Category Archives: Money

What is GST and what are the expectations with this new move of Government of India?

Goods and services tax (GST) is an indirect tax that has been started by Indian Government. As per this new structure, the old service taxes would be combined into a single system that would be applicable across the country. It was introduced with the name Constitution (One Hundred and First Amendment) Act 2016 and came after Constitution 122nd Amendment Bill was passed. The GST Council will be looking after all aspects of the goods and services tax. The council in question is chaired by Arun Jaitley, Union Finance Minister of India. This indirect – and yet comprehensive – tax will be applied on the making, selling, and buying of goods and services across India.


The tax will not be applicable to Jammu and Kashmir. It will be taking the place of taxes that were previously levied by Indian Government as well as state governments of the country. With the help of this new method, businesses that are registered for goods and services tax will be able to claim tax credit to the tune of the tax that they have already paid for buying goods and services that form parts of their regular commercial activities. In this case, a single authority will be responsible, administratively, for levying the tax on goods and services.

Status of exports

It is being assumed that in the new regime exports would be regarded as zero-rated supply and imports would be subjected to the same rate as goods and services made and sold within the country. In this case the authorities would be looking to follow the destination principle. Customs duty will be charged separately as it remains independent of the goods and services tax. This tax is being thought as a major step as far as reforming the structure of indirect taxation in India is concerned.

GST is an upcoming system of taxation in India
GST is an upcoming system of taxation in India

What is being expected of the tax?

Experts say that by combining the different state and central taxes into one there would be various benefits. For starters, it would restrict the effects of double or cascading taxation. It would also lead to one single market across India. Since the new tax structure is simpler it would also make it to administer and enforce it. As far as consumers are concerned the biggest advantage they would have is a reduction of the overall taxes that they end up paying in availing services and buying goods in India.

Situation of tax right now

At present, people in India pay an aggregate 25 to 30 per cent in service taxes and other indirect taxes for any and every product and service bought and availed by them. It is expected that this new tax regime would help goods to be moved freely from one state to another. They would not have to stop at state border and spend hours in order to pay things such as entry tax and state tax. Paperwork is also expected to be reduced to a huge extent compared to what happened before. The goods and services tax is supposed to come into action from July 1, 2017 onwards.

A little lesson in history

It was in 1986 that the first effort was made to reform the indirect tax structure in India. The credit in this case goes to Vishwanath Pratap Singh, who tried to come up with Modified Value Added Tax (MODVAT). The following are supposed to be included in the new goods and services tax:

  • central excise duty
  • services tax
  • additional customs duty
  • surcharges
  • state-level value added tax
  • Octroi

It is also expected to remove the levies that are presently applicable for transporting goods from within one state to another.

If daily revision of fuel price started in India then what benefit will get the consumers?

One of the perennial issues that keep a frowning expression on our face is the ever increasing fuel price in India. And from May 1, there is going to be trial run of a new rule in five cities- daily revision of fuel price. There are different schools of thoughts regarding the consumers getting benefit out of this scheme. However, the market experts think this is an existing practice in many developed countries and have a positive effect on the pocket of common man. Majority of petrol pumps are owned by state-owned fuel retailers like Indian Oil Corp, HPCL, BPCL etc and they have planned to execute a trial run of daily revision of fuel price, initially in five cities- Vizag in Andhra Pradesh, Puducherry, Udaipur in Rajasthan, Chandigarh and Jamshedpur in Jharkhand. And gradually it will be extended to the entire country.

Presently, fuel prices are revised fortnightly which means 1st and 16th of every month. But with the new change, this revision will be done every day. Analysts think that this will bring more stability in the income. Also, the power of the oil companies will be enhanced as with the daily revision there will be little outer interventions in an effort to bring any gradual change in fuel price. Another positive aspect of this change will be visible in the inventory management. In many cases, in an anticipation of sharp rise or fall after revision of fuel price, dealers stock their inventory accordingly. This results in incurring loss due to the fluctuation in currency exchange in the global market. So, this everyday drill of petroleum prices will give a cushion to these OMCs. Experts are of opinion that this step is going to be beneficial for both the consumers and the dealers.

Daily revision of fuel price started in India
Daily revision of fuel price started in India

The analysts as well as the dealers agree that this is going to be a really tough call and before implementation it would have been better if some works were done in the infrastructure. For example, not even in the urban cities, all petrol pumps are automated which should be the first criteria to put this drill in practice. That is the reason that this new policy will be implemented in five cities in its first phase. Once the practical glitches and problems are mapped out, steps would be taken to straighten them out prior to implement it in rest of the country.

There is no second thought that this will be a beneficial step for the consumers but we would not see it coming right away. It will take time to kick in. Till then it will be subjected to introspection. Making common people understand that this revision of prices is completely different from the central government announced price hikes and inflation will be a Herculean task. It is to wait and watch that even with this practice, will government keep on incurring the state and central levies because this will be dampen all the efforts to make benefit out of softening of crude oil prices globally.

