Harnessing the power of Forgiveness to Bring Harmony to your life.

In this world, we keep having conflict and disputes with our surrounding people day in day out.

The Boss will put the blame on subordinates for not completing the work in time, and doing the work carelessly.

The Subordinates will blame the boss, for wrong decisions, lack of resources, tons of workload and low salaries.

The Son will blame the father for not giving him sufficient exposure in the childhood or for not affording admission in a good B-School, which could have changed his fortune,

while the parents will blame the kids, for being arrogant, disobedient, and never putting efforts on studies.

Normally, we tend to find the fault in the other person, for the lack of success and accomplishments, which we deserve, but could not reach to.

These negative thoughts, which keep coming to our head, repeatedly, occupy the most part of our thought process, which often lead to a bad relationship with the concerned people. We tend to make the notions for people and keep thinking about the shortcomings.

What is the result of these negative thoughts?

1. Our energy drains out in generating the counter arguments, proving ourselves right.

2. The Actual quarrel would have lasted for a few minutes, but we tend to give hours after that thinking about the same. No constructive thinking happens in this time.

3. We stop taking the responsibility of the failure on self, and try to put the blame on someone else, thus lacking that extra mile, which we ought to go, to get the success to our court.

4. Our energy is blocked resulting in more negativity and in turn attracting more failure to self.

What ought to be done:

Finding goodness in something, is a habit to be developed. Never ever it can be a situation, that the other person, might not have done a good deed to you. Finding that one deed of goodness, will not only relieve you from the mind blockage, but will give you positive boost to accomplish better things, which otherwise were getting lost in nurturing the negative feelings.

Have we ever thought, with an open mind, what good that person has done to us.

Did the Subordinate never recognise, that the boss, having identified your capabilities, only did choose you for the team, which several others were aspiring to be in. And how many times, has he suppressed the wrong doings, of yours, and taught you of the better way of doing the things.

Did the Boss ever remember that the subordinate has given his family time, working late on the project, which he was faced to do, due to lack of resources and other competent team members or paucity of time.

Did the kids, ever remember, his parents curtailing their needs, and compromising their dreams, to give a decent education and living to the kids, or the worries, which have gone, while the exams were going on and the mental support the parents have given, in the time of need.

Did the parents ever recognise the difference in the environment and circumstances, which have changed, since they themselves were kids. Or the satisfaction and love, they have got, from having those wonderful kids, and what their social status and position had been, had they no kids at all.

Let us free ourselves, from the negative feelings and blockage of energy, which is stopping our progress, and let us strive for a world, full of positivity, where everyone is your supporter and helping you grow and flourish. Whenever, you feel negativity rising head, in your thoughts, let us start thinking, consciously, about the good deeds or favours, that other person has done for us.

And for all the past ill feelings, which are still alive, in our minds, draining all our energy, stopping our progress, today is the day, to get free from all of these.

Today, on this auspicious day of Shamavani, let us all remember all our family, friends and acquaintances, with which we have been fighting or having the ill feelings, and let us ask from them, forgiveness, to free themselves and ourselves, from those blockages of energy.

Let us recite the following verses which Lord Mahaveer has taught to his followers:

खामेमि सव्व जीवे, सव्वे जीवा खमंतु मे,

मित्ती मे सव्व-भूएसु, वेरं मज्झ न केणइ

Meaning,

I forgive all living beings, may all souls forgive me, I am in friendly terms with all, I have no animosity toward any soul. May all my faults be dissolved.

CA. Alok Jain

8th Wonder of the World : Power of Compounding

Albert Einstein had once called power of compounding as the eighth wonder of the world. This is one investment principle which makes money making simple. There are two facets of power of compounding which if you follow as an investor, creating wealth becomes easy. First is to start investing early and giving time to your investment and second stay invested, do not withdraw money in between and let it grow.

In simple terms compounding is nothing but reinvestment of interest/income earned at the same rate so that interest/income earned also generates additional return at the same rate in future. Let me explain this with simple example :
If you invested Rs. 1,000/- in an instrument giving 10% return in a year. At the end of year 1, value will go to Rs. 1,100 and in year 2 you will earn return on Rs. 1,100 and not on original investment of Rs. 1,000/-.

But why is it so important in world of investment and how can it create wealth for investors ?
Let’s try to understand this with simple story of chess & grain. Chess was invented by Grand Vizier Sissa and then he gave it to a king in India. The king offered anything in return; Vizier said that he would be happy merely to have some wheat: one grain for the first square of the chessboard, two grains for the second square, four for the third, eight for fourth and so on. The king was amused by the ‘small thinking’ of Vizier but the king could not fulfill the desire of the inventor of chess. Why? The number of grains for the whole board = 18,446,744,073,709,551,615. This is more wheat than in the entire world; in fact, it would fill a building 40 km long, 40 km wide, and 300 meters tall. So, the moral is if one uses the ‘Power of compounding’ smartly, then becoming rich is not a dream.

