<ul><li>Indian IT software exporter <keyword id="10862" type="CITY" weightage="20" keywordseo="Wipro">Wipro</keyword> has acquired the Australian cybersecurity firm, Ampion, for a whopping $117 million.</li><li>The company’s share price was up by 1.8% as markets opened today morning.</li><li>Wipro will be absorbing the Ampion’s 500-strong workforce and will keep its CEO, Jamie Duffield, at the helm of operations.</li></ul>Wipro is doubling down on getting a foothold in the Australian continent with its latest acquisition of Ampion. The deal is for a whopping $117 million in cash, according to the <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/30f63b80-346c-4b93-b178-b98609929b59.pdf">regulatory filing</a>. The India IT major’s share price was up by 1.8% as markets opened today morning but settled at around 1.1% above yesterday’s closing at 10:30 am. The company's stock has gained over 8% this year, so far. <div type="image" title="Copy of Aadhaar PDS beneficiers" msid="81818356" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s share price since 1 January 2021&amp;lt;/p&amp;gt;"></div> Ampion is a leading player in the Australian market when it comes to providing cybersecurity, DevOps and engineering services. The Melbourne-based business has a local team of 500 consulting and technology specialists and 150 clients already in the bag. According to Wipro, the leadership of both companies will collaborate to finalise the brand strategy in Australia and New Zealand. Ampion will retain its operational identity during the initial period on integration, which is from six to 12 months. The financial impact of the deal won’t be reflected in this quarter’s number. The acquisition is likely only to be finalised in the three months ending on June 30 and will be a boost to Wipro’s first quarter earnings of the financial year 2021-22. “Wipro’s new operating model emphasises strategic investments in focus geographies, proximity to customers, agility, scale and localisation. The acquisition of Ampion is an important step for Wipro in this direction,” the company said in its <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/30f63b80-346c-4b93-b178-b98609929b59.pdf">press release.</a> The chief executive officer (CEO) of Ampion, Jamie Duffield, will continue to lead the business and take on a role within the Wipro’s leadership team in Australia. And all existing employees are expected to stay on even after the integration. “We see Ampion as a complementary force that will help us expand our footprint and accelerate our journey in the Asia Pacific region,” said N.S. Bala, CEO for Asia Pacific and Middle East region at Wipro. The news comes within a month of Wipro announcing its largest acquisition ever in March of the technology consulting company, Capco, to strengthen its role in global financial services. Wipro, which saw a major overhaul in strategy as its new CEO — Thierry Delaporte — came on board in June, last year. The company’s current impetus is on ‘profitable growth’ and it has been on a buying spree during the course of the pandemic. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/government-withdraws-interest-rate-cut-on-small-savings-schemes-in-a-bizarre-u-turn/articleshow/81813361.cms">Folks investing in PPF or Sukanya Samriddhi scheme need not worry⁠ — the rate cuts have been rolled back </a> <a href="https://www.businessinsider.in/careers/news/paytm-money-set-to-hire-250-engineers-for-its-new-technology-centre-in-pune/articleshow/81813092.cms">Paytm Money set to hire 250 engineers for its new technology centre in Pune</a>

Wipro's share price jumps by over 1% after $117 million acquisition of Australian cybersecurity firm Ampion

