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News Despatch
VOL IX, ISSUE IX
Here’s a sector-wise break up of the Union Budget for the financial year 2017-18

Personal income tax
  • Existing rate of tax for individuals between Rs.  2.5- Rs 5 lakh is reduced to 5% from 10%
  • All other categories of tax payers in subsequent brackets will get a benefit of Rs 12,500
  • Simple one page return for people with an annual income of Rs. 5 lakh other than business income
  • People filing I-T returns for the first time will not come under any government scrutiny
  • Ten % surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore to make up for Rs 15,000 crore loss due to cut in personal I-T rate. 15 surcharge on individual income above Rs. 1 crore to remain


Tax proposals
  • Under the corporate tax, in order to make MSME companies more viable, there is a proposal to reduce tax for small companies with a turnover of up to Rs 50 crore to 25%. About 67 lakh companies fall in this category. Ninety-six % of companies to get this benefit
  • The government proposes to reduce basic customs duty for LNG to 2.5% from 5%
  • The Income Tax Act to be amended to ensure that no transaction above Rs 3 lakh is permitted in cash
  • The limit of cash donation by charitable trusts is reduced to Rs 2,000 from Rs 10,000


Financial sector
  • FDI policy reforms - more than 90% of FDI inflows are now automated
  • Shares of Railway PSE like IRCTC will be listed on stock exchanges
  • Bill on resolution of financial firms will be introduced in this session of Parliament
  • Foreign Investment Promotion Board will be abolished
  • Revised mechanism to ensure time-bound listing of CPSEs
  • Will undertake structural transformation of the regulator framework for medical education
  • Allocation for Scheduled Castes  is Rs. 52,393  crore
  • Aadhaar-based smartcards will be issued to senior citizens to monitor health


Source: HT

By investing in avenues specified by the Government, you can reduce your tax burden, says Suraj Goel.

Most of us are aware of deductions available to a taxpayer on gross total income. The most popular deduction is under Section 80C, but there are more breaks available under various other sections of the Income Tax Act that you can make the most of to reduce your taxable income to the maximum possible.

Education Loan
If you have taken an education loan for self, spouse, children, or a student you are legal guardian to, you can claim this deduction under Section 80E for the interest paid on the loan amount. The entire interest paid in a financial year is eligible for deduction without any limit.

House Rent
If you do not receive House Rent Allowance (HRA) as part of your salary, or you are not a salaried employee, you claim this deduction under Section 80GG. It is available for the rent paid by the taxpayer for his own accommodation in a financial year. The deduction amount will be the lower one of the following: Rent paid over 10% of salary (Basic + D.A.) 25% of the total income (before subtracting deductions) Rs. 5,000 per month

Medical Insurance Premium
The amount paid as medical insurance premium is eligible for deduction under Section 80D. The maximum deduction that can be claimed under this section is Rs. 60,000, but there are many sub-limits.An individual can avail a maximum deduction of Rs. 25,000 for premium paid for self,

donated to a political party, then you can claim deduction under Section 80GGC equivalent to the amount actually donated. There is no ceiling on this deduction amount.

Source: ET Wealth
Since demonetization was announced, the government has put its weight behind digital transactions. But before you go digital, know how to stay safe online

With the government’s move to demonetize high-value currency notes in early November also came a push towards digital transactions. According to data released by the Reserve Bank of India (RBI), the volume of smaller value transactions, largely represented by modes like Point of Sale (PoS), Unified Payments Interface (UPI), Immediate Payment Service (IMPS) and mobile e-wallets saw a strong growth. Even though all electronic transactions’ combined value saw a growth of over 10%, the volume growth was in excess of 42%, indicating that various small value transactions were made through digital channels.

At this juncture, it is important for consumers to know the dos and don’ts when it comes to safety of information while transacting digitally.

Following are the major types of risks that you should be aware of:
Malware: These are specifically designed applications and programs that compromise the security of mobile phones and computers. It gives cyber criminals access to devices, and hence also to sensitive consumer data. Therefore, download and install applications only from authentic sources and that too from developers having a good reputation.

Phishing: In this case, the user is trapped using fake emails or websites and is made to enter account-related sensitive information. Those who are new to the world of electronic transactions are more prone to such Insurers will only settle claims on active insurance policies. There are an astonishing number of people who do not understand that delaying premium payments result in lapsed policies. Once your policy lapses, you are no longer covered and all your premiums paid that far will be rendered useless.

Update Nominee Information
Your named nominee is the person who will receive any and all benefits that come out of your insurance policy, when the time comes. If you’re single, naming your parents as nominees would be the sensible way to go. Once you’re married, name your spouse and children. Whatever your present relationship status is, always keep a nominee named so that some benefit will go to some dependant of yours somewhere. Nominees are generally those whose livelihoods are directly dependant on you being alive and well.

Don’t Delay In Filing Insurance Claims
It may be the last thing on your mind in a medical emergency, but a quick call to your insurance company could spell the difference between having or losing insurance cover. It’s a good idea to give a trusted friend, colleague or relative your emergency insurance information to call and intimate the insurance company in case you are unable to do so yourself. Basically, the life insurance company needs to be kept posted about the events for which they will be held financially liable later.

