Jigyasa –February, 2015 1

FROM THE DESK OF EDITOR

On an average 1/3 rd of our life is spent in earning money. We all are aware what value; money adds to

an individual, family, society and country apart from monetary benefits.

Start with savings, next step is judicious investment and money shall multiply, seems ridiculously simple and

workable, we promise it would become so with this edition.

We bring you February, 2015 edition here with lots of tips to generate savings, some experienced advice

for smart investment options and updates from the Procurement family.

We are very grateful for our guest writer Mr. Ramyar Balsara for sharing expert analysis on taxation.

Enjoy reading.

Team Jigyasa : Vikram, Vipul, Manoj, Ravinder, Snehal, Pratima, Ankush

CONTENTS

Preface

Earn from saving on Taxes

To Have It All - Women's Day Special

Systematic Investment Plan

Soldier turned Entrepreneur

On a Lighter Note

Riddle

Congratulations

Celebrations

Jigyasa –February, 2015 2

 PREFACE

In today’s fast pace, uncertain and high risk Apart from the

world, where rate of change is faster than ever, conventional avenues of

one aspect of life which needs careful, disciplined investments – I believe

and innovative approach is ‘investing hard following could be

earned money’ and ‘to see it grow’. rewarding and satisfying

approaches:
In my mind today’s generation are more aware
and investment savvy than the generation 25 to  Education of self /

30 years back. Though it’s true that there are children

many avenues to invest and benefit from, there  Buy a piece of land and Plant trees

are equal or more ways to lose money. Hence  Charity by adopting a child or educating a

one needs to be diligent and careful before well deserving student

committing oneself. As they say, the best  Invest in an initiative for social cause which

insurance against losing money is to guard will help you to remain engaged after

against greed. Whichever scheme / plan / retirement in fruitful manner

business / bank / company / institution /  Help out a friend to come up in life that is left

investment agency promises overnight behind

multiplication are the ones to be avoided for sure.  Support a NGO or Socio-cultural

Staying with reputed, trustworthy and organization

dependable will result in realistic gains while

Just before I put the pen down, I would want to
guarding against capital erosion.
recommend a few ideas while servicing loans,

An element of investing which has always been and they are:

stressed is to have a balanced investment basket

Start by paying off credit card debt and high
which includes fixed term deposits, gold (jewelry
interest car loans. Then chisel away at your
unfortunately is not an investment), stocks, real
mortgage. Then use periodic bonus, performance
estate and tax saving instruments. One need to
reward, tax refunds if any, any other windfall –
realize that insurance plan should not be viewed
every single deposit will see your interest payout
as investment but it is rather a necessity and a
shrink and releasing more money for investments.
safety net which provides security in case of any
Following steps can be fruitful while availing any
eventuality.
loan.

At the beginning of my career one of my

 Make biggest down payment for Loan.
acquaintances advised me, that a sure way to
 Ensure fore closure charges are minimal
secure, peaceful and comfortable life at all times,
 Pay off debt as soon as possible results in
is to assume that the income is only 70% of what
huge interest savings.
we get in our hands and invest 30% meticulously!
 Interest saved which can again be invested
– how I wish today - I had listened and acted
to generate to increase the capital
upon his advice ! So what if I could not act on this
maybe somebody else will be fastidious enough
to do so.
“If you’re out of debt, you have a tremendous
amount of freedom to decide what you want to
do,” and “If you’re in debt, you’re chained to
your desk and if you lose your job you’re really in
trouble.”

----From the desk of Zishan Razvi

Jigyasa –February, 2015 3

 EARNING FROM SAVING ON TAXES

The hardest thing in the world to understand Row 3: PROFESSION TAX -

is the income tax- Albert Einstein. Profession Tax recovered from
Salary is allowed as a deduction.
The financial year 2015-16 is upon us, this perhaps [Maximum of Rs.2,500/- p.a.]
would be the adequate time to equip ourselves
with the basic knowledge of Taxation and its Row 4: (Row 1-2-3) INCOME CHARGEABLE UNDER
computation on total income. Let’s try out the THE HEAD SALARIES -
simplest method to calculate tax here: Row 4 represents the Head Income Chargeable
under the Head “Salaries”.
TAX COMPUTATION STEPS (FY 2015-16)
1 Annual Gross Salary. Row 5: ANY OTHER INCOME-
2 LESS: Allowance Exempt Under Other Taxable income includes:
Sec 10. 1. Income other than Salary
3 LESS: Profession Tax. 2. Interest received except for interest on
4 1-2-3 Income Chargeable Under a. Employee Provident Fund
The Head Salaries b. Public Provident Fund

