Today majority of people live life as it happens. They live life without any purpose or plan. They work very hard. They know what they are doing, but majority of them don’t know why they are doing.
Today I am going to talk about book and principal given by Simon Sinek “Start with Why”. He gave simple yet very powerful way of explaining leadership and power of WHY.
In research simon sinek discovered the pattern under which all inspiring leaders and successful business organization functions. All successful leader and businessman think act and communicate in an exact same way and it is completely opposite to everyone else.
Start With Why
To explain this simons sinek use golden circle of what, how and why.
Majority of companies communicate in following manner –
What they do
How they do
Why they do it
Successful companies communicate in reverse order. Why > How > What
Simons Sinek gives success story example of Apple.
Dell normal company –
We make great computers – What
They are beautifully designed, simple to use and user friendly – How and Why
Wanna buy one? – NO
Apple exceptional company –
Everything we do, we believe in challenging status quo – Why
We do that by making beautifully designed, user friendly products.
And we happen to make great computers.
Wanna buy one? – YES
People don’t buy what you do, they buy Why you do it.
So way you communicate with people matters in business. Sinek makes a case that “very few people or companies can clearly articulate WHY they do WHAT they do. Think differently and start with why to increase your chance of getting success. WHY means purpose, cause or belief? WHY does you company exist?
This principle is true not only for successful company it is true for investment also. Before investing money you should clear your why for investment.
So today onwards Think different Start with Why, and see the difference.
Simon Sinek TED Talk Video:-
“Working hard for something we don’t care about is called stress. Working hard for something we love is called passion.” – Simons Sinek
My friend work very hard and he keeps on finding ways to generate more income. He says he wants to become financial independence as early as possible. Many people today wants to become financial independent just like my friend. To help all these people I am herewith 10 passive income generation ideas.
As we all know there are two types of Income Active income and Passive income.
Active Income:-
Active income is income earned by doing job or service. In order to generate active income you need to work all the times. Your income remains active till you work actively, once you stop working your income will also stop. Active income is directly related to work. Example of active income is salary, wages, gratuity and pay-offs, etc. Active income is generated by doing hard work.
Passive Income:-
Passive income is income which does not require active involvement at all time. In order to generate passive income you need to work once. Passive income is income which will continue if you stop working. Example of passive income is commission, rental, dividend, royalty income etc.
If you want to earn more and work less than passive income is for you. Passive income is generated by doing smart work.
So in no particular order, here’s my list of 10 passive income generation ideas.
10 Passive Income Generation Ideas
By Profession:-
1 Insurance Agency: – Insurance agency is one of the finest passive income generation idea. Insurance agent get commission every time you pay premium of your policy. So insurance agent need to Sale policy once to get passive income for several years.
2 Network Marketing: – Network marketing is another form of passive income generation ideas. Network marketing requires time and efforts but once you build network under you passive income keeps on coming.
3 Photography: If you are good photographer you can sell your photos through photography clearinghouse or online websites and get paid whenever someone buy this images.
4 Blogging:- If you are knowledgeable and having good skill of writing and presenting stuff. Blogging is for you. You can create blog using simple tool wordpress & generate passive income by keeping advertisement on your blog. For more information refer to Google adsense program.
5 Developing Mobile application:- You can generate passive income by developing unique mobile application or game.
6 Writing E-Book:- Another way to generate passive income is by writing E-book and selling it online. For this idea to work you must be excellent in writing and presenting skills.
By Investment:-
7 Dividend Stock Market Investment:- Stock market investment is another form of passive income generation idea. From stock market investment you get dual advantage of capital appreciation and dividend income.
8 Real Estate Rental: – If you have a lot of extra money this idea is for you. Here you need to purchase number of prime property. Give this property on rent and enjoy the passive income.
9 Party hall/plot rental:- People need place to celebrate their birthday, weeding, anniversary etc. You can purchase or make party hall/plot and give it on rent to get passive income.
10 Owning small business: – Another very good way to generate passive income is by owing or developing small business. This small business could be small shop, restaurant, fast food center etc. For more information you can visit our post 40 small business ideas with low investment.
