wealthymatters

PAN Cards And FDs

June 25, 2012 2 Comments

Under section 139A of the I-T Act,only persons whose income is chargeable to tax are required to obtain a PAN.However section 206 AA of the same Act, which became effective from assessment year 2010-11, makes it mandatory for every person to furnish PAN card in their transactions with banks and financial institutions.So section 206AA compeled even those without a taxable income to obtain a PAN, failing which tax would be deducted at source.

A writ petition was filed before the Karnataka High Court by A Kowsalya and two other small investors, who had made investments in financial institutions (F Is). They do not have any income other than the income received from F I s and they have declared this under Form 15G. Form 15G is usually used for declaring that a person’s income is below taxable limit, and therefore, the bank or FI is not required to deduct tax at source while making payments.The FIs, however, told the petitioners that tax would be deducted at source if they did not furnish PAN cards as required under section 206AA of the Income-Tax Act. The petitioners challenged the validity of Section 206AA of the Income-tax Act in their writ petition. Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with 139A of the I-T Act, 206 AA of the I-T Act, FD, Form 15G, income below the taxable limit, income tax declaration, income tax returns, interest income, PAN Card, postaday, Tax Deduction at Source, TDS

Global Recession

June 25, 2012 4 Comments

For over a decade now I have enjoyed reading Swaminathan S. Anklesaria Aiyar’s Sunday TOI editorial column Swaminomics.I like his insight and willingness to call a spade a spade.Read and enjoy his article below.

Bad news: World is sliding into a new recession

24 JUN, 2012,SWAMINATHAN S ANKLESARIA AIYAR,TNN

Many rich countries have struggled for three years to emerge fully from the Great Recession of 2008-09 . Alas, the world is slipping into a new recession. No global authority has dared say so, but the writing is on the wall.

A classic lead indicator of a global recession is a crash in commodity prices, which is evident today.

Brent crude, the benchmark variety that determines Gulf oil prices for India, has fallen from $125/barrel in January to barely $ 90/barrel. Major global commodity indices have slumped over 20%. Mittal and Tata are closing some global steel plants because of falling demand. Prices of non-ferrous metals, cotton, coal and iron ore have crashed. Read more of this post

Filed under Tidbits Tagged with Brent crude, crash in commodity prices, European Central Bank (ECB), Fiscal Deficit, global recession, Great Recession of 2008-09, HSBC Purchasing Managers' Index, IMF, Josef Joffe, lead indicator of recession, Maastricht Treaty, postaday, recession, Swaminathan S. Anklesaria Aiyar, Swaminomics, The US Federal Reserve

Don’t Get Too Used To Your Money

June 25, 2012 5 Comments

The article below is from Saturday’s ET.I was struck by the advice not to get too used to money and that sometimes you will regret saving it.

I also enjoyed reading all the highlighted tidbits on the economic scenario in Europe.

I was also reminded of my history lessons from my school days;of how a sense of economic injustice in Germany led to 2 World Wars. Read more of this post

Filed under Tidbits Tagged with European Central Bank, European Stability Mechanism, German currency, Germany, hyperinflation, Organization for Economic Cooperation and Development, postaday, reunification, thrift, Weimar period

The Rupee Debauchery

June 25, 2012 1 Comment

I found this article here:http://randomchaliceblog.blogspot.in/2012/06/rupee-debauchery.html

I found it well worth preserving on my blog/electronic scrap-book.The highlighted portion is stuff I find worth remembering.

Way back in 1957 Ayn Rand in her magnum opus showed the world as to what happens when the looting runs dry. When the government starts to trample over the productive society and re-distribute wealth it can certainly make some quick electoral gains but soon the nation is driven out of its vitality and resources; very soon there is nothing left for the government to re-distribute.

The sharp depreciation in the currency, a falling growth and rising inflation are just some signal towards such a scenario and to blame it like every other piece of internal economic travesty on some distant western country is an attempt to run away from reality.

The Indian rupee has been among the three worst performing currencies vis a vis the dollar in the past one year. That is indeed quite an achievement considering that all our South Asian neighbours have done better than us. Read more of this post

Filed under Theory Tagged with depreciating rupee, impoverishment, postaday, rupee depreciation

More Ideas To Deal With Money Issues In The Family

June 24, 2012 9 Comments

Here are a few more tips for dealing with money issues in the family.You can find more in an older post here: https://wealthymatters.com/2011/04/12/dealing-with-savers-and-spenders/#more-1285

1)Set a limit on how much each person can spend without checking in with the others.While may be restrictive, in reality it is a display of respect towards other family members.
2)Before taking on any new debt, such as a larger mortgage or a new car loan, save the amount of the future payment into a savings account for at least six months. If you can consistently save that much for six months, you can realistically afford the purchase. Better to know in advance the sacrifices you will need to make than have buyer’s remorse after the fact.
3)Build and keep an emergency fund for unseen expenses or events such as a job loss. The last thing you need when going through a difficult transition is the stress of worrying about money.