Friday, May 26, 2017

Income tax for Individuals for the Annual Year 2018-19(Financial year 2017-18) and Eligible deductions

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How Income Tax is charged in India?

Income tax in India is charged based on one’s income, more the income more the tax. India has four  income slabs or groups.Tax slabs keep on changing from year to year. Over and above tax, surcharge and education cess is also charged.  These are announced in budget by the Finance Minister every year.

Income tax for Individuals for the Annual Year 2018-19(Financial year 2017-18)

New Income Tax Slabs for FY 2017-18 (AY 2018-19) have been provided based on the Finance Budget introduced by the Hon’ble Finance Minister on February 01, 2017. 

While the income tax slabs have been kept unchanged, some interesting changes have been made which will have an impact on the tax liability of Individuals.
Individuals Below 60 Yrs – Income Tax Slab 2017-18 (AY 2018-19)

Income Tax SlabIncome Tax Rate
Income upto Rs. 2,50,000Nil
Income between Rs. 2,50,001 – Rs. 500,0005% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000Rs. 12,500 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000
Income above Rs. 10,00,000Rs. 1,12,500 + 30% of the amount by which the taxable income exceeds Rs. 10,00,000
Surcharge :
  • 10% of the Income Tax, where taxable income is more than Rs. 50 lacs and upto Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 50 lacs by more than the amount of increase in taxable income.
  • 15% of the Income Tax, where taxable income is more than Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.
Education Cess : 3% of the total of Income Tax and Surcharge.

Income Tax Rebate Reduced

The income tax rebate continues but it is reduced now. The income tax rebate came down to 2,500. Last year it was ₹5000. Not only the reduction, the threshold for this rebate also came down. Now, the income upto 3.5 lacs is eligible for this rebate. Earlier, income upto ₹5 lac was eligible for the income tax rebate.
Because of this provision, those who earns up to Rs 3 lacs are not required to pay any tax. Rather, if a person uses the all available deductions, the income up to Rs 5 lacs can become tax-free.
Senior Citizens (60-80 yrs) : Income Tax Slab 2017-18 (AY 2018-19)

To avail the benefit of senior citizen’s income  tax slab of 2017-18, one should be born on or after 1st April 1937 but before 1st April 1957. These dates are applicable for the income tax slab rate of the financial year 2017-18.

Income Tax SlabIncome Tax Rate
Income upto Rs. 3,00,000Nil
Income between Rs. 3,00,001 – Rs. 500,0005% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,000Rs. 20,000 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000
Income above Rs. 10,00,000Rs. 1,20,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,000

Education Cess

Senior citizens are also required to pay education cess similar to other individuals. The 3% cess is charged on the income tax of senior citizens. Due to this the effective income tax slab rate increases.

Super Senior Citizens ( above 80 yrs) : Income Tax Slab 2017-18 (AY 2018-19)

The senior citizens of above the age of 80 gets maximum tax concession from the government. They get this concession considering increased medical and healthcare expenses.
To get the benefit of this income tax slab rate, one should be born before 1st April 1937.
Income Tax SlabIncome Tax Rate
Income upto Rs. 5,00,000Nil
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Any NRI or HUF or AOP or BOI or AJP

Income Tax :
Income SlabsTax Rates
i.Where the taxable income does not exceed Rs. 2,50,000/-.NIL
ii.Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.5% of amount by which the taxable income exceeds Rs. 2,50,000/-.
iii.Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.Rs. 12,500/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv.Where the taxable income exceeds Rs. 10,00,000/-.Rs. 112,500/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
  

List of Income Tax Exemptions FY 2017-18 / AY 2018-19 (Chapter VI-A deductions list)

Income tax deductions list Income tax exemptions tax benefits Fy 2017-18 AY 2018-19 Section 80c limit 80D 80E NPS Home loan interest loss

For full details of Income Tax exemptions click the following link:

Sources:

To know about Income tax for Individuals for the Annual Year 2017-18(Financial year 2016-17) and Eligible deductions click the link given below

Friday, May 19, 2017

Know about Laughing Buddha

Image result for laughing buddha

Recently  I happened to see  a huge statue of Laughing Buddha in a temple very near to Chennai. It  was a surprise to me since I had not seen such a statue in any temple earlier. The picture of the statue is given below:
                                                    
With the curiosity arisen by the statue in the temple, I searched the web and found the following information about the Laughing Buddha.

The Laughing Buddha is cherished all over the world. He is the Buddha of abundance and happiness. He is also known as the “Buddha of Wealth”. It is believed he will bring wealth and prosperity to a home or business.

Over the years, he has come to represent several beneficial attributes such as happiness, prosperity, contentment and joy. Consequently, people in East Asia such as China and Japan have placed the Fat Buddha statue in their homes and offices.
It is very easy to recognize the Laughing Buddha. He is shown wearing a robe and prayer beads often hang around his neck. He is bald and has a big fat tummy.He is always happy;   thereby the name the “Laughing Buddha”.
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Many claim he makes problems disappear. Keeping the Laughing Buddha in the home ensures a happy home. Who does not want to be happy?

