Some of the methods one can opt for saving taxes are-

1. Tax laws permit investors to adjust the cost of the asset to inflation during the holding period, and with inflation has been the cause of worry for most of us, the tax payer can take advantage of the indexation and reduce their tax bills, however not all investments are covered under this item and only certain capital assets, debt funds, gold ETFs are eligible for deduction.

2. If you gift money to your wife, and the same is invested in her name, the tax laws will club her income with yours and the advantage is that the clubbing takes place at the first level of income, and if the money is reinvested and earns income, it will be treated as your wife’s income and not yours and hence you may gift money to your wife then get her to invest in any of the tax free investment options.

3. Your parents can also help you to reduce your tax liability, if any or both of your parents do not have high income, and if you are in the highest 30% slab, you can invest in their name and earn a tax free income. Every adult is eligible for tax exemption to the tune of two lakhs every year.

4. You can double up your tax exemption by establishing a HUF- Hindu undivided family – as a separate entity and you are entitled to same benefits and exemptions like any other taxpaying individual,

5. You may seek help of your adult child when he turns 18 years of age, and is treated as a separate individual for tax purposes, and he enjoys the same exemptions and deductions like you and you may gift money to him and invest the same.

All said and done, it is the duty of law abiding citizens to pay their tax on time.

Develop the habit of savings right from your first earned income and continue the saving, which will help you as you keep growing older.  Every person has his own way of earning, either in form of business or through salary if one is doing a job.  One has to plan his household expenses as per his income and prepare a budget and also plan savings for secured future.

One may have some money left every month or every few months after contributing to the household and other needs.  This money can be saved meaningfully for future needs.  Everybody has a bank account.  After contributing to the family, you may have surplus money left.  Though banks give timely interests on your saving, you should also plan of saving in other areas of investments.  You may invest in shares and receive regular dividends on your investment.  Many banking and financial institutions offer lucrative investment schemes through which one can put his money safe and secure and have a secured future for family.  It is said that money saved is money earned.  Though you may have a good business running or a stable salaried job, you should keep some percentage and be prepared for crisis also.  One can take financial advice from professionals and invest in trusted hands, like insurance, mutual funds, fixed deposit schemes.  Money is something which can be required any time.  Even, a medical emergency can come up in your family, so one should also take a medical insurance to cover the high hospital bills.

Also, teach your children the habit of saving.  Educate them about the importance of saving money.  Make them save a nominal amount of Rs. 5 per day or week for a period of time by promising some gift that they desire for.  This will make them feel happy that that has been bought for them from their own money.

Thus, saving money is very important in everybody’s life.

The budget focuses on the pushing investments particularly in the infrastructure sector, but on the inflation factor the budget failed to provide relief to the common man, whose survival has become a nightmare due to rising prices.

Over a period of time the budget has lost its importance and is just a window dressing to appease the public and win elections  but budget plans  need to be implemented and executed and since the devil lies in the details , it should be transparent and deliver what it promises, else it just becomes  a futile expensive exercise.

There is an element of surprise which has shocked the financial analysts and trade pundits- Rs. 90000 crores has been taken away from the allocations of the past. The question arises what the finance minister will do next February?

It seems that the finance minister is inclined to catch the big honchos – with SUV prices set to soar, levy service tax of about 30% on purchase of real estate more than one crore, with 10% surcharge on income tax earning in crores and the finance minister is all to raise the resources GANGNAM style by going after those who are relatively well placed in the society.

We hope the budget brings a relief and solace to the aam aadmi. But such news seems to be a distant dream as of now.

Financial accounting and other finance details start with the initial journal entries which follow the common rule of debit and credit where receiver account is debited and outgoing account is credited.  For example if you make a credit purchase from a trader, the purchase account is debited and the party’s account is credited.  After purchase, the process of production takes place and then you sell the product.  This time, the customer’s account is debited and your sales account is credited as the product is going out.

When you make payment by check to the party, the party account in journal books this time is debited and your bank account is credited.  While, when you receive payment from the customer for the sales, your bank account is debited and the customer’s account is credited as the customer is giving out the payment.

