Monday, November 12, 2007
Cute SMS 9
Let this festival of lights be brighter and enjoyable one!
Glittering glow of light & blastering sound of crackers of this diwali add merriment & happiness to u & ur family
Let ligting festival bring you plenty of cheer and happiness every moment of each day in your life
Sometimes i feel wat i earned in life, money?
no
name?
no
fame?
no
but i earned the most precious thing.
Lovable person Like U.
I am a slow walker but i never walked backwards.
Every single problem u face in ur life is the seed of opportunity for some greater benefits. Dont leave ur confidence at any situation.
when ur life is in darkness pray to god ask him to free u from darkness, even after u pray if u r still in darkness pls pay the EB bill
Glittering glow of light & blastering sound of crackers of this diwali add merriment & happiness to u & ur family
Let ligting festival bring you plenty of cheer and happiness every moment of each day in your life
Sometimes i feel wat i earned in life, money?
no
name?
no
fame?
no
but i earned the most precious thing.
Lovable person Like U.
I am a slow walker but i never walked backwards.
Every single problem u face in ur life is the seed of opportunity for some greater benefits. Dont leave ur confidence at any situation.
when ur life is in darkness pray to god ask him to free u from darkness, even after u pray if u r still in darkness pls pay the EB bill
Monday, November 5, 2007
இனிய தீபாவளி நல்வாழ்த்துகள்
நண்பர்கள் மற்றும் உறவினர்கள் அனைவருக்கும் இனிய தீபாவளி நல்வாழ்த்துக்கள்.
Thursday, November 1, 2007
All about Mediclaim
Mediclaim: What you need to Know!
Let me emphatically state: Everyone needs a medical insurance cover. Everyone should get one.
In case you still don't have one and are keen on shopping around for a cover, here's what you need to look for.
Let age work in your favor
The premium is what you pay every year to the insurance company. This is the cost of the cover. The cover is the actual amount that you are insured for.
You can pick your cover and the insurance company will pick its premium.
The premium will depend on your age and the cover. The older you are, the more expensive the premium.
Let's say you take a Rs 1,00,000 medical insurance cover from the National Insurance Company Ltd.
Age (years) -------Annual premium
Till 35 ----------- Rs 1,310
36 --------------- Rs 1,425
46 --------------- Rs 2,039
56 --------------- Rs 2,322
66 --------------- Rs 2,598
71 --------------- Rs 2,784
76 --------------- Rs 3,445
However, the above premiums are before service tax and education cess. So this is what the premium will work out to.
Basic Premium --------> Rs 1,310
Service tax(12.24%)---> Rs 160.34
Education cess ---------> Rs 3.21
Net premium ----------> Rs 1,473.55088
So, whatever age you are, the premium is fixed.
If you buy the policy when you are 25 and pay Rs 1,310, then, when you turn 36, it goes up to Rs 1,425.
If you look at it from this point of view, then it does not make a difference when you take it. Because, when you grow older, you will pay a higher premium. The benefit lies in the fact that the younger you are, the lesser the illnesses or sicknesses you have so everything is covered.
When you take a medical insurance policy, your pre-existing illnesses (the illnesses you currently have) are not included. So it is best to take it when you are totally healthy.
Get your family insured too
Just married? Then take a cover for yourself and your spouse.
Have a child? Cover your child too. These days, doctors often ask that the children be admitted into hospital for observation when sick.
Let's say you are a family of three. And each of you gets insured for Rs 1,00,000. Then you will get a 5% or 10% discount on the premium you are paying for all these policies. For more than one cover, the insurance companies give a discount.
But, if you fall ill and your expenses come up to Rs 1,25,000, you will not be covered for Rs 25,000 since your individual limit is Rs 1,00,000.
Know what is not included
Everything and anything is not covered. Please do your due diligence before opting for a policy.
Go through the list of exclusions in detail. You don't want any rude shocks later.
Any sickness or disease that you had before you took the policy will not be covered. These are known as pre-existing illnesses.
Some insurers specify they will not cover obesity related illnesses, expenses related to terrorist acts or war or riots.
Expenses arising from HIV, use of alcohol or drugs, or a suicide attempt are never covered.
Certain ailments like sinusitis, ulcers or cataract may not be covered initially -- say, in the first year or so of the policy. While in the first month or so, nothing may be covered except accidents.
Be clear on repayment
You will get an identity card when you take the policy. The insurance company will have a tie-up with a number of hospitals. If you use the card there, you will not have to make any payment; the insurance company will directly pay the hospital. This is known as the cashless benefit.
