RBI rate hike again : gonna effect the payout

Inflation causes a Rate hike in interest which in turn effects loan payers

Reserve Bank asked the banks to park more cash with it and also increased its short-term key lending rates for them, the bankers across the board said that they would have to increase the lending rates for commercial and consumer loans, including for cars and housing.

The rates could rise by between 0.5-1.0 per cent, the bankers said, after RBI increased the cash reserve ratio by 0.25 per cent and the repo rate by 0.50 per cent.

The floating home loan rates currently vary between 9.75 per cent to 12.5 per cent, while that for fixed rates are 11.25 per cent to 14.75 per cent for a 20-year loan.

At the current rates, the EMI works out to be Rs 1,137 per lakh for the top-end floating rate home loans, which could increase to Rs 1,208 after a one-per cent hike.

Similarly, for the fixed-rate home loans, the EMI currently stands at Rs 1,299 per lakh for the top-end rate of 14.75 per cent and would increase to Rs 1,373 if the rates are increased by one per cent.

Leading banks currently charge a floating rate of about 11.5 per cent on a 20-year loan, for which the current EMI works out to be about Rs 1,067 per lakh. This would stand increased by Rs 70 to Rs 1,137 if the rates are revised upward by 1 per cent.

For the fixed rate home loans, the current rate charged by leading players is 14 per cent for a 20-year loan, with an EMI of Rs 1,299, which would increase by Rs 74 to Rs 1,373 for every Rs 1 lakh of loan.

The home loan rates have been rising fast in the recent past after a sharp plunge seen at the beginning of this decade. The home loan floating rates stood at about 14 per cent in early 2000, after which it started falling and had plunged by half to about seven per cent by the end of 2003.

However, it started rising thereafter and is now close to regaining its previous high.

Being lower by about two per cent than the fixed rate loans, floating rate home loans are said to be preferred by close to 90 per cent of the home loan customers.

Moreover, very few banks offer a fixed rate home loan, the interest rate for which remains truly fixed for the entire tenure of the repayment.

Independence day Celebration :- Bharat Mata Ki Jai

"Long years ago we made a tryst with destiny, and now the time comes when we will redeem our pledge, not wholly or in full measure, but very substantially. At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom. A moment comes, which comes but rarely in history, when we step out from the old to the new, when an age ends and when the soul of a nation, long suppressed, finds utterance.... We end today a period of ill fortune, and India discovers herself again."

- Jawaharlal Nehru (Speech on Indian Independence Day, 1947)
Commemorating the day India attained freedom (15th August); Independence Day is celebrated with flag hoisting ceremonies and cultural programmes in the state capitals. The Prime Minister's speech at the Red Fort in Delhi is the major highlight. The Delhi skyline gets dotted with thousands of kites taking to the sky this very day.

On 15 August 1947, India attained freedom from the British rule. Every year, August 15 is celebrated as the Independence Day in India. This national festival is celebrated with great enthusiasm all over the country.

The preparations begin a month in advance. Roads are decorated with flags and buntings. Buildings of national importance are illuminated.

History
At the stroke of midnight, as India moved into August 15, 1947, Jawaharlal Nehru, India's first Prime Minister, read out the famous speech proclaiming India's independence.

The moment ended three centuries of British colonial rule. The land was no longer the summer retreat of British sahibs who fancied spices, shikar, elephants and snake-charmers.

Independence was also the end of nearly a century of struggle for freedom, battles, betrayals and sacrifices. It also created a situation where we were responsible for ourselves.
But it wasn't a period of unqualified joy. For a lot of people, in spite of a new era promised by independence, partition was a painful reality and so was the bloodshed that accompanied it. That was 60 years ago. Much has changed; the struggle for freedom lives on in history books and memoirs, and on the tombstones of valiant martyrs. Politics has undergone a personality change from fiery idealism to a pragmatic cynicism. Karma drives the nation on its way forward, and population has crossed the billion mark.
But, come August 15, and the people put their troubles behind them for a while, as they stand up as a nation for the National Anthem. Along with the soaring cadences of the anthem, the hopes and dreams for a better tomorrow are renewed in political speeches and replays of the deeds of those who earned us our freedom.

Independence Day is an occasion to rejoice in our freedom and to pay collective homage to all those people who sacrificed their lives to the cause. But it is more than that. It also marks the coming together of more than 400 princely states into one nation - India. This was probably our biggest diplomatic success.

