Sunday, January 25, 2015

Is Republic Day of significance to the younger generation of Indians?

This Monday, January 26, the nation will celebrate Republic Day -- it will have been 66 years since India became a sovereign state and our Constitution was first implemented.

Unfortunately, today's youth doesn't seem to take much interest in the significance of Republic Day other than to rejoice at the fact that it is a holiday. The channel is switched when a live broadcast of the President addressing the nation is beamed on television and most youngsters are discussing how best they can take advantage of a bonus day off from work.

Do you believe that young citizens of the nation take pride in their country on Republic Day?

Is the occasion one of national significance to them?

The young citizens Of India observe the Day as holiday or a day of amusement. Even few of my friends are planning where to party in day. They are very busy with their money making policies. They don`t bother about the significance and sacrifice of the freedom fighters. Most of the people of India have to earn to meet their day to day expenses-- So, They are less interested to know the importance or significance of Republic day.

People have become more money minded. They have less respect for the country and its martyrs.

I receive plenty of emails wishing me on the Republic day. I ask them what a Republic is; none of them are able to answer. Some of these people are M.Techs, and yet none of them answer. Some of them say it is Democracy. I say no, there are many Republics that are not Democracies and many Democracies (such as UK) that are not Republics. Most of these people work in the IT sector. They all have an education to be proud of, yet are not able to define or explain the word Republic.

This is the fact.

Let me clear one thing ALL YOUNGSTER (including me) love our country just as we love our respective mother. We do celebrate 15th August with TRI COLORS and FLAG CEREMONIES with full spirit and faith, Distributing Foods & Cloths to poor and do something for the society around you, work more for social activities like Sramadhan, Swach Bharath, awareness on literacy at slum areas, work for the needy people. BUT As our former president of INDIA, Mr. APJ Abdul Kalam has said, LOOK INTO MIRROR and ask yourself before pointing out fingers on others, WHAT HAVE YOU DONE FOR YOUR OWN COUNTRY?

I am also celebrating this republic day with some social activities. I expect from you also.

Pl tell the importance of Republic day and Independence day to your child and let them to be participate some things for the society on these days.

Saturday, January 24, 2015

Income Tax Exemption and Deductions – Things to do and not to do to retain Income Tax Exemption

This is an article published in Financial Express with very useful information on retaining Income Tax Exemption and deductions availed by an income tax assessee. The following Income Tax exemptions and deductions are availed in common by salaried employees. However, non-fulfilment of conditions imposed under Income Tax Act with respect to these exemptions by which the tax payer would become ineligible for such Income Tax Exemptions.

PF withdrawals within 5 years.

An employee’s contribution to PF is eligible for deduction up to R1.5 lakh per tax year. However, if the amount is withdrawn before five years of continuous service (except when service is terminated due to employee’s ill health or by contraction or discontinuance of employer’s business or for reasons beyond the employee’s control), the deduction claimed stands withdrawn. In such a case, the contribution would become taxable in the year of withdrawal. Even employer’s contribution, together with the accrued interest thereon, which was exempt earlier, would become taxable as ‘profits in lieu of salary’ and the interest on the employee’s contribution would get taxed as ‘Income from other sources’.

Selling a house bought on loan within five years.

If an individual sells a house acquired with a home loan within five years from the end of the tax year in which the possession is obtained then, upon such sale, the deduction under Section 80C towards principal repayment of the house property (to the extent claimed in earlier years) would be taxable in the year of sale. However, the deduction for interest claimed on the housing loan would not be withdrawn.

Discontinuance of a life cover within two years.

The premiums paid towards a life insurance policy are eligible for deduction under Section 80C. However, if the policy is discontinued within two years, the deductions claimed in earlier tax years would become taxable in the year in which the policy is discontinued.