Let me explain the same concept in investment parlance. Let us understand a story of a tortoise and hare. The hare saves Rs. 10,000 every year for the first 10 years. After that he saves nothing. However, he compounds his money at the rate of 15% for 30 years. The tortoise starts at the year 11 and keeps saving Rs. 20,000 every year (double of what hare saved) for the next 20 years. Like the hare, he too compounds his savings at 15% every year. So hare invests only Rs. 1 lakh and tortoise invests Rs. 4 lakhs. Let’s tally the score at the end of 30 years. Tortoise makes a respectable Rs. 23,56,202 whereas the hare makes Rs. 38,21,468! This is nothing but power of compounding for hare and cost of s15.5 lakh for starting late for tortoise.

So there are two simple logic of generating compounding impact on your portfolio:

Start investing early in life. No matter how small that investment is but start investing whatever small amount you can save. Ideally starting point should be 1st month of pay cheque of your life. So as soon as one starts earning, he/she should start investing.
Let your investment grow consistently without doing unnecessary withdrawals in between.

The same logic of compounding applies to retail investors approach. No matter how small you start with, important is to start investing early so that your money gets time to compound over a period of time. As investor starts early and has time on his side, he can look at higher return potential asset class like equity to generate positive real return and create wealth over a period of time. Important is not how much you invest, more important is for how long you stay invested.

Rule of 72 might help you in understanding this concept. Rule of 72 gives you doubling period. In short it explains how long your investment will take to double. This rule says that to know doubling period you divide compound rate of return into 72 and you get doubling period in number of years. e.g. if your investment generates 12% return then 72/12 = 6 is the number of years require to double your money.

So if you park your money in fixed deposit giving 9% return you will require 72/9 = 8 years to double your money whereas if you park your money in mutual funds generating 15% return you can double your money in 4.8 years.

(Initial investment of Rs. 1 lakh)

Year End	Value @ 9%	Value @ 15%
1	Rs. 109,000	Rs. 115,000
2	Rs. 118,810	Rs. 132,250
3	Rs. 129,205	Rs. 152,088
4	Rs. 141,158	Rs. 174,901
5	Rs. 153,862	Rs. 201,136
6	Rs. 167,710	Rs. 231,306
7	Rs. 182,804	Rs. 266,002
8	Rs. 199,256	Rs. 305902
9	Rs. 217,189	Rs. 351,788
10	Rs. 236,736	Rs. 404,556

As you can see from the above graph, investment of Rs. 1 lakh will grow above Rs. 2 lakh by 5th year at 15% compounding while it takes 8 years in compounding at 9%.

As Albert Einstein said, ‘compounding is something one who understands earns it and one who doesn’t understand pays it’. Remember compounding works best with equity asset. That may be the reason why world’s richest men list include people who have created wealth by taking advantage of compounding with their equity investment.

The new taxation norms in ULIPs will be applicable from February 1, 2021.

Budget 2021 proposed to limit exemptions on proceeds from unit-linked insurance plans that have so far allowed large investors to receive tax-free returns. The government proposed to amend the clause in the Income Tax Act pertaining to taxation of proceeds from ULIPs, according to the Finance Bill, 2021. For ULIPs taken on or after Feb. 1, the maturity proceeds of policies with an annual premium of more than RS 2.5 Lakh will have to pay tax on proceeds.

ULIPs combine life insurance and investments into equity and debt. In the event of the policy holder’s demise, either the sum assured or proceeds of the investments, whichever is higher, is paid out to nominee. The amount paid to nominee will continue to be free from taxes.

Under the existing provisions, all proceeds from ULIPs are tax free, irrespective of the amount paid by the individual.

“Instances have come to the notice where high new worth individuals are claiming exemption under this clause by investing in ULIP with high premium”, According to the memorandum explained in the Finance Bill. Allowing this exemption in policies with large premiums, the memorandum said, defeated the legislative intent of the clause, which is aimed at providing benefit to small and genuine cases of life insurances.

ULIP gained prominence after the introduction of capital gains tax on investments in equity and equity linked instruments in Budget 2018. Long term capital gain tax of 10% was levied on the returns on such investments held for more than one year.

“Investments into ULIPs became lucrative as a result of reintroduction of capital gains tax on equity linked products”. This cap on exemptions bring parity between ULIP and long term investments into equity mutual funds.

BUDGET HIGHLIGHTS 2021-2022.