When Delhi government implemented odd-even policy to control pollution in the city for fifteen days, there was a lot of hue and cry and anticipations and apprehensions. But once in practice, even people facing problem could not deny the positive aspects. Traffic was suddenly smooth, honking and blaring horns were reduced almost magically and conveyance was suddenly comfortable. There were initial hiccups like confusion, crowded metros and other public transports etc, but pieces fell in place ultimately. Let us hope, the new fuel price revision policy too becomes a success and is implemented country-wide with applauds.

What are the ideal saving plans which help in your retire life?

As much as you want to, it may not be really easy to do retirement planning in India. Inflation shows no signs of receding and keeping pace with that our demands are forever increasing as well. This has also made the national economy grow at a lower rate than before. A lot of people also like to buy gold for their preference for this diminishing natural resource. There are also a lot of financial products available these days and that can make you really confused. The situation has been further complicated by financial institutions such as banks that are not doing their work properly enough.

Planning for retirement

There are two phases in retirement – distribution and accumulation. Accumulation is the phase when we gather the amount needed for our life after we retire. Distribution is the phase when we have to pay up the money we have collected in the accumulation phase. The main aim here is to make sure that we do not face any problem in our lives after retirement. Financial products can be classed into two distinct categories – pre-retirement products and post-retirement products. The New Pension Scheme or NPS is one pre-retirement saving product.

Ideal Investment Plans for You
Ideal Investment Plans for You

New Pension Scheme

The New Pension Scheme can be availed by any and everyone, and can be defined as the right product for retirement. In the last four years people who have invested in the programme are getting returns of almost 10 per cent. In fact, as far as government employees are concerned, investment in the programme is a mandatory one. Ones who manage this fund can get exposure to equity instruments and other related investment options. This is a good sign for the programme in the long run as far as experts are concerned.

It can provide you tax benefits as well under Section 80C. You also have to buy annuity that is worth 40 per cent of the sum you have accumulated in the said programme. This is mandatory and needs to be done at the time of retirement. You can use pension calculators provided by the Indian Government and find out how much pension you and your family can receive. You can also find out about pension commuted from these calculators.

Employee’s Provident Fund

Also referred to as EPF, the Employee’s Provident Fund happens to be among the most popular retirement saving plans in India. It was started primarily as a product for retirement planning. However, the common consensus in India does not consider it to be one. The rate of return that you get from the Employee’s Provident Fund is pegged at around 8.5 per cent. By investing in the Employee’s Provident Fund you can get tax deduction as per Section 80C. At present the upper limit for tax benefit is INR 1 lakh. The interest that you get from this is tax free.

You can also withdraw from the said programme if you have gone on investing in it for five years at a stretch. It is different from the New Pension Scheme in the sense that there is no restriction or limit with respect to purchasing annuity. Experts would advise you to keep investing in the programme. You can do that even in case you change your job by asking for a transfer of the Employee’s Provident Fund. This would make sure that with the strength of compounding you would also get guaranteed returns. This is a major benefit of these plans.


As far as returns on investment are concerned equities happen to be right there at the top. It is better than any and every financial instrument in India in that particular respect. Mutual funds and stocks are the biggest examples of such investment.

How 2017-18’s union budget help to the Indians?

The 2017-18 union budget was presented by Arun Jaitley at the Lok Sabha on 1st February 2017. This was the fourth budget presented by the Indian Government headed by Narendra Modi. During the budget presentation, Jaitley – the Union Finance Minister – made it quite clear that the demonetization initiative would not have a long-term impact on the national economy as such. At the same time he also announced that a greater amount of INR 184,632 crore had been allocated to welfare programmes being run for children and women by the different ministries. This was also a joint budget, one where the railway budget was presented along with the national budget.

Focus of railways

It is expected that in the upcoming financial year Indian Railways will place greater emphasis on safety of passengers, cleanliness, and capital works among the various areas that need to be looked at with greater urgency and importance. The budget, as usual, elicited some mixed responses, Navin Patnaik, the Chief Minister of Odisha, said that he had been expecting some more benefits for the common man but clearly came away disappointed on that front. However, Radha Mohan Singh, the Union Agriculture Minister, feels that the new budget will only make things better for the farmers.

Positive opinions

Singh feels that with the dairy processing infrastructure fund to be set up farmers’ conditions will only improve. He has also conveyed his thanks to Narendra Modi. Pankaj Patel, the President of Federation of Indian Chambers of Commerce and Industry (FICCI), feels that the budget would make Indian economy a lot stronger. He feels that it is headed in the right direction and is prudent from a fiscal point of view. It also makes the administrative system of national government stronger than before. In fact, Jaitley has been congratulated by FICCI for the vision he has shown through the budget.

2017-18 Union Budget
2017-18 Union Budget

What does FICCI feel?

FICCI opines that apart from guaranteeing economic growth the union budget makes sure that there is a sense of justice to the economic system at large. It feels that without inclusion growth feels almost like a debt and this is one area where the new budget has done well. Prashant Pillai, the Director-Corporate Segment of Thomson Reuters has stated that in the year that went by the national government had taken a number of initiatives and all of them aimed at inclusive growth. He said how pleased the organization was in seeing that India had a clear strategy plan for its economy.