Do share your views about these 10 Passive Income Generation Ideas.
Check PF Balance -EPFO provides option to check PF balance online.You just need to enter your details, you will get PF balance via SMS on your register mobile number.
You can check PF balance online with a single click. Whether you want to check PF balance for the EPF office Delhi, Mumbai, Banglore, Hyderabad, Gujarat, Pune, Kolkata etc, you can follow steps given below to get PF balance via SMS.
In order to use this facility, your organization must be registered with EPFO office. Some big organizations have their own PF trust and they don’t keep money with EPFO office. In such cases, you can not check PF balance online on a portal, you need to contact HR to know your PF balance.
You can check your PF balance online using following steps.
Steps to check PF Balance Online
Step-1 – To check your PF balance you need your PF account number. You can find this PF account number on your salary slip.
PF Number will look like – MH/BAN/0000424/023122
Check that your establishment code is new or old. Recently EPF has revised some PF establishment code. You can search for new establishment code from following URL.
http://search.epfoservices.in/est_search.php
Step-2 – To check your PF balance visit EPF website http://www.epfindia.gov.in/click on “Know your EPF balance”
Step-3 – Now select state of your PF office from Drop down menu.
Step-4 – Once you select state system will prompt you to select appropriate EPFO office. Based on your PF number you need to select this office. E.g If your PF number is MH/BAN/0000424/023122 than you need to select BANDRA as office. Once you are through with selection of EPFO office another page will open where you can check your balance.
Step-5 – Fill your PF account number, your name as appearing in EPF Slip and your mobile number. Once you press submit button you will receive an SMS in less than five minutes with your EPFO account balance.
How to Download EPF E-Passbook?
Apart from just checking PF balance online now you can register online to download your EPF Account Passbook. You can download this e-passbook multiple times.
You can register online to avail this facility. The facility at present is only for the members for whom the employer has uploaded the Electronic Challan Cum Return for the wage month of May 2012 onwards.
To register on EPF portal you need to input your mobile number, date of birth and your email id. For this facility you need not to create any user id you can use any of your identity such as PAN, AADHAR, Bank Account, Voter ID, Passport, Driving License or Ration card number.
After adding your name and EPF account number, you need to click on ‘Get PIN’. The PIN is sent by SMS to you. This PIN authorization is required every time you download the e-passbook and check your EPF balance.
This facility helps you in viewing and downloading all transaction history at finger tips. This will save lot of time. EPF also sends alert SMS to the members when the e-passbook of EPF is available to download.
If you have any query in getting information about your PF balance, pls comment below.
Fixed deposits (FDs) are a go-to investment option for many, thanks to their safety, guaranteed returns, and flexibility. But here’s the catch—while you’re basking in the glow of assured interest, the taxman is keeping an eye on your earnings. Yep, the good old Tax Deducted at Source (TDS) comes into play if your FD interest crosses a certain threshold. Don’t let that scare you, though—there are smart ways to avoid TDS on your fixed deposit, and that’s exactly what we’re diving into today.
Ready to learn how to keep more of that hard-earned interest in your pocket? Let’s break it down step by step!
What is TDS on Fixed Deposits (FD)?
Before we jump into the nitty-gritty, let’s get the basics out of the way. TDS is essentially the tax your bank deducts on the interest income you earn from your fixed deposit. Under current rules (as of the time of writing), TDS applies if the interest earned exceeds ₹40,000 in a financial year for regular taxpayers or ₹50,000 for senior citizens.
Think of it as the taxman taking a slice of your pie before you even get a taste. While it’s not the end of the world (you can claim it back during tax filing), wouldn’t it be better if you didn’t have to deal with TDS in the first place?
How to Avoid TDS on FD
#1 Submit Form 15G or 15H
This is the most popular trick in the book! If your total income is below the taxable limit, you can submit Form 15G (for individuals under 60 years) or Form 15H (for senior citizens) to your bank. By doing this, you’re declaring that your income is below the threshold, and the bank won’t deduct TDS on your FD interest.