Finance Minister (FM) Nirmala Sitharaman has presented the Union Budget 2021 of India on the 1st of February, 2021. Here are the key Highlights from Budget 2021:

Our FM starts the budget2021 announcement by mentioning the challenges during the pandemic and the vision of the Pradhan Mantri Garib Kalyan Yojana.
FM says that India has two COVID19 vaccines made available and two more will be made accessible soon.
FM reiterated that the government is fully prepared to support the economy’s reset.
FM says the Budget2021 is based on 6 pillars. Starting with healthcare & wellbeing:
- Spending’s been increased
- New scheme with an outlay of Rs.64K crore to be spread over 6 yrs
- The above is in addition to the National Health Mission
- Support to rural & urban health centres
FM announces the Jal Jeevan Mission with an outlay of 2.87 lakh crores aiming to provide full-fledged water supply to all urban local bodies with household tap connections.
The FM proposed Rs1.41 lakh crores over a period of 5 Years for the Urban Swacch Bharath 2.0.
An amount of Rs.1.47 lakh crores, over a 5-year-period, from 2021 has been assigned for initiatives such as wastewater treatment, reduction in plastic waster, reduction in pollution and the like.
The Scrapping Policy has been announced in the Budget2021. The voluntary vehicle scrapping policy aims to remove inefficient vehicles so as to reduce vehicular pollution and oil import bills.
FM proposes an amount of Rs.35000 crore to manufacture and make accessible the COVID19 vaccine.
2nd Pillar of Budget2021: Focus on physical, financial capital and infrastructure
- FM proposes an amount of Rs. 1.97 lakh crores, over 5 years, starting this FY to nurture global manufacturing champions and increase jobs for the youth
- FM has proposed a mega-investment textile park to be launched along with 7more textile parks to be established over the next 3 years.
The FM proposes to set up a Development Financial Institution with an amount of Rs.5 lakh crores
FM states that the Budget2021 will focus on the NHAI operational toll roads, airports in tier-2 and 3 cities, and sports stadiums
The capital expenditure for the year 2021-22 will be 5.54 lakh crore with a 34.5% Y-o-Y growth rate.
Our FM announced that more than Rs.2 lakh crores will be allocated for capital expenditure in the states and other autonomous bodies.
FM announced that till date, a measure of 3,800 km highway-stretch has already been constructed and an additional km will be constructed under Bharat Mala project.
The FM proposed the following National Highway budget for the below states:
- Tamil Nadu: 3500km @Rs. 1.03 lakh crores
- Kerala: 1100km @Rs.65,000 crores
- West Bengal: 675km @Rs.25,000 crores
Also, National highway project of around 19,000 crores is in progress in Assam. Overall, the FM proposes a total of Rs.1,18,101 lakh crore for Ministry of Road Transport and Highways.
An Infra-National Rail plan to prepare a future rail system in India by 2030 has been proposed to bring down logistics cost.
The next few phases of metro projects will be taken up in Metro cities. Also in line are the ‘Metro Lite’ & ‘Metro New’ concepts for tier 1& 2 cities.
The FM proposed to extend Ujjwala Scheme up to 1 crore beneficiaries from the existing 8 crore beneficiaries.
The FM proposes to focus on the various allied laws of the securities market to be merged to the Securities Market Code.
FM announced that the #SEBI will be notified to regulate the setting up and arrangement of the commodity market system.
FM grants Rs.1,000 crores to the Solar Energy Corporation of India for the growth of the Solar Energy Sector.
FM proposed to amend the Insurance Act to introduce additional FDI to insurance companies from the existing 49% to 74%.
FM announces that a new Asset Reconstruction Company is to be set up to provide resolution to stressed assets in PSUs.
The FM proposed to amend the DICGC Act, 1961 to streamline its provision where the depositors of the bank can get easy access to deposits through insurance in the case of a stressed bank.
The FM announced that de-criminalization under the Companies Act, 2013 is complete and now the decriminalization of LLP Act, 2008 will be in force.
Our FM modified the definition of small companies: companies with a paid-up capital not exceeding 2cr & a turnover not exceeding 20cr are to be considered small companies. Over 2 lakh+ companies benefit from this provision.
For Startups and Innovators, the FM announced that the OPC can be incorporated without a limit for turnover or paid-up capital. This also allows NRIs to incorporate OPC in India.
Our FM proposes a special framework for MSME.
The FM announced that MCA 21 V3.0 to be introduced with additional modules for e-scrutiny and e-adjudication.
FM stated that the IPO of the LIC will be carried out in FY 2021-22. Also, for the disinvestment strategy, two PSUs and 1 insurance company will be considered.
The FM informed that the 15th Finance Commission’s recommendation is to rationalize and reduce centrally sponsored schemes.
Pillar 3 of the Budget2021: Inclusive development for aspirational India
In the Agriculture sector, the MSP regime has undergone a change to provide 1.5 times the product cost across all commodities.
The total amount paid to wheat farmers was doubled in 2019-20 when compared to 203-14.
The FM announced that agricultural credit will be increased to 16.5 lac crore.
The FM proposed to enhance the scope of the ‘Operation Green Scheme’ to include 22 perishable crops, and 1.68 crore farmers have registered. Also, 1,000 mundis to be integrated under the said scheme.
The FM stated that the government will take up the development of fishing harbors and fish landing centers along the banks of rivers and waterways.
The FM announced that the ‘1 nation-1 ration card’ plan has been implemented by 32 States and UTs. Migrant workers benefit from this scheme as they can claim ration from anywhere in the country.
The total fiscal deficit is pegged at 9.5 % of GDP and it is funded through govt borrowing. An additional 80,000 crore is needed to ensure our economy is given the needed push.
The borrowings from the market for next year will be at 12 lakh crores.
FM announced that the senior citizens who get only pension and interest on income are not required to file ITR.
Reopening of assessment:
- In normal cases: the time limit has been reduced to 3 years from 6 years.
- In serious tax evasion cases: can be reopened till 10 years, only when concealment of income is more than 50 lakh.
FM announced that the ‘Faceless dispute resolution committee and mechanism’ is set up to reduce litigations for small taxpayers. Any taxpayer with taxable income up to 50 lakh and disputed income up to 10 lakh can approach the committee.
FM proposed a faceless Income Tax Appellate Tribunal (ITAT) for providing online resolution.
The ‘tax audit limit’ under Section 44AB has been increased from Rs.10 crores to Rs.5 crores where 95% of business transactions are done in digital mode.
The FM announced that the ‘advance tax liability’ on dividend income shall rise only after the declaration or payment of dividend.
The FM announced that the deduction under section 80EEA is to be extended to loans taken up to 31st March 2022.
FM announced that the affordable housing projects can avail tax holiday until 31 March 2022.
FM announces tax incentives for the IFSC and tax holiday for aircraft leasing and rental companies.
FM announces the pre-filled ITR in Budget2021: Salary, Tax Payments, TDS are already pre-filled. Capital Gains, dividend incomes, and interest income will now be pre-filled.
FM states that in case the PF amount was deducted but not deposited by the employer, it will not be allowed as a deduction for the employer.
FM announces that the deduction under section 80IAC will be extended upto 31st March 2021.
Under Indirect Taxation, the FM proposes to review 400 old exemptions this year through extensive consultations. After which a revised customs duty structure will be introduced.
The FM has rationalized customs duty on copper, textile, gold and silver.
The FM raised customs duty on solar inverters from 5% to 20% and solar lanterns from 5% to 15%.
The FM proposed to withdraw exemption on import of leather as they are domestically produced.
The FM proposes ‘Turant Customs’ initiative for faceless, paperless, and contactless customs measures.
The FM concluded the Budget2021 and the house has been adjourned after getting the consent for the Finance Bill, 2021.

