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20 PAN Card Changes you must be aware about

Shitanshu Kapadia
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20 PAN Card Changes you must be aware about

PAN Card Changes

Recently the government of India had made 20 PAN card changes. These PAN card changes are applicable while doing various monetary transactions in India. This change also includes a mandatory requirement of mentioning PAN card while doing financial transactions above Rs 2 Lakh. This change will be effective from 1st January, 2016. The basic objectives behind these changes are given below.

  1. Curb prevailing black money flow

Black money is money generated from black market on which income and other taxes have not been paid. Corruption and illegal transaction is main source of black money. It is estimated that $16.4 Trillion is deposited in swizz bank by illegal way in form of black money. By making these changes it is expected that black money flow will reduce.

  1. Widening Tax payer base

You must be surprised to notice that as on today only 14% of Indian population has a PAN card and only 2.89% (3.6 Cr people) file income tax return out of 117 Cr. By introducing this change government will be monitoring high value transactions. It will help government to enhance tax payer base.

20 Pan Card Changes

Quote Permanent Account Number (PAN) – It is mandatory to quote PAN card number for all sales and purchases of goods and services where the payment exceeds 2 Lakh regardless of mode of payment. Persons who do not hold PAN are required to fill a form and furnish the proof establishing identity.

Immovable property – All sale and purchase exceeding 10 Lakh it is mandatory to quote PAN card. Earlier limit was 5 Lakh. Any property valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.

Motor vehicle – You need to mention PAN card on any sale or purchase of four wheel (Motor car).

Fixed Deposit – Fixed deposit aggregating amount more than 5 Lakh during financial year also need PAN.

Opening an account – One need to furnish PAN card while opening an account. Co-operative banks should also comply with this rule.

Hotel Bill – You need to furnish PAN card if you are paying Hotel/restaurant bill exceeding Rs.50,000 in cash.

Cash purchase of bank drafts – You need to mention PAN card if you are doing cash purchase of bank drafts/ pay orders or banker’s cheques exceeding Rs 50,000 on any day.

Cash Deposit – If you are making cash deposit of Rs 50,000 or more in a bank on single day you need to mention PAN Card.

Foreign travel – Quoting PAN card is mandatory for any cash payment in connection with foreign travel exceeding Rs 50,000. This rule is applicable for foreign currency purchase also.

Also Read – Cash Deposit Machine Locator

Credit Card – It is mandatory to mention PAN card number while applying for credit card at any company or bank.

Mutual fund or Bond Purchase – If your mutual funds or bond purchase value is exceeding   Rs.50,000 you need to mention PAN card number.

Shares of company – PAN card is mandatory on opening of DEMAT account or on purchase of unlisted company stock exceeding 1 Lakh.

Life insurance premium – In any year if life insurance premium is exceeding Rs. 50,000 you need to mention PAN card.

Purchase of jewelry/bullion – Earlier this limit was 5 Lakh, however now onwards for purchase of any Jewelry or bullion worth 2 Lakh you need PAN card.

Cash Card – If you are making cash payment using cash card or any prepayment instrument and transaction value is more than Rs. 50,000 in a year you need to mention PAN card number.

A chart highlighting the key PAN Card changes is given below.