Once the journal entry is made, the ledgers of respective accounts are updated with the relevant debits and credits.  In above case purchase account shows a debit balance, sales account shows a credit balance, in your profit and loss account.  The balance in your party’s account is the amount payable to them which is normally a credit balance.  The balance reflecting in your customer’s account reflects amount receivable from your client which is normally a debit balance.

Once the ledger books are prepared, the effect is reflected in trading, profit and loss account and balance sheets too.

Subsequently, all the bank, cash, and income and expenses accounts are also updated automatically and you can take reports as and when you want to for any period of time.

Finally, the profit and loss account reflects whether the company is making a profit or running a loss.

The balance sheet finally shows all the assets, and liabilities.  The assets are mainly your office premises, furniture, vehicles, and bank accounts.  Your liabilities are mainly your outstanding payments at the end of financial year.

Accounting software incorporates all these fundamental principles and gives you a total accounting solution for your business.

]]> http://www.financialculture.com/journal-entry-to-final-balance-sheet/feed/ 0 http://www.financialculture.com/meaning-of-skilled-leadership/ http://www.financialculture.com/meaning-of-skilled-leadership/#comments Tue, 26 Feb 2013 11:43:07 +0000 admin http://www.financialculture.com/?p=2276 The difference between the common man and the leader is that leader is a person who is willing to take additional responsibilities and has the ability to handle more than the common man.
This holds true also for skilled leadership in corporate world today, the ability to move on with confidence without fearing for the pitfalls or the backlash in the due course of day to day activities of the complex business world.

The skilled leader today is the complete pack of class, style, body language and etiquette, vocal communication, business practises, ethics and a street smart strategy in all situations.

A true skilled leader with a strong personality can create likability and confidence in his team, with his clients and business associates. He has the ability to hold discussion without dispute. A skilled leaders needs to cultivate and promote his team by acquiring skilled man power, having brain storming session with them, instil confidence in his team to work for betterment of the company.
A skilled leader has to lead by examples, hard work, and commitment. The ability to deal with ambiguities of the business with calm and balanced attitude can be an asset for the true leader and the company he represents.

A skilled leader must inspire his team to perform or give them a subtle reminder hinting that laid back attitude or non performance is not acceptable and his mantra should be perform or perish.

A skilled leader must be good at team building, extend initiations to make leaders of tomorrow, making interactions, conversations warm and cordial, but productive at the same time. The art of effective leadership needs to be cultivated if one needs to succeed.

The growth mentioned is occurring within the gaming sectors which are growing despite sluggish sectors in other parts of the economy.

There are many reasons for this growth. One of these is advances that have occurred in technology that help to boost online gaming revenue. Users can now play not only from their computer but using new mobile casinos though sites like CasinoOnline.co.nz, which allow gambling literally anywhere a signal can be obtained. Successful advertising campaigns have also helped draw attention to the sites.

Revenues in both regions have increased. Within Australia, there has been  a 3.3% growth in a burgeoning area of gaming, sports betting. Poker still accounts for an overwhelming majority of gaming revenues though. This is no doubt due to the success of the pokies. In Southeast Asia, it is estimated that revenues will double by 2015.

Government decisions to legalize gambling in the country of Singapore have proved wise, as the country has become one of the top earners in the region. As part of development projects, the countries of Southeast Asia are being chosen by developers to provide even more casino resorts to cater to a burgeoning market. Vietnam will open a casino resort in 2013. Built by MGM Grand International, the resort is symbolic of what gaming is doing to turn around the economies of Southeast Asia.

Macau has become a Mecca for gamblers worldwide. In fact, the location overtook Las Vegas in 2007 as the world’s top gaming locale. With hopeful signs of continued growth, the industry is sure to grow.

Of course, picking out a stable investment opportunity is a task easier said than done – particularly in the turbulent economic times so many countries are currently experiencing. However, there are opportunities available that are perfect for beginner investors. For example, you may have heard of the concept of investing in gold bullion. While gold investment can be interpreted in different ways (for example, it may mean purchasing stock in a gold mining company, or buying gold ETFs in the stock market), the general idea is the actual purchase of physical gold – which certainly qualifies as an alternative form of investment. Additionally, the purchase of gold bullion provides a great deal of relative stability where other investments do not.