Each year, August 15 gives us the reason to celebrate all this, and do much more - it is a time to contemplate what we have and how we achieved it.

Though India had no dearth of religious and community festivals, there was, till Independence, no true national festival that the whole country could partake of. Independence Day, beginning as a day to commemorate the greatest moment in Indian history, has now come to signify a feeling of nationalism, solidarity and celebration.

Independence Day remained the sole national festival till India declared itself a republic in 1950. On January 26, 1950, Republic Day became the second Indian national holiday

The Indian festival 'Ganpati Papa Morya '. Learn about how the festival is celebrated by the Hindus

Lord Ganesh Chaturthi

Ganesh Chaturti is a festival that is celebrated for Lord Ganesh, who is the son of Lord Shiva and Parvati. Lord Ganesha is the elephant headed deity of Hinduism. Ganesh Chaturti is a very important festival that is celebrated widely in India over a period of ten days. The festival usually falls around the month of August or September. The Hindus believe that praying to Lord Ganesh during the festival will bring good luck and prosperity for the family. In addition to this Lord Ganesh is known to be a deity who protects people from obstacles in their lives.

Legend- How did the festival start about? The legend goes that there was a monster called Gajasura, a powerful monster was also a devotee of Lord Shiva. It seemed that the monster prayed for many years and as a result Lord Shiva, who was touched, granted him a boon. But the cunning monster asked Shiva to reside in his stomach. Since he had no choice, Lord Shiva granted his boon and went inside the belly of the monster.

Parvati, Shiva’s wife, who was searching for her husband, became frantic with worry and went to Lord Vishnu for help. Lord Vishnu, who assured Parvati that he would find Shiva, disguised himself as a street player and set out with Nandi, the sacred bull of Shiva, to find Shiva.
When they reached the monster Gajasura’s kingdom, Nandi danced to please the monster. The monster that was pleased to see the bull dancing he decided to reward the bull.
Nandi, the bull, asked for Lord Shiva as a reward and this made Gajasura realize that the street player was Lord Vishnu. He also realized that Lord Shiva couldn’t live in his belly forever and thus freed Lord Shiva. After that, he prayed to Shiva to make him immortal. To grant him the wish, Shiva severed Gajasura’s head and carried the head with him.
Meanwhile, Parvati who heard that Shiva’s out of the monster’s belly was joyful. In order to prepare for her Lord’s return she went to have a bath, but before that she asked someone to stand guard outside. She made a boy out of dough and named him ‘Vinayak’.
But when Lord Shiva returned, the boy refused to let him enter the palace, as he had never seen him before. This made Lord Shiva furious and thus he beheaded the boy and went inside. When he saw Parvati, he told her about his beheading of the boy. This shocked and upset Parvati. She told Shiva that ‘Vinayak’ was like a son to her and that she wanted him back alive. Thus Shiva put the head of Gajasura on the boy’s head and the boy ‘Vinayak’ came to life. Shiva also blessed him and announced that everybody would worship him on that day. And thus the festival ‘Ganesh Chaturti’ marks the day when ‘Vinayak’ came back to life.
Preparation- Before the start of the festival, people start to buy Ganesh idols. Shops sell Ganesh idols in various shapes, even large ones that can reach up to a height of several meters. Upon bringing the idol home, the Hindus start to decorate the idol with flower garlands and lights. The devotees chant prayers and during the prayers, flowers, rice & coins are used. After the ceremony, sweets and fruits are offered to guests.
Celebration - A place where Ganesh Chaturti is celebrated grandly is Mumbai. If you happen to visit Mumbai during this festive period you will marvel at the preparations for the celebration. In Mumbai, the preparations would be made at least one to two months before the start of the festival. No matter where you turn, you can catch a glimpse of Ganesh, as huge images of him are put up almost everywhere.
Lights are also put up to decorate the images. At home, Hindus pray to the God and on Ganesh Chaturti, the last day of the festival, you can expect to see a large crowd of about thousand devotees in a procession for the celebration. The idol of Ganesh is immersed in water and while this is done drums are played and devotional songs are sung.
The immersion of the idol in the water marks the end of the ten-day festival.

