50 Money Saving Tips in Everyday Life for Everybody..

Here are some useful tips on how to save money in our everyday life:

1. Drink water: It is good for you and saves on daily cost of soft drinks.

2. Cut down on junk food:  Not good for your pocket, not a healthy choice either.

3. Shopping List: Make a grocery/shopping list before going to the store, so that you buy only what you need. It saves time and money.

4. Walk short distances instead of driving: It saves on gas/fuel, it saves environment and keeps you active.

5. Cut down on excessive TV: Find better use for your time, something less wasteful 

6. Minimize carry-out and eat-out food: Carry-out/eat-out is expensive and not good for healthy eating habits.

7. Don’t need most expensive gifts to please family:Buy something functional and useful instead.

8. Recycle: Recycling saves resources, money and it minimizes waste.

9. Use natural light: This helps with savings on electric bill and is better for eye-sight.

10. Cut down on Air-Conditioning and heating: Install programmable thermostats to save on gas bills.

11. Get your News online: Cut down daily newspaper delivery costs if you can get the news online

12. Avoid Loans: Don’t take a loan unless your life/marriage depends on it.

13. Avoid late fees on bills and credit cards: Enough said, commonsense.

14. Minimize banking-fees down to zero: Many banks offer this option with no transaction fees.

15. Buy on-sale items: Look for sales on the items that you need.

16. Don’t buy EVERYTHING that is on sale:Make a list of what you need and stick with shopping for only those items.

17. Avoid club memberships that you don’t use: Avoid health-club or any other membership fees for something you seldom use.

18. Shop around for insurance: This can save lots of money on insurance premium.

19. shop around for lowest interest on mortgage or other loans: This can save a lot on interest.

20. Save your identity: Keep your checkbook, your id and credit cards etc. safe and secure from modern ID thieves

21. Holidays shopping in advance: Don’t wait for the last minute, look for bargains in advance.

22. Exercise: Stay active and stay out of hospital

23. Medical insurance: Consider medical insurance depending on your health needs

24. Dental and vision insurance: You may want to buy this if your eyes and teeth need regular care

25. Don’t buy a gas-guzzler car: A fuel-efficient car saves on gas,  it save money, it saves the environment

26. Grow your own vegetables: An excuse for active and healthy lifestyle

27. Cook at home:  This is another good excuse for active and healthy lifestyle

28. Take advantage of benefits at job: Many workplaces offer discounts on related (or affiliated) products and all kinds of other benefits for their employers.

29. Find out what your town/city has to offer: Free local parks, YMCA, any other benefits and discounts from the city….

30. Use coupons: Look for discount or special sale coupons.

31. Combine/bundle services: Many services (e.g. phone, Internet, TV..) are cheaper when bundled by using the same service provider

32. Local Library:Use local library for renting book, renting DVDs, Internet use etc.

33. Sign up for free reward programs: Many credit cards and other services offer programs for frequent users that can accumulate valuable reward points.

34. Divorce is very expensive: Prioritize your personal life. Spend time with your family, and save your marriage. It will save you from financial burden and heartache alike.

35. Maintain your car and house: Regular maintenance can help with preventive savings by avoiding breakdowns and other accidents due to negligence.

36. Budget: Track your spending and control the urge to spend. Stick with your budget.

37. Use energy efficient appliances: Efficient dishwasher and dryers etc. can save lots of energy usage over time

38. Take advantage of the tax laws: Understand the tax laws for real-estate and other local tax-breaks to minimize taxes

39. Save and retain: Don’t throw-out something after one or two use if it can be re-used, saved or retained.

40. Don’t waste money on lotteries: You have a higher chance to be hit by lightening than winning a mega million dollar lottery.

41. Minimize hired-help: Do your own work, it saves money and keeps you active.

42. College saving plan:Investigate tax benefits and other options to save for future college education tuition.

43. Turn off lights, PC and TV etc. when not in use:Be environment friendly. Turn off computer,

lights, TV etc. when not in use, or when not needed.  it is a good money saving habit.

44. Minimize drinking liquor: This helps in saving your liver, it saves money and keeps you healthy.

45. Family Planning:Consider Family planning and family size. Kids are very expensive to raise these days. Cuteness comes with a price. 