Non-fulfilment of conditions for Long Term Capital Gains Exemption

Under the Act, gains on sale of certain long-term capital assets may be claimed as exempt by investing them towards acquisition of another prescribed asset. The asset(s) needs to be acquired within the time prescribed. The amount unutilised towards the acquisition of the prescribed asset(s) needs to be deposited in a Capital Gains Account Scheme within the due date of filing the return or the date of filing the return, whichever is earlier. If the amount so parked in the aforementioned scheme is not utilised within the prescribed time towards acquisition of the prescribed asset, the unutilised amount would become liable to capital gains tax at the end of the specified period.
Further, if the asset so acquired is sold within three years from the date of purchase, then, for the purpose of computing capital gains in respect of the new asset, the cost of the asset will be reduced to the extent of capital gains claimed as exempt.
The non-fulfilment of conditions for claiming deduction/exemption need to be reported in the return for the tax year, and tax thereon needs to be paid. The taxpayer could invite penalty if the same is not disclosed in the return.

New series of Consumer Price Index from February 2015

New series of Consumer Price Index from February 2015
According to the news paper report, the Central Govt to release new series of CPI inflation in February…
To present a more accurate and realistic price situation, the government will release next month a new series of Consumer Price Index (CPI) with 2012 as base year for computing retail inflation rate.
The Central Statistics Office (CSO) is in the process revising the Base Year from 2010=100 to 2012=100 so that the gap between Price Reference Year (Base Year) and the Weight Reference Year has been minimised. The first series (revised) would be compiled for January which will be released on February 12 and from January 2016 onwards, inflation rates would be compiled using the actual CPI of the revised series.
Besides, the government has notified a number of methodological improvements have been introduced in the revised series. Prices of Antyodaya Anna Yojanna (AAY) have also been included in addition to Above Poverty Line (APL) & Below Poverty Line (BPL) prices being taken in the existing series.
The weight of food and beverages would be 45.86 in the new series compared to 47.58 in 2010 series for national index. The weight of fuel and light segment would be 6.84 in the new series which is 9.49 in the 2010 series. The weight of clothing and footware segment would be increased to 6.53 from 4.73.
The weight of housing will also be increased to 10.07 from 9.77. Further, the weight of pan, tobacco and intoxicants will be increased to 2.38 from 2.13 in 2010 series. Similarly the weight of miscellaneous will also be increased to 28.32 from 26.31 in the new series.
The number of priced items has been changed from 437 to 448 in rural and from 450 to 460 in urban at all India level. In the revised series, 11 new priced items have also been added, without dropping any item, in rural sector at all India level. In case of urban, 7 priced items have been dropped and 17 new priced items have been added.
Source : PTI

Happy Basant Panchami 2015

 An important Indian festival, Vasant Panchami is celebrated every year in the month of Magh according to the Hindu calendar and as per the Gregorian calendar; this Hindu festival highlights an end of the winter season & the coming of spring and the Holi season in between the months of January and February. The festival which is loaded with religious, seasonal and social significance, Vasant Panchami is also called as Saraswati Puja or the Basant Festival of Kites for Sikh. It is the first and more minor of two spring-themed festivals in Hindu culture and it's praised by Hindus in all over the world with full of energy along with new sense of confidence. The festival will be celebrated on Saturday, January 24th 2015.


The festival of the Vasant Panchami is focused on the Hindu goddess Saraswati; the goddess of knowledge, music, art, culture and wisdom as the Goddess illustrated an idiosyncratic features of adapting. As we all realize that, the Goddess Saraswati is the holiness of brains and learning. She has four hands which symbolize ego, intellect, alertness and the mind. She is frequently pictured seated on a lotus or a peacock, wearing a white dress. 

National Girl Child Day Celebrated In India on 24 January

Every year, the 24th January is celebrated as National Girl Child Day since 2009. On 24th January 1966, Smt. Indira Gandhi became first woman Prime Minister of India, therefore, 24th January was selected as National Girl Child Day to commemorate the event.

Objective of the National Girl Child Day

The primary objective of the National Girl Child Day is raising awareness and consciousness of the society towards the girl child. The primary aim is to ensure that every girl is respected and valued in Indian society. 