<ul><li>The $5.5 billion <keyword id="2461546" type="PERSON" weightage="20" keywordseo="FinTech">fintech</keyword> company <keyword id="4753947" type="PERSON" weightage="20" keywordseo="revolut">Revolut</keyword>, which is also one of Europe’s largest startups, is eyeing India as its new market.</li><li>Revolut offers everything from money transfer and exchange, to stock trading, wealth management, loans, peer-to-peer payments and even cryptocurrency trading.</li><li>The company is also ready to go through the acquisition way in India, if need be.</li></ul>The $5.5 billion fintech company Revolut, which is also one of Europe’s largest startups, is eyeing the India market now. Revolut offers everything from money transfer and exchange, to stock trading, wealth management, loans, peer-to-peer payments and even cryptocurrency trading, which will not be offered in India. The digital banking and financial services startup is looking to enter India with an initial investment of $20-25 million, according to its co-founder Nikolay Storonsky who spoke to Business Insider in an exclusive interview. <div type="twitter" handle="BiIndia" handlename="Business Insider India🇮🇳" image="http://pbs.twimg.com/profile_images/1232926719016718336/sfffJHNV_normal.jpg" favoritecount="4" retweetcount="0" status="#DareToDisrupt: @iyer_sriram in a candid chat with @Revolutapp's @NStoronsky. https://t.co/urCaONYRxO" createdat="1617262224000" id="1377523726753746944"></div> Founded in 2015 and headquartered in London, the startup has built a strong presence in several countries and is also looking for a <a href="https://www.finextra.com/newsarticle/37713/revolut-applies-for-us-banking-licence#:~:text=Continuing%20its%20quest%20for%20global,of%20Financial%20Protection%20and%20Innovation.">banking licence</a> in the US. Revolut claims that it has over 13 million users. In 2019, the company reported revenue of £162.7 million and its losses stood at £107.4 million. And as it looks to enter India -- one of the biggest technology markets with a $100 billion fintech opportunity as per Boston Consulting Group and FICCI -- it has a plan. “Revolut will soon apply for a payments and trade licence in India, and later will look at expanding to heavy weight operations like banking,” said Storonsky. While the company is looking to launch in India by the end of 2021, it will start with its free products and hopes to generate good revenue from the same to launch subscription models later. In Europe, the company has four subscription plans, which gives users a <keyword id="11029538" type="UNKNOWN" weightage="20" keywordseo="revolut-banking">Revolut banking</keyword> card, cashback on payments, enables international payments among other things. <div type="image" title="revolut" msid="81834024" hostid="261"></div> The company is also ready to go through the acquisition way, if need be. “There are multiple reasons why we would acquire a fintech player in India. First of the reasons is because of licence, when you enter a new market you always have a choice, you either partner with someone or you get your own licence. If you have a product that takes a long time to get a licence, in that case we may partner. We are still investigating all possibilities, but most likely will go through the organic route by applying for our own licenses,” said Storonsky. In India, the startup will face competition from the likes of Paytm, Razorpay, PhonePe and even stock broking apps like IndMoney, Groww among others SEE ALSO: <a href="https://www.businessinsider.in/finance/news/government-withdraws-interest-rate-cut-on-small-savings-schemes-in-a-bizarre-u-turn/articleshow/81813361.cms">Folks investing in PPF or Sukanya Samriddhi scheme need not worry⁠ — the rate cuts have been rolled back</a> <a href="https://www.businessinsider.in/careers/news/paytm-money-set-to-hire-250-engineers-for-its-new-technology-centre-in-pune/articleshow/81813092.cms">Paytm Money set to hire 250 engineers for its new technology centre in Pune</a>

Revolut’s India plan starts with a $25 million investment and possibly, a fintech acquisition

New Delhi, Dec 31 () The government on Tuesday kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the fourth quarter of 2019-20 despite moderating bank deposit rates.
Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.9 per cent, while Kisan Vikas Patra (KVP) will give a yield of 7.6 per cent and mature in 113 months.
Interest rates for small savings schemes are notified on a quarterly basis.
"The rates of interest on various small savings schemes for the fourth quarter of the financial year 2019-20 starting January 1, 2020, and ending on March 31, 2020, shall remain unchanged from those notified for the third quarter of the financial year 2019-20," the finance ministry said in a notification.
 The interest rate for the five-year Senior Citizens Savings Scheme has been retained at 8.6 per cent. The interest on the senior citizens' scheme is paid quarterly. Interest on savings deposits has been retained at 4 per cent annually.
The girl child savings scheme Sukanya Samriddhi Yojana account will offer 8.4 per cent rate during the first quarter of the next fiscal.
Term deposits of 1-5 years will fetch interest rate in the range of 6.9-7.7 per cent, to be paid quarterly, while the five-year recurring deposit is pegged at 7.2 per cent.
 While announcing the quarterly setting of interest rates in 2016, the finance ministry had said that rates of small savings schemes would be linked to government bond yields.
 The Reserve Bank of India (RBI) earlier this month had also kept interest rates static on inflationary concerns. DP MR
MR

