Blog Article 2022 (1)

How can you get started with Cams online?

We always get messages on our social media handles about which platform should they use to invest in Mutual Funds. And the only platform that we always recommend is CAMS ONLINE!

In today's era, we have so many platforms to invest in a mutual fund, but with so many options comes a huge amount of confusion as well as complications!

What is CAMS?

CAMS stands for Computer Age Management Service. It is a SEBI-registered Registrar & Transfer (R&T) Agency that provides a single gateway to 17 CAMS serviced Mutual Funds.

While investing through this platform you don’t have to deal with multiple PINs, folio numbers and login IDs as this platform is easy and convenient to use. It also provides a consolidated view of Mutual Funds (which are serviced by CAMS) invested across platforms, demat accounts and others. 

So why do we recommend Cams online over other private platforms?

Despite offering a variety of services, CAMS is considered a safer platform as far as data privacy and transparency are concerned. It follows very stringent data policy measures to ensure your personal data is secured at the maximum level.

Also, since myCAMS is not a B2B partner, they do not market themselves nor do they promote any mutual fund schemes. However, the mutual fund mobile apps that are now trendy are more exposed to the mutual fund schemes that app owners are advertising/promoting through recommended portfolios or as top funds. In short, Cams online ain’t biased, nor would they sell any scheme in any manner.

How can an existing investor, invest through Cams Online?

I have invested in Mutual Funds through different platforms, how can I continue to invest in it through Cams online? 

  • Visit mycams.camsonline.com
  • Click on ‘New User’ to create a new user.
  • In the ‘New User Registration screen, click on Register under existing investor with cams.
  • Enter the registered email id and mobile number. Click on Submit.
    (On completion of the registration process, an alert confirming the same is displayed on the screen)

You will receive a confirmation email 

How can a First-time Investor Invest from CAMS? 

  • Visit mycams.camsonline.com
  • Click on ‘New User’ to create a new user.
  • In the ‘New User Registration screen, click on Register & Transact under First-time investor to Cam's service funds.

Now that you have registered, check your KYC status - go to https://camskra.com/ and provide your PAN details.  

If you have not completed your KYC, you need to complete your KYC registration before you start investing. Following are the documents required to complete your KYC process:

  1. Aadhar Card Soft Copy
  2. Pan Card Soft Copy
  3. Cancelled cheque along with your name on it.

The next step is to update your Bank Emandate!

Bank E Mandate is a standing instruction to a bank to debit your account on a periodic basis for a periodic transaction like Systematic Investment Plans (SIPs) / Target Investment Plan (TIP). This process is entirely digital end-to-end with no involvement of any physical forms or signatures at any point of time, nor do you have to issue checks for SIPs each month. 

E-Mandate can be registered within 2-3 days and you can commence your SIP in less than 7 days unlike a wait of over 30 days in the alternate scenario. Therefore, the bank mandate plays an important role by making your investing experience simple and convenient.

However, before applying for the E-Mandate ensure that your PAN number is mapped to your bank. Also,  your PAN needs to be linked to your Aadhar; otherwise, the application could get rejected.

Steps to complete your Bank E Mandate process: 

  • Go to: https://mycams.camsonline.com/camsapp/mycamsemandate.aspx
  • You will get an OTP on your email as well as your phone number after you submit your Pan number and Email Id.
  • Once you enter the OTP, you get the ‘Register Emandate’ screen
  • Enter your bank details correctly
  • Next, the mandated amount should be filled (the maximum amount per transaction can be Rs 1 lakh). You can also choose the transaction period for which you want the mandate to be valid.

Wealth Cafe Advice:

Though other apps may look convenient or easy to use in comparison to Cams, however, it is important to note that this is a much safer platform contrary to the other private platforms. 

We hope you have understood how you can get started with Cams online. To learn more about Mutual Funds you can check out our course: NM 104: Basics of Mutual Funds

Blog Article 2022 (4)

All about First Installment of Advance Tax Payment

Advance tax means income tax that should be paid in advance instead of lump sum payment at year-end. It helps the Govt. to receive a constant flow of tax receipts throughout the year so that the Govt can incur its expenses timely rather than receiving all tax payments at the end of the year. This keeps the government rolling

Who is liable to pay Advance Tax?

The eligibility criteria you will have to fulfill in order to pay advance tax are:

  • Your tax liability should be INR 10,000 and above.
  • You should be a salaried or a self-employed individual.
  • Income received via capital gains on shares.
  • Interest earned on fixed deposits.
  • Winnings are earned from a lottery.
  • Rent or income earned from house property.