On this day, the Women and Child Development Ministry take up multi-pronged approach for addressing as well as working towards the trend of diminishing child sex ratio in India. The initiatives like these ensure that girl child is born as well as nurtured in a way that it gives them equal opportunities as well as rights like those to the boys. 

On the National Girl Child Day, the aim is to address issues related to health, education and nutrition of the girl child. The State's Women and Child Development Department instructed the District Programme Officers of various states of India to organise programmes for the National Girl Child Day.

Save girl child, educate her, pleads Modi

Launching the ‘Beti Bachao-Beti Padhao’ scheme in Haryana, he said we must fight female foeticide and celebrate the birth of a girl child.
The ‘Beti Bachao-Beti Padhao’ scheme, which seeks to address gender imbalance and discrimination against the girl child, was launched by Prime Minister Narendra Modi at Panipat in Haryana on Thursday.
This is the fourth major scheme of his government after Jan Dhan Yojana, Swachh Bharat Abhiyan and ‘Make in India’ campaign.
Speaking on the occasion, Mr. Modi begged the people with open hands to save the lives of the girl child and also administered them an oath to fight female foeticide, celebrate the birth of a girl and educate them.
He lamented that we all feel that daughters are “paraya dhan” or that they would go away after marriage and are also not fed on par with the sons.
“People say in old age sons come in handy. Had that been true, so many old age homes would not have opened. Sons have cars and bungalows and yet, many times, parents remain in old age homes. On the other hand, there are innumerable daughters who work hard to keep their parents happy. If girls get the chance, they perform better than boys.”
Societal pressure
The Prime Minister said “it is our responsibility to wake up the society and to realise our responsibility. It is due to family and societal pressure that girls are killed in the womb. He also pointed out how, in some places, girl child was drowned at times in milk. This used to happen after their birth and after they had seen the face of their mother. But we are worse, we kill girls in the womb.”
Mr. Modi also asked doctors if female foeticide was the only way to earn money and will such money do them any good. “You have been taught to save the lives of people, not to kill innocent girls.”
He recalled how when some years ago a boy, Prince, fell into a tube well in a village in Kurukshetra district of Haryana, people tracked his rescue for days and women prayed for him across the country. “But why don’t we show same concern for numerous girls who are killed in the womb?” he asked.
Mr. Modi said “today we are taking a very important responsibility on the soil of Panipat. Till we are compassionate about this scheme and aware, we will not only be harming ourselves but also our future generations. I am glad Ms. Gandhi chose Haryana for this programme, but this message is for every family, village and State in the country.”
Equal treatment
He said “beta-beti ek samman” (equal treatment of boys and girls) should be our motto. “Have we ever imagined that if present gender imbalance continued, then what would be the repercussion? For every 1,000 boys, 1,000 girls should be born. See Mahendergarh and Jhajjar districts where there are just about 775 girls for 1,000 boys and so about 225 boys would remain unmarried. If daughters are not born, where will you get your daughters-in-law from? We want educated daughters-in-law, but think so many times before educating our daughters. Educating our daughters is also our responsibility,” the Prime Minister said.
Mr. Modi said Panipat is also the birthplace of famous Urdu poet Altaf Husain Hali who had spoken about women empowerment in the 19th century thus:
Ai maon, behnon, beityon duniya ki zeenat tumsay hai
Mulkon ki basti ho tumhin, qaumom ki izaat tumsay hai
(O Sisters, mothers, daughters U
You are the ornaments of the world
You are the life of the nations
The dignity of civilisations)
Low sex ratio
Mr. Modi had first spoken about this scheme during his Independence Day speech. Subsequently, 100 districts with low sex ratio were identified across the country. Haryana with a declining sex ratio had 12 of them and since Panipat was one of them, it was chosen as the venue for the launch.
Though Mr. Modi was supposed to the come to the venue by a chopper, due to inclement weather and rain in the morning, his travel plan was changed and he reached here by road, which delayed the launch of the programme by over an hour.
Sharing the stage with Hindi film star Madhuri Dixit, who has been made the brand ambassador of the scheme, and Union Ministers Maneka Gandhi, Smriti Irani, Ravi Shankar Prasad, J.P. Nadda, Krishan Pal Gujjar, Birender Singh and Rao Inderjit Singh and Haryana Chief Minister Manohar Lal Khattar, the Prime Minister flagged off 72 Jan Chetna awareness vans which would visit all these districts and other parts of the country to raise awareness about rising imbalance in sex ratio. Of these, 12 vans would visit the worst affected districts of Haryana.
Mr. Modi also lauded Ms. Dixit for attending the programme to save the daughters of the country despite her mother being in Intensive Care Unit.
‘Sukanya Samruddhi Account’
He launched the ‘Sukanya Samruddhi Account’ scheme under which accounts of girls could be opened from the time of their birth till their attaining the age of 10 by presenting passbooks to five girls. The account can be opened with an amount of Rs. 1000 and in a financial year, a sum of up to Rs. 1.5 lakh can be deposited in it. Investments made under the scheme will also be eligible for exemption under 80C of Income Tax Act, 1961.
Mr. Modi said interest income and withdrawal from the scheme has been exempted from taxation.
At the function, a postage stamp was also released to commemorate the launch of the Beti Bachao-Beti Padhao scheme.
Banners and posters for saving the girl child had been put up all around the venue and on roads leading to it. One of them read: “Tyag aur samarpan sikhati hai beti, naye naye rishtay banati hai beti” (Daughters teach sacrifice and commitment, help forge new relations).
Toilets in schools
Chief Minister Manohar Lal Khattar said that for the girl child, the State would launch a Haryana Kanya Kosh through which the State would provide Rs. 21,000 to all girls at birth so that they have Rs. 1 lakh in their account at the age of 18. He also declared that toilets will be constructed in all schools for the girl child.
In her address, Union Woman and Child Development Minister Maneka Gandhi said now it has become a matter of existence of women as the sex ratio has declined to 914 which means that about 2,000 girls are killed everyday and this is a matter of shame for any country or society.
In Haryana, the sex ratio in the districts ranges between 875 and 837 which means for every 1,000 boys about 125 to 150 girls are being killed. She said doctors, parents and society are equally to be blamed.
Ms. Gandhi said that to ensure success of the scheme, every child should be born in private or government hospital so that their record is kept. People, she said, should also see the details of the programme being shown on vans. She also demanded gudda-guddi boards to be put up in all villages to see the sex ratio via the number of births of both sexes.