5 ADD: Any Other Income c. Notified Tax Exempt Securities

3. Interest paid on housing loan
6 4+5 Gross Total Income
Example: if interest paid for F.Y.2014-15 and
7 LESS: Deductions U/Sec 80.
F.Y.2015-16 is Rs.2 Lacs each, and possession of
8 6-7 Total Income.
the property against which the loan has been
9 Computation Tax On Total Income –
availed is received in Mar.2016.
(Refer Next Slide)
The total interest deduction available would be
10 ADD: Education Cess (3% Of Tax)
=Rs. 2,40,000/- (Rs.2,00,000/- paid in F.Y.2015-16
11 LESS: Rajiv Gandhi Equity Scheme
entirely and Rs.40,000/- (1/5 of Rs.2,00,000/- paid
12 9+10-11 Total Tax
in F.Y.2014-15).
*Interest paid for period prior to completion of the completion of the
Row 1: GROSS SALARY – property, can be claimed in 5 equal installments, once the house is
completed.
Gross Salary covers all earnings received in cash
as well the monetary value of certain perquisites
Row 6: (GROSS INCOME = Row 4 + Row 5)-
such as Company Housing, Car and ESOPS.
Total of Row 4 and Row 5 would give the Gross
Total Income.
Row 2: ALLOWANCES EXEMPT UNDER SEC-10 -
Allowable deductions from the Gross Salary can
Row 7: SECTION 80
be broadly summarized as under:
DEDUCTIONS -
Section 80 of the Income
Tax Act covers
deductions which
enable a person to
reduce the income
chargeable to tax and hence the tax payable.

*Salary- Salary is defined as the amount on which PF is deducted.
*Items (d) & (e) are available as a flat deduction irrespective of
actual expenditure incurred.
A] Sec 80 C –
Items under Sec 80 C can be broadly divided
into 2 principal sub-categories –
a) Non-Investments (eg: Tuition Fees, Life Insurance premium
paid and principal repayment of Housing Loans.)
b) Investments (eg: PPF, NSC, FD, SCSS & ELSS.)

Jigyasa –February, 2015 4

ELSS and the rest
4) Sec 80 U –[Deduction in respect of person with
Schemes Minimum Lock in Return Tax Risk
Investments years s (%) treatment profile disability for Self]- A flat deduction of Rs 75,000/- or
Public 500 15 8.70% Interest tax- Low Rs 1,25,000/- is available under this category .
Provident free
Fund (PPF)
National 1,000 5-10 8.5- Interest Low C] Sec.80E – [Interest on Education Loan]-
Savings 8.8% Income
Any interest paid on Education Loan is allowed
Certificate taxable
(NSC)/Kisan as a deduction.
Vikas Patra
Bank FD with 1,000 5 8.5% Interest Low
D] Sec.80G –[Qualified Donations]-
5-year Lock-in Income
taxable Donation qualify for deduction in categories of
Senior Citizen’s 1,000 5 9.2% Interest Low
100% - National Level Donations to scheme like
Savings Income
Scheme (SCSS) taxable PM Relief Fund or 50% to Religious or Similar
Equity-Linked 500 3 Market Dividend and High approved institutions.
Savings Linked capital gains *This deduction has to be claimed separately while filing Income Tax
Scheme(ELSS) tax free return.
Following investment options can be looked
upon if threshold of 1.5 Lacs is not crossed. E) Sec 80 TTA-(Interest on Savings Bank) -
Interest earned during the year is allowed as a
Recent Developments: deduction subject to the actual amount
received or Rs 10,000/- p.a. whichever is less.
- “Sukanya Samriddhi Account New Saving
Scheme for Girl Child”- Deposit Range
Row 8: (Row 6-Row 7) TOTAL INCOME -
(Rs.1,000/- to Rs. 1,50,000/- p.a) with an
Gross Total Income Less Deductions under
attractive interest rate of 9.10% tax free.
Section 80 is Net Total Income on which Tax is
- Additional deduction of Rs. 50,000/- computed.
granted for investments in Pension
Schemes. With this additional benefit, an Row 9 & 10: TAX ON TOTAL INCOME -
aggregate of up to Rs.2,00,000/- can be Tax Rates for FY 2015-16 are as under:
claimed as a deduction. GROSS TOTAL INCOME RATE SURCHARGE E.CESS TOTAL
(Rs) (%) (%) (%) (%)
FIRST Rs.2,50,000/- NIL NIL NIL NIL
B] 1) Sec 80D - [Medical Insurance Premium]- Rs.2,50,001/- To Rs.5,00,000/- 10 - 0.30 10.30
Rs.25,000/- for individuals below the age of 60 & Rs.5,00,001/- To Rs.10,00,000/- 20 - 0.60 20.60