Exemption in Advance Tax Payments

  • Senior citizens aged 60 years and above are exempted from paying the advance tax.
  • Salaried individuals falling under the TDS net are exempted from paying the advance tax.
  • However, any earnings from sources such as interest, capital gains, rent, and other non-salary income will attract advance tax.
  • If TDS deducted is more than the tax payable for the year, then one does not have to pay the advance tax.

Payment of Advance Tax:

You can choose to pay advance tax by any of the following modes:

  • Offline Mode: You can pay advance tax using Challan 280 just like any other regular tax payment at bank branches authorized by the Income Tax Department.
  • Online Mode: You can also pay it online through the official website of the Income Tax department.

In case you fail to pay advance tax, you will be liable to pay 3% of the shortfall - if the advance tax is more than 12% of tax).

However, it is important to note that no interest(penalty)  is payable if the advance is tax paid on or before 15th June. Also, if the advance tax is less than 12% of the tax due for the year.

WealthCafe Advise

Advance tax is a good means to check your income, evaluate it and understand if you need to pay any taxes. Where you do come under the provisions of advance tax, best to consult the same professional for advice on the same.



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    What is Capital Gain Account Scheme?

    In our earlier blog, we have discussed some of the ways in which you can reduce your capital gains while selling a house - but what if you are unable to reinvest your capital gains before the specified duration to benefit from the exemption available? To address this, the Capital Gains Account Scheme(CGAS) concept was introduced.

    For example, Mr A sold a residential property in January 2022 and he intends to claim capital gains exemption by purchasing a new residential house. To claim the capital gains exemption, he must purchase the new residential house within 2 years i.e. before January 2024. However, the due date of filing of ITR for the Financial Year 2021-22 is 31st July 2022 and the gains arising on the sale of the property are required to be reported in the ITR.

    In such cases, the govt prescribes that the amount to be reinvested be deposited in a Capital Gains Account before the filing of the ITR. The seller does not immediately have to deposit the amount in the Capital Gains Account and he can do so at any time before the due date of filing of ITR i.e. before 31st July for non-audit cases and before 30th Sept for audit cases.

    By claiming this Capital Gains Exemption, the taxpayer would be able to save the 20% Long Term Capital Gains Tax which he would be required to pay in case he does not intend to claim this exemption.

    What is a Capital Gains Account Scheme?

    Capital Gains Account Scheme (CGAS) allows you to safeguard your long-term capital gains until you are unable to invest it in a house before the due date for filing an income tax return (July 31 after the given assessment year)  and before the income tax returns are furnished.

    But to benefit from this, you need to ensure that you utilise the amount deposited in the capital gains account within 2 years of the sale of the property. If this is not done, the unutilised amount will be subject to capital gains tax in the fiscal in which the deadline ends.

    Also note, You are not permitted to hold a joint account under this scheme but up to 3 Nominees can be nominated). The proof of deposit into the CGAS account should be attached along with the income tax return for you to be able to claim exemption from long term capital gain tax for the financial year during which the transfer was made.

    Where can you open a Capital Gains Account?

    You can open a Capital Gains Account in any branch of the authorised banks recommended by the Government which includes Central Bank of India - State Bank of India and the public sector banks like Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, as well as Union Bank of India are some of the 28 permitted banks. However, these facilities are unavailable for their branches in rural areas.

    What are the different types of deposits available?

    There are two different types of deposits that you can avail of under the Capital Gains Account Scheme. 

    Type A: Referred to as a savings deposit, this capital gains account is similar to a regular savings account. It even earns a similar interest rate. The interest is credited at regular intervals, and you will receive a passbook to record all your transactions. Like a savings account, this type of deposit is highly liquid, so you can easily withdraw at any time.

    Type B: Referred to as term deposits, this type of deposit is similar to fixed deposit schemes of banks. The rate of interest, terms of investment, and restrictions are also very similar to that of a fixed deposit. This type of account has a maximum term of 3 years if you are constructing a house, and 2 years if you plan to buy a ready house, and it will not auto-renew at the end of the term  - any premature withdrawal will attract a penalty. Like you would with a fixed deposit, you will receive a deposit certificate, which will be required when you need to withdraw. The term deposits can be cumulative or non-cumulative.

    For both types of deposits, the RBI fixes the rate of interest periodically. Based on your plan of investment and rate of interest, you can select the deposit type that best aligns with your requirements.

    Generally, it is Prevailing Interest Rates as applicable to general Saving Bank and Term Deposits shall also apply to Savings and Term Deposit opened under CGAS.

    Withdrawl from Capital Gains Account Scheme

    Withdrawal is a slightly complex process. You cannot withdraw money freely from your Capital Gains Account, you can utilise it only for the purpose for which the deposit was made. Such purpose needs to be submitted to the bank in Form C while withdrawing money from Account A whereas to withdraw money from Account B, you need to transfer the balance amount from Account B to Account-A and then according to the CGAS provisions you can withdraw the amount. Also, you need to make payment through crossed demand draft for withdrawal of more than INR 25,000.