Friday, January 23, 2015

10 things to learn from our Primeminister Narendra Modi

Narendra Damodardas Modi is a name we all have heard of, and the Lok Sabha Elections were enough to prove the faith the country that happens to be the largest democracy of the world has put in this man.

Public Speaking Skills
The man has something in his voice that makes head turn. Even the people who don't happen to like him have agreed that they never miss a speech by the Indian Prime Minister. And we can't even say that this all is because of someone who writes his speeches, as the Independence Day saw him speaking without any written speeches, and this sure is going to be one of the most remembered speeches from an Indian PM.


The 15th Prime Minister of India has always led a disciplined life. Ever since he was made a bal swayam sevak in RSS, which is known to instill discipline in all its members, he has followed a disciplined regimen.


Ever since he was a child who used to help his father and brother in their tea stalls, he was determined to make it big for himself. He has been associated with RSS since an early age, and that shows the determination that eight-year old possessed and this 64 year old possesses.


This is something for people who plan a lot. Learning from a meticulous planner that Mr. Modi is, you should care to have a love for detailing. For reaching out to the Indian population, Modi travelled more than 3.5 lakhs Kms and did 400 rallies, even to places where no one usually goes. This micro detailing helps a lot in efficient planning, leading to better results.

Love For Technology

The man is tech-savvy and likes to keep himself up to date with all the developments in the field. He tweets and posts important details of his life and journey within minutes of it happening. While we can learn from this, we should also know the clear difference there is between love for technology and being a slave for it.

Love For Fitness

Modi is a big yoga enthusiast and never forgets to do it, no matter how busy he is. Perhaps, this is the reason why he is this active at this age. This is also something that we can and should learn from him.