Sr NO.		NATURE OF TRANSACTIONMANDATORY QUOTING OF PAN (RULE 114B)
Existing requirementNew requirement
1.Immovable propertySale/ purchase valued at Rs.5  lakh or more
  1. Sale/ purchase exceeding Rs.10 lakh;
  2. Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.
2Motor vehicle (other than two wheeler)All sales/purchasesNo change
3.Time depositTime deposit exceeding Rs.50,000/- with a banking company
  1. Deposits with Co-op banks, Post Office, Nidhi, NBFC companies will also need PAN;
  2. Deposits aggregating to more than Rs.5 lakh   during the year will also need PAN
4.Deposit with Post Office Savings BankExceeding Rs.50,000/-Discontinued
5.Sale or purchase of securitiesContract for sale/purchase of a value exceeding Rs.1 lakhNo change
6.Opening an account (other than time deposit) with a banking company.All new accounts.
  1. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts);
  2. Co-operative banks also to comply
7.Installation of telephone/ cellphone connectionsAll instancesDiscontinued
8.Hotel/restaurant bill(s)Exceeding Rs.25,000/- at any one time (by any mode of payment)Cash payment exceeding Rs.50,000/-.
9.Cash purchase of bank drafts/ pay orders/ banker’s chequesAmount aggregating to Rs.50,000/- or more during any one dayExceeding Rs.50,000/- on any one day.
10.Cash deposit with banking companyCash aggregating to Rs.50,000/- or more during any one dayCash deposit exceeding Rs.50,000/- in a day.
11.Foreign travelCash payment in connection with foreign travel  of an amount exceeding Rs.25,000/- at any one time (including fare, payment to travel agent, purchase of forex)Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time (including fare, payment to travel agent)
12.Credit cardApplication to banking company/ any other company/institution for credit cardNo change.Co-operative banks also to comply.
13.Mutual fund unitsPayment of Rs.50,000/- or more for purchasePayment exceeding Rs.50,000/- for purchase.
14.Shares of companyPayment of Rs.50,000/-  or more to a company for acquiring its shares
  1. Opening a demat account;
  2. Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction.
15.Debentures/ bondsPayment of Rs.50,000/- or more to a company/ institution for acquiring its debentures/ bondsPayment exceeding Rs.50,000/-.
16.RBI bondsPayment of Rs.50,000/-or more to RBI for acquiring its bondsPayment exceeding Rs.50,000/-.
17.Life insurance premiumPayment of Rs.50,000/- or more in a year as premium  to an insurerPayment exceeding Rs.50,000/- in a year.
18.Purchase of jewellery/bullionPayment of Rs.5 lakh or more at any one time or against a billDeleted and merged with next item in this table
19.Purchases or sales of goods or servicesNo requirementPurchase/ sale of any goods or services exceeding Rs.2 lakh per transaction.
20.Cash cards/ prepaid instruments issued under Payment & Settlement ActNo requirementCash payment aggregating to more than Rs.50,000 in a year.

These are welcome changes by the government of India and it will surely help our country in reducing black money and widening tax payer base. It will also boost cash less transactions.

What is your take on above PAN Card changes made by the government?

5 Ways to make money after death – Residual Income

Shitanshu Kapadia
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0
5 Ways to make money after death – Residual Income

residual income

Making Money after death? What are you talking about and why I will need money after death? Well, it’s simple, majority of us purchase insurance in order to secure family’s future.  In case of unfortunate death family member will be paid with specific insurance amount.  This amount will be used by family members to secure their future or to live life comfortably.

In short you need to make provision for money after your death for your family members. There are various ways to make this provision. Simplest way to place money on interest or to take insurance. Apart from these several other ways exist to make money after death. Sounds interesting! Well, I have a live example where people are making thousands of dollars after death.

So today let’s talk about 5 different ways to make money after death. Let me clarify this type of income is also known as royalty income or residual income.

Also Read – How to Generate Residual or Passive Income?

What is residual income or royalty income?

Residual income is also known as recurring income or repetitive income. In order to generate the residual income, you need to work only once and income stream will continue for few years or even after your death.

You might be surprised to note that Michael Jackson is word’s top earning dead celebrity, last year his earning was $115 million. This money is towards a sale of music albums created by him – royalty income to his family.

I am not telling you to become a celebrity for generation of this type of income but, I will be sharing similar other ways to generate this type of residual income. Today majority of us focus on linear income that means one-time income in terms of salary, commission, wages etc. Apart from linear income, we should also focus on the generation of residual or royalty income. In order to generate this type of income, you might need a special skill.

residual income

5 Ways to make money after death – Residual Income

1) Work Based Income

It is worked based income suppose you have written a good book, created a unique software program, recorded music album or invented a new product. You can transfer the rights of this work done to a company that agrees to pay you a percentage of income each time copy of your work is getting sold.