This form you need to submit to the bank at the beginning of every financial year. This form should contain information about your FD. These forms act as a self-declaration that you aren’t liable to pay tax. Submit the form at the start of the financial year to avoid any TDS deductions upfront.
#2 Split Your FDs Across Banks
Why put all your eggs in one basket? Splitting your fixed deposits across different banks can help you stay below the TDS threshold for each bank.
Let’s say you’re earning ₹50,000 in FD interest. Instead of parking all that money in one bank, split your deposits into two banks so that neither crosses the ₹40,000 threshold. Here you get the added benefit of diversifying your investments.
#3 Opt for Tax-Saving FDs Under ₹40,000
Tax-saving fixed deposits come with a lock-in period of 5 years and are eligible for deductions under Section 80C of the Income Tax Act. While the principal amount gets a tax break, the interest earned is still taxable. To avoid TDS, you can plan your investments such that the interest doesn’t exceed ₹40,000 in a financial year.
#4 Invest in the Name of a Non-Taxable Family Member
Here’s a smart hack: Open an FD account in the name of a family member who falls below the taxable income bracket, like your spouse, parents, or even adult children. The interest earned will be treated as their income, and if it’s below the taxable limit, TDS won’t apply. Ensure compliance with gifting rules to avoid clubbing of income.
#5 Time Your Fixed Deposit Wisely
TDS is calculated based on the interest accrued in a financial year. By carefully timing your deposits, you can spread the interest income across two financial years. If you start a one-year FD in November, only a portion of the interest will accrue in the current financial year, and the rest will fall into the next.This strategy keeps your annual interest below the TDS threshold.
#6 Use Cumulative FDs for Tax Deferral
Cumulative FDs don’t pay out interest annually or quarterly. Instead, the interest gets added to the principal and is paid at maturity. While this doesn’t eliminate TDS, it defers the deduction to the final year.If you’re expecting to fall into a lower tax bracket in the future, this can reduce your tax liability.
Why Avoiding TDS Matters
You might be thinking, “Why go through all this trouble when I can just claim a refund during tax filing?” Good question! The thing is, avoiding TDS in the first place has its perks:
Immediate Access to Funds: No deductions mean you have full access to your earnings right away.
Less Hassle During Filing: Filing for refunds can be a tedious process.
Better Cash Flow Management: Why let your money sit with the government when you can put it to work for you?
Common Mistakes to Avoid
While these strategies are legal and effective, there are a few things you should watch out for:
Failing to Submit Forms on Time: Late submission of Form 15G/15H can result in unnecessary deductions.
Overlooking Clubbing Provisions: If you invest in the name of a family member, make sure the income isn’t clubbed with yours.
Not Accounting for Total Income: Ensure that your total income stays below taxable limits when using these strategies.
Avoiding TDS on your fixed deposit isn’t rocket science—it just requires a bit of planning and awareness. Whether it’s submitting the right forms, diversifying your investments, or exploring alternative options like debt funds, there’s a strategy for everyone. The key is to be proactive and make informed decisions.
Remember, tax planning isn’t about dodging responsibilities—it’s about optimizing your finances within the framework of the law. So, take charge, and let your hard-earned money grow without unnecessary deductions.
FAQs
1. What happens if I don’t submit Form 15G or 15H?
If you don’t submit these forms, the bank will deduct TDS at 10% (or 20% if PAN isn’t provided) if your interest income exceeds the threshold.
2. Can I avoid TDS if I don’t provide my PAN?
No, it’s the opposite! If you don’t provide your PAN, the bank deducts TDS at a higher rate of 20%.
3. Are tax-saving FDs completely tax-free?
No, only the principal amount is eligible for deduction under Section 80C. The interest earned is still taxable.
4. Is splitting FDs across banks legal?
Yes, it’s perfectly legal and a common practice to manage interest income and avoid crossing the TDS threshold at any single bank.
5. What should I do if TDS has already been deducted?
You can claim a refund while filing your income tax return, provided your total income is below the taxable limit.