Rs.30,000/- for senior citizens. Total deduction up Rs.10,00,001/-To Rs.1,00,00,000- 30 - 0.90 30.90

to Rs.55,000/- can be claimed under family Above Rs.1,00,00,000/- 30 3.6 1.02 34.62

floater Medical Insurance Policy.

*Medical Insurance Premium deduction is available to the person Row 11: RAJIV GANDHI EQUITY SCHEME -
who pays the premium by any mode other than cash. Investments under RGE Scheme are available as
a deduction up to 50% of amount invested.
2) Sec 80DD-[Medical Treatment of Handicapped
Maximum Investment is Rs.50,000/- .
Dependents]- A flat deduction of Rs 75,000/- or Rs
*This deduction is available only to a person who has Gross Total
1, 25,000/-(for persons with severe disability).
Income (Row 6) of less than 12 Lacs and is available for 3
*Original certificate certifying the disability should be obtained from
Consecutive Years.
a notified hospital or institution.

Row 12: (Row 9+Row 10 –Row 11).TOTAL TAX

3) Sec 80DDB- [Medical Treatment for specified
PAYABLE –
disease or ailment]-
Deduction subject to a maximum of Rs.40,000/- Computed figure represents the tax payable.

(Rs.60,000/- for a senior citizen, Rs.80,000/- for a The tax will be recovered progressively each

very senior citizen) is available for treatment of month.

Neurological Diseases, Cancer, Aids, Chronic In conclusion, Let us remember that “Tax

Renal failure, Haemophilia and Thalassemia. Payment is our contribution to the noble cause of
Nation Building” and accordingly discharge our
responsibility correctly and completely.
---Ramyar Balsara