    The amount withdrawn should be utilized within 60 days of such withdrawal. The unutilized amount should be again re-deposited into the CGAS account. In case the withdrawal amount is not utilized and not deposited back within 60 days then you will lose the benefit of exemptions i.e. it becomes taxable.

    At the time of closure of all accounts, the depositor will have to produce a specific authority letter/ certificate from the Income Tax Officer of the respective jurisdiction. The closure would be allowed on the terms mentioned in the letter of authority.

    What happens if you were not able to construct or buy a new house till maturity?

    If the amount not utilized remains in the Capital Gain Deposit Account Scheme even after a specified period of 2/3 years, 100% of the not utilized amount will be taxed as long term capital for the financial year in which the specific period gets over.

    Things to note:

    No loan facility against this deposit is available. This term deposit can neither be accepted as margin money for non-fund based nor as collateral to any type of fund-based facilities.
    On your own desire, you can apply for a transfer of your account from one deposit office to another deposit office of the same bank.
    Closure of both Type A and Type B accounts require prior approval from the jurisdictional income tax officers.

    In case of closure of the account due to the death of the account holder, the legal heirs can claim the deposit through Form H. Please note, that the legal heir can withdraw the amount without any tax implications.

    Wealth Cafe Advice 

    Purchasing a new residential property may take time. You have to find a preferred home/apartment that you like to buy, negotiate with the seller and complete paperwork – all of which can be time-consuming. Investing in capital gains accounts gives you temporary relief. Consider this as parking your capital gains tax safely for the time being, while you scout for a new property.

    Ways to reduce your capital gains while selling a house

    Buying and owning real estate is an investment strategy that can be both satisfying and lucrative. It is said that one has to strip naked financially to invest in a house - and if you are going through the same - you can join us on 28th May 2022 where we shall help you in your dream of buying a house.

    However, if you already own a house and wish to sell it - no matter what your reason is - tax is levied on the same depending on the asset type and the duration you hold it for. 

    Firstly, let us understand which portion of the income is taxable on sale of real estate. Tax is payable on the profits you earn from selling the real estate - i.e. cost of acquisition - sales proceeds.

    Nature of TaxShort-term capital gains TaxLong-term capital gains tax
    Period of Holding held for less than 24 months held for  24 months or more
    Tax applicable as per the Income Tax Slab Rates  20%

    Now before we jump directly on how you can save your taxes - let us first understand the various types of real estate that you can own:

    1. Residential Property: This is one of the most popular ones-such properties fill one of the basic human needs as well as reflect your dearest aspirations. Both reconstruction and resale homes are included in residential property. 
    2. Commercial Property:  Commercial property includes vacant land for commercial use or existing business buildings. Office spaces, showrooms, retail outlets and warehouses are just a few examples of such properties
    3. Agricultural/Open Land: Agricultural land is typically land devoted to agriculture - you cannot use this land to build residences unless the government grants you permission to do that. Under the provisions of the law in India, fertile agricultural land could only be used for agricultural purposes and nothing else.

    Now that you understand the various type of property - let’s check some of the ways in which you can save your taxes from the sale of your property:

    1. Under Section 54:

    Section 54 of the Income Tax Act allows the lower of the two as exemption amount:

    • Amount of capital gains on transfer of residential property, or
    • The investment made for constructing or purchasing new residential property

    You can avail this exemption by selling a residential property, which is a long term capital asset and buying another residential house property only. You cannot benefit from this in the case of the sale of commercial property or agricultural land. Only the balance amount from the capital gains (if any) will be taxable at 20%. However, you can save tax on that as well by reinvesting the remaining amount under section 54EC within six months of transfer subject to other conditions to save tax (discussed below).

    Also, you should have necessarily purchased a residential house either two years after the date of transfer/sale or one year before the date of transfer/sale and in case the house is under construction – the time limit is 3 years from the date of sale. You cannot purchase any residential house out of India to claim an exemption under this section.

    You can club capital gain from multiple properties to buy one property but you cannot invest capital gain from a single property to buy multiple properties. However, as an exception to this rule, the purchase or construction of two residential houses is allowed only if the gain is less than INR 2 crore. But, you can exercise this option only once in a lifetime.  For all other years, investment should be made in the construction/ purchase of 1 residential house only.

    2. Under Section 54EC

    Section 54EC states that if the profit made on the sale of Land or Building (whether Residential or Non-Residential) – is invested by you in ‘long-term specified assets within 6 months of the sale, then the capital gains are exempt from taxation. 