How to File your Income-Tax returns !!!! Easy ways to do it check it out

DONT PANIC TO FILE YOUR RETURNS JUST FOLLOW SIMPLE STEPS MENTIONED BELOW

Year End Again !!!. Guys time not to panic and whether you like it or not you have to comply You knew all along that it would come, whether you ignored or waited for it. Wake up and plan the way how to do it . As there is a right saying PAY TAX AND RELAX !!!!!

And you know you can't run away from it any more. THE MAGIC DATE for filing is 31 July, the day we are reminded of our bondage, the price we have to pay for many of the good things in our life.

Unfortunately it is the last day for filing income tax returns for all salaried Indians, be they resident or non-resident. Of course, you must have taken all the measures and investments possible to maximise your freedom from this bondage called TAX. Hope you guys have done everything that law permits you only that much. The rest, as they say, is illegal.

Returns words sounds confusing as you think when we are paying tax why is it called income tax return . Its just because the government provides you returns in the form of infrastructure roads and many other facilities.

Filing of tax is compulsory for everyone whose gross total income - the income under the five heads (salary, business, capital gains, house property or other sources) before allowing for any deductions such as insurance premium - exceeds the basic exemption limit.

For financial year 2007-08 (assessment year 2008-09), this limit was Rs 145,000 for women below 65 years of age, Rs 195,000 for senior citizens (above age 65 years) and Rs 110,000 for any other individual. It is compulsory for every person exceeding these limits to file the return before the prescribed date, even if their employer has taken care of their tax liabilities by reducing their salaries by the necessary amounts before paying the rest to them. Paid this way, it is known as tax deducted at source or TDS.

Filing of the form
There are two income tax return forms, ITR-1 and ITR-2, for salaried individuals. Your sources of income (they will fall under one or more of the five sources mentioned earlier) will decide your form. You will have to submit the filled form to the tax authorities and get an acknowledgement from them.
Income source decides return form
ITR-1: Income from salary, pension and interest earned in a financial year
ITR-2: Capital gains, income/loss from house property and income from any other source
Use ITR-1 to file your tax return if your income is from salary, pension or interest. In case of any capital gains, income or loss from house property and income from any other source, you will have to use ITR-2. You can go to www.incometaxindia.gov.in/download_all.asp to download these forms.
You will find ITR-1 relatively simple to fill up. A prerequisite for the exercise is Form 16, the certificate that comes from the employer showing the TDS from the income chargeable under the head salary. ITR-1 is almost a replica of Form 16. All you have to do is pick the numbers from Form 16 and put them in the ITR form.
Apart from salary income, there is an important component of income that many taxpayers ignore while filing their returns. It is the interest income earned from the funds lying in savings accounts in banks. Disclosing that, however small it may be, is mandatory.
You just have to add the total interest credited to your bank account in the last financial year. Scrutinise your income tax return to ensure that no taxable income is undisclosed. After you file your return, the tax authorities will hand you an acknowledgment. That's it, you are through with the filing of returns.
You will need to fill up ITR-2 if you, as a salaried individual, have made any capital gains. This form is filled in the same way as ITR-1. In addition, you will have to fill in income, if any, from house property and other sources.

How to file
The actual filing of return can be done either by using the traditional paper form or electronically, over the Internet. The second, known as e-filing, is fast catching up. The digital method is compulsory for companies, but optional for salaried individuals still. However, it may well become compulsory for individuals with a certain level of income in times to come. So, it may not be a bad idea to familiarise yourself with this process.
Before you start filing the return, check if you would be getting a refund from the IT Department or have to pay tax. In case of the latter, even before starting the filing process, you should first get hold of Form 280, fill it up and deposit it any bank along with the tax payable in cash or cheque. You can also pay tax through Internet banking. In both cases, you will get a receipt number which has to be quoted in the ITR form.
Checklist
* Keep ITR-1, ITR-2 forms handy

* Enter all the details in CAPITAL letters

* Ensure that name, address and other personal details are entered correctly

* Double-check PAN number, bank account details and the MICR code you write

* Store the acknowledgement safely property and income from any other source

Doing it offline
There are two options - you may either submit the ITR form at the nearest income tax office after filling it up yourself, or you may get a chartered accountant or a tax return preparer to do it for you. Try to visit the ITO well before the last date for filing return as crowds increase as 31 July draws near.
You may also take help from the public relations officer of the ITO to fill the form. No documents or investment proofs need to be attached with the form, but remember to bring photocopies or originals with you to the ITO. These will come in handy if you are asked to authenticate the maths.
The fee of a CA would depend on your income slab and the number of income sources. Typically, it would range from Rs 300 to Rs 2,000, depending on the complexities involved. One good thing about filing through a CA is that it would bring down the margin of error to nil. Also, depending on the acumen of the CA, which often gets reflected in the quality of his practice, he would suggest some tax saving ways to you for the future.