India to become 5th largest economy in 2025, 3rd largest by 2030

The UK appears to have overtaken India again during 2020 as a result of the weakness of the rupee, it said.

The CEBR(Centre for Economy and Business Research) forecasts that the Indian economy will increase by 9 percent in 2021 and by 7 percent in 2022.

India, which punch into have been pushed back to being the world’s sixth biggest economy in 2020, will again overtake the UK to become the fifth largest in 2025 and race to the third spot by 2030, a think tank said on Saturday. India had overtaken the UK in 2019 to become the fifth-largest economy in the world but has been relegated to 6th spot in 2020.

”India has been knocked off course somewhat through the impact of the pandemic. As a result, after overtaking the UK in 2019, the UK overtakes India again in this year’s forecasts and stays ahead till 2024 before India takes over again,” the Centre for Economics and Business Research (CEBR) said in an annual report published on Saturday. The UK appears to have overtaken India again during 2020 as a result of the weakness of the rupee, it said.

The CEBR forecasts that the Indian economy will expand by 9 percent in 2021 and by 7 percent in 2022. ”Growth will naturally slow as India becomes more economically developed, with the annual GDP growth expected to sink to 5.8 per cent in 2035.” ”This growth trajectory will see India become the world’s third largest economy by 2030, overtaking the UK in 2025, Germany in 2027 and Japan in 2030,” it said.

The UK-based think tank forecast that China will in 2028 overtake the US to become the world’s biggest economy, five years earlier than previously estimated due to the contrasting recoveries of the two countries from the COVID-19 pandemic. Japan would remain the world’s third-biggest economy, in dollar terms, until the early 2030s when it would be overtaken by India, pushing Germany down from fourth to fifth.

The CEBR said India’s economy had been losing momentum even ahead of the shock delivered by the COVID-19 crisis. The rate of GDP growth sank to a more than ten-year low of 4.2 per cent in 2019, down from6.1 per cent the previous year and around half the 8.3 per cent growth rate recorded in 2016.

“Slowing growth has been a consequence of a confluence of factors including fragility in the banking system, adjustment to reforms and a deceleration of global trade,” it said. The COVID-19 pandemic, the think tank said, has been a human and an economic catastrophe for India, with more than 140,000 deaths recorded as of the middle of December.

While this is the highest death toll outside of the US in absolute terms, it equates to around 10 deaths per 100,000, which is a significantly lower figure than has been seen in much of Europe and the Americas. “GDP in Q2 (April-June) 2020 was 23.9 per cent below its 2019 level, indicating that nearly a quarter of the country’s economic activity was wiped out by the drying up of global demand and the collapse of domestic demand that accompanied the series of strict national lockdowns,” it said.