    The ‘long-term specified assets’ referred to above are Capital Gain Bonds issued by the government organisations like the National Highway Authority of India and Rural Electrification Corporation. These bonds are AAA-rated with an interest rate of approx 5.25% p.a. The Principal invested becomes tax-free after the lock-in period but the interest continues to remain taxable.

    The maximum that you can invest in these bonds is Rs. 50 lakhs and the investment comes with a lock-in period of five years.

    You may want to buy capital gain bonds only if the amount you have made as capital gains is low. If the amount is large enough to buy or build a house, the residential property would be a better investment because of greater capital appreciation.

    3. Under Section 54B 

    No Capital Gains will arise on the sale of Agricultural Land situated in a Rural Area as it is specifically excluded from the definition of Capital Asset. However, Capital Gains will arise on the sale of Agricultural Land situated in a Non-Rural Area. Nevertheless, the exemption can be claimed from such Capital Gains under Section 54B. Under this section, capital gains, both short-term and long-term, that arise from the transfer of agricultural land into another agricultural land are exempt from Income Tax.

    This benefit is available only to an individual or a HUF. Also, to benefit from this exemption the land should be used for the agricultural purpose at least for two years. If the cost of new Agricultural Land is equal to or greater than capital gains, then entire capital gains are exempt. Moreover, if the cost of new Agricultural Land is less than capital gains, capital gains to the extent of the cost of new agricultural land are exempt.

    Can a capital gain tax exemption get reversed?

    You can avoid paying the capital gains tax on the property if you reinvest the amount in a new property. But, the exemption will sustain if you hold the new property for at least two years. If you sell the property before 24 months, the exclusion will be reversed, and you would be liable to pay the capital gains tax that was exempted earlier.

    Wealth  Cafe Advice:

    If you are unable to reinvest the gains in another house or bonds before filing your tax return for the year in which the sale took place, deposit the balance in the Capital Gains Account Scheme so that you are eligible for the deduction. Capital Gains Account Scheme (CGAS) allows you to safeguard your long-term capital gains until you are unable to invest them in a house before the due date for filing an income tax. 

    Talk to your mother about Money

    My mother (and I am sure yours too)  has always been a support to me no matter what - whether it is my choice of clothes, my career decisions, relationships I should or should not be in, she has always been by my side. It is said a mother-child relationship is the most unconditional relationship ever.

    This mother’s day, gift your mother (the love and support) she has given you in return by making her financially independent. She is the reason you can do whatever you want to in the world. Be her reason to be financially confident and be adaptable to what comes next. Whether your mother understands money, finances, English or just banking in general or not, this blog is to guide you on what kind of conversations & learnings you can have with your mother. 

    As a step 1 - Understand where your mother is financially today and then guide her on what more she can learn to be financially secure and confident. Let's get started.

    What are the financial things you can talk to your mother about?

    1. Keep her informed about what you do

    Before you tell her what she should do, it is important to tell her what you are currently doing. Discuss your job/work with her, explain to her your work profile, your salary, where you invest and why. We tend to discuss our expenses with our mother because she has some great answers on how to save better. Take it to the next step - discuss your investments with her. 

    2. Where the money is Invested

    Keep your mothers informed. How she knows about everyone’s health issues, food preferences and other things. Inform her about financial things as well. Whoever may be the decision-maker (you or your father or grandfather), get her involved in financial discussions of the family. Tell her where the family money is invested and how she can access it when and if the time arises.

    3. Basics of banking 

    One of the first things to make your mother confident about money is to guide her with banking work. Ask her to go to the bank and deposit cheques, visit the branch for any work that may need bank help, update the passbooks frequently and withdraw cash from the ATMs.

    Explain to her how a credit card works and how she can make the best use of it, it will encourage her to use it to spend on her shopping and earn points too. You can buy things for her from the reward points earned on the card. 

    These may seem very simple for us but for her, it means freedom and access to money without asking us or our father constantly. 

    4. Guide her to be digitally smart

    Gpay, paytm, phone pe is the way to go ahead and it only makes sense that your mom can shop by paying via gpay. I mean even our next-door sabji wala is now taking money on UPI payment apps. It may take time to explain to her how to do this, she may be scared, confused and ask you the same thing again and again. Do not lose hope and patience, explain to her slowly and trust me she would get it.

    I now get shagun on gpay from my mom for festivals, so it is a win-win for everyone.

    Where your mom has gotten the basics right, you can start by explaining her mobile banking and online shopping. Again 2 very important life skills are needed in today's time. Ask her to start with small ticket things and then move ahead. It will give her confidence and eventually reduce the calls to you about how to send money to someone, or buy a new dabba for the kitchen. She will do it all herself. 