Small savings schemes: Govt keeps interest rates unchanged for Jan-Mar qrt

New Delhi, Mar 18 () The government is considering rate moderation for small savings schemes in the upcoming quarter, a development that could lead to speedier transmission of monetary policy rate cuts, sources said. During the current quarter, the government refrained from cutting interest rates on small savings schemes, such as Public Provident Fund (PPF) and National Savings Certificate (NSC), despite moderating bank deposit rates. Bankers have been complaining that high rates on small savings schemes prohibit them from cutting deposit rates. Currently, there is a difference of nearly 100 basis points between deposit rate of banks and small savings rate for one-year maturity. Earlier this week, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) will take a call on an interest rate cut and all options were on the table to counter the coronavirus blow. Last month, the governor in an interview with said, "We have said it in MPC resolution that there is a case for reducing the small savings rates and aligning it more with the formula-based rate fixation. We have referred to it in the MPC resolution." The MPC in its February Bi-monthly Monetary Policy Statement said that while there is a need for adjustment in interest rates on small saving schemes, the external benchmark system introduced from October 1 last year has strengthened the monetary transmission. The finance ministry has been nudging public sector banks to pass the whole repo rate cuts to retail loans for pushing consumption. Banks have resisted it fearing their margin will take a hit in case of 100 per cent transmission. Rates on small savings schemes are revised on quarterly basis. On December 31, 2019, the government decided to keep interest rates for small savings schemes like PPF and NSC unchanged at 7.9 per cent for the fourth quarter of the current financial year, while the rate for the Kisan Vikas Patra maturing in 113 months was kept at 7.6 per cent. The interest rate for 5-year Senior Citizens Savings Scheme was retained at 8.6 per cent, while that for savings deposits was kept unchanged at 4 per cent a year. The interest on the senior citizens' scheme is paid quarterly. However, the government had said that first quarter of the next financial year, the Sukanya Samriddhi Yojana will offer 8.4 per cent rate. DP HRS

Govt may cut rate on small savings schemes in next quarter

The government on Tuesday slashed interest rates on small savings schemes, including NSC and PPF, by up to 1.4 percentage points for the first quarter of 2020-21, in line with moderation in bank deposit rates. Interest rates for small savings schemes are notified on a quarterly basis. "The rates of interest on various small savings schemes for the first quarter of the financial year 2020-21 starting April 1, 2020, and ending on June 30, 2020, have been revised," the finance ministry said in a notification. With the reduction, term deposits of 1-3 years will now earn an interest rate of 5.5 per cent as against 6.9 per cent, down 1.4 percentage points, the notification said. However, the interest rate on the five-year term deposit has been reduced to 6.7 per cent from current rate of 7.7 per cent, it said adding that interest rate on these are paid quarterly. The cut in the interest rate on a 5-year <keyword id="697865" type="PERSON" weightage="20" keywordseo="Recurring-Deposit">recurring deposit</keyword> is 1.4 percentage points. The new rate for this saving instrument will be 5.8 per cent. The interest rate for the five-year Senior Citizens Savings Scheme has been lowered by 1.2 percentage points to 7.4 per cent, from the existing 8.6 per cent. The interest on the senior citizens scheme is also paid quarterly. However, interest on savings deposits has been retained at 4 per cent annually. The girl child savings scheme Sukanya Samriddhi Yojana account will earn a lower rate of 7.6 per cent as against 8.4 per cent during the first quarter of the next financial year 2020-21. The interest rate moderation for <keyword id="114852" type="COMPANY" weightage="20" keywordseo="Public-Provident-Fund">Public Provident Fund</keyword> (PPF) and National Savings Certificate (NSC) for the next quarter is 0.8 percentage points and 1.1 percentage points, respectively, it said. The rates will now stand at 7.1 per cent for PPF and 6.8 per cent for NSC. The <keyword id="162207" type="PERSON" weightage="20" keywordseo="Kisan-Vikas-Patra">Kisan Vikas Patra</keyword> (KVP) will give a lower yield of 6.9 per cent with enhanced maturity period of 124 months as against 7.6 per cent and 113 months maturity at present. While announcing the quarterly setting of interest rates in 2016, the finance ministry had said the rates of small savings schemes would be linked to government bond yields. Last month, Economic Affairs Secretary Atanu Chakraborty had hinted at revision in small savings rates for the next quarter, in line with market rate for speedier transmission of monetary policy rate. Stating that the Shyamala <keyword id="60820" type="PERSON" weightage="20" keywordseo="Gopinath">Gopinath</keyword> Committee report has been accepted, but operation of the linkage was still in the works, he had said "wait for this quarter interest rates. That will give you a fairly good indication." Bankers have been complaining that high small savings rates prohibits them to cut their deposit rates immediately to check flight of savings. DP HRS