46. Take a train or a bus: Take a local train instead of driving a car to high traffic (and traffic jam) areas if possible; it saves on gas-money and also on time.

47. Quit smoking: This can save some serious money and will keep you healthy

48. Avoid compulsive shopping: Don’t shop just to feel better; find some other creative ways or hobbies to please yourself. 

49. Minimize shopping trips, shop online: Avoid spending excessive time in the shopping malls and  minimize multiple shopping trips. Shop online if that is a cheaper option.

50. Needs and wants: Understand the difference between what you really need and what you want for luxury or for fun; allocate your budget based on your personal situation.

The Indian Government has announced new passport rules aimed at simplifying and easing the process of issue of passport.

The Indian Government has announced new passport rules aimed at simplifying and easing the process of issue of passport.  The new passport rules also simplify the process of application for single parents, orphaned children etc. The changes have thus been notified.

In one of the most major changes, eight (8) different documents will now be accepted as proof of Date of Birth (DOB). As per the existing provisions of the Passport Rules, 1980, all applicants born on or after 26th January 1989 must mandatorily submit a Birth Certificate as the proof of Date of Birth (DOB). Changing this rule, the government has now decided that applicants can submit any of the following eight (8) documents as the proof of DOB while submitting the passport application:

• Birth Certificate (BC) issued by the Registrar of Births & Deaths, or the Municipal Corporation, or any other prescribed authority whosoever has been empowered under the Registration of Birth & Deaths Act, 1969 to register the birth of a child born in India.
• Transfer or School-Leaving or Matriculation Certificate issued by the school last attended, or by the recognized educational board containing the DOB of the applicant.
• PAN Card issued by the Income Tax Department with the DOB of applicant.
• Aadhar Card/E-Aadhar having the DOB of applicant.
• Copy of the extract of the service record of the applicant (only in respect of Government servants) or the Pay Pension Order (in respect of retired Government Servants), duly attested/certified by the officer/in-charge of the Administration of the concerned Ministry/Department of the applicant, having his DOB.
• Driving licence issued by the Transport Department of the concerned State Government, having the DOB of the applicant.
• Election Photo Identity Card (EPIC) issued by the Election Commission of India having the DOB of applicant.
• Policy Bond issued by the Public Life Insurance Corporations/Companies having the DOB of the holder of the insurance policy.

Simplified rules for various sections of society

Provision for Single Parents: The online passport application form now requires the applicant to provide the name of father or mother or legal guardian, i.e., only one parent, and not both. This allows single parents to apply for passports for their children and to also issue passports where the issuing authority cannot print the name of either the father or the mother, at the request of the applicant.

Number of Annexures reduced: The new rules bring down the total number of Annexures prescribed in the Passport Rule, 1980, to nine from the present 15. They have removed Annexes A, C, D, E, J, and K, and merged certain Annexes.

Only Self-Declaration from now on: All the required annexes will now be self-declarations on plain paper. No attestation/swearing by/before any Notary/Executive Magistrate/First Class Judicial Magistrate will henceforth be necessary.

No affidavit/Marriage Certificate required for married applicants: Applications now don’t require married applicants to provide Annexure K/marriage certificate.

Spouse’s Name not required for separated/divorced applicants: Passport applications now don’t require a spouse’s name for separated/divorced persons. There is even no requirement of the Divorce Decree.

Provision for Orphaned children : Orphaned Children without proof of DOB may now submit a declaration. The declaration – by the Head of the Orphanage/Child Care Home on their official letter head – confirms the applicant’s DOB.

Children not born out of a wedlock: Applications for children not born out of wedlock need only Annexure G.

For domestically adopted children: Applications for in-country domestically adopted children no longer requires submission of the registered adoption deed. In the absence of a deed, the passport applicant may give a declaration on a plain paper confirming the adoption.

Government Servants without a NOC: Government servants sometimes cannot obtain the Identity Certificate (Annexure-B)/NOC (Annexure-M) from their employer. They can now get the passport by submitting a self-declaration in Annexure-‘N’. The declaration must state that they have informed their employer, that they are applying for an ordinary passport.

