Month: February 2019

Budget 2018: The Bright, the Dark and the Unsettling

My Money Karma Team
Budget 2018: The Bright, the Dark and the Unsettling

As the Union Budget was announced on February 1, 2018, by the Union Minister for Finance, Mr. Arun Jaitley,  a lot of curiosity was created about what it meant for the country’s inhabitants. The 2018 budget was a mixed bag of sops with a lot of goodies for the economically weaker sections and the uber-rich, but very little for the middle class.

The Prime Minister, Mr. Narendra Modi, called the budget a “Farmer friendly, common citizen friendly, business- environment friendly, development friendly budget.” But not all of the budget is bright and shiny. Several provisions are definitely not pro-salaried class. The bigger corporate houses are also expected to be disappointed.

Verify Aadhaar & PAN at EPFO and UAN Website

My Money Karma Team
Employees’ Provident Fund Organisation or EPFO has made it easier for people to link their PAN and Aadhar details with your EPF account. Updating your KYC details is crucial to claim tax deductions. To process those claims conveniently, you must update your KYC details with your UAN (Universal Account Number). After linking your Aadhaar and PAN with EPF account, you’ll need to verify your Aadhaar and PAN  digitally at the EPF UAN website. According to the EPF UAN website, it is mandatory to digitally verify your KYC documents, such as Aadhaar and PAN details, for availing EPF services. In this article, we’ll discuss the procedure of verifying Aadhaar and PAN details in the official EPF UAN website. We’ll also be reviewing the online verification procedure for KYC.

How Blockchain Can Revolutionize the Finance Industry

My Money Karma Team
How Blockchain Can Revolutionize the Finance Industry
Technological development in the last few years has been phenomenal. Augmented reality devices, highly intelligent robots, humanoids, CRISPR (gene-editing technology) are not limited to a sci-fi author’s imagination anymore; they’re a massive part of the research and development that has been taking place worldwide. The last decade has seen immense potential in using technology to alleviate human involvement in segments that require high accuracy, reliability and transparency – the financial sector is one of those segments. Researchers believe that blockchain would alter the way financial transactions occur in the world by eliminating the dependency of people on institutions for making these transactions. Blockchains could also solve many pressing problems in the developing world since it is a highly transparent system, and thus, it could help in reducing corruption levels in those countries. However, most of the countries have been slow in adopting the blockchain technology. Many MNCs and global firms have backed the efficiency of this technology in eliminating a go-between in all the transactions which occur globally.

E-nomination Facility by EPFO

My Money Karma Team

If you are a salaried employee, you must be aware of PF deductions. In case you aren’t, just take a peek at your salary slip. If the organization that you work for is registered with EPFO, you will notice a considerable amount being deducted from your total salary every month. That’s your PF or Provident Fund deduction. Don’t get worked up – you are not losing out on the money; it is deposited into your PF account as compulsory savings, and you can easily do a PF balance check from the official website of EPFO whenever you want.

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New PPF Rules

My Money Karma Team
New PPF Rules
A wise man has said that the best saving habit reflects in one who starts saving from their very first paycheck. Well, I inculcated a saving habit even before I started getting my paychecks! I have had a PPF account since I was 18. My parents, being government employees, always considered PPF to be the most reliable investment option. They asserted that a PPF account is the best way to save for the future. They insisted that I deposit the minimum mandatory amount into my PPF account every year. A student back then, I scrimped hard to save a little from my pocket money every month to accumulate enough funds for the yearly PPF deposit. It is a great tool to save and grow your wealth. Before we discuss the new PPF regulations, let’s start with the basics.

Revised EPF Deductions

My Money Karma Team
Revised EPF Deductions

Almost all salaried employees don’t receive an elusive chunk of their monthly salary due to EPF deductions. Have you wondered what are EPF deductions?
Commonly known as EPF, Employee Provident Fund is typically a post-retirement scheme which is accessible to all salaried employees. EPF is managed by the Employees Provident Fund Organisation of India (EPFO). The EPF and Miscellaneous Provisions Act states that a registered company with more than 20 employees is mandated by law to enroll with the EPFO. Employee Provident Fund is considered to be a great savings platform which aids the employees in saving a portion of their salary each month. As against the global average of 40%, women’s contribution in Indian workforce is pretty low (at a dismal 24%). There are several issues keeping women away from the formal workforce. Catalyst, a leading non-profit social marketing agency states that even a small increase of 10% in the participation rate of women in the workforce could increase India’s GDP by 700 billion dollars (1.4% of the GDP)

Important Changes in Tax Rules in FY 2018-19

My Money Karma Team
Important Changes in Tax Rules in FY 2018-19Revival of LTCG tax
The most significant change implemented in the financial year 2018-19 is the revival of the long-term capital gains (LTCG) tax on the investments in the stock market. Now, a 10% tax will be imposed on the profits from stock markets which exceed one lakh in the form of Long-Term Capital Gains (LTCG) tax. These profits could be earned by the sale of stocks and equity-oriented mutual funds, which have been held by an investor for more than a year.