Even at the age of 64, the enthusiasm with which Narendra Modi lives his life is commendable. Be it playing drums on his recent visit to Japan or answering questions of various Indian students on Teacher's Day, he has never left his enthusiastic persona.


After full proof planning, which leads to his confidence, he is not a man who can be impatient and jump on to conclusions or be restless for results. This patience and the tendency of keeping his calm and not behaving like a kid has proved to be very useful for him. It's a hard sight to see the man angry, overpowered by emotions, or losing his patience. This is something which if learned can prove to be a changing point in our lives.

Leadership Skills

If you remember well, he promised to work one hour more than his subordinates did in a public speech. This is not something an inefficient leader would be able to say. He is an efficient leader and leads by his words; learning this skill from him can be beneficial for our professional lives.


Even though he is the Prime Minister of world's largest democracy, his position has not gone to his head. He comes across as a very humble human being and this is evident by the way he addresses the nation and answers all the questions he is put across. Being humble can take you places and this is also something to learn from him.

Retirement age @ 58 is justified – Punjab & Haryana High court

The Punjab and Haryana High Court today ruled that the decision to enhance the employees’ retirement age from 58 to 60 by the previous Congress government led by Bhupinder Singh Hooda was an attempt to garner votes just before the Assembly elections; and was not an honest decision. The scathing observations on the previous government’s conduct came as Justice Tejinder Singh Dhindsa upheld the Khattar government’s decision of reducing the age from 60 to 58.

Justice Dhindsa ruled: “The timing of such decision cannot be lost on this court. The state Assembly elections were around the corner. The Model Code of Conduct was on the verge of being imposed. The decision to enhance the age of retirement and that too in derogation of the relevant rule can only be seen as an attempt to garner a particular vote bank… “This court would have no hesitation in holding that the action of the state government in reversing the earlier decision of enhancing the age of retirement from 58 years to 60 years by terming the same to be not honest is well founded”, he said. The Hooda Government had last year increased the retirement age of the employees by two years to 60, shortly before the October 15 Assembly election.

CGEGIS Table 2015 - Tables of Benefits for the savings fund for the period from 1.1.2015 to 31.12.2015

CGEGIS Table 2015 – Table for Central Government Employees Group Insurance Scheme 1980

Tables of Benefits for the savings fund for the period from 1.1.2015 to 31.12.2015

CGEGIS Table 2015: Central Government Employees Group Insurance Scheme-1980 — Tables of Benefits for the savings fund for the period from 01.01.2015 to 31.12.2015.

Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 22nd January, 2015

Sub: Central Government Employees Group Insurance Scheme-1980 — Tables of Benefits for the savings fund for the period from 01.01.2015 to 31.12.2015.

The undersigned is directed to refer to this Ministry’s O.M. No.7 (1)/EV12013 dated 8th January, 2014 forwarding therewith Tables of Benefits under CGEGIS for the year 2014. 

New Tables of Benefits for the savings fund of the Scheme based on a subscription of Rs.10 per month from 1.1.1982 to 31.12.1989 and Rs.15 per month w.e.f. 1.1.1990 onwards have been prepared for the year 2015 and a copy of the table is enclosed. 

Another Table of Benefits for the savings fund based on a subscription of Rs.10 per month for those employees who had opted out of the revised rates of subscription w.e.f. 1.1.1990 have also been drawn up for the year 2015 and a copy of that table is also enclosed. 

The amounts in the Tables have been worked out on the basis of interest @ 10% per annum(compounded quarterly) for the period from 1.1.1982 to 31.12.1982, 11% per annum(compounded quarterly) w.e.f. 1.1.1983 to 31.12.1986, 12% per annum(compounded quarterly) w.e.f. 1.1.1987 to 31.12.2000, 11% per annum (compounded quarterly) w.e.f. 1.1.2001 to 31.12.2001, 9.5% per annum(compounded quarterly) w.e.f. 1.1.2002 to 31.12.2002, 9.0% per annum(compounded quarterly) w.e.f. 1.1.2003 to 31.12.2003, 8% per annum (compounded quarterly) w.e.f. 1.1.2004 to 30.11.2011, 8.6% per annum (compounded quarterly) w.e.f. 1.12.2011 to 31.03.2012, 8.8% per annum (compounded quarterly) w.e.f. 1.04.2012 to 31.03.2013 and 8.7 % per annum (compounded quarterly) w.e.f. 01.04.2013 onwards. 