Jigyasa –February, 2015 5

 TO HAVE IT ALL- WOMEN’S DAY SPECIAL
Old Indian scriptures define ideal women as the
one who can play all roles in life successfully.
Centuries have passed, the whole concept of
why should woman play so many roles have been
questioned but still she continues to do so. This
Women’s day we salute and celebrate the
amazing ability of a woman to multitask.
A section of my generation feels we are not
obliged to do all this just because society expects
us to. I partially agree with it. We are not obliged
to do ANYTHING UNDER THE SUN because
someone expects us to. But once you do this role
playing, you know only you can do it and it’s a
blessing. If you lead the largest private bank in our
country like any other man would have, it’s a big
deal but when you do it along with being a
caring mother and wife its even a bigger deal.
Chanda Kochhar gives us a live example that it is
possible to HAVE IT ALL. Survey has indicated that
93% of Indian women feel it is possible to do so.
Currently going through the experience myself, I
know how physically and emotionally difficult it is
to leave your little one home and work. But doing
that is important. Important for yourself more than
anyone else. Like every human being a woman
also needs her own identity. So how difficult it is to
Have it all and how do we make it easier
especially after the cute addition to family.
First of all accept for some time
in life, priorities WILL change
and it’s absolutely alright that
way. Let the perfection in
each and every small thing be
an aim which can be missed
sometimes.
Use help, no point in doing every donkey work
ourselves when there is so much to do. Most
importantly stop worrying about it. Slowly and
steadily you will be back on route. You will again
be flying and leading, taking decisions with the
same zeal before. Fortunately we are born in the
generation where the men are more considerate
and helpful than before, where it has become
impossible for organizations to ignore us, where
day cares and similar helps have significantly
improved. We have more females at workplace
whom we can relate to and seek guidance from.
Make use of all that.
History has witnessed that the patriarchal world
we live in has sometimes thought, expressed and
even made us think that we are physically weak,
can’t compete with men, has lots of personal
restrictions and the lady in us has proved them
wrong again and again.
Obstacles come and go but a lady is true fighter,
she rises above all.
-----Snehal Karangle
Jigyasa –February, 2015 6
 SYSTEMATIC INVESTMENT PLAN (SIP)
Having money and having desire to invest is not
enough to actually multiply your money. Various
tools and financial instruments may lead to
confusion. SIP will help you invest your money
smartly while worrying less for losing it.
What is SIP?
A systematic Investment Plan (SIP) is a smart and
hassle free mode for investing money in mutual
funds. SIP allows you to invest a certain pre-
determined amount at a regular interval (weekly,
monthly, quarterly, etc.) A SIP is a planned
approach towards investments and helps you
inculcate the habit of saving and building wealth
for the future.
How does it work?
A SIP is a flexible and easy investment plan. Your
money is auto-debited from your bank account
and invested into a specific mutual fund scheme.
You are allocated certain number of units based
on the ongoing market rate (called NAV or net
asset value) for the day. Every time, you invest
money, additional units of the scheme are
purchased at market rate and added to your
account. Hence, units are bought at different
rates and investors benefit from Rupee-Cost
averaging and the power of Compounding.
Rupee Cost Averaging
With volatile markets, most investors remain
skeptical about the best time to invest and try to
“time” their entry into the market. Rupee-cost
averaging allows you to opt out of the guessing
game. Since you are a regular investor, your
money fetches more units when the price is low or
lesser when the price is high. During volatile
period, it may allow you to achieve a lower
average cost per unit.
Power of
Compounding:
Albert Einstein once
said, “Compound
interest is the eighth
wonder of the world. He who understands it, earns
it……he who doesn’t…..pays it.” The rule of
compound is simple – the sooner you start
investing, the more your money has to grow.
Other Benefits of Systematic Investment Plans
Disciplined Saving – Discipline is the key to
successful investments. When you invest through
SIP, you commit yourself to save regularly. Every
investment is a step towards attaining your
financial objectives.
Flexibility - While it is advisable to continue SIP
investments with a long-term perspective, there is
no compulsion. Investors can discontinue the plan
at any time. Once can also increase/decrease
the amount being invested.
Long Term Gains
Due to rupee-cost averaging and the power of
compounding SIPs have the potential to deliver
attractive returns over a long investment horizon.
Convenience – SIP is a hassle-free mode of
investment. You can issue standing instructions to
your bank to facilitate auto-debits from your bank
account.
SIPs have proved to be an ideal mode of
investment for retail investors who do not have
the resources to pursue active investments.
---- K.P.Singh
Jigyasa –February, 2015 7
 SOLDIER TURNED ENTREPRENEUR

“You shouldn’t focus on why you can’t do requirements. With Initial

something, which is what most people do. You investment of mere 4 Lacs he
should focus on why perhaps you can, and be started a small Factory and
one of the exceptions.” employed around 10 workers.
- Steve Case, co-founder of AOL. He made up his mind to
invest in Bakery products,
Attempt is to narrate a story of Rajeev and realizing people still used to
Sanjeev, retired Army soldiers & brothers, who are travel to town for such requirements. With Initial
currently running successful small scale industries investment of mere 4 Lacs he started a small
in a small Village called Lachmanghari located in Factory and employed around 10 workers. Rajeev
Bulandshar district of U.P. has been Successful in wining customers across all
nearby villages becoming sole distributor, making
almost 80K per month, after just being for a year
into this business.

