The Art of Money by KG

Dear Friends, When we are about to join a company, we all have those butterflies in stomach about the new company, new work environment, new manager, new colleagues, etc. With all these we also have some dreams about our salary and how much we will earn and how we will save/spend it. Today you will know what all components are there in our salary and how we can tweak it to get the maximum salary and least tax that too in completely legal way. In our offer letter , the total cost to company (CTC) is divided under various heads like Basic salary, Dearness Allowance (DA), House rent allowance (HRA), Leave travel allowance (LTA), Medical Allowance, Conveyance Allowance, Personal allowance, etc. First of all what is Salary? Salary is the payment of money that a person receives in lieu of the services rendered to another person/organization. In this case the person earning salary is called Employee and the person who gives salary is Employer. Salary word is derived fr

Dear Friends, In this season of Income Tax Return (ITR), I am here to share with you some tax saving options. As per the Income Tax act, you can invest upto Rs. 1.5 lakh for the Financial year 2016-17 and can claim tax rebate on the same. There are various instruments in which you can invest as per you risk profile, age and time horizon of investment. Unlike previous years when interest rates were set for the full year, the government will from now on set them every quarter, based on the previous 3-month yields on Government-Securities or G-Sec. My thinking is you should not invest randomly at the last moment just for the sake of Tax saving , Rather you should plan it logically at the start of Financial year and invest properly. This will have 3 benefits: a)      When you plan and invest there is very less chance of you getting trapped in some unwanted tax saving instruments for long term. b)     You save tax. c)      This will help you to save and grow your money f