    5. Make her aware of financial fraud but don't scare her.

    The reason our moms are not going and doing everything online is that financial frauds are scary and very much real. She must be knowing someone who has been a part of it and does not want to meddle with family’s or her money. Take it as your job to build her trust in the system, teach her how to do it right and never to do it around strangers.  

    Most importantly make her feel secure that if anything does happen, you are there to take care of things.  One line will change her entire approach towards this process of learning UPI and more and she will do it overnight. 

    6. Insurance - check if she has one and she is informed about others

    Continuing from our earlier discussions on keeping her informed about the various financial situation of the family. You must inform her about insurance as well. Keep her informed about insurance you have/other members of the family have and where are the papers for the same.

    Check if she is properly ensured (health insurance), if need be get a top-up for the same and also tell her where the documents are and how to access them. For example, my mother books her annual free health check-up (which is provided to her by her health insurance) by herself now and gets a check-up done. One thing she knows is that it is important and FREE. So she never misses it. Give your mother the incentive to learn and see her fly. 

    Wealth Cafe Advice:

    Do remember that it will take time, patience and a lot of arguments (I must have left it thrice and then gone back to explain her again), the end result is beautiful and it will make your mother confident and independent. Yes, loving your mom, cooking for her that one day or handholding her with different things does make us all happy. Along with this, work towards making her independent too.  The confidence she would feel when she goes to the bank or transfers that money to you cannot be compared to the best compliment ever given her.

    Our mother may lack behind in investments, but you all may agree she is best at saving and budgeting. 

    We need to motivate her and tell her how good she is managing her monthly budget, how good is she at bargaining and finding the best deal while buying groceries or shopping, and how well she has managed to teach herself to spend wisely. Just take it to the next level and teach her on how to do it all online and invest too.

    You can enrol her to our Be a Fe-Money-ist Webinar that we are conducting this Saturday, i.e on 7th May - for more details - click here.

    If you wish to learn more about the various asset classes you can learn more about it here. Use code SAVE20 for 20% off.

    Blog Article 2022 (4)

    Financial planning: Steps to take when you have a Newborn

    It’s no secret that pregnancy comes with a long to-do list. There are the obvious tasks (setting up a nursery and baby proofing your home), and the less so (applying for baby’s aadhar card and opening a bank account). Things might get difficult to manage when the baby arrives but with a little bit of planning, you can get a head start on these crucial to-dos to save you time (and stress) once the baby arrives. 

    So here is your handy guide to getting the baby's important documents – from where you can get them, to how to go about applying for it, and everything in between! But before you even plan to make any of the following documents, it is important to name your child. Always remember, to mention your child's name without any spelling errors - even a letter change or an extra space can make a huge difference.


    1. Birth Certificate

    Let’s start with the very first document you need- Baby’s Birth certificate. This is a vital and mandatory document that you would have to prepare for your child within the first 21 days of the child’s birth, by filling up the form prescribed by the Registrar. It contains details such as time and date of birth, location, gender and parents’ names. Most Birth Certificates today contain the name of the child unlike in earlier times, which makes it a valid Proof of Identity. It usually takes up to seven days for the authorities to issue a birth certificate. However, if due to some reason, you fail to register your child within the stipulated time, you will have to pay a late fee. 

    Documents needed: Self-attested declaration stating the purpose to be submitted to the Corporation along with the form issued by the hospital. 


    2. Aadhar Card 

    Starting from gas subsidies to working as valid residence proof, the Aadhar Card has numerous benefits and it only takes a little time and effort to make one for your child. 

    Getting an Aadhar card for a newborn involves no biometrics. You just need to book an appointment online by logging in to the official UIDAI website. Your child will be processed on the basis of demographic information and facial photographs linked with your UID. However, you need to update their biometrics of ten fingers, iris and facial photographs, when they turn 5 and 15.

    Documents needed:

    • Child’s Birth certificate
    • Aadhar Card details of either/both parents of the child

    Note: Original copies for both these documents will be required for the verification process.


    3. Bank Account 

    Opening a bank account is one of the most important steps to undertake. Once you have a kid you will start getting gifts on their birthday as well as at various festivals. Many times these gifts include cash which you tend to spend here and there. Instead, you can deposit all these gifts in cash in their savings account behalf of them.

    Documents required to open a bank account for a minor:

    • Child’s Birth certificate
    • KYC documents of the parents/guardian.
    • Child’s Aadhaar card.
    • Specimen signature of a guardian. The minor's specimen signature if he/she is 10 years old or above.


    4. Pan Card (optional)

    Many people face the question - of whether a minor can apply for a PAN Card as it acts as an important identity proof. The answer is yes, it is possible and the procedure for applying it is a simple and streamlined one. You need to submit an application on the official website of NSDL. Upon submitting the application, you will get a receipt number using which you can track the PAN card application of your ward. Usually, the PAN card reaches your given address within 15 days of successful verification. 

