BasuNivesh completed 4 Years !!!

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• Congrats basu......thank you so much for your informative blog. I have been introduced to your blog very recently. You have explained each aspect in a simple language without using complex terms. I have not yet finished reading through your old articles. Based on your advise, I have stopped my endowment policies& have opted for pure term,accident & health policies. Now, I am eagerly waiting for your article on critical illness. Hope to see one soon.
  Another humble suggestion, please introduce a search option in your old article section ,so that one does not have to go through the whole lot for a specific topic

  • Sreekumar-Thanks for your wishes. Search option is there, but placed it below. I try to place it at top. Thanks for your advice :)

    • Yes.....I noticed the search option now. Please do an article on critical illness cover.

• I need clarification on Q2.

  If I don't open FD jointly but stay joint holder of bank a/c ; in that case, how will be the tax liability for both of us for Savings A/c interest? Will it be 50-50 for savings interest earned (4% p.a) ?

  • Sanjay-Even in case of joint account holding, the tax liability will be with primary account holder. There is no such 50-50 taxation.

• Hearty congratulations Basu!!.
  Keep going and sharing, great blog! There are many blogs on the web but what makes your blog unique is, your engagement with readers by not only answering but questioning them too for the sake of clarity and for the sake of readers. The other feather in the cap is your unbiased and fair advice.
  I wish all the best for the feature endeavors, but make sure that you will have enough time to interact with your readers, that is the one BIG PLUS makes you to stand different from other bloggers.
  All the best!

  • Ravinder-Thanks for your wishes.

• Hearty congratulations !!!!!!
  And best wishes for coming years ahead.

  And thanking you very much for spreading financial literacy.

  I came out from LIC's ulip plan and taken pure term insurance after reading your blog on term insurance.

  Your blog, viewer's comments and your reply to comments helps me tostar SIP in Mutual Fund starting from how to do KYC to selection mutual fund.

  Thanks

  • Abhay-Thanks for your wishes.

• Hearty congratulations Basu for your achievements! Wish you a progressive year in 2016. We need more people like you who are good in their fields sharing knowledge to help others. Keep it up!

  I'm adding one personal question below. I work in an MNC and have salaried income+Adsense income+FD interest. Now I want to open a bank a/c for my mom who is family pensioner having no IT return or taxes(having PAN). I want to transfer 5 Lakh from my a/c to her new a/c and make FD in her name to avail senior citizen FD interest rate. Her pension + FD int income together will be < 3 lakhs PA. Now will she need to pay tax in her income and file ITR?

  Will this be treated as tax evasion for me? And how will I show this transaction while filing my ITR this fin year?
  And I show my adsense income in 'other income' while filing ITR, is this correct?

  • Sanjay-Thanks for your wishes :) Points to remember are-
    1) When you gift to your mother, then there is no tax as the gifting is within the family.
    2) But make sure to have a documented properly (at least in a plain paper).
    3) However, such gifting will not lower your tax liability.
    4) Yes, if her total income within a year is more than minimum tax exempted limit, then she must file IT return and pay the tax.
    5) You will not save tax on any amount you gifted. So no question of tax evasion.
    6) However, you may save the taxation on earnings of Rs.5,00,000 if your mother's total income is less than the basic exemption limit.
    7) Your Adsense revenue is not "Income from Other Sources" but it must be shown under the income head of "Profits or Gains of Business or Profession".
    Hope I cleared your doubts.

    • Thanks for your reply.
      Q1. Is there any format for documentation of gift ? Can I do it on A4 paper on top I write I’m giving gift of 5 lakhs and sign and below she’ll write I receive 5 lakhs with sign mentioning our bank a/c nos.?

      I use ITR-1 using cleartax.com. Just upload form-16 and fill in asked details. Mentioning FD interest+Adsense income+Flipkart/Amazon Affiliate income added together as ‘income from other sources’. You said that Adsense income should be shown under “Profits or Gains of Business or Profession”.

      Q2. Now being a salaried person, can I show both income; salary and Adsense+Affiliate income under ‘Business & Profession income’ ? Can a salaried person have those incomes ? And where should I show FD income?

      Q3. Now I'm getting some home tuition. Is there any tax exception for income from tuition? If so, how much and where should I show them in ITR?

      Q4. And for my mom, if her FD income+pension together < 3 lakhs in a FY then she can submit form 16H and need not file ITR, right? As TDS is not deducted given 15H and income are below minimum limit.

      Q5. I read somewhere that for creative professionals like writers, maximum 3 lakhs are exempted directly before calculating income. Is this true? Can making videos on YouTube and earning Adsense from that falls in that category? Wish to see a detailed article on that from you.

      • Sanjay-1) You can find a sample deed HERE. Yes, your AdSense income is business income.
        2) You must show salary under the income head of salary, adsense income under business income and bank interest under income from other sources. Yes, there is no such obligation that salaried must not have any other sources of income.
        3) No, there is no such tax exemption on your tuition income.Your tuition income is again be added under business income.
        4) Yes.
        5) I don't know about any such special privileges to create writers. Yes, your youtube and adsense earnings will fall under business income.

        Sure..let me plan for that post.

        • Thanks for the reply Basu Ji,
          I've few questions-
          Q1. If I open a joint bank a/c with my mom (sr. citizen) and me (non. sr. citizen) with E.O.S operational mode. And make a FD jointly with her being the primary holder of FD. How will the tax liability be for both of us? Her pension and FD income will be < 3 Lakhs, and she does not file ITR. But I'm regular tax payer and file ITR.
          Q2. And if I don't open FD jointly but stay joint holder of bank a/c ; in that case, how will be the tax liability for both of us?
          Q3. While posting comment, the mail id I give, I don't get any mail while you post a reply.

        • Sanjay-1) As your mother is primary holder, the interest income will be in her name.
          2) It's again on primary holder.
          Because this feature is not implemented on my blog. For this I have to use one more plugin. This add other issues like slow loading and all. Hence, I avoided that.

• Hi Basu many congratulations for this achievement and a very happy new year.
  * Don't know why my comment is not showing here* any way I want to say that I am a follower of your blog and after reading your blog I came to know the difference between insurance and investment and able to take decision on buying e-term and investment in ppf. May this year brings success to you and hope you continue your works in guiding us in same manner. All the best!!!

  • Pankaj-It is very much visible and thanks for your wishes :)

• Have Been a Banker for 14 Years.. Love the way you write basu.. Best wishes and may you become the no. 1 in your segment soon...

  • Jai-Thanks for your wishes :)

• Congratulations on Completing 4...

  Why dont you review SIP also...

  • Ketan-Thanks for your wishes. What I have to review in SIPs?

• Heartiest Congrats Basu.....keep it going

  • Thanks Shridhar :)

• Dear Basu sir,
  good evening. congratulations for successful completion of your blog for 4 years. you are doing very good service to the society. the blog is informative. I wish this blog do more creative things

  • Thanks Gopala :)