State Bank of India New Rules Effective From 1st April 2017

1.       3 times deposit free in your account. After more than 3 times deposit, you will pay 50/- per deposit.

2.       Minimum 5000/- balance to be maintained in metro city branch account   holder.

3.       Minimum 3000/- balance to be maintained in city/town branch account holder.

4.       Minimum 2000/- balance to be maintained in semi urban area branch account holder.

5.       Minimum 1000/- balance to be maintained in villages branch account holder

6.        If you do not maintain minimum amount in your account, you will pay upto Rs.200/- + extra surcharge.(depending on how many days)

7.       SBI ATM free for 5 times use, after 5 times you will pay 10/- per transaction.

8.       Other bank ATM free for 3 times use, after 3 times you will pay 20/- per transaction.

9.       Unlimited SBI ATM use without any charges, If you maintain 25000/- in your SBI savings account.

10.     Unlimited SBI & OTHER BANK ATM use without any charges, If you maintain 100000/- in your SBI savings account.

11.     15/- SMS charge you will pay after 3 months, (SMS charge free, If you maintain 25000/- in your SBI savings account)

12.     The failure to maintain Monthly Average Balance (MAb) in accounts will call for a penalty between Rs 50 to Rs 100 plus service tax per month.

13.     There will be no charge for UPI/ USSD transactions of up to Rs 1,000. Beyond Rs 1,000, there are charge

a). The Monthly Average Balance of Rs 5000 in a branch in Metropolitan City then :

Shortfall <=50% = Rs 50/- + Service Tax.

Shortfall >=50-75% = Rs 75/- + Service Tax.

Shortfall > 75% = Rs 100/- + Service Tax

b). The Monthly Average Balance of Rs 3000 in a branch in the Urban area then :

Shortfall <=50% = Rs 40/- + Service Tax.

Shortfall >=50-75% = Rs 60/- + Service Tax.

Shortfall > 75% = Rs 80/- + Service Tax

c). The Monthly Average Balance of Rs 2000 in a branch in the Semi- Urban area then :

Shortfall <=50% = Rs 25/- + Service Tax

Shortfall >=50-75% = Rs 50/- + Service Tax.

Shortfall > 75% = Rs 75/- + Service Tax.

d). The Monthly Average Balance of Rs 2000 in a branch in the Rural area then :

Shortfall <=50% = Rs 20/- + Service Tax

Shortfall >=50-75% = Rs 30/- + Service Tax.

Shortfall > 75% = Rs 50/- + Service Tax

10 Income Tax Rules That Will Change From 1st April 2017

1) The tax rate on income between Rs. 2.5 lakh and Rs. 5 lakh will get halved to 5 per cent from 10 per cent. However, rebate under Section 87A gets reduced from Rs. 5,000 to Rs. 2,500. And no rebate will be applicable for taxpayers having income above Rs. 3.5 lakh. This means tax savings of up to Rs. 7,700 for those with a taxable income between Rs. 3 lakh and Rs. 5 lakh. And for persons with taxable income between Rs. 5 lakh and Rs. 50 lakh, tax savings of Rs. 12,900.

2) A 10 per cent surcharge will be applicable for individuals having income ranging from Rs. 50 lakh to Rs. 1 crore (existing surcharge of 15 per cent will remain the same for individuals having income above Rs. 1 crore.)

3) A simple one-page form will be introduced for filing tax return for individuals having a taxable income up to Rs. 5 lakh other than business income.

4) No deduction will be allowed for investment in Rajiv Gandhi Equity Saving Scheme from Assessment Year 2018-19. This tax-saving scheme, announced in the Union Budget for financial year 2012-13, was designed exclusively for the first-time individual investors in the securities market with gross total income below a certain limit.

5) Income tax officials can reopen tax cases for up to 10 years if search operations reveal undisclosed income and assets of over Rs. 50 lakh. Currently, tax officers can go back up to six years to scrutinise the books of accounts of assessees. Taxpayers who do not file their returns on time will have to shell out a penalty of up to Rs. 10,000 from Assessment Year 2018-19. However, if the total income of the person does not exceed Rs. 5 lakh, the fee payable under this section shall not exceed Rs. 1,000.