Sanjeev too with the help of his brother has

recently set up a ‘Jaggery Factory’ with initial
investment of 10 Lacs employing 15-20 workers,
the business is a season old and 50% of investment
has already been recovered.

I have had the privilege of meeting these bothers

They joined Indian Army as soldiers at the age of when they were serving in Army, my grandparents

16 after completing their 10th std in the Municipal being their neighbors in the Village. This year I am

School, in mid-90’s leave internet even electricity looking forward to meet two successful

would take another 10 years to reach. entrepreneurs instead.

The stories they heard had ‘soldiers’ as heroes

and the father, whom they considered the real
hero would toil in fields for hours to meet the ends.
Rajeev being elder was first to realize the
responsibility and joined the Army, younger
brother Sanjeev followed later.

15 years after serving Army, most of their tenure

being in J&K, they held notable posts at Siachen,
retiring with honor they preferred to return to their
village. Rajeev had noticed in his short trips over
the years, the improvement in infrastructure, new
roads connecting the village and electricity If you have an idea, work on it, implement it, my
powering up the Tube wells. search for another success Story would end
sooner then.
He made up his mind to invest in Bakery products,
realizing people still used to travel to town for such ---Ankush Singh

Jigyasa –February, 2015 8

 ON A LIGHTER NOTE

कई बार आपको कई शब्दों के ऐसे अर्थ पढ़ने या सन

ु ने

को मिलते हैं, जिन्हें पढ़ या सन

ु कर आपके चेहरे पर िस्
ु कुराहट

फैल िाती है । आि ऐसे ही कुछ अंग्रेिी के शब्दों के ििेदार

अर्थ आपके सािने है इन्हें पढ़कर िरूर आपके पेट िें हं सते-

हं सते बल पड़ िाएँगे।

cricket – गोल गट्ट

ु ि लक्कड़ फ़ट्टि दे दनादन प्रततयोगगता

Table Tennis – अष्टकोणी काष्ठ फलक पे ले टकाटक दे टकाटक

Lawn Tennis – हररत घास पर ले तड़ातड़ दे तड़ातड़

Light Bulb – विद्यत

ु प्रकामशत कांच गोलक

Tie – कंठ लंगोट

Match Box – अजनन उत्पादन पेटी

Traffic Signal – आिन िािन सच

ू क पट्टट्टका

Tea – दनु ध िल मिगित शकथरा यक्

ु त पिथतीय बट
ू ी

Train – सहस्र चक्र लौह पर् गामिनी/ अजनन रर्

Railway Station – अजनन रर् विराि स्र्ल

Rail Signal – लौह पर् आित िाित लाल रक्त पट्टट्टका

Button(In Clothes) – अस्त व्यस्त िस्र तनयंरक

Mosquito – गंि
ु नहारी िानि रक्त वपपासु िीि

Cigarette – धम्र
ू शलाका

All Route Pass – यर तर सिथर गिन आज्ञा पर

“A Bank is a place that will lend you money

If you can prove you don’t need it “

Jigyasa –February, 2015 9

 RIDDLE

Match the columns for Country-Symbol of the currency-Title of Currency

Sr.No Nation Symbol Currency

1 Ireland Euro

2 Saudi Arabia Ruble

Israeli new shekel

3 Colombia

4 Israel Saudi Riyal

5 Russia Colombian Peso

CONGRATULATIONS

Congratulations Yogesh and Urvashi

A successful marriage requires falling in

love many times, always with the same
person.

The Celebrations have started for you

with wedding, may they last for lifetime.

Here wishing you a very blissful married

life

Congratulations Divyesh Deshwaria

On completing
M.S. - Manufacturing Management- from BITS Pilani
with CGPA of 9.06
This part time course is spread upon 4 semesters
(total 2 years) and covers subjects such as
Supply chain management ,Project management,
Marketing, TQM, Product design, Strategy mgmt. &
business policy

Jigyasa –February, 2015 10

 CELEBRATIONS

Answers for Riddle: N5-S1-C2, N4-S2-C3,N3-S4-C5,N2-S5-C4,N1-S3-C1

Jigyasa –February, 2015 11

Jigyasa –February, 2015 12