As restrictions were gradually lifted, many parts of the economy were able to spring back into action, although output remains well below pre-pandemic levels. An important driver of India’s economic recovery thus far has been the agricultural sector, which has been buoyed by a bountiful harvest.

“The pace of the economic recovery will be inextricably linked to the development of the COVID-19 pandemic, both domestically and internationally,” it said. As the manufacturer of the majority of the world’s vaccines and with a 42-year-old vaccination program that targets 55 million people each year, India is better placed than many other developing countries to roll out the vaccines successfully and efficiently next year.

‘In the medium to long term, reforms such as the 2016 demonetization and more recently the controversial efforts to liberalize the agricultural sector can deliver economic benefits,” the think tank said. However, with the majority of the Indian workforce employed in the agricultural sector, the reform process requires a delicate and gradual approach that balances the need for longer-term efficiency gains with the need to support incomes in the short-term.

The government’s stimulus spending in response to the COVID-19 crisis has been significantly more restrained than most other large economies, although the debt to GDP ratio did rise to 89 percent in 2020.

“The infrastructure bottlenecks that exist in India mean that investment in this area has the potential to unlock significant productivity gains. Therefore, the outlook for the economy going forwards will be closely related to the government’s approach to infrastructure spending.”

With due credit : Moneycontrol.com.

Edited by : CA Alok jain.

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“ Build to adapt” the way ahead.

“Build to last” “ Build to adapt” the way ahead.

Have you ever heard of Choluteca Bridge?

I hadn’t heard of the bridge until recently. It’s a 484 metre long bridge over a Choluteca river in Honduras in Central America. The bridge on the river Choluteca was a gift to the people of Honduras from Japan in the year 1996 (though an older one had existed since 1930s).According to extreme environmental conditions of the region, the Japanese ensured the quality of construction, the reliability and the engineering were all best-in-class.

It was built to withstand the hurricanes and high winds plaguing the region. In short, the new bridge was built to last.

The bridge lasted, indeed. In 1998, the massive destruction wrought by Hurricane Mitch changed the course of the river itself

There was a 75 inches of rain in four days equivalent to what they had received in last 6 months,7000 people lost their lives. All the bridges in Honduras destroyed and it remain unaffected. But the trouble was the road leading to it and the road leaving both swept away and it no longer flowed under the bridge. Overnight – as it were – the new bridge suddenly became irrelevant and useless.

But the lesson from the Choluteca Bridge is more pertinent for all of us in today’s scenario. As the world is changing in many ways, we may have never imagined. The Choluteca Bridge is horrifying allegory or a terrific example that what can happen with our careers, our Businesses, our lives. As world is getting transformed, we should always be ready to adapt a change, after all change is the constant thing in the world.

Whenever you look at your career, think twice before you take one more course to become an expertise in a particular area or before spending money on refurnishing your old office, thinking of opening more branches in every nook and corner of the country? Think again. It all might soon become redundant.

We all are focusing on building the strongest, most sophisticated product or service without thinking of possibilities that the need could vanish, the market could change. The challenge for us is that we get focused on creating the best solution to a given solution by forgetting the problem itself might change. In a nutshell, we focus on the bridge and forget the possibility that the river could change the course.

“Build to last” might have been popular mantra but “ Build to adapt” is the way to go.

Edited : CA Alok Jain, Shivani Khandelwal

Credits : Medium.com

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TCS on Foreign Remittance through LRS for money sent abroad

What is LRS

LRS stands for Liberalized Remittance Scheme, by which Reserve Bank of India has allowed resident individuals to remit up to $250,000 per financial year to pay expenses related to travelling, medical treatment, studying, gifts and donations, maintenance of close relatives, among other things.

Besides, the remitted amount can also be invested in shares, debt instruments, and to buy immovable properties abroad. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the scheme.

However, LRS does not allow buying and selling of foreign exchange abroad, or purchase of lottery tickets or sweepstakes, proscribed magazines and so on.

What are the newly inserted Provisions of TCS under LRS

Finance ministry has introduced certain new provisions for tax Collection at Source (TCS), which were to be implemented w.e.f. April 1^st, 2020, which due to COVID 19 situations were deferred for implementation. These provisions are now made applicable from October 1, 2020.

Why Government has introduced TCS provisions in LRS

Government is increasing the tax base by expanding the provisions of Tax Deducted at Source and Tax Collected at Source. By this manner, the government is able to get the information related to Financial Transactions from the source Data, which otherwise would have been very difficult to capture. Going forward, the provisions of TDS and TCS will expand more and more, so that more people can be brought to the tax net.

What are the various tax rates and Conditions for remittance under LRS

The remittances under the LRS will now attract TCS @ 5% on amount in excess of Rs 7 lakhs in a financial year. However, the rates for the TCS in case of remittance for repayment of Education loan or for Remittance to Foreign Tour Operators is at different Rates. If the PAN Number is not provided to the collecting agency, the rate of TCS will be 10%.