India lowers interest rate on small savings to 5.5%

(Eds: Adding details) New Delhi, Mar 31 () The government on Tuesday slashed interest rates on small savings schemes, including NSC and PPF, by up to 1.4 percentage points for the first quarter of 2020-21, in line with moderation in bank deposit rates. Interest rates for small savings schemes are notified on a quarterly basis. "The rates of interest on various small savings schemes for the first quarter of the financial year 2020-21 starting April 1, 2020, and ending on June 30, 2020, have been revised," the finance ministry said in a notification. With the reduction, term deposits of 1-3 years will now earn an interest rate of 5.5 per cent as against 6.9 per cent, down 1.4 percentage points, the notification said. However, the interest rate on the five-year term deposit has been reduced to 6.7 per cent from current rate of 7.7 per cent, it said adding that interest rate on these are paid quarterly. The cut in the interest rate on a 5-year recurring deposit is 1.4 percentage points. The new rate for this saving instrument will be 5.8 per cent. The interest rate for the five-year Senior Citizens Savings Scheme has been lowered by 1.2 percentage points to 7.4 per cent, from the existing 8.6 per cent. The interest on the senior citizens scheme is also paid quarterly. However, interest on savings deposits has been retained at 4 per cent annually. The girl child savings scheme Sukanya Samriddhi Yojana account will earn a lower rate of 7.6 per cent as against 8.4 per cent during the first quarter of the next financial year 2020-21. The interest rate moderation for Public Provident Fund (PPF) and National Savings Certificate (NSC) for the next quarter is 0.8 percentage points and 1.1 percentage points, respectively, it said. The rates will now stand at 7.1 per cent for PPF and 6.8 per cent for NSC. The Kisan Vikas Patra (KVP) will give a lower yield of 6.9 per cent with enhanced maturity period of 124 months as against 7.6 per cent and 113 months maturity at present. While announcing the quarterly setting of interest rates in 2016, the finance ministry had said the rates of small savings schemes would be linked to government bond yields. Last month, Economic Affairs Secretary Atanu Chakraborty had hinted at revision in small savings rates for the next quarter, in line with market rate for speedier transmission of monetary policy rate. Stating that the Shyamala Gopinath Committee report has been accepted, but operation of the linkage was still in the works, he had said "wait for this quarter interest rates. That will give you a fairly good indication." Bankers have been complaining that high small savings rates prohibits them to cut their deposit rates immediately to check flight of savings. DP HRS

Govt cuts interest rate on small savings schemes for June quarter

The taxation laws in India contain a number of provisions to let the tax payers save on taxes. By taking some informed decisions on how you spend and account, you can save on taxes in a legitimate way. Here we discuss some important deductions under the Income Tax Act 1961. Tips to save on income tax Make the right use of Rs.1.5 lakhs limit allowed under Section 80C Investing up to a limit of Rs. 1.5 lakh in schemes like Tax-Saver FDs, PPF (Public Provident Fund), ELSS Funds, NSC (National Saving Certificate), Life Insurance Premiums, National Pension System (NPS), Home Loan Repayment, Payment of tuition fees of your children, EPF, Senior Citizens Savings Scheme, and Sukanya Samriddhi Yojana can enable you for appropriate tax deductions depending on the case. National Pension System This deduction facilitated by Section 80CCD (1B) allows up to Rs 50,000 for contributing to the National Pension Scheme. The NPS makes it possible to invest in equity and debt pension funds for building a corpus for the retirement life. This can be withdrawn at 60 years of age. Health Insurance Premiums Paying for health insurance premiums can let you qualify for a deduction up to Rs 25,000 under Section 80D. This is permitted on top of all the deductions listed above. In case of senior citizens, this limit is up to Rs. 50,000. The taxpayer contributing towards health insurance premiums for himself as well as for a senior citizen can claim a combined deduction of up to Rs. 75,000 per annum. Deduction on your rent If you are getting HRA, it is possible to claim tax deduction on your House Rent. Though there is no upper limit specified for this, there are some rules that place a cap on the maximum deduction. If you do not get HRA but pay towards rent, a maximum claim of up to Rs. 60,000 per annum is allowed under Section 80GG. Deduction on the home loan interest When you have a home loan running, the interest you pay towards the home loan is tax deductible under Section 24 of the Income tax Act. The maximum limit that you can claim in this regard is Rs. 2 lakh. If the house is rented out, there is no upper limit. Money in your savings account The easiest way to save money on income tax is to keep some money in your savings account. Up to a limit of Rs. 10,000 per year, the interest on savings accounts is tax free under the Section 80TTA. In case of senior citizens, this limit is up to Rs 50,000 applicable in cases of both FD and savings account interest. Give for charity Donations made towards charity enable you for tax deductions. Though there is no upper limit for this, there are different rules that restrict the amount deductible on the contributions towards charities. Across a majority types of donations to the NGOs, this limit is fixed at 50% of the donated amount and up to 10% of the total income that is adjusted. If you want to claim this deduction, the NGOs to which you contribute must have 80 G certificate.

