Life depends on this ?

Look for 1 3 and 6 and ignore use of that........

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Regards,
Hemal Kansara

http://hemal.mp

http://snipr.com/valuereadings

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Regards,
Hemal Kansara

http://hemal.mp

Fourteen Strategies to make better decision

1. Involve colleagues who see the world differently from you.
2. Fight the temptation to solve today's problem with yesterdays solution
3. Solve problems with a win-win orientation
4. Solicit information from individuals affected by the decision
5. Make sure you are solving the right problem
6. Consider as many solution as possible.
7. Realize that even the best solution may open the door to new problems.
8. If you are using hard data as the basis of your decision, verify the numbers.
9. When you make a decision affecting others, share the reason behind the decision.
10. Think in terms of satisfying, not optimization.
11. Ask a lot of questions.
12. Learn from prior decisions
13. Ask for criticism.
14. Recognize your personal decision making biases

 

 

 

7 Income Tax saving tips you might not know

http://www.jagoinvestor.com 7 Income Tax saving tips you might not know : [with Video] : Jagoinvestor

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7 Income Tax saving tips you might not know : Posted: 10 Jan 2011 12:18 PM PST Haven't you gotten bored of regular tax saving tips? Are you looking for some tips which are different, kinda unique and not very well known? If yes, then you're reading the right article, mate! I will share some tips which would help you in area of tax saving. Some of these tips will help you in this, current year and some, at some later point. But helpful at some level, they will be  . Below is a video on this topic where I explain those 7 tips. Incase you dont want to watch the video , you can just skip it and move forward to read the tips in text . Let's look at them. If you are reading this article on email, you can watch the video on youtubehere 1. Gift money to your major children and Save tax on Future Income Imagine this, you have Rs 25 lacs. Logically you put this in a fixed deposit or invest in some other financial product through which you get an interest at 8%. You will get Rs 2  lacs as interest which will be added to your income and you pay tax on this income. Not good! Now what? How do we save tax on these 2 lacs? As per income-tax laws you can gift any amount of money to your major children without attracting gift-tax and as their money will become theirs any income arising out of it would be treated as their income, not yours. In case their income is below the limits, there won't be any tax. However there can be times, where you might not feel too comfortable gifting away large amounts of money to your major children, in which case, there is another option of giving them loans. And guess what? you can make interest-free loans to your major children as per the law  . Please note that doing exactly the same thing with your spouse is not possible. Any income you transfer to your spouse which generates any income will be treated as your income only. However, if you are going to be married in some months and you have some big amount of cash, you can gift her right away, as gift given to prospective wife would become hers lawfully! 2. Claim stamp duty and registration fees in 80C Many people dont know this, but the Stamp duty and the registrationfees of the documents for the house can be claimed as deduction under section 80C in the year of purchase of the house. An important point to note here is that you should be in possession of the house if you want to claim these deductions. So in case of under-construction properties, you lose out on claiming this deduction. As per the income tax The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered. Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or the cost of any addition or alteration to, or, renovation or repair of the house property which is carried out after the issue of the completion certificate by competent authority, or after the occupation of the house by the assessee or after it has been let out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Income-tax Act will also not be included in payments towards the cost of purchase or construction of a house property. 3. Get deduction for rent even without HRA All the salaries class people get HRA from their companies, and hence they claim deductions on that. However, what if you are self-employed professional or working for a company who does not provide you HRA benefit? Can you still claim HRA? Yes! But with some caveats. Under Section 80GG, you can claim deduction of the rent paid even if you don't get HRA. However not many people are aware of this deduction. If you are not being paid any HRA or don't have any housing benefit from employer. You can claim least of following 3 things as HRA a) Rent paid less 10% of total income b) or Rs 2,000 a month; c) or 25% of total income. Note that your spouse or minor child should not own any house with the city limit if you want to claim this benefit , You will have to submit a form called 10-BA that you are paying rent and not receiving HRA. Bonus tip : If you are staying with your parents, you can pay them rent. If they don't have significant income, it would mean you save tax on rent paid and even your parents income does not cross the tax limits, which is a win-win situation. 