We can understand the provisions of TCS by the following example:

If a person remits Rs. 10 lacs under LRS, then Bank will collect from him Rs. 15000/- in addition to the amount to be remitted and remittance charges. Though Bank charges GST on the remittance charges, but GST will not be applicable on the TCS amount.

Conditions for remittance to Foreign Tour Operator

For remittances to Foreign Tour Operators, the rate of TCS would remain the same at 5%, however, the basic exemption of 7 lacs will not be there and TCS will be collected, even if the amount is remitted below 7 lacs.

Conditions for remittance for Education Loan

For remittances for the purpose of pursuing education through a loan obtained from any financial institute, rate of TCS shall be 0.5 per cent on the amount exceeding Rs 7 lakhs.

Are there any conditions, under which the TCS can be avoided?

No, though the government has given the provision of approaching Income tax officer, to obtain a lower rate certificate for TCS in some other cases, there seems to be no such option given for TCS under LRS. Thus TCS will have to be done in all the cases and there seems to be no way out escaping this liability.

How to get the amount refunded, for the TCS done

The collector will issue a certificate for the TCS done and also the same will get reflected in your Tax Statement under Form 26AS, which is available online on income tax portal in Individual Login. This amount can be adjusted against any tax payable for the year, and if there is no tax payable, the amount will be refunded by the government. However, if the Return of Income is not filed by the person concerned, then this amount will not get refunded.

PSB LOANS 59 MINUTES

Background of the scheme

In a bid to boost credit availability to Micro, Small and Medium Enterprises (MSMEs), Finance Minister Arun Jaitley has launched a web portal through which one can avail loans up to Rs 1 crore in just 59 minutes.The portal will enable principal approval of loans up to Rs 1 crore for MSMEs from Small Industries Development Bank of India (SIDBI) and 5 Public Sector Banks (PSBs) -State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian Bank.

The web portal is www.psbloansin59minutes.com. “The portal sets a new benchmark in loan processing and reduces the turnaround time from 20-25 days to 59 minutes,” the finance ministry said in a statement. Upon approval, the loan will be disbursed in 7-8 working days. On this website, in-principle approval of loans will not require any physical documents.

PSB Loan in 59 minutes is a MSME Loan focused on automation of the Loan Process in such a way that one can get eligibility letter, Approval in less than 60 minutes and can choose the bank from the given list for a smoother MSME Loan process.

Objective of the scheme

PSB Loans or Public Sector Banks loans in 59 minutes is an online marketplace, which enables the business individuals to apply for a Small Business Loan with Loan Amount starting from Rs 10 Lakh to Rs 1 Crore in just 59 minutes. This initiative was taken to ease the MSME Business and promote self-employed business model in India by reducing the loan approval process and long queues at the bank. PSB Loans in 59 minutes aims at approving the business loan in 59 minutes thus reducing it significantly from a long 30 day process and expected to be disbursed in 7-8 working days, if approved.

Quantum of benefits available under PSB loans in 59 Minutes

1.Loan Amount starting from Rs 10 Lakh to Rs 1 Crore: PSB Loans in 59 minutes helps in providing loan amount starting from Rs 10 Lakh to Rs 1 Crore to all the business individuals so any business requirement small or big can be met easily with the mentioned loan amount.

2.Rate of Interest: The rate of interest for PSB Loans in 59 minutes starts from 8% onwards.

3. Minimal Documentation: With PSB Loans in 59 minutes, the entire process of a Small Business Loan for MSMEs is expected to become super quick and hassle free that too with minimal documentation.

4.Advanced Technology Backed Loans: PSB Loans in 59 minutes processes the loans without human intervention till the stage of sanction or the disbursement. The analysis process is done from the various sources of the loan applicant’s financial profile.

5.Apply at Multiple Banks: PSB Loans in 59 minutes provides a convenient process for the loan applicants who can apply for a Small Business Loans at multiple times in one go.

6.Safe and Secure: The platform understands the safety of the information given by the Loan Applicants. The entire data of the applicants is safe and secure with the highest level of security.

7.CGTMSE Coverage:This scheme also provides the benefit of CGTMSE Scheme cover.

8.Integration with Govt. Facilities:PSB Loans in 59 minutes is integrated with the latest facilities like Income Tax Return, GST, and Bank statement so it helps in decision making of the loan application.

9.No human intervention : The Loan is processed without human intervention till sanction and/or disbursement stage

Eligibility criteria

For the Business which already exist the borrower should be GST, IT compliant and should have Six Months Bank Statement. He should also MSME registered, the Loan Eligibility will be determined on the following factors:

1.Income/Revenue

2.Repayment Capacity of the Borrower

3.Existing credit facilities

4.Other factors set by the Financial Lender

How to apply

Follow the steps given below for applying under PSB Loans in 59 minutes, also refer this video tutorial for understanding the whole procedure for application.

https://www.youtube.com/watch?v=0aJw7JHjrzM

Step1: Register on PSB Loans in 59 minutes portal

1.Go to https://www.psbloansin59minutes.com

2.Register yourself by filling in your name, Email Address, mobile number and click on ‘Get OTP’

3.Enter the OTP received on the mobile number

4.Agree to the Terms and Conditions mentioned below in the checkbox

5.Click on ‘Proceed’ after entering all the columns

6.Create a Password for your account for future reference

Step2:Answer 4 questions

You need to answer four simple questions such as whether you are registered with GST and have been filing your GST returns regularly and have never defaulted on a loan.