The Laughing Buddha has become a common and popular  name for Budai. Some people from the West who are not  familiar with Buddhism, may mistake the Laughing Buddha  for Gautama Siddhartha, the Buddha.So there is no connection between Gautama Buddha and the Laughing Buddha.
Actually his name was Quieci. But everyone called himBudai”. He was supposedly a Buddhist Zen monk who lived  in China over a thousand years ago.He was different from all other monks. Quieci was a jolly fellow. He often laughed whole heartily and reminded everyone to enjoy life and stay happy. He was very much loved.
One legend tells a story illustrating the claim that Budai wanted people to stay positive and joyful. When the beloved monk died many cried.A huge crowd gathered around to take a last farewell with tears running down their checks. The fire was lit at the cremation ceremony. Then to the surprise of most mourners  present there was a huge blast of fireworks.  
Before he died Budai had secretly asked that firecrackers were hidden under his robe.That did that trick. All who were present at the cremation found themselves smiling.
Even after his death he reminded all present to celebrate life. Just before he died it is told he said the following:
MAITREYA, THE TRUE MAITREYA  HAS BILLIONS OF INCARNATIONS. OFTEN HE IS SHOWN TO PEOPLE AT THE TIME;  OTHER TIMES THEY DO NOT RECOGNIZE HIM.
These words are by some interrupted to make him an incarnation of the Maitreya.The Maitreya is the future and last  Buddha who will bring ultimate love and enlightenment into  the world.

Rubbing the belly of Laughing Buddha:

According to legend, if you rub the Laughing Buddha's great belly, it brings forth wealth, good luck, and prosperity. Hotei is also referred to as the patron saint of restaurateurs, fortune tellers and bartenders. When one overeats or over drinks, friends jokingly attribute it to the Laughing Buddha's influence. 


Thursday, May 4, 2017

Tips for Coping with Empty nest syndrome.

Image result for empty nest syndrome

Empty nest syndrome is a feeling of grief and loneliness parents may feel when their children leave home for the first time, such as to live on their own or to attend a college or university. It is not a clinical condition.
Since young adults moving out from their families house is generally a normal and healthy event, the symptoms of empty nest syndrome often go unrecognized. This can result in depression and a loss of purpose for parents, since the departure of their children from "the nest" leads to adjustments in parents' lives. 
Full-time parents (stay-at-home mothers or fathers) may be especially vulnerable to empty nest syndrome. Adults who are also dealing with other stressful life events such as menopause, the death of a spouse, moving away or retirement are also more likely to experience the syndrome.

What's the impact of empty nest syndrome?

In the past, research suggested that parents dealing with empty nest syndrome experienced a profound sense of loss that might make them vulnerable to depression, alcoholism, identity crisis and marital conflicts.
However, recent studies suggest that an empty nest might reduce work and family conflicts, and can provide parents with many other benefits. When the last child leaves home, parents have a new opportunity to reconnect with each other, improve the quality of their marriage and rekindle interests for which they previously might not have had time.
Coping with Empty nest Syndrome
One of the easiest ways for parents to cope with empty nest syndrome is to keep in contact with their children. Technological developments such as cell phones, text messaging, and the internet all allow for increased communication between parents and their children.
Image result for empty nest syndrome
Parents going through empty nest syndrome can ease their stress by pursuing their own hobbies and interests in their increased spare time. 
Discussing their grief with each other, friends, families, or professionals may help them. 
Experts have advised that overwhelmed parents keep a journal, or go back to work if they were full-time parents.

Treatments

When a child's departure unleashes overwhelming sadness, treatment is recommended. Discuss your feelings with your general practitioner as soon as possible. You may benefit from psychotherapy to better understand and manage your feelings, and medication may also help mitigate symptoms of depression than can arise during this period. 
Social support can be incredibly helpful during times of stress and loneliness, and self-care should be made a priority during difficult transitions. There are practical things you can do to prepare for or manage the transition of children leaving the home. For example, time and energy that you directed toward your child can now be spent on different areas of your life. This might be an opportune time to explore or return to hobbies, leisure activities, or career pursuits.
This also marks a time to adjust to your new role in your child's life as well as changes in your identity as a parent. Your relationship with your child may become more peer-like, and while you may have to give your child more privacy, you can have more privacy for yourself as well.
Many suggest preparing for an empty nest while your children are still living with you. Develop friendships, hobbies, career, and educational opportunities. 
Make plans with the family while everyone is still under the same roof, such as family vacations, long talks, and taking time off from work to make special memories. 
Also, make specific plans for the extra money, time, and space that will become available when children are no longer dependent on you and living at home.
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