantages. Given these benefits, one would imagine that Indian households, characterized with gross domestic savings of close to 28% of the total GDP (World Bank, 2012), one of the highest in the world, would flock to invest their savings in mutual funds.  Though India’s savings rate has been between 30-35 per cent since last few years, investment in mutual funds have been minimal as compared to other avenues for investments.  Why are mutual funds not getting a fair share of the investor’s wallet? Are the mutual fund products competing successfully against alternatives such as FDs, gold and lately real estate? How does investment in Mutual Funds in India compare that to of the world  ? CII-PricewaterhouseCoopers report on the Indian mutual fund industry titled Challenging the status quo — setting the growth path highlights how the industry AUM has grown in the last five years but there is status quo in terms of investor mix and penetration beyond top metros.  Images in the article are from the report, Indian mutual fund industry at a glance

Mutual Funds across the World

In 2012, the global aggregate AuM with asset managers stood at 64 trillion USD. This broadly comprised mutual fund assets (27 trillion USD), mandated AuM (i.e. asset allocations from global pension funds, insurance industry, SWFs, etc for the management/advisory services of asset managers; 30.4 trillion USD) and alternative investments (6.4 trillion USD). The global aggregate AuM is expected to exceed 100 trillion USD by 2020! Figure below shows AUM in Mutual funds across various countries of the world from 2004 to 2020.

Income Tax Return of Deceased

DEATH of a dear one is an unbearable blow. Apart from the loss his family has to confront issues relating to the transfer and distribution of the deceased’s estate, which includes all his property, assets etc. Then there are tax issues to be dealt with. These include filing of returns for income earned by the deceased till the time of death, and helping the tax department with assessment proceedings. What happens if the taxpayer dies before he or she files the returns? Do returns have to be filed on behalf of dead person,who has to file returns on behalf of dead person, how to file returns on behalf of dead person? If there are tax liabilities who pays for them. Let’s start from the beginning In the event of death of the assessee  the income tax returns on behalf of the dead person has to be filed. In case of a deceased person, the  the legal heir of the deceased person has to file income tax return for the financial year. He has to register as a Legal Heir to do e-Filing on behalf of the deceased.There is no change in Income tax computation and procedure of filling income tax return. This article explains in detail.

Filing of income tax return after death

Even when a person dies, the assessment of his income is to be done upto the time of his death.This is for an individual and is covered under Section 159 of the income tax act. The legal representative of the deceased has to file the income tax return for the income on which the deceased.  The income earned in the year of death is classified in two categories:

  • Income earned from April 1 till the date of death
  • Income earned thereafter till the end of the financial year.

Usually, spouse or close relative of the deceased takes charge as the legal representative. Else, in case of will of the taxpayer who has passed away, the executor is held responsible.  The legal representatives will have to file returns in the deceased’s name for income earned till the date of death. Subsequent earnings are to be taxed in the hands of the legal representative/executor of the deceased’s estate. So if an individual died on 12 June 2014, his legal representative will have to file on his behalf for the financial year 2013-14 as also for the income for three months of 2014-15 in the next assessment year.  The only difference in filing return one self and by legal assessee is that in case of alive assessee, he himself or through person authorised by him files Income Tax Return whereas in case of deceased assessee liability to file return and pay taxes is either on legal representative or executor. Process of tax calculation, filing returns remains the same. How to get the information, making senses of information to file the returns like Bank accounts statements, Form 16, well that’s a battle or war that you would have to fight.

Disclaimer : This is an information based website, meant for providing assistance to it's readers. We do not hold any responsibility for mis-information or mis-communication.