2) Join Network Marketing Program

Next way of generating residual income is through network marketing program. This program is also known as reseller, referral or affiliate program. Under this program, unique ID is given to every associates and company track the performance based on this unique ID. Income level depends on your performance.

Before joining this program kindly check the track record of the company terms of payment and commission type.

Also Read – 10 Best Side Business Ideas

3) Market your own Information product

You can make your own information product and carry out self-publishing to earn this type of income. One such example is starting a website where you regularly publish this type of product information and make money.  You will be paid by affiliates or by advertisers.

4) Resource Royalties

If you are a landowner of the property where it is likely that petroleum or mineral will be found after drilling. You can contract with Oil Company to drill a well in your property and in exchange ask for a percentage of revenue. This income depends on the availability of the resource in the land.

5) Investments

Last way to earn money after death is by making Investments. It is one of the simplest ways to generate residual income, however, it requires a lot of capital.

You can purchase real estate and earn recurring income from rent. You can also make an investment in stock market and earn residual income via a dividend. However, income level will depend on invested amount and asset type.

Over to You –

Remember residual income generation is hard and time-consuming. However it gives a promising result for many individual today and it is considered as one of the best income types.

What is your take on this do you really need residual income?

Which one of above is a suitable way to make residual income for you?

Do share your experience!

Real Estate Regulatory Bill New amendments – Good Days for real estate?

Shitanshu Kapadia
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0
Real Estate Regulatory Bill New amendments – Good Days for real estate?

Real Estate

Real Estate sector is drowning continuously since past few years. Investors are not keen on making fresh investment in real estate sector. In order to boost new investment in real estate sector and to protect the home buyer, few amendments are made in the real estate regulatory bill. These amendments are recently approved by the cabinet. So, let’s explore the detail about Real Estate Regulatory Bill New amendments.

Real Estate Regulatory Bill New amendments

  • Any real estate project with at least 500 sq meter area or with 8 flats will have to be registered with regulatory authority. Earlier this limit was for 1000 sq meter area projects and 12 flats. This will bring most of the project under the real estate regulatory bill.
  • Builder or developer have to deposit 70% of project cost including land cost in a separate account. It is required to meet the cost of construction.
  • Any delay or default shall not be tolerated. Builder or developer need to pay interest in case of delay in the project.
  • Builder will be held liable for any types of structural defects for 5 years. Earlier this limit was for 2 years.
  • Carpet area including usable space like kitchen and toilets need to define clearly in builder proposal.
  • The garage is now not part of apartment and builder need to separately define space for a garage.
  • Making resident association is mandatory within three months of allotment of a majority of flats/units in the project.
  • In case of conflict, the aggrieved buyer can approach consumer court, instead of only regulatory authorities.
  • On an issue of occupancy certificate, house holder should take possession of house within two months. This is to avoid unnecessary delay in property registration.
  • This bill is applicable for both commercial and residential real estate projects.
  • Establishment of a fast track dispute resolution mechanism for real estate sector.

Also Read – How RERA website helps you for home buying?

For more information go through detail given on pmindia.gov.in website.

How this real estate regulatory bill help Investors?

  • This bill will bring more transparency and accountability in real estate sector. This will help to reduce a cost of capital, it will be good for developer and investor both.
  • As per current detail, only single authority will give clearance for entire real estate project. This will help in speeding up construction work.
  • The revised bill enables provision for arranging assurance of land title. This will help buyer and seller in case title of land is held invalid.
  • Digitalization of land record shall be done and real estate authority can grade projects and developer.
  • Fast track court will be set up which will resolve the dispute in maximum 60 days.

As per me, it is a welcome step taken by the government of India.  The recent amendments in the Real estate regulatory bill will defiantly help investors and developers in days to come. It may also bring good days for sinking real estate sector.

10 Ideas to make money while you are taking rest

Shitanshu Kapadia
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1
10 Ideas to make money while you are taking rest

make money

Not only you, everyone today wants to make money without doing anything. Every one of us is looking for the shortcut of making money. How good it is if money is growing on a tree? You need not to do little work to get money. Well, a dream of growing money on the tree cannot be fulfilled, however, today I will discuss money making ideas or passive income generation ideas. These ideas are so powerful that you will be making money while you are sleeping, taking rest or not working. You must be excited to explore more in detail so let’s check 10 Ideas to make money while you are taking rest.