Doing it online
E-filing is done through sites authorised by the IT Department to file taxes on your behalf. To e-file, you will have to input the details of Form 16 in the software of the website, which would automatically generate an electronic return in XML format.
This format helps in sharing of structured data across different information systems. A PDF file of the relevant ITR form is also created along with the XML format. You can download this ITR form, submit it at the ITO and get an acknowledgement.
Save the XML file to your desktop and then upload it on incometaxindiaefiling.gov.in - the IT Department site. Some sites also have provision for online payment of tax. Use of a digital signature will render the e-filing process complete without involving paperwork and visits to the ITO.
In case DS is used, the acknowledgement will be emailed to you. If you upload the file on the tax department's site without the DS, the acknowledgement, called ITR-V, emailed to you will have to be submitted at an ITO within 15 days of downloading it. A DS can be acquired from any of the agencies authorised by the government for the job, including the private and government websites meant for filing tax returns.
E-filing is not just convenient and saves time, it can also be done from anywhere. What is especially important is that the online method reduces or even eliminates the interface between the tax assessee and tax officials.

Online sites
Among the major sites offering e-filing facilities are Taxspanner, Taxsmile and Taxshax . You can either take printouts of the relevant ITRs from these three sites and physically submit them or upload your XML file on the IT Department's site.
Taxspanner uploads the taxpayer's file directly and emails ITR-V to him. With Taxsmile, you can submit the forms at any of its offices spread over the country. They will then forward it to the ITO.
All the three sites are secure and easy to navigate. The major difference among them is on two counts - the number of income sources covered and the process. Get clarity on the cost and features offered. The minimum cost package would normally be only for salary income. The advanced version might be required if you have income from other sources.
The tax sites also differ in the way they ask for information and allow you to input figures. Taxshax gets most of the figures filled up in a single page. Taxspanner has a step-by-step guide and takes one piece of information on one page. Taxsmile gives both these options.
Use of DS raises the cost of e-filing. The amount of this increase varies across tax sites. A DS can be obtained from Taxsmile for Rs 500. Apart from this, you will have to pay for the basic package. Your DS comes with a validity period, after which it has to be renewed.
A DS from Taxspanner, for example, is valid for two years. This site offers a deal in which you can file returns for three years at a cost of Rs 250 a year. To get your DS from a tax site, download the relevant form from it, attach the required documents, such as your identity and address proofs, and courier them to the address concerned. The entire process of acquiring a DS may take around 15 days.
A tax return can also be filed from the government site - incometaxindiaefiling.gov.in/portal/index.jsp" - meant for it. Your PAN will work as the username for registering at this site.

Should you go online?
Internet accessibility is growing, but it is still out of reach for many of the 40 million taxpayers. For those who have access to it and want to save time, the digital signature way looks ideal - you will be able to file the return in a few minutes from the comfort of your home or office. E-filing without the DS is almost the same as filing returns offline.
Tax laws can often seem like a cross between a Rubik's cube and Mutthiah Muralitharan's spin bowling. The three private tax sites get around this by making themselves friendly to taxpayers and not making filing of return dependent on an intricate understanding of the workings of tax laws. They empower with information and knowledge while taking the taxpayer step-by step through the entire process of tax filing. The details of the return filed get saved in the database of these sites and can be accessed anytime in the future.
If you have any specific doubts concerning the filing process, email the tax site to clear them. Getting clarity is important as some sites do not include things like income from business or profession, losses of earlier years brought forward or clubbed income. If tax is due, check if you can pay it through the site.

Stick to the deadline
Any method you choose going offline or online, make sure your meet the deadline of 31 July. If tax is due and return is not filed till 31 March of the following year, a penalty of Rs 5,000 is levied. Penalty may also have to be paid in the form of interest. Go ahead and file with a smile.

Friendship and love defined in a single photo!!!

A perfect picture of Love and friendship
Friendship and love. Both are so much related to each other. And both are so dissimilar!




Indeed, there is no comparison between love and friendship.