How to save Income Tax in India Schemes to Invest in 2019

<img class="gwt-Image" src="/photo/50574963.cms" />As the government is set to announce a slew of reforms, one of them may not attract you much. 
 The government plans to lower down <keyword id="6371181" type="UNKNOWN" weightage="20" keywordseo="interest-rates">interest rates</keyword> on saving products like <keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>, National <keyword id="25450" type="UNKNOWN" weightage="20" keywordseo="savings">Savings</keyword> Certificate (NSC) and the bank FDs may also attract lower interest. 
 
The move by the finance ministry will impact people who take maturity period of less than five years. However, it is speculated that women and senior citizens will b exempted with savings plans like Sukanya Samriddhi Yojana. 
 Meanwhile, the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> wants the banks to follow suit and follow the small savings rate cut with lower fixed deposit rates. 
 RBI says the PPF and other plans gave higher returns as compared to <keyword id="6377620" type="UNKNOWN" weightage="20" keywordseo="fixed-deposits">fixed deposits</keyword>. This has, in turn, forced banks to maintain higher deposit rates.

Soon, you may not get return benefits on your savings

<img class="gwt-Image" src="/photo/57556588.cms" />It’s that time of the year when people run around, searching for ways to save tax. In this matter, Section 80 C of the <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">Income Tax</keyword> Act gets the most amount of attention from investors, as it allows tax exemption through some popular investment instruments. Premiums paid for life insurance policies, investments in <keyword id="762633" type="UNKNOWN" weightage="20" keywordseo="equity-linked-saving-schemes">Equity Linked Saving Schemes</keyword> (<keyword id="103549" type="CITY" weightage="20" keywordseo="ELSS">ELSS</keyword>), five-year fixed deposits, National Savings Certificates (NSC), Public Provident Fund (<keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>) and investment in Sukanya Samriddhi Yojana are some such instruments. 
 
Among these, ELSS has the potential to beat the long-term returns from all other investment options. It also allows you to save tax up to Rs. 1.5 lakh under Section 80 C. Let’s understand what ELSS is and what are the associated benefits through this article. 
 
What is ELSS? 
Equity Linked Saving Schemes (ELSS) are open-ended mutual funds with at least 65% exposure to equity. Although there’s a high degree of risk involved in this investment, it is beaten down in the long run. The returns earned through ELSS funds have outperformed other investment instruments in the long run. 
 
According to the CRISIL - AMFI ELSS Fund Performance Index in December 2016, ELSS funds as a mutual fund category have returned 3.35% in the last year, 16.64% in three years, 17.71% in the last five and 10.61% in 10 years. 
 
The minimum investment in ELSS has to be Rs. 500, while there’s no limit on the maximum amount you can put in. ELSS comes with a lock-in period of three years and withdrawal cannot be done before the completion of the stipulated period. On completion of the stipulated period, you can either redeem your scheme or continue with it. Returns from ELSS is tax-free on completion of a year. 
 
Why is ELSS your best long-term bet? 
ELSS has proven to be beneficial in terms of saving tax and yielding returns. Following are the benefits of ELSS: 
 
• ELSS allows you to claim tax deduction of up to Rs. 1.5 Lakh under Section 80C of the Income Tax Act. The proceeds on redemption of the scheme after three years of lock-in is also completely tax free. 
 
• Compared to PPFs, NSC and fixed deposits, the lock-in period associated with ELSS is relatively shorter, indicating more liquidity. 
 
• The highest ranked ELSS funds have provided a CAGR of around 20% in the last five years – far more than options such as PPF and NSC which can provide returns in the range of 8-9%. Not just that, your ELSS returns are tax-free. 
 
• This scheme is highly affordable, as the minimum amount you can invest is only Rs. 500. If you don’t have a lump sum amount, you can even invest through Systematic Investment Plans (SIPs), depositing a small amount every month. 
 
• There is no fixed maturity period. Investors can stay invested as long as they want. 
 