Accept Medical Examinations
Insurance companies sponsor your medical tests and examinations to get a better understanding of your medical condition. The more they know, the less they can say was withheld as a reason to avoid giving you your sum assured that’s due. These tests may also help you detect diseases early, and treat them accordingly. This is most common for health insurance policies, but can be important for life insurance policies also.

Thoroughly Scrutinize The Policy Document:

  • Computer emergency response team for financial sector will be formed
  • Pradhan Mantri Mudra Yojana lending target fixed at Rs 2.44 lakh crore for 2017-18
  • Digital India - BHIM app will unleash mobile phone revolution. The government will introduce two schemes to promote BHIM App - referral bonus for the users and cash back for the traders
  • Negotiable Instruments Act might be amended
  • DBT to LPG consumers, Chandigarh is kerosene-free, 84 government schemes are on the DBT platform.
  • Head post office as the central office for rendering passport service.
  • Easy online booking system for Army and other defence personnel.
  • For big-time offences - including economic offenders fleeing India, the government will introduce legislative change or introduce law to confiscate the assets of these people within the country


Infrastructure and railways

  • A total allocation of Rs. 39,61,354 crore has been made for infrastructure
  • Total allocation for Railways is Rs. 1,31,000 crore
  • No service charge on tickets booked through IRCTC
  • Raksha coach with a corpus of Rs. 1 lakh crore for five years (for passenger safety)
  • Unmanned level crossings will be eliminated by 2020
  • 3,500 km of railway lines to be commissioned this year up from 2,800 km last year
  • Coach mitra facility will be introduced to register all coach related complaints
  • By 2019 all trains will have bio-toilets
  • Five-hundred stations will be made differently-abled friendly
  • Railways to partner with logistics players for front-end and back-end solutions for select commodities
  • Railways will offer competitive ticket booking facility


For Health Care

  • Elimination of tuberculosis by 2025 targeted
  • Health sub centres, numbering 1.5 lakh, willl be transformed into health wellness centres
  • Two AIIMS will be set up in Jharkhand and Gujarat

spouse or dependent children. An additional deduction of Rs. 25,000 is allowed on premium paid for parents. If the policyholder is a senior citizen, then the deduction limit is Rs. 30,000. One can also claim a tax break of Rs. 5,000 on preventive health checks.

Health Of Disabled Person This deduction under Section 80DD is available on expenditure incurred for the health and maintenance of a disabled, dependent family member. The maximum deduction that can be claimed is Rs. 75,000 per annum. If the dependent suffers from severe disability, then the limit is Rs. 1.25 lakh.

Interest On Savings Account Interest earned on savings bank account is allowed as deduction under Section 80TTA. The maximum amount that can be claimed is Rs. 10,000. This does not mean that interest of up to Rs. 10,000 is exempted income. You should show this amount as income from other sources in your ITR and then claim deduction under Section 80TTA.

Specified Diseases This deduction under Section 80DDB is available on expenditure incurred for the treatment of specified diseases for self, spouse or dependent family members. The deduction is equal to the amount actually expended or Rs. 40,000, whichever is less. If the person for whom the expenditure is made is 60 or more, the limit will be Rs. 60,000 and it will be Rs. 80,000 if the age is 80 or more. The list of specified diseases is available in Rule 11-DD of Income-tax Rules.

Donations If you have donated to a fund notified by the central government under Section 80G, you would be eligible for deduction of the amount donated, but it should not exceed 10% of the adjusted gross total income. This deduction is also available for donations given for renovation of temples, mosques and churches approved by the government. If you have donated to an institution carrying out scientific research or to a university or college which is approved by the government, then the amount so contributed would be eligible for deduction under Section 80GGA. Deductions over and above Rs. 10,000 can be claimed only if the contribution has been made by any mode other than cash. If you have

traps. Do not click on attractive or suspicious links that you get through SMSs or emails.

Public networks:  Using a public network can expose your mobile device and information to cyber criminals. Avoid doing digital transactions on public computers and networks like a cyber cafe or a public Wi-Fi hotspot.

Ransomware:  In this security issue, the hacker gains remote access to the device as well as the data of the victims, and can block access to the device until a sum of money is received.

Source: LiveMint
Here are seven things you as a customer can do to ensure that you always get paid what’s due to you by your life insurance provider.

Don’t Conceal Information

Literally any bit of information you don’t (or forget to) tell the life insurance company which can have an impact on your health, or result in any medical condition that requires hospitalization or the payment of death benefit is considered as “concealment of information”. Any disease or ailment requiring you to make a life insurance claim will be tracked back and traced to anything in your application form that indicates that this disease or ailment was a possibility. If you haven’t told the company about it, sum assured and other benefits will not be given to you or your dependants. Your premiums are decided on this information, so be clear and open while furnishing it.

Pay Your Premiums On Time

Keep yourself informed and abreast of all developments with your insurer. Keep yourself informed about the details in your policy document. Stay diligent and well informed about the conditions under which you will be eligible for a claim. Life insurance is not just a tax saving tool, it’s a serious financial product which, if used correctly, can be a saving grace for your family and dependants.

bankbazaar
Please do not reply back to this mail. This is sent from an unattended mail box. Please mark all your queries / responses to webmaster@ecrmagic.com.
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. ecrmagic.com and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. ecrmagic.com, its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.