6) The holding period of a property for qualifying as long-term gains will be reduced to two years, from three years. This will help save tax if a property is sold within two years of buying. If a property is sold before two years, the profit from the transaction will be treated as short-term capital gains and will be taxed according to the slab rate applicable to him/her.

7) The government has cut down tax benefits borrowers enjoyed on properties let out on rent. As per current tax laws, for properties rented out, a borrower could deduct the entire interest paid on home loan after adjusting for the rental income. On the other hand, borrowers of self-occupied properties get a deduction of Rs. 2 lakh on interest repayment on home loan. But from April, on rented properties, the borrower can only claim a deduction of up to Rs. 2 lakh per year after adjusting for the rental income. And the amount above Rs. 2 lakh can be carried forward for eight assessment years. Since the interest component of home loan repaid in initial years is higher, experts say that the borrower may not be able to fully adjust the interest paid as deduction even in subsequent years.

8) Individuals will be required to deduct a 5 per cent TDS (tax deducted at source) for rental payments above Rs. 50,000 per month. Tax experts say that the move will ensure that persons who get a large rental income come into the tax net. It will be effective from June 1, 2017.

9) Partial withdrawals from National Pension System (NPS) will not attract tax. According to the proposed changes, NPS subscribers can withdraw 25 per cent of their contribution to the corpus for emergencies before retirement. Remember that withdrawal of 40 per cent of the corpus is tax-free on retirement.

10) Aadhaar number will be a must while applying for PAN as well as filing of income tax returns from July 1. To curb black money, the limit on cash transactions has been set at Rs. 2 lakh. The Finance Bill had originally proposed the cap at Rs. 3 lakh. If a person receives any sum in contravention of the tax law, he/she will be liable to pay, by way of penalty, a sum equal to the amount.

GOODS AND SERVICES TAX ( GST)

GST is a value-added tax levied at all points in the supply chain with credit allowed for any tax paid on input acquired for use in making the supply. It would apply to both goods and services in a comprehensive manner, with exemptions restricted to a minimum.

In keeping with the federal structure of India, it is proposed that GST will be levied concurrently by the Centre (CGST) and the states (SGST). It is expected that the base and other essential design features would be common between CGST and SGST across SGSTs for individual states. Both CGST and SGST would be levied on the basis of the destination principle. Thus, exports would be zero-rated, and imports would attract tax in the same manner as domestic goods and services. Inter-state supplies within India would attract an Integrated GST (aggregate of CGST and the SGST of the destination State).

In addition to the IGST, in respect of supply of goods, an additional tax of up to 1% has been proposed to be levied by the Centre. Revenue from this tax is to be assigned to origin states. This tax is proposed to be levied for the first two years or a longer period, as recommended by the GST Council.

Benefit of GST

GST has been envisaged as an efficient tax system, neutral in its application and distributionally attractive. The advantages of GST are : 

1.               Wider tax base, necessary for lowering tax rates and eliminating classification disputes

2.               Elimination of multiplicity of taxes and their cascading effects

3.               Rationalization of tax structure and simplification of compliance procedures

4.               Harmonization of center and state tax administrations, which would reduce duplication and compliance costs

5.               Automation of compliance procedures to reduce errors and increase efficiency.

Destination principle

The GST structure would follow the destination principle. Accordingly, imports would be subject to GST,while exports would be zero-rated. In the case of inter-state transactions within India, State tax would apply in the state of destination as opposed to that of origin.

Taxes to be subsumed

GST would replace most indirect taxes currently in place such as:

  Central Taxes

    Central Excise Duty [including additional excise duties, excise duty under the        

     Medicinal and Toilet Preparations (Excise Duties) Act, 1955]

     Service tax

     Additional Customs Duty (CVD)

    Special Additional Duty of Customs (SAD)

    Central Sales Tax ( levied by the Centre and collected by the States)

           Central surcharges and cesses ( relating to supply of goods and services)

State Taxes Value-added tax Octroi and Entry tax Purchase tax Luxury tax Taxes on lottery, betting and gambling State cesses and surcharges Entertainment tax (other than the tax levied by the local bodies)    Central Sales tax ( levied by the Centre and collected by states)

HOW MUCH WILL YOU MAKE IF YOU INVEST RS. 10,000 PM IN INDIA

For 30 years

·         In a monthly SIP in equity fund = Rs. 7.1 Crore.