• Investors earn dividends even during the lock in period and it is tax free. 
 
• The scheme forces you to stay invested at least for a period of three years without any interruptions. Moreover, if you opt for SIPs, you indulge in a more disciplined saving habit which ensures high capital growth. 
• 
ELSS and other instruments that allow exemptions under Section 80C 
 
Here is a comparative analysis of ELSS and other popular investment instruments: 
 
<img class="gwt-Image" src="/photo/57556575.cms" />

Looking to save tax? Give an ELSS fund a chance – For tax savings & wealth creation

<div type="image" wfid="275940"></div>

 
It’s one year completion for Modi government and guess what? Inspired by the political watchers, critics have started filing the report card of success and failures of the government that has been in the centre for a year. 
 
The government has launched a few social security schemes, which are of enormous significance for the masses. At a cost of a nominal premium, these schemes ensure comfortable future for many. 
 
<a href="http://economictimes.indiatimes.com/wealth/savings-centre/analysis/modi-governments-social-security-schemes-how-less-than-rs-20-a-day-can-secure-financial-future/articleshow/47395379.cms">The Economic Times</a> has listed the schemes along with the specifications, eligibility and detailed benefits . 
 
 
1) Atal Pension Yojana 
 
WHAT IT OFFERS: Pension between Rs 1,000 and Rs 5,000 a month. 
 
WHAT IT COSTS: For a monthly pension of Rs 1,000, a 40-year-old subscriber will have to invest Rs 291 per month for 20 years, while an 18-year-old will have to contribute Rs 42 per month for 40 years. 
 
WHO IS ELIGIBLE: All individuals between 18 and 40, who will have to contribute till they turn 60. 
 
WHO SHOULD OPT FOR IT: This is an investment you need to make on behalf of your domestic staff who may not have anyone to look after them once they stop working. 
 
 
 
2) Pradhan Mantri Suraksha Bima Yojana 
 
WHAT IT OFFERS: Accidental death and disability cover of Rs 2 lakh. 
 
WHAT IT COSTS: Premium is Rs 12 per year. 
 
WHO IS ELIGIBLE: Anybody who has a savings account in the banks that offer this scheme. 
 
WHO SHOULD OPT FOR IT: Although it is for everybody, this scheme especially suits drivers, security guards, newspaper vendors, vegetable vendors and others who are exposed to the risk of accidental death or disability. 
 
 
 
3) Pradhan Mantri Jeevan Jyoti Bima Yojana 
 
WHAT IT OFFERS: A pure protection term insurance cover which pays Rs 2 lakh to dependents in the event of the policyholder's death. 
 
WHAT IT COSTS: Premium is Rs 330 a year. 
 
WHO IS ELIGIBLE: Anybody in the age band of 18-70 years who has a savings account in a bank that offers this scheme. 
 
WHO SHOULD OPT FOR IT: This is a must for any member of your staff who is the sole breadwinner in his or her family. 
 
 
 
4) Pradhan Mantri Jan Dhan Yojana 
 
WHAT IT OFFERS: A savings account with no minimum balance. The Rupay ATM-cum-debit card comes with in-built accident and life covers of Rs 1 lakh and Rs 30,000 respectively. 
 
WHAT IT COSTS: Nil 
 
WHO IS ELIGIBLE: Anyone belonging to the economically weaker sections of society. As all future welfare and subsidy schemes are likely to be linked to it, it is a must for your staff. 
 
WHO SHOULD OPT FOR IT: All those working in the unorganised sector. You can transfer salaries directly into the accounts of your domestic staff to inculcate a banking habit in them. 
 
 
 
5) Post office time deposits and bank FDs 
 
WHAT IT OFFERS: Time deposits with tenures of one to four years yield 8.4%, while five-year deposits will earn 8.5%. Bank fixed deposits in the name of your employees' senior citizen parents will earn 9-9.25%. 
 
WHAT IT COSTS: The minimum investment for post office time deposits is Rs 200 and there is no cap. 
 
WHO IS ELIGIBLE: Anyone with a bank account or Aadhar card. 
 
WHO SHOULD OPT FOR IT: These investments will help meshorter term requirements of your staff and other unorganised workers like housing loan down payment, coaching class fees and so on. 
 
6) Kisan Vikas Patra 
 
WHAT IT OFFERS: A secure interest rate of 8.7% and the promise to double the investment in 100 months. 
 