I have made following assumptions while writing about these ideas.

  • You will be doing work for the initial period so that you can make money at a later stage while you are taking rest.
  • You have a money or initial capital for these ideas.
  • You have minimum experience and basic knowledge to work on these ideas.
  • You cannot generate money day one by using these ideas. It may take some time like one week, one month or several years for making money by these ideas.
  • All ideas mention below are absolutely legal and does not represent an illegal way of earning money.

You can divide these ideas in two broad category offline and online.

Also Read – How to live off from dividends? – Invest and never work again

10 Ideas to make money while you are taking rest or sleeping

Offline Ideas

Building System or Business

Building system or starting a business is the first idea of making money. You must be thinking how business can help you to make money while you are taking rest. Well, it is if your business is working 24×7 and you have an employee to work for you.

Let’s take an example of Mukesh Ambani richest businessman of India. He is earning 11000 Cr per day. Meaning his hourly income is 458 Cr. So, if he sleeps eight hours daily he will be making 3666 Cr money while taking rest.

I am not telling that you will become Ambani by starting a business. However, if you build strong system rather than a hauling bucket, you will surely able to generate money while taking rest after few years.

Making Stock Market Investment

Stock Market Investment is the second idea of making money while taking rest. It is one of the simplest ways to generate wealth. In order to make this idea work you need to select right stock and stay invested in this stock for long term. The stock price of this stock will increase day by day and you will be able to earn money.

You must be aware of stock gurus Rakesh Jhunjhunwala and Warren Buffet. They have generated a lot of wealth by making a stock market investment.

Also Read – 20 Best Passive Income Ideas & Opportunities

Give Loan to someone and charge Interest

The third idea of making money while you are taking rest is giving the loan to someone and charging interest on capital. It is one of the easiest way to earning money without doing anything. However, you require money to give a loan, not only that it is a risky idea if the borrower defaults your money will be at stake.

Rent of Lease your property

If you have additional property or home you can give it on rent and make money. It is one of the simplest ideas of making money. However, make sure that you are preparing lease agreement while giving property on rent.

Profession with Royalty or commission

Some business or professions allow you to earn passive income this income is called as royalty or commission income. Examples of such professions are life insurance agent, Network marketing business etc. This profession allows you make money while you are taking rest.

Online Ideas

If you are not comfortable with these offline ideas you can opt for following online income generation ideas.

Blogging

Blogging is one of the most favorite and very good ways of generating income. You can make a blog in your own niche and generate a lot of revenues. Revenue generation by blogging happens through multiple ways one of such way is through advertisements.

Start selling your product online

The biggest problem in small business today is they do business only in daylight. If you take an example of small mobile seller his shop will be opened for daytime. He will not able to sell any mobile in night time and today majority of people find time after office hours, they prefer online mode. So, it is good to start selling your product online after normal working hours also. Bizzndeal is one of the fastest growing websites that will help you in selling your product online. Selling product online is another method to earn money while you are at rest.

Also Read – 20 Ways to Earn Money Online from Home without Investment

Affiliate marketing

Affiliate marketing is next in my list. You can earn a lot of money by doing affiliate marketing. Affiliate marketing is earning money by referring someone to purchase the product. Flipkart, Amazone, Shareasale are websites that offer affiliate partnership program. By doing affiliate marketing, you can make money while you are on rest. However, you need knowledge and skill set to become a successful affiliate marketer.

Create App or Game and Sell it online

If you are IT person or having the capability to develop game or app you have an opportunity to make money online. Once your app or game is ready you can host it online and earn money be selling it. It is another way to earn money while you are on rest.

Online Startup

Starting online startup is another idea to make money while you are on rest. Your idea of a startup should be unique. The example of such startup ideas are grofers and foodpanda.

Hope these wonderful ideas of making money had generated a spark in you and you must be trying some ideas for making money.

Do let me know if I can help or contribute in your efforts

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