    Documents needed:

    • Child’s Certificate of Birth
    • Child’s Aadhaar card 
    • Child’s Photo
    • ID and address proof of the parents


    5. Passport (Optional)

    A valid Indian passport holds a lot of importance and is considered an accepted Proof of Identity and Proof of Address for procuring various other documents and even for school admission procedures. Thanks to simplified computerised procedures, getting a passport for your child is no longer a hurdle. 

    You can book an online appointment at www.passportindia.gov.in and after booking an appointment on the website, you can reach the PSK (Passport Service Kendra) with your child at the allotted time slot to avoid unnecessary waiting.

    Documents needed:

    • Child’s Certificate of Birth
    • Child’s Aadhar Card
    • Filled and signed Annexure H which can be procured from the Passport Seva Kendra website.
    • Identification photograph of the child against a white or light-coloured background.
    • Arrangement receipt
    • Marriage certificate if the spouse's name has not been endorsed on a parent's Passport


    Now that all the documents are in place you need to start planning for their investments. In case you have a girl child you can open a Sukanya Samriddhi Account.

    We hope this was useful for you. In case of any queries, you can reach out to us at iplan@wealthcafe.in

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      How is inflation affecting our everyday lives?

      Inflation can impact our finances in a number of ways – from the cost of our weekly shop to the value of our long-term savings – but what exactly does it mean?

      Inflation might be something that not many people understand. Yet, we all experience it and feel its effects. When you head to the store expecting to spend a budgeted amount of money on something, only to spend a lot more, you’ve experienced inflation. Of course, when a price rises on a product it’s not always due to inflation. Yet, inflation still affects your cost of living by increasing the cost of goods and services.

      This is why it’s so important to consider inflation when planning for the future, even if the future is as soon as next year. Especially when planning for retirement, you need to ask yourself what you want as your standard of living because inflation directly affects your lifestyle.

      Therefore, it’s important to understand how inflation works, as well as the effects it could have on your financial planning.


      What is Inflation? How does it personally affects you?

      Inflation is often referred to as a “measure of the increase in the price of goods and services over time”.

      Yes, it affects everyone. Yet, it affects everyone very differently. Your lifestyle is based on your income and your expenses. Sometimes, people who have a high standard of living but not a high enough income end up borrowing money to make up the difference.

      Inflation not only affects the cost of living – things such as transport, electricity, and food – but it also impacts interest rates on savings accounts, the performance of companies, and in turn, share prices.

      When inflation rises, borrowing money becomes very expensive. This means either people take out fewer loans or they’re unable to spend less money because it’s going towards debt payments. This reflects a reduction in the purchasing power of your money. In other words, this impacts your ‘buying power, as you’re now able to buy less with your money.

      For those people whose standard of living matches their income, inflation can be both a positive and a negative. Usually, when inflation rises, your income also rises as there are adjustments based on the cost of living. However, even with an increased income, expenses also rise. For those on a fixed income – like retirees – inflation can greatly affect their standard of living.


      Let me give you a few examples of where we were to where we are now when it comes to our spending habits or lifestyle expenses.


      Movie tickets: From 1975 to 2015

      Watching the latest flick, on opening day for just 3 rupees. Madness. Of course, while there are places where you can still get tickets for a tenner (DDLJ in Maratha Mandir), those places are few and far between.


      Coca-Cola: From 1965 to 2015

      This was before Coca-Cola was kicked out of the country in 1973. And here we thought a small Coke for 5 rupees was a big deal.


      Amul Butter 500 gms: From 1970 to 2015

      Guess those really were "butter" times, eh?


      Is Inflation bad for everyone?

      Inflation is perceived differently by everyone depending upon the kind of assets they possess. For someone with investments in real estate or stocked commodities, inflation means that the prices of their assets are set for a hike. Those who possess cash may be adversely affected by inflation as the value of their cash erodes. A higher rate of inflation can make repaying loans easier because they can end up paying back less money if the interest rate is lower than the rate of inflation.

      Therefore, Inflation influences all aspects of life. You’re going to have to navigate a variety of risks now and in the years ahead, no matter which direction inflation swings. Since everybody relies on goods and services in one way or another, inflation is felt by everybody – either negatively or positively. The best thing to do is to plan for it. If you are saving for the future, pay attention to inflation.

      Blog Article 2022 (2)

      Financial Planning for Siblings

      “Blood is thicker than water” we have all heard this growing up, in fact, experienced it as well with our siblings. Along with this, we have also heard stories in our families or otherwise where siblings ditched each other for ancestral property, did not pay back the loan or diss one another for having more money. Yes, Money is great when you start as you celebrate together, shop together and enjoy everything together but it could also turn into something very complicated. 