Step3:Provide your GST details

Step4: Provide tax info

You can either upload your tax returns in XML format or login with your tax credentials — your PAN and date of incorporation.

Step5:Provide bank account info

Step6:Provide details of directors, proprietors and partners

1.Aadhar Card

2.PAN Card

3.Net worth certificate

4.Profit sharing ratio of partners/Share holdingpatern

5.Address

6.Qualification/Experience

7.Details about personal belongings of main directors, proprietors and partners

Step7:Provide loan info

Now you have to provide details of your business, the purpose of loan, any collateral security and any previous loans.

Step8:Select the bank

Select the bank from where you want a loan. Currently, about a dozen banks are linked with this website.

Step9:Pay fee

You will have to pay a convenience fee of Rs 1,000 + GST.

Step10:Download approval letter

This is the last step. Your approval letter is ready to be downloaded

List of documents required for applications: –

Loan Applicant with existing business can apply for small business loan with the following documents:

1.GST Identification Number (GSTIN), GST User Name and OTP

2.Latest 3 year ITR in the format of XML

3.Last 6 months Bank Statement in PDF Format: The Loan Applicant can upload Bank Statement for maximum three bank accounts on the portal. It is preferable to upload the Bank Statement having the major bank activities

4.Details of the Loan Required

6.Details of Proprietorship/ Partners/ Directors

7.E-KYC Documents of the Loan Applicant

FAQ’S on PSB Loans in 59 minutes

https://www.psbloansin59minutes.com/faq

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MUKHYA MANTRI YUVA UDHYAMI YOJNA

Background of the scheme

The Government of India announces various schemes to encourage self-employment, which is a thriving factor for India’s economy.

Objective of the scheme

The State Government of Madhya Pradesh introduced MukhyamantriYuvaUdyami Yojana on August 1, 2014 with an aim to spread an entrepreneurial culture among the youth of the state and to engage them in gainful employment. The prime intention of MukhyamantriYuvaUdyami Yojana is to extend support in areas of enterprise creation and skill development training to generate employment by offering financial assistance to people of all categories.

Concerned bodies in charge of Scheme Implementation

The Department of Commerce, Industry and Employment is the nodal department to implement this scheme.

Quantum of benefits available under MMYUY scheme

As margin money, the State Government will grant 15% of the project cost or a maximum of Rs.12 Lakhs. The interest subsidy is 5% of the cost of the project & 6% of the cost of project for women per year till 7 years. As per the scheme, the loan amount should be paid by the applicant apart from the margin money supplied by the Government. The loan should be repaid within 7 years from the date of approval of the loan. The payment can be initially postponed upto 6 months from the loan approval date.

Cost of project

The scheme renders financial support to set up one’s own business in the form of loan. To take advantage of the scheme, the project should cost between Rs. 10 Lakh and 1 Crore. The loan will be disbursed within 15 days from the acceptance of the application.

Eligibility criteria

Entrepreneurs who satisfy the following criteria can apply for this scheme:-

1.To exploit the scheme benefits, the applicant should be a permanent resident of Madhya Pradesh.

2.The applicant should have qualified 10th standard to be eligible.

3.The age limit of the applicant should be from 18 to 40 years to be applicable.

4.The applicant referred to as a defaulter by any of the nationalized or private sector banks is not eligible.

5.Applicant who is already a beneficiary of any State Government schemes or any other entrepreneur schemes is not allowed to apply for this scheme.

6.Apart from establishing a manufacturing or service industry, the scheme is made unavailable for any other business activities.

How to apply under MMYUY Scheme

The application for this scheme can be submitted either online or offline.

Online Application Process

Step 1: The applicant can apply online by visiting the official website of MSME, Madhya Pradesh.

https://msme.mponline.gov.in/portal/Services/DCI/Index.aspx

Step 2: The candidate should register in case of being a new user. The candidate can directly login if registered already by selecting the scheme from the drop-down list.

Step 3: On logging in, the application form should be filled with appropriate details and submitted after uploading the necessary documents.

