most people do not listen with an intent to understand ... breeze/june 2014 breeze...1 shriram city...

1

Shriram City - News Letter - Breeze - 1st June 2014

Most people do not listen with an intent to understand; they listen with the intent to reply. - Stephen Covey

1st JUNE 2014

Mr. Chokkalingam Palaniappan is the Director of Prakala Wealth Management Pvt. Ltd.

He is an experienced investment and management consultant with over 20 years of profes-

sional experience, both in India and overseas. Breeze readers from South India are likely to

be familiar with his articles in Nanayam Vikatan and the Tamil Hindu daily. He is also a

regular participant in finance and investment related programs on the Sun News Channel.

Mr. Chokkalingam has kindly consented to share this article (previously published in

Tamil) with the readers of Breeze for their benefit..

Tax planning is a big subject in itself. Large corporations, both Indian and

multinational, have big teams for this purpose. HNIs and highly paid staffs start their

tax planning ahead of the birth of the financial year itself. Foreigners working in

India are provided tax planning services from big auditing firms as a part of their

package itself. Why is tax planning so important? Because a penny saved is more

than a penny earned.

While one part of India is taking tax planning very seriously, the other part is

not so serious about it. They decide in the fourth week of March each year and

dump the money into some investment as told by X or Y. Or they invest in an asset

class such as real estate where tax savings is not that great.

The virtues of early Tax Planning

2


Some of the highly paid knowledge workers don’t have even time to think

about taxes, leave alone tax planning. They just leave it to the employer – they don’t

even look at their salary slips to see how much tax is being deducted every month.

For dual wage earning families, tax planning is still more important as it can save a

decent amount.

While saving tax, you can take care of your

portfolio allocation as well – give decent allocation

to equity, debt, and real estate in your tax saving

investments. For example there is no long term

capital gains tax in India for equity related invest-

ments. Hence, you can save in equity oriented

mutual funds for your long term needs such as

kids’ education/ marriage & retirement.

When the goals are reached you could with-

draw the amount without paying any income taxes and utilize the same for achieving

your goals. Instead of renting a house, you may buy one, live in it, and save taxes

for the interest and principal paid. If you are a conservative investor or going to

retire pretty soon, then you may look at tax free bonds that are offered by

government companies such as IRFC and NHAI. On a pre tax basis these bonds offer

highly attractive rates (11% plus per annum) with sovereign guarantee.

Conservative investors who want assured returns for their kids’ college fund

could invest in deep discount bonds offered by institutions such as NABARD in their

kids’ name itself. When they become major, the fund is taxed in the hands of the

children - which at that point of time will be nil for the children. Similarly a part of

the retirement planning could be done effectively through PPF by way of tax free

withdrawals while continuing to invest in PPF.

You could also save taxes when you pay for your health check-up. For young-

sters, first utilize your 80C benefits and other direct tax saving options. Then go

ahead and identify your goals and appropriate vehicles for investing for the same.

Many small and medium business owners take it lightly when in comes to tax plan-

ning. Make sure that you plan and budget your expenses and investments well in

advance to have some more money in your pocket.

The virtues of early Tax Planning (Contd.)

3


We are still in the first quarter for this financial year and it is still not

too late to plan your taxes. Go ahead and do it yourself if you have enough finan-

cial knowledge. If not, outsource it to someone who is an expert in this field.

——————————————————————————————————————————————-

Contributed by

Sri Srikanth V.

Enterprise Finance, R.R. Puram

Useful Info

The virtues of early Tax Planning (Contd.)

4


Did You Know Series (DYKS) - 10

PART I – Rules of DYKS

The details and rules of the DYKS are as follows:

Each issue will contain 3 multiple answer questions

All staff members are eligible and are encouraged to reply to the questions

All replies to be sent only to [email protected]

The mails should be sent from the official mail ID of the employee.

The response mail should be as follows:

The name of the staff from whom the first correct response comes will be published in the subsequent issue of ‘Breeze’. This will be for each of the states.

======================================================================

PART II – Answers to Quiz of May 2014 issue

SNo. Required Information Employee Entry / Answer to quiz

1 Employee Name

2 Employee Number

3 Designation

4 Email ID

5 Branch code and name

6 State

7 Answers:1

2

3

SNo Question Answer

1

Customer Data Sheet contains

(E) – (a) , (b) and (c) above. Customer

Name, address, contact details, customer

employment details and salary, chit details

of the customer

2 UFC stands for (B) – Upfront Finance charges

3

ECS/ Cheque Bounced details are available in which of the

following reports? (B) – Detailed Hirer Ledger

PART III – Statewise correct responses to Quiz in May 2014 Issue

S.No State No. of responses 1 HO-Chennai 5

2 Kerala 4

3 Rajasthan 3

4 Uttar Pradesh 2

5 Karnataka 1

mailto:[email protected]

5


PART IV – State wise 1st correct response to Quiz in May 2014 Issue

PART V– Quiz - June 2014

1. Through ACH (Automated Clearing House) mandate, monthly debits to customer account

should:

A. Be the same every month

B. Increase every month

C. Decrease every month

D. Can vary every month

.