The mortality rate under the Scheme has been taken as 3.75 per thousand per annum up to 31.12.1987 and 3.60 per thousand per annum thereafter in both the cases. While calculating the amount it has been assumed that the subscription has been recovered or will be recovered from the salary of the month in which a member ceases to be in service failing which it should be deducted from accumulated amounts payable.

In its application to the employees of Indian Audit and Accounts Department this Office Memorandum issues in consultation with the Comptroller and Auditor General of India.


Click the link to view the tables is given below…

Source document from

Monday, January 19, 2015


KYC is an acronym for “Know your Customer”, a term used for customer identification process. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer’s business, reasonableness of operations in the account in relation to the customer’s business, etc which in turn helps the banks to manage their risks prudently. The objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally by criminal elements for money laundering.

KYC has two components - Identity and Address. While identity remains the same, the address may change and hence the banks are required to periodically update their records.


1. Is there any legal backing for verifying identity of clients?

Yes. Reserve Bank of India has issued guidelines to banks under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005. Any contravention thereof or non-compliance shall attract penalties under Banking Regulation Act.

2. I want to keep a fixed deposit in a bank. Is KYC - applicable to me?

Yes. KYC is applicable to customers of the bank. For the purpose of KYC following are the ‘Customers of the bank.
• a person or entity that maintains an account and/or has a business relationship with the bank;
• one on whose behalf the account is maintained (i.e. the beneficial owner);
• beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and
• any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

3. Is there any procedure specified for Customer Identification?

Customer identification means identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information. Banks have been advised to lay down Customer Identification Procedure to be carried out at different stages i.e. while establishing a banking relationship; carrying out a financial transaction or when the bank has a doubt about the authenticity/veracity or the adequacy of the previously obtained customer identification data.

4. Once KYC requirements are complied with while opening the account, whether the bank can again ask for KYC compliance from me?

Yes. To ensure that the latest details about the customer are available, banks have been advised to periodically update the customer identification data based upon the risk category of the customers.

Banks create a customer profile based on details about the customer like social/financial status, nature of business activity, information about his clients’ business and their location, the purpose and reason for opening the account, the expected origin of the funds to be used within the relationship and details of occupation/employment, sources of wealth or income, expected monthly remittance, expected monthly withdrawals etc. When the transactions in the account are observed not consistent with the profile, bank may ask for any additional details / documents as required. This is just to confirm that the account is not being used for any Money Laundering/Terrorist/Criminal activities.

5. I had submitted my driving licence as a proof of identity and address but still the bank asked for telephone / electricity bill.

There are two aspects of Customer Identification. One is establishing identity and the other is establishing present residential address.

For establishing identity, the bank requires any authentic document carrying photo of the customer such as driving licence/ passport/ pan card/ voters' card etc. Though these documents carry the residential address of the customer, it may not be the present address. Therefore, in order to establish the present address of the customer, in addition to passport/ driving licence / voters' card / pan card, the bank may ask for utility bills such as Telephone / Electricity bill etc.

6. Whether KYC is applicable for Credit Cards/Debit Cards/Smart Cards?

Yes. Application of full KYC procedure is necessary before issuing Credit Cards/Debit Cards/Smart Cards and also in respect of add-on/ supplementary cards.

7. If I refuse to give information on KYC asked for by the bank, what action the bank can take against me?

Where the bank is unable to apply appropriate KYC measures due to non-furnishing of information and /or non-cooperation by the customer, the bank can consider closing the account or terminating the banking/business relationship after issuing due notice to the customer explaining the reasons for taking such a decision.