·         In a RD = Rs. 1.7 Crore.

·         In PPF account = Rs. 1.58 Crore.

·         In regular insurance polity = Rs. 81.9 Lakh.

·         In Gold = Rs. 1.7 Crore.

For 25 years

·         In a monthly SIP in equity fund = Rs. 3.30 Crore.

·         In a RD = Rs. 1.04 Crore.

·         In PPF account = Rs. 99.74 Crore.

·         In Regular Insurance Policy = Rs. 58.9 Lakh.

·         In Gold = Rs. 1.04 Crore.

For 20 years

·         In a monthly SIP in equity fund = Rs. 1.52 Crore.

·         In a RD = Rs. 66.2 Lakh.

·         In PPF account = Rs. 61.2 Lakh.

·         In Regular Insurance Policy = Rs. 40.75 Lakh.

·         In Gold = Rs. 63.2 Lakh.

“Average Annual Rates (Pre - Tax) : Equities 15.1%, Rd 8.5%, Regular Insurance Policy 5%, Gold 8.5%”

Mudra Bank

Indian Prime Minister Shri Narendra Modi started this bank on April 8, 2015. Mudra Bank or Micro Units Development and Refinance Bank may be described as a public sector entity that deals in various financial products and services. Primarily, it makes loans accessible to small entrepreneurs, who otherwise find it hard to procure financial assistance of any kind, and this is done in lieu of low rates of interest.

Objective of Mudra Bank 

The main aim of the Mudra Bank programme is regulate the lending and borrowing activities in the microfinance setup of India and thus make it stable to a certain extent. It also looks to make this sector see greater levels of inclusive participation. The initiative aims to provide crediting services and financial support to those microfinance entities that are functioning across the country. These organizations primarily cater to small business units, self help groups, retailers and individual entrepreneurs. The Mudra Bank initiative will also be employed to register all the microfinance institutions and then start a system of rating their performances and accrediting them.

Products and Offerings

The Mudra Bank will provide three kinds of loans – Shishu, Tarun and Kishore. The maximum amount that will be lent under Shishu loan is Rs. 50,000. For Kishore loan, the upper limit is Rs. 5 lakhs and in case of Tarun loan, the maximum amount has been fixed at Rs. 10 lakhs. Now, the bank will determine which loan applicant falls under particular category and the loans will be provided in accordance to that. Shishu loans are basically for the ones who are just starting out their businesses, Kishore loans are for those who are in the middle stage of their business endeavours and Tarun loans are for those who are looking to move on to higher levels, such as doing business expansion.

Benefits and Demerits

The biggest potential advantage of the Mudra Bank programme  is that it can help a large number of countless entrepreneurs across the country by providing financial support, which is such an important component in their existence and eventual success. With its focus on the underprivileged section of the Indian economic hierarchy, Mudra Bank may one day replicate what Grameen Bank has done in Bangladesh. 
On the other hand, some experts feel that with a bank working as a microfinance institution, there may be a question of conflict of interest coming up soon. They have also questioned about the need of having a new microfinance entity when there are already several institutions like such in place. They feel that it may also give rise to shadow banking programmes.

Mudra Bank Scheme Highlights

Following are certain special features of the Mudra Bank :- 

• Mudra Bank is established via a statutory enactment.
• It will be a part of the Pradhan Mantri MUDRA Yojana.
• It will function in the service area that falls outside the purview of the conventional banks. For this purpose, it shall use last mile agents.
• The programme has used the NSSO Survey of 2013 to identify its prospective clients.
• Among its target clientele, only 4percent can access loans that are going to be provided by the banks.
• The bank will try and make sure that its clients never run up any debt; therefore, it will focus on responsible methods of lending.
• Mudra Bank will, at the start, have a corpus of Rs. 20,000 crore. It will also have a credit guarantee fund ranging between Rs. 2000 crore and Rs. 3000 crore.