If you do not check into one of these hospitals, then you will have to make the payment yourself, produce bills to the insurance company and then get reimbursed.
Look at other aspects
There is a personal accident cover which only covers accidents and disabilities arising from accidents.
There is also a critical illness cover which only covers major illnesses. This time, the insurance company will pay you a lump-sum amount (whatever you are insured for) when the illness is diagnosed
These can be added to your Mediclaim.
There is also the cash benefit. This is the allowance the insurance company gives you and is a cash amount for the time you spend in the hospital. You can take this in addition to your normal insurance policy.
For instance, Bajaj Allianz refers to this as Hospital Cash. In addition to your normal premium, you will have to pay an additional premium if you want this benefit. Let's say you are 28 years old, you want a cash allowance of Rs 1,000 per day when you are hospitalised and you want this benefit for 30 days; the annual premium you need to pay may just be around Rs 600. So, during a year, a total of 30 days will be covered.
You have a wide choice
You have many insurance companies offering medical insurance.
According to the Insurance Regulatory and Development Authority, here are the Web sites of some of the players listed in alphabetical order.
Bajaj Allianz General Insurance Co. Ltd
ICICI Lombard General Insurance Co. Ltd
IFFCO Tokio General Insurance Co. Ltd
National Insurance Co.Ltd
The New India Assurance Co. Ltd
The Oriental Insurance Co. Ltd
Reliance General Insurance Co. Ltd
Royal Sundaram Alliance Insurance Co. Ltd
Tata AIG General Insurance Co. Ltd
United India Insurance Co. Ltd
Cholamandalam MS General Insurance Co. Ltd
HDFC-Chubb General Insurance Co. Ltd
“Get Insured Be Secure”
Let me emphatically state: Everyone needs a medical insurance cover. Everyone should get one.
In case you still don't have one and are keen on shopping around for a cover, here's what you need to look for.
Let age work in your favor
The premium is what you pay every year to the insurance company. This is the cost of the cover. The cover is the actual amount that you are insured for.
You can pick your cover and the insurance company will pick its premium.
The premium will depend on your age and the cover. The older you are, the more expensive the premium.
Let's say you take a Rs 1,00,000 medical insurance cover from the National Insurance Company Ltd.
Age (years) -------Annual premium
Till 35 ----------- Rs 1,310
36 --------------- Rs 1,425
46 --------------- Rs 2,039
56 --------------- Rs 2,322
66 --------------- Rs 2,598
71 --------------- Rs 2,784
76 --------------- Rs 3,445
However, the above premiums are before service tax and education cess. So this is what the premium will work out to.
Basic Premium --------> Rs 1,310
Service tax(12.24%)---> Rs 160.34
Education cess ---------> Rs 3.21
Net premium ----------> Rs 1,473.55088
So, whatever age you are, the premium is fixed.
If you buy the policy when you are 25 and pay Rs 1,310, then, when you turn 36, it goes up to Rs 1,425.
If you look at it from this point of view, then it does not make a difference when you take it. Because, when you grow older, you will pay a higher premium. The benefit lies in the fact that the younger you are, the lesser the illnesses or sicknesses you have so everything is covered.
When you take a medical insurance policy, your pre-existing illnesses (the illnesses you currently have) are not included. So it is best to take it when you are totally healthy.
Get your family insured too
Just married? Then take a cover for yourself and your spouse.
Have a child? Cover your child too. These days, doctors often ask that the children be admitted into hospital for observation when sick.
Let's say you are a family of three. And each of you gets insured for Rs 1,00,000. Then you will get a 5% or 10% discount on the premium you are paying for all these policies. For more than one cover, the insurance companies give a discount.
But, if you fall ill and your expenses come up to Rs 1,25,000, you will not be covered for Rs 25,000 since your individual limit is Rs 1,00,000.
Know what is not included
Everything and anything is not covered. Please do your due diligence before opting for a policy.
Go through the list of exclusions in detail. You don't want any rude shocks later.
Any sickness or disease that you had before you took the policy will not be covered. These are known as pre-existing illnesses.
Some insurers specify they will not cover obesity related illnesses, expenses related to terrorist acts or war or riots.
Expenses arising from HIV, use of alcohol or drugs, or a suicide attempt are never covered.
Certain ailments like sinusitis, ulcers or cataract may not be covered initially -- say, in the first year or so of the policy. While in the first month or so, nothing may be covered except accidents.
Be clear on repayment
You will get an identity card when you take the policy. The insurance company will have a tie-up with a number of hospitals. If you use the card there, you will not have to make any payment; the insurance company will directly pay the hospital. This is known as the cashless benefit.