      Money discussions between siblings may not be the most common dinner conversation but it is a good practice to take some time out and start talking about money before things get sour. Here we are sharing our insights on how and what you can talk about: 


      Money is obviously an important factor when you live together as there will be some shared expenses between you two. In some families, parents take care of expenses and there this might not be a major discussion. But as the year's pass, the responsibility would eventually fall on the children and it is best to be prepared for that discussion or maybe have it in advance. Usually, the elder sibling takes care of the family expenses (especially where there is a brother-sister equation). However, there may come a point where they would have more responsibility or may be strapped for cash or want to splurge on themselves and then it could end up getting ugly. Instead have a discussion and set certain things right:

      1. Talk about who will take care of what expenses. How will you split the bills?
      2. The person earning more can contribute higher but the other one should also contribute some money so there is parity.
      3. Include the other in your financial plans where you are planning to help the other with their goals like marriage, higher education or setting up a business. 


      Money is not too much of a problem when you live on your own and both are taking care of their individual needs. Over the years though you could have some shared responsibilities like your parents and their retirement. 

      1. Understand from your parents how financially prepared they are for their own health concerns and retirement so you both know what and how much you need to take care of in future. 
      2. Decide how you will both(all) contribute and take care of the expenses of your parents.
      3. Where one sibling wishes to splurge on parents any financial need, the other should be accommodative and not jealous of the same. Have a talk!


      We could write pages and stories on what all can go wrong with inheritance but we are expecting better of our wealth cafe investors. Do not get carried away by greed to own everything that your parents do but understand what they wish for you and your siblings. 

      1. Have a discussion with your parents, and ask them to have a will in place so there is no fight tomorrow. 
      2. Talk to each other as well, if you feel you are comparatively better off than your sibling, let them have a bigger chunk of the inheritance.

      Remember that you are siblings before money. Do not lose your brother/sister for some money that may or may not come to you. Develop some money values between yourselves

      1. Talk and communicate with each other.
      2. Be honest. Contribute where you can.
      3. Do not take undue advantage of the one with more money or otherwise.
      4. Ask your parents to be a part of this discussion.
      5. Where you have sisters ensure she is included in discussions and financially aware of things the family is doing.
      6. When you give loans to each other, have proper documentation in place so you do not have a fight regarding it in future. 

      We have all seen situations where one brother defies another for a better inheritance or money, we are hoping that the coming generation will be better off. Money can be a major cause of families breaking - up. Hence, the best way to ensure that does not happen is to talk to each other. 

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        Blog Article 2022

        5 Insurances that every individual must have

        Insurance is your safety net, once it is built then you can invest comfortably without worrying about any contingency that may or may not dip into your savings. Insurance as the name suggests means protecting yourself and your family ‘financially’ from any contingent (things which may or may not happen) events.

        Let’s build this safety net for you and your family. The basic 5 insurances that you must have in place are as :

        1. Health Insurance- Insurance you absolutely need.

        With a steep rise in the medical cost and diseases not being age-specific, having a health insurance policy is a number 1 priority. Where most individuals would have health insurance from their employer, it is advisable to have your own mediclaim as well and where you are self-employed, health insurance becomes a must. You can opt for an individual policy or for the family, or opt for a family floater plan under which the whole family gets covered in one policy. Do remember to get health insurance that covers most of your health needs and also has a cashless claim in your neighbourhood hospital.

        You can know more about health insurance by going through these articles.

        2. Life Insurance - Term Insurance

        You obtain life insurance for the ones who continue to live after an untimely death and to secure them financially. Life Insurance must replace you financially and can be around 10 to 12 times your yearly income.

        Generally, investors end up looking at how much would you get in return from the insurance policy rather than the sum assured and for how long to have the insurance policy. A small reminder that term insurance is a must for everyone who has or would eventually have any dependents financially. And for returns and investments, you have many investment options available.

        You can know more about Life insurance here

        3. Personal Accidental Insurance

        Personal accidental insurance is the least opted insurance, especially in India - this is due to the lack of awareness of the various benefits accompanied with this insurance. It provides financial coverage against accidents that may cause bodily injury, permanent partial disability or permanent total disability and accidental death. It covers hospitalisation, pre and post hospitalisation, and offers a daily cash allowance of up to 30 days, depending on the insurer. In case of loss of income, it even covers you for a certain period, depending on the insurance you choose. Also, when it comes to the cost of premiums, this insurance has the least premiums against an exclusive range of coverage.

        Given the raging accidents, we see every day this policy becomes a must-have too.