WHAT IT COSTS: The minimum investment is Rs 1,000. No maximum limit. 
 
WHO IS ELIGIBLE: All 
 
WHO SHOULD OPT FOR IT: All domestic workers, vendors and neighbourhood workers to fund their medium term requirements. 
 
 
 
7) Sukanya Samriddhi Scheme 
 
WHAT IT OFFERS: Guaranteed annual returns of 9.2%. 
 
WHAT IT COSTS: Minimum contribution is Rs 1,000 a year and the maximum is Rs 1.5 lakh. 
 
WHO IS ELIGIBLE: Girl child below the age of 10. 
 
WHO SHOULD OPT FOR IT: Most domestic workers tend to take their daughters out of school to help with household chores or to make way for their brothers, whose education is considered more important. This serves as an incentive to save for a daughter's education and marriage. 
 
 
 
8) Health insurance 
 
WHAT IT OFFERS: Cover for expenses incurred during hospitalisation due to illness or surgery. 
 
WHAT IT COSTS: Rs 700-800 a year for a cover of Rs 50,000 for indivuduals aged between 18 and 40 years. 
 
WHO IS ELIGIBLE: All 
 
WHO SHOULD OPT FOR IT: Hospitalisation can wipe out the entire savings of those already at a financial disadvantage. Though not offered by the government, affordable policies are available from state-owned non-life insurers like New India Assurance and Oriental Insurance. 
 
The ET has further calculated how much these might cost. 
 
 
HOW IT STACKS UP 
 
Pradhan Mantri Jan Dhan Yojan = NIL + Pradhan Mantri Jeevan Jyoti Bima Yojana = Rs 330 + Pradhan Mantri Suraksha Bima Yojana = Rs 12 + Atal Pension Yojana = Rs 3,492* + Health Insurance = Rs 800* + Sukanya Samriddhi Scheme = Rs 1,000# + Kisan Vikas Patra = Rs 1,000# + Post Office Time Deposits = Rs 200# 
 
All this adds up to = Rs 6,834 (The total amount you need to spend on staff welfare measures in a year) 
 
*Assuming your employee is 40 years old and monthly pension chosen is Rs 1,000 in case of APY. #If minimum requirement is invested 
 
(Image: Reuters)

8 Insurance Schemes Modi launched and how they benefit you

<img class="gwt-Image" src="/photo/51177934.cms" /> I sat on a chair with a paper in my hand trying to help the girl solve a Class II level double digit multiplication problem. She was shy and did not say much. She tried solving it on the sheet but there was no progress. I gave her hints, patiently waited for her to respond to that. But after a couple of minutes she gave up. Her father kept a close watch on the proceedings, slightly amused at my attempts to draw her attention towards the task at hand. I could see her mother standing at the other end of the kutcha house not very pleased with her daughter’s performance. She had been very proud of the fact that her daughter was in Class VIII in the local government school. Very few girls in the village went to school at this age. This was Chitgunwa, a small village near Jhansi where I had been assigned to conduct a survey on the level of public <keyword id="6355445" type="COMPANY" weightage="20" keywordseo="Education">education</keyword>. 
 As India gets ready for the <keyword id="3206186" type="UNKNOWN" weightage="20" keywordseo="Union-Budget-2016">Union Budget 2016</keyword> amidst all the chaos that has preceded the Parliament session, it is necessary to look at budget from the perspective of that girl child or more importantly her mother. As a student of a business school, I am tempted to write on a number of issues pertaining to Indian fiscal policy which affects the business environment of the country or the startup ecosystem in India. But let me take a different route and list down few areas where adequate budgetary intervention could help the mother and her daughter regain their confidence in the system. 
 
Education is one of the key requirements to convert India’s demography into productive human capital. While enough emphasis has been laid on the access of education resulting in Gross Enrolment Ratio of 104.3% , the quality of education remains dismal. India has been consistently spending close to 4-5% of the total budget on education , but the proportion spent on primary education has been falling since last three years (Exhibit 1). The budgetary allocation for Mid-Day Meal Programme was reduced from INR 13,215 cr (2014-15) to INR 9,236 cr (2015-16) . The spend on the quality of education which includes ‘activities to improve learning, such as learning enhancement programmes and innovation grants’ in Sarva Shiksha Abhiyan and teacher training is also extremely low (Exhibit 2). 
 