Good days ahead?

Thomson Reuters has expressed satisfaction at the way India is stressing so emphatically on good governance. In fact, Pillai feels that with the new budget a step has been taken in the right direction. The micro, small, and medium enterprises have received some significant boost and the tax base has been widened further only. It has also praised the way efforts are being made to create an economy that is more compliant with the tax structure. The organization has also expressed relief at how the development of a technology platform for the goods and services tax (GST) has kept pace with expectations.

Expectations for the future

According to Thomson Reuters the next few years will be critical as far as corporations are concerned since they would need to build the sort of technology infrastructure that can keep pace with various changes. It feels that 2017 could be a year of transformation for India from the point of view of tax regimes. Tilak Raj Seth, Head Mobility, Siemens Limited, as well as Chairman of Confederation of Indian Industry (CII)’s Rail Transportation & Equipment Division, feels that the budget has taken good steps in boosting the railway sector.

What are the benefits of cashless economy?

Ever since the historic announcement of Prime Minister Narendra Modi that led to demonetization, the government is taking special steps to make India a cashless economy. In a country where more than 90% of transactions are carried out by cash and many people are yet to have a bank account, turning India into a predominantly cashless economy is easier said than done. However, under the present circumstances, it has now become necessary for us to closely inspect the benefits of a cashless economy and how it can change our lives for the better.

One of the most important advantages of becoming a cashless economy is the sheer convenience that it provides us while carrying out financial transactions. This means that people will not have to stand in long queues outside ATMs or need to carry bundles of cash when they are buying anything or going out of station for traveling or other purposes. This also makes it safer to manage money when a person is traveling. Carrying out transactions without actually using cash will be particularly beneficial in case of real emergencies, medical or otherwise. This means that a person can carry out financial transactions at any time of the day without worrying about office hours. One does not even have to be present physically while carrying out the transactions.

Cashless Economy Trend in India
Cashless Economy Trend in India

By using mobile wallets for carrying out payments, one can easily avail a lot of discounts whether they are looking to buy anything, pay utility bills, buy air, rail or movie tickets or perform any other kind of transactions. The mobile wallets regularly offer discounts and cashback offers that allow people to save money and perform other transactions later on with reduced expenses. The wallets also offer loyalty benefits and reward points on the existing debit and credit cards which can improve the cash flow of the consumers marginally.

Using cards predominantly to carry out financial transactions also reduces the risk associated with theft. While it is impossible to get cash back once it is stolen, it is possible to electronically block a card once it has been stolen. This ensures that the money in the card will not be stolen by any unauthorized personnel. This particularly helps when people are traveling from one place to another and carrying a bulk of cash can actually cause a lot of inconvenience.

Since the government is all set to ward of a number of taxes when it comes to cashless or digitalized economy, it would be possible for people to have more money on their hands than ever before. This is certainly going to help people who tend to work with limited funds in their day to day lives. Moreover, having more cash in their cards or bank accounts can actually improve the lifestyle of people and encourage them to spend on things that would get them comfort and leisure.

Another important reason why people should support the concept of cashless economy is that it is going to help people practice a sense of budget discipline in their day to day lives. Since each and every small or large transaction is recorded by the bank authorities, it is possible to keep tabs on spending and manage money in a more efficient manner. There are also numerous tools and apps that can help people to track and analyze their spending habits which can in turn make it possible for them to come up with methods to control their spending. This can also help them to manage their money for further investments. Such features and benefits can help people to manage their finances effectively for a better future.

How to choose a perfect Smart Phone for your own use?

Now it’s very tough to choose a perfect Smart Phone for everyone. Presently , lots of smart phones are available in the market with different variety. But, if you will try to choose a Smart Phone after checking lots of online store, then after spending sometimes surely you will find yourself in a tough puzzle. At that time you will close all the tabs of your browser and go to listen some good music for refreshing yourself. This is now everyone’s problem. Here I will help you after giving some outline for choosing your perfect Smart Phone:

  1. Set your budget (don’t look any bigger budgeted phone which will cross your budget).
  2.  Select Ram size and Rom size which you like.
  3. Select OS version (if it Android then 6.0 is ideal choice).
  4. Check Battery life of your choice.
  5. Check performance of Cameras.
  6. Finally, check the online reviews of that phone.
Choose your desired Smart Phone
Choose your desired Smart Phone

What are the steps you need to take for a Startup?

Firstly, you need to choose your product and service it should be unique. Because, if there have number of establish competitor then your fight little bit tough from the very first day.

Secondly, you should have smooth source of fund. Because you need lots of capital for your business operation.

Thirdly, you need a dynamic team who will operate your business fruitfully.

Fourthly, you need to provide easily accessible customer support.

And finally, you need to promote your business very well through online and side by side through some offline process. Like, exhibition arrange, participate in fair etc.

Plan for your Startup
Plan for your Startup