Offline Application Process

The application form is available in every district office which should be submitted along with the project report and prescribed documents. Download the application form by clicking on the given link.

https://www.indiafilings.com/learn/wp-content/uploads/2018/07/MYUY_Application-form.pdf

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CREDIT GUARANTEE TRUST FUND SCHEME (CGTMSE SCHEME)

Background of the scheme

The major problem faced by the MSEs is non-availability of timely and adequate credit at reasonable interest rate which is most important to start and running successfully a business venture. One of the major causes for low availability of bank finance to this sector is the high risk perception of the banks in lending to MSEs and consequent insistence on collaterals which are not easily available with these enterprises. The problem is more serious for micro enterprises requiring small loans and the first generation entrepreneurs. In its over 18 years of operations, CGTMSE has approved over 31 lakh of guarantees covering loans amounting to over 1.53 Lakh crore on cumulative basis. The units supported by CGTMSE have generated employment to the tune of above 1 crore and export earnings of 8,980 crore. Approximately, 16% women and 8% SC/ST/Minorities entrepreneurs have been benefited by the scheme.

Objective of the scheme

The whole idea behind this scheme is to provide financial assistance to micro and small enterprises without any third-party guarantee/ or collateral. These schemes provide the assurance to the lenders that in case of default by them, a guarantee cover will be provided by trust.

Administration of scheme

Credit Guarantee Trust Fund for Micro and Small Enterprises subsidy scheme is administered by the Ministry of Micro, Small and Medium Enterprises, Government of India.

Concerned Department involved in Scheme Implementation

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched in 2000 by the Government of India (GOI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, GOI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000. The corpus of CGTMSE is being contributed by the GOI and SIDBI in the ratio of 4:1 respectively and has contributed Rs. 2477.78 crore to the corpus of the Trust up to May 31, 2016. As announced in the Package for MSEs, the corpus was to be raised to Rs.2500 crore by the end of 11th Plan.

Quantum of benefits available under CGTMSE scheme

Under Credit Guarantee Fund Scheme for Micro and Small Enterprises the beneficiaries are eligible to get collateral free loan up to a limit of 2 crores on payment of guarantee fee to bank by the beneficiary which will be further passed on to CGTMSE trust for the guarantee given by them.

The CGTMSE trust shall provide guarantee as under: –

Category	Maximum extent of Guarantee where credit facility is
	Up to Rs.5 lakh	Above Rs.5 lakh up to Rs.50 lakh	Above Rs.50 lakh up to Rs.200 lakh
Micro Enterprises	85% of the amount in default subject to a maximum of Rs.4.25 lakh	75% of the amount in default subject to a maximum of Rs.37.50 lakh	75% of the amount in default subject to a maximum of Rs.150 lakh
Special Category *	80% of the amount in default subject to a maximum of Rs.40 lakh		Same as above
All other category of borrowers	75% of the amount in default subject to a maximum of Rs.37.50 lakh		Same as above
Activity	From 10 Lakhs up to 100 Lakhs
MSE Retail Trade	50% of amount in default subject to a maximum of 50 Lakhs

*Women entrepreneurs/ Units located in North East Region (incl. Sikkim) other than credit facility up to Rs.5 lakh to micro enterprises.

Annual Guarantee fees charged (AGF)

With a view to incentivize the borrowers with good repayment track record, AGF would be charged on the outstanding loan amount instead of guaranteed amount for credit facilities sanctioned / renewed to MSEs on or after April 01, 2018 as detailed below:

Credit Facility	Annual Guarantee fee (AGF)* (%p.a.)
Credit Facility	Women Micro Enterprises and units covered in North East region	Others
Up to Rs. 5 Lakhs	1% + Risk premium as per extant guidelines of the trust	1% + Risk premium as per extant guidelines of the trust
Above 5 Lakhs and up to Rs. 50 Lakhs	1.35% + Risk premium as per extant guidelines of the trust	1.5% + Risk premium as per extant guidelines of the trust
Above 50 Lakhs and up to Rs. 200 Lakhs	1.8% + Risk premium as per extant guidelines of the trust	1.8% + Risk premium as per extant guidelines of the trust

*AGF will be charged on the guaranteed amount for the first year and on the outstanding amount for the remaining tenure of the credit facility.

MSE Retail Trade Activity

AGF will be charged at 2% of the guaranteed amount for the first year and on the outstanding amount for the remaining tenure of the credit facility. Differential pricing structure depending upon NPA / Claim payout ratio of the MLI will also be applicable on the AGF as per CGTMSE Circular No.107/2015-16 dated January 28 given below

Eligibility criteria

Eligible borrowers under this scheme

Any facility given on the basis of third party guarantee and where the type of activity is not manufacturing, services and retail trade shall be disqualified for coverage under the scheme. Partial collateral security model introduced where the MLIs will be allowed to obtain collateral security for a part of the credit facility, whereas the remaining part of the credit facility, up to a maximum of 200 lakh can be covered under the scheme. The Trust also reserves the right to reject any application for the guarantee cover, if it deems necessary.

How to apply under CGTMSE Scheme

First of all, you can’t apply for the loan under CGTMSE Scheme online. You have to contact to the banks nearby you. Candidates meeting the eligibility criteria may approach banks / financial institutions, and select Regional Rural Banks which are eligible under the scheme.

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