2. Mandate Registration of ACH mandate takes how many days:

A. 1 day

B 21 days

C. 45 days

D. 7 days

3. After ACH mandate is registered, when the monthly presentation is done, the reason cannot be

which of the following:

A. Insufficient Funds

B. Signature of the drawer differs

C. Mandate not registered

D. Miscellaneous reason

E. (b), ( c) and (d) above

S No State Name S No State Name

1 HO-Chennai Arun Nair 7 Punjab Sonia Trikha

2 Kerala MR Ajith 8 Andhra Pradesh G Srihari

3 Rajasthan Sunil Kumar J 9 Chattisgarh Sunil Kumar Saini

4 Uttar Pradesh Ashok Kumar 10 Tamil nadu Arul Prakasam D

5 Karnataka Vijaya Kumar P 11 Chandigarh Ravi Prakash Ojha

6 New Delhi Kumar Gaurav - - -

S.No State No. of responses 6 New Delhi 4

7 Punjab 1

8 Andhra Pradesh 3

9 Chattisgarh 1

10 Tamil nadu 1

11 Chandigarh 1

Contd…

By

Sri D. Srinivasan (Sr. Manager)

BPR, Santhome

6


Congratulations!!Congratulations!!Congratulations!!

We wish to congratulate Master Kishore Kumar V., the son of our

employee Ms. Manjula (Regional Accounts, Santhome) for his excellent

performance in the Tamil Nadu S.S.L.C exams of 2014.

Master Kishore has scored 472 out of 500 marks. He has secured the 3rd

rank (overall) in his school, and is also the school topper in Tamil and Science.

Congratulations Kishore, we hope that this will be the first of

many more such achievements and wish you a successful life

ahead!

7


Know the difference!

A quick primer for our readers on the difference between Form 16

and Form 16A

BACKGROUND

There are three parties to consider while discussing Form 16 and Form 16A

The Government

The deductor (i.e. the one who issues the form)

The deductee (i.e. the one receiving the income, in whose name the form is issued)

The deductor has the responsibility of deducting tax at source and remitting it to

the Government. This tax deduction is certified in prescribed formats known as Form 16

and Form 16A, with full details of payment inclusive of Tax deduction and remittance.

This process results in revenue to the Government from the deductee at periodic in-

tervals, and also reduces the tax burden of the deductee at the end of the financial

year. The deductor plays the role of an intermediary, and the certificate issued is

considered as proof of a taxable transaction for both the Government and the recipient.

8


Know the difference! (Contd.)

FORM 16A

Form 16A is a certificate issued under Section 203 of the

Income Tax Act for tax deducted at source for “Income

other than under heads other than Salary Income

For example, in our organization, this form is issued to

non salaried employees who work with us in the capacity

of professionals.

This form is also used in various other cases where tax

needs to be deducted, such as Interest on Securities, Interest other than Interest on

Securities, Payment to Contract & Sub Contractors, Professional Charges, Insurance

Commission etc.

Form 16A has to be issued once every quarter as per Income Tax Act.

Contributed by

Sri Sanjay Kumar Yadav

Credit Team, Varanasi

FORM 16

Form 16 is a certificate issued under Section 203 of the

Income Tax Act for tax deducted at source from income

chargeable under the head “Salaries”

Form 16 is a certificate for confirmation of salary details

and taxable salary income after considering the necessary pro-

vision prescribed in the IT Act. And also it contains TDS de-

duction details and remittance details of particular employee.

At the end of the every financial year, the employer provides the employee with

Form 16 as per Income tax Act

In case, if you have worked in two different organization in a single year than you

have to obtain two different Form 16s from the two companies in order to file the

IT returns.

However, it is not compulsory to give the form 16 to the employee if there is no

TDS deducted.

9


A helping hand by Shriram City

Mr. Ramasamy V., a Manager at Ambasamudram (Shriram City, Trichy),

tragically lost his life in a road accident on 16h June’2013. Shriram City has

given Mr. Ramasamy’s family a sum of Rs 5,00,000 through the Group

Personal Accident policy taken by the company. The amount was handed over

as a cheque to Mr. Ramasamy’s wife, Mrs. Ratha.

The Shriram City family expresses its heartfelt condolences at the passing

of Mr. Ramasamy and prays that his family finds the strength to cope with this

tragic loss. ———————————————————

10


What’s your style?

Are you a Boss, or are you a Leader? We all have situations at home or work where

we are required to be the leader and get things done. But do we behave like a Leader or

just a Boss? Read on to find out a few key characteristics of Bosses and Leaders:

BOSS

Drives employees

Depends on authority

Inspires fear

Says “I”

Places blame for the break-

down

Knows how it is done

Uses people

Takes credit

Commands

Says “Go”

LEADER

Coaches employees

Depends on goodwill

Generates enthusiasm

Says “We”

Fixes the breakdown

Shows how it is done

Develops people

Gives credit

Asks

Says “Let’s go”

11


Editorial Committee

Shri K.Subramaniam

Senior Consultant, CO, Mylapore

Smt M.Subhashree

TED., BSC, Santhome

Sri M.Radhakrishnan

Consultant, BSC, Santhome

Ms. Teena Philip

Business Manager, BSC, Santhome

Communication Address:

Editorial Committee,

(News Letter—Breeze)Shriram

City Union Finance

144, Santhome High Road,

Chennai—600 004

Phone: 044 43925300

Email:

[email protected]

A parting thought…..

Hope is like a road in the country;

There never was a road,

but when many people walk on it

the road comes into existence. - Lin Yutang

most people do not listen with an intent to understand ... breeze/june 2014 breeze...1 shriram city...

Documents