If you do not check into one of these hospitals, then you will have to make the payment yourself, produce bills to the insurance company and then get reimbursed.
Look at other aspects
There is a personal accident cover which only covers accidents and disabilities arising from accidents.
There is also a critical illness cover which only covers major illnesses. This time, the insurance company will pay you a lump-sum amount (whatever you are insured for) when the illness is diagnosed
These can be added to your Mediclaim.
There is also the cash benefit. This is the allowance the insurance company gives you and is a cash amount for the time you spend in the hospital. You can take this in addition to your normal insurance policy.
For instance, Bajaj Allianz refers to this as Hospital Cash. In addition to your normal premium, you will have to pay an additional premium if you want this benefit. Let's say you are 28 years old, you want a cash allowance of Rs 1,000 per day when you are hospitalised and you want this benefit for 30 days; the annual premium you need to pay may just be around Rs 600. So, during a year, a total of 30 days will be covered.
You have a wide choice
You have many insurance companies offering medical insurance.
According to the Insurance Regulatory and Development Authority, here are the Web sites of some of the players listed in alphabetical order.
Bajaj Allianz General Insurance Co. Ltd
ICICI Lombard General Insurance Co. Ltd
IFFCO Tokio General Insurance Co. Ltd
National Insurance Co.Ltd
The New India Assurance Co. Ltd
The Oriental Insurance Co. Ltd
Reliance General Insurance Co. Ltd
Royal Sundaram Alliance Insurance Co. Ltd
Tata AIG General Insurance Co. Ltd
United India Insurance Co. Ltd
Cholamandalam MS General Insurance Co. Ltd
HDFC-Chubb General Insurance Co. Ltd
“Get Insured Be Secure”
All About LTA
All About LTA
Want to go on vacation at your employer's expense? Well, you are entitled to it.
Leave Travel Allowance is actually a rather simple tax-saving benefit that covers your holiday expenses.
Here, we give you a low-down on LTA.
What's covered?
Only the travel costs, not the eating and partying or hotel bills.
So, whether you fly, hop on to a train or take public transport, you can show the ticket and claim your LTA.
What if you want to travel by a car? If a car is owned by a central government organisation like ITDC, the state government or the local body, LTA is permitted.
If you could not get public transport and resorted to private transport, try and get a bill. If the bill is not accepted by your employer, you can always file an income tax return, claim an exemption and get a refund.
How often can you claim it?
Twice in a block of four calendar years.
In case you were unaware, LTA is not related to when you started your employment. The government fixes blocks of years.
These blocks are not financial years (April 1 to March 31); they are calendar years (January 1 to December 31).
The current block is 2006-09: January 2006 to December 2009.
The earlier one was from 2002-05: January 2002 to December 2005.
During this time period, a person is entitled to two LTA claims.
A person can get an income tax exemption for two journeys in a block of four calendar years. But he can make a trip only once in year.
No time for a holiday?
Then you can carry it forward.
One LTA can be brought forward and claimed in the first year of next block.
Let's say you do not take your LTA in 2002-05. Or that you use only one LTA. This means you will be able to take the pending LTA in 2006. This means that, in the 2006-09 block, you will be totally entitled to the three journeys.
And if you switch jobs? You can get the LTA not only from present organisation but also from the former employer, if the concession is lying unutilised.
Let's say that, in the 2002-05 block, you claimed LTA in 2003. In 2004 you switched jobs. You can still claim your second journey with your new employer. Of course, your new employer will ask to look at your earlier tax returns to see whether it has been claimed or not.
Who's covered?
Your family. This term is quite wide; it includes yourself, parents, siblings dependent on you, spouse and children.
For children born after October 1, 1998, the exemption is restricted to only two surviving children (unless, of course, one birth has resulted in multiple children like twins and triplets).
Well, what if your spouse is also employed? It does not matter, your spouse too is covered.
What if you don't take it?
If LTA is not utilised, it gets added to the entire salary. And then you are taxed on it.
Let's say you and spouse are both employed and both have LTA as part of the salary package. Your LTA is Rs 20,000 and hers is Rs 20,000 too.
Both of you and your child go for a holiday. The tickets for the three of you amount to Rs 15,000. You supply the tickets to your office and this amount will be eligible for a tax deduction, the balance Rs 5,000 will be taxed. You can claim exemption only to the tune of your expenditure.
Now, if you claim this, your wife will not be able to claim this same holiday from her employer. Her Rs 20,000 will be taxed. Unless another holiday is made and she claims it.