4. Declare your losses in tax return to save tax in future A lot of people do not show their losses in shares, mutual funds, gold ETFs, real-estate in their tax returns. This is a big mistake, as you lose an opportunity to save tax in future years. You can set-off your losses against profits in current year as well as in the future too. For example : Assume you had sold your real-estate property and made a profit of 10 lacs after indexation. You will have to pay a tax of Rs 2 lacs @20%. However suppose in the same year you have also made a loss of Rs 4 lacs in stocks , you can set-off this loss with your 10 lacs profit and just pay tax on Rs 6 lacs , which comes at 1.2 lacs only. That's a cool 80k in savings! Also if you have only losses this year and no profits, you can show this loss in your tax returns and carry forward and set-off this loss against any future profits for next 8 yrs. For more details read this article. 5. Buy House with Parent or Siblings as joint-owners Yes, if you thought only spouse can be co-owner in the real-estate property to claim the tax deductions, you don't know the whole story. You can have your spouse/parent/siblings as co-owner and all the co-owners can claims the tax deductions of 1 lacs for principal and 1.5 lacs for interest part . So if you take a housing loan with your siblings as co-owner of property and co-Borrower of loan, the loan amount interest and principle paid will be available for tax exemption in ratio of your loan amount. So if you are still a bachelor or a single who wants to buy a house, consider asking your brother, sister or parents to become the co-owner so that both of you can get tax benefits and reduce your tax-outgo. The only problem in this case is that loan-sanctioning companies are very stringent in giving loans to siblings, as their are higher chances of you parting your ways with them later in case of any family issues, however in case of spouse it happens lesser. Bonus Tip : The co-owner who falls in the higher tax bracket should hold a higher proportion of home loan to make sure that the tax benefits are maximised. 6. Use education loan to lower tax for your Children in Future So what, if you have all the money to pay for your children's education fees? It would be wise to opt for an education loan in name of your children's name as you can claim the full interest paid on education loan under section 80E. Note that its only available if you are a parent or a legal guardian . You can't claim deduction for your spouse education loan  The other thing is that you can take education loan on your children name so that after some years when they pay off their loans, they can claim the deductions themselves. Apart from this, they'd be more responsible and this education loan payment from their pocket will make sure that they don't spend to much money in wrong places and you can use your money today some where else! 7. Take unlimited deductions for your second home loan interest payment If you have already bought first home where you are living right now and want to buy another house, the good news is that you can claim full interest paid for the EMIs of second house. As per tax laws, you can claim full deductions for the amount paid as interest on loan for second house. For the first house you can claim up to 1.5 lacs in interest, however for your second house you can claim full amount of interest without any upper limit! . Read some tips on buying real-estate Share your views on which one of these tips is applicable for you ? Also do you know any other tip which you want to share ? So what, if you have all the money to pay for your children's education fees? It would be wise to opt for an education loan in name of your children's name as you can claim the full interest paid on education loan under section 80E. Note that its only available if you are a parent or a legal guardian . You can't claim deduction for your spouse education loan  The other thing is that you can take education loan on your children name so that after some years when they pay off their loans, they can claim the deductions themselves. Apart from this, they'd be more responsible and this education loan payment from their pocket will make sure that they don't spend to much money in wrong places and you can use your money today some where else! 7. Take unlimited deductions for your second home loan interest payment If you have already bought first home where you are living right now and want to buy another house, the good news is that you can claim full interest paid for the EMIs of second house. As per tax laws, you can claim full deductions for the amount paid as interest on loan for second house. For the first house you can claim up to 1.5 lacs in interest, however for your second house you can claim full amount of interest without any upper limit! Which of the above tips were new for you ? Can you share any tip which you know but its not covered here ? Please comment .