        4. Critical Illness Insurance.

        Generally, health insurance plans do not provide cover for critical illness or life-threatening diseases such as cancer, tumours, paralysis, bypass surgery, heart disorders as well as organ transplants. Treatment for these illnesses is also quite expensive. With some of these illnesses, hospitalizations are not required, and regular hospital visits are required over a long period of time. Therefore, having critical illness insurance can help you stay financially equipped for such medical emergencies.

        However, these critical illness plans offer fixed benefits where a lump sum amount is paid to you for the treatment. The amount can be used not only towards treatment but towards your other financial responsibilities.

        5. Home Insurance

        A house is one of the most valuable and precious possessions that holds many priceless memories and belongings. Therefore, it is extremely essential to protect this prized possession against numerous unexpected damage that may not be in your control for eg, theft, natural calamities and so on.

        Property insurance is calculated based on the value of the objects insured. For a homeowner, it may be the current value of the house, and the furniture and other items that have to be insured whereas for a shopkeeper, it will be the value of goods that are currently lying in the shop.

        With the ever-increasing costs of electronics and other items at home, it is crucial you protect yourself financially from that extra loss, and obtain home insurance. Generally, for apartment societies, the co-operative buildings already cover the structure so your home insurance is only for the contents of the home. It would be a good practice to check with your society if the building and structure are insured or not.

        Wealth Cafe Advice

        Insurance policies work as a shield to protect you and your valuable possessions against numerous

        Fun is like Life Insurance, the older you get the more it costs - Kin Hubbard. Buying insurance today will not only protect your family & yourself from the contingent expenses and loss of income but also be cheaper for you. Make the shift in your understanding of insurance and take it to build your safety net.

        Where you wish to learn more about insurance - check out our course NM102: Build your Safety Net. You can use code SAVE20 for a 20% discount.

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          Blog Article 2022

          All about Advance Taxation

          Advance Tax Payment is a set up to pay a share of your taxes in installments on due dates decided by the income tax department. It is also known as the ‘Pay as you earn scheme’.

          What is Advance Tax Payment?

          Advance tax means income tax that should be paid in advance instead of lump sum payment at year-end. It helps the Govt. to receive a constant flow of tax receipts throughout the year so that the Govt can incur its expenses timely rather than receiving all tax payments at the end of the year. This keeps the government rolling

          Who is liable to pay Advance Tax?

          The eligibility criteria you will have to fulfill in order to pay advance tax are:

          • Your tax liability should be INR 10,000 and above.
          • You should be a salaried or a self-employed individual.
          • Income received via capital gains on shares.
          • Interest earned on fixed deposits.
          • Winnings earned from a lottery.
          • Rent or income earned from house property.

          Exemption in Advance Tax Payments

          • Senior citizens aged 60 years and above are exempted from paying the advance tax.
          • Salaried individuals falling under the TDS net are exempted from paying the advance tax.
          • However, any earnings from sources such as interest, capital gains, rent, and other non-salary income will attract advance tax.
          • If TDS deducted is more than the tax payable for the year, then one does not have to pay the advance tax.

          Payment of Advance Tax:

          You can choose to pay advance tax by any of the following modes:

          • Offline Mode: You can pay advance tax using Challan 280 just like any other regular tax payment at bank branches authorized by the Income Tax Department.
          • Online Mode: You can also pay it online through the official website of the Income Tax department.

          Due date and Penalty on late payment

          Computing the exact advance tax liability sometimes gets very difficult and therefore the Income Tax Dept has released an Income Tax Calculator which is free to use by everyone. If your tax liability is more than INR 10,000- you should pay your taxes on or before the dates mentioned below. Also, you will need to pay a penalty in case you miss paying it.

          Screenshot 2022-03-09 220142

          Interest on late payment of Advance Tax is applicable as follows

          1. Interest under section 234C – Interest @ 1% per month is payable if the tax is not paid as per the above schedule i.e. for Deferment in Instalments of Advance Tax
          2. Interest under section 234B – Interest @ 1% is payable if 90% of the tax is not paid before the end of the financial year i.e. for Default in Payment of Advance Tax
          3. For computing Interest u/s 234A/B/C and any other Interest, Income Tax shall be rounded off to nearest hundred and fraction of hundred shall be ignored

          Refund in Advance Tax Payment

          At the end of the year, if the Income Tax Department finds out that you have paid more tax than you should have paid, then it will refund the excess amount. Taxpayers can claim a refund by filling out and submitting Form 30. They have to make the claim within a period of one year from the last year of the assessment year

          Wealth Cafe Advise

          Where you are earning any income on which taxes could be more than INR 10,000 and the same is not deducted as TDS, then you must compute the same and pay it as advance taxes. It is best to consult a chartered accountant before 31 March so in case there are any advance taxes to be paid, you can do so without levying any penalty.

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