Or, let's say that you spend Rs 30,000 on tickets but your LTA is just Rs 20,000. You can claim up to Rs 20,000 and tell your wife to claim her ticket from her employer.
So go and catch that plane or hop onto a train. Not only is a holiday good for health but can also be a tax haven.
Quick tips
i. You can get LTA only if you have applied for leave from your company and have actually travelled.
ii. If your family travels without you, no LTA can be claimed. You have to make the trip, either by yourself. If claiming for family, you should travel with them.
iii. You will need to keep your air, rail or public transport ticket. Or, if you rented a car, give the bill issued by the car rental company.
iv. International travel is not valid. It must be within the country.
v. Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year. So, if you make two trips in a year, you lose one. A way out is to claim one and make your spouse claim the other.
Authour: Meenakshi Subramaniam is a former IRS officer residing in Kolkata.
Want to go on vacation at your employer's expense? Well, you are entitled to it.
Leave Travel Allowance is actually a rather simple tax-saving benefit that covers your holiday expenses.
Here, we give you a low-down on LTA.
What's covered?
Only the travel costs, not the eating and partying or hotel bills.
So, whether you fly, hop on to a train or take public transport, you can show the ticket and claim your LTA.
What if you want to travel by a car? If a car is owned by a central government organisation like ITDC, the state government or the local body, LTA is permitted.
If you could not get public transport and resorted to private transport, try and get a bill. If the bill is not accepted by your employer, you can always file an income tax return, claim an exemption and get a refund.
How often can you claim it?
Twice in a block of four calendar years.
In case you were unaware, LTA is not related to when you started your employment. The government fixes blocks of years.
These blocks are not financial years (April 1 to March 31); they are calendar years (January 1 to December 31).
The current block is 2006-09: January 2006 to December 2009.
The earlier one was from 2002-05: January 2002 to December 2005.
During this time period, a person is entitled to two LTA claims.
A person can get an income tax exemption for two journeys in a block of four calendar years. But he can make a trip only once in year.
No time for a holiday?
Then you can carry it forward.
One LTA can be brought forward and claimed in the first year of next block.
Let's say you do not take your LTA in 2002-05. Or that you use only one LTA. This means you will be able to take the pending LTA in 2006. This means that, in the 2006-09 block, you will be totally entitled to the three journeys.
And if you switch jobs? You can get the LTA not only from present organisation but also from the former employer, if the concession is lying unutilised.
Let's say that, in the 2002-05 block, you claimed LTA in 2003. In 2004 you switched jobs. You can still claim your second journey with your new employer. Of course, your new employer will ask to look at your earlier tax returns to see whether it has been claimed or not.
Who's covered?
Your family. This term is quite wide; it includes yourself, parents, siblings dependent on you, spouse and children.
For children born after October 1, 1998, the exemption is restricted to only two surviving children (unless, of course, one birth has resulted in multiple children like twins and triplets).
Well, what if your spouse is also employed? It does not matter, your spouse too is covered.
What if you don't take it?
If LTA is not utilised, it gets added to the entire salary. And then you are taxed on it.
Let's say you and spouse are both employed and both have LTA as part of the salary package. Your LTA is Rs 20,000 and hers is Rs 20,000 too.
Both of you and your child go for a holiday. The tickets for the three of you amount to Rs 15,000. You supply the tickets to your office and this amount will be eligible for a tax deduction, the balance Rs 5,000 will be taxed. You can claim exemption only to the tune of your expenditure.
Now, if you claim this, your wife will not be able to claim this same holiday from her employer. Her Rs 20,000 will be taxed. Unless another holiday is made and she claims it.
Or, let's say that you spend Rs 30,000 on tickets but your LTA is just Rs 20,000. You can claim up to Rs 20,000 and tell your wife to claim her ticket from her employer.
So go and catch that plane or hop onto a train. Not only is a holiday good for health but can also be a tax haven.
Quick tips
i. You can get LTA only if you have applied for leave from your company and have actually travelled.
ii. If your family travels without you, no LTA can be claimed. You have to make the trip, either by yourself. If claiming for family, you should travel with them.
iii. You will need to keep your air, rail or public transport ticket. Or, if you rented a car, give the bill issued by the car rental company.
iv. International travel is not valid. It must be within the country.
v. Though you can claim two journeys in a block of four years, you can claim the LTA benefit just once in a year. You cannot claim both the journeys in one year. So, if you make two trips in a year, you lose one. A way out is to claim one and make your spouse claim the other.
Authour: Meenakshi Subramaniam is a former IRS officer residing in Kolkata.
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