To begin with, the method by which most people purchase gold bullion is a great deal simpler than that by which stocks are traded. Instead of setting up a portfolio in a complex and dynamic stock market, you can simply head to a site such as BullionVault, where you will be free to buy and sell any amount of gold at your leisure. Gold Price Charts at Bullion Vault are constantly updated in accordance with world gold prices, which provides you with a very accurate measure for your trades. You may then choose to withdraw or store your gold until you see fit to sell it back for currency.

Beyond this simple and easy to learn method of trading, gold bullion investment also allows you to trade without the same risk of sudden or dramatic loss you would have with a different investment. Because gold’s price is determined on an international level, without absolute attachment to any one currency, economy, or industry, it tends to be more stable, and less prone to sudden shifts in value. This works both ways, and means that your investment in gold bullion will not make you much money in the short term – but if you are looking for a safer investment as you start out, gold can be easier to manage than some alternatives. There are never guarantees in financial investment, particularly during difficult economic times. However, purchasing gold bullion can be a great way to learn how to interpret market patterns, which can help you to invest intelligently and strategically in the future (and may
benefit you now as well!).

This guest post was written by freelancer Brian Vaughn, on behalf of BullionVault.

Check if the land is under agricultural or non agricultural category, as one cannot make development or construction on agricultural land. Even if the land is non- agricultural you must ensure that the land has all clearances from all the various local authorities. A plot on land must not be located in any developmental plan, or encroach on any government land, as government is entitled to take away your land if it hinders or obstructs any development work under taken by the government.

A plot must be having a clear title and it must also be demarcated properly, and all records must be clear with local governing bodies, as unclear title may land you up in a legal battle.

Your plot must have a clear access and electrified, with proper drainage system and water pipe line.

The absence of enough ground water could be a drawback as one cannot rely on municipal corporations for regular water supply.

When you are investing in land, it is advisable to engage services of a lawyer to check out the legal documents and execute your sale deeds, as an expert can predict the complications with 100% accuracy which may arise with any type of property.

Only after completely making sure that your money will not go waste and is being invested in the right place should you make the final move and close the deal.

The government has utilized all its resources to get the FDI bill passed in the Lok Sabha and Rajya Sabha, making a way for all FDI investments, which were held up for a long time. The Reserve Bank expects the inflation to come down further in the coming months and that may lead to a cut in the interest rates.

The government is try to make all the right moves to strengthen the growth of the economy, and India’s economy could be influenced by the developments in the us and other European nations as our economy depends on the trade with Europe and US, and any growth constraints in  these countries will impact our economy.

There is a rise in the industrial production, the stock markets seem to be positive and vibrant, the rupee is getting stronger day by day, the government has started processing and implementing all the projects that were in pipe line and were stalled due to many reasons.

Over all, the Indian economy seems to be in a takeoff mode and fly high.

With caution we can make a smart and calculated use of our credit cards. While using credit cards we are awarded with some bonus points. Credit card holders often tend to ignore the points they earn while spending and using their credit cards. However these points are very useful and are money saving tools if utilised wisely and spent on necessities of life.

Every credit card has a different system of allotting points on a credit card, depending on the type of the card- like platinum, diamond, gold, silver card.

The points are accumulated on your card in proportion to your spending by the card and these accumulated points can be used for your further purchases giving you benefits of discounts, reductions and saving your money.

However, it is imperative to note that accumulated points have to be used within a specific time period mentioned in your credit card statement and you should not spend and shop just to accumulate points, but use the accumulated points to save money for your necessities of life and the products you buy with accumulated points must have value for money, and not just for the sake of using accumulated points.

Also it is important to take note of the places, vendors at which these accumulated points can be redeemed in a useful and productive manner to give you the right value for your shopping needs.

Enjoy smart shopping with your credit card and redeem your points too with caution and restraint to have a productive and profitable use.