India needs a budget where adequate allocation is made to improve the quality of primary education. The first step would be determining the nature and magnitude of quality improvement required. This can be achieved through regular and sound measurement of outcomes. Another area which requires greater budgetary intervention is teacher training. Average teacher training spend was less than an appalling 3% of the elementary education budget over the past 6 years. This needs to change. India’s primary education curriculum has been severely criticised as being over ambitious and unrealistic. This must be reviewed through a comprehensive research exercise. The curriculum must have both academic and vocational components which could address the economics of retention in secondary and higher education. There must be emphasis on innovation and reasoning which could go a long way in eliminating 140 characters of opinion building process. The government started the “Beti Bachao Beti Padhao” scheme through a corpus fund of INR 100cr .There is also a Sukanya Samriddhi Scheme to save for girl child’s education. But we need to do more. A comprehensive action plan with regular evaluation of the outcomes will go a long way in proper implementation of the schemes. This must be backed with adequate financial support through the budgetary allocation. 
 The other area which would matter for the mother and her daughter would be access to <keyword id="6354525" type="COMPANY" weightage="20" keywordseo="Healthcare">healthcare</keyword> and sanitation. The previous budget was disappointing in terms of allocation to the health sector. Public spending on health sector is paltry 1.3% of the total <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> in India . The budget for Integrated Child Development Services (ICDS) was slashed by almost 50% last year3. India also tops the global list with 318 deaths per 1000 children under 5 years of age due to diarrhoea and pneumonia . This is unacceptable for a country that is looking to embark on a path of sustained growth. The government must realize the importance of public healthcare spending and act accordingly. 
 
The focus should be on preventive healthcare as it serves the twin purpose of decreasing the government spending on secondary and tertiary care and the out of the pocket expenditure which results in severe health shocks leading to acute financial distress. India ranks third in the world in the out of the pocket spending on healthcare. The government’s flagship programme Swacch Bharat was criticised by CAG recently for failing to achieve the desired targets due to weak implementation. “Audit clearly reveals the failure of the sanitation programmes in achieving the envisaged target” it pointed out. In FY 2015-2016 INR 3,265 cr was allocated for Swacch Bharat Mission which was 27% hike from the previous year . Although allocations had increased, a large sum of money remained unspent. There are issues at multiple levels – evaluating a scheme on the number of toilets built is flawed. The CAG report mentions “more than 30% of individual household latrines remain non-functional”10. Building toilets is not the solution until focus is shifted on solid waste management system and treatment plants. It is vital to understand the link between front end (toilets) and back end (collection and treatment) so that appropriate resource allocation can be made in the upcoming budget. 
 
India stands at a very crucial juncture in its journey. It has been doing well on certain fronts but a lot more needs to be done. A budget which brings the focus back on education and health is what will make this growth story truly sustainable. 
 
(The article has been authored by Rishabh Raj, Post Graduate student at IIM Bangalore. A Graduate from IIT Kanpur, he has worked for two years in a management consulting firm and one year in the public policy space under a Member of Parliament)

Here's what an IIM student feels the Budget should have, after he met a family in a village near Jhansi

<img class="gwt-Image" src="/photo/46427944.cms" /> With the <keyword id="6360189" type="COMPANY" weightage="60" keywordseo="Union-Budget">Union Budget</keyword> 2015-2016 just behind us, it is that time of the year when the pink papers are rife with what <keyword id="6355261" type="POSITION" weightage="80" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="80" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has delivered to the nation. If all that the experts are saying are somewhat getting lost in translation for you, don’t worry. We have delved a little deeper to see how it all translates for you. Check out! 
 
The impact on your salary and savings 
 Finance Minister Arun Jaitley has hiked the tax exemption on transport allowance to Rs 1,600 from Rs 800 a month. This means you can claim an annual deduction of Rs 9,600 annually on transport allowance. There’s more you can save with tax exemptions. The limit of reduction on health <keyword id="35450" type="COMPANY" weightage="80" keywordseo="insurance">insurance</keyword> premiums has been enhanced to Rs 25,000 from the earlier Rs 15,000. Senior citizens get a higher tax exemption of Rs 30,000 on health insurance premiums from the earlier slab of Rs 20,000. For very senior citizens (above 80 years) who cannot take health insurance, Rs 30,000 has been exempt annually for medical expenditure. In case of specified diseases of very senior citizens the tax deduction has been enhanced to Rs 80,000 from the earlier Rs 60,000. 
 
The differently-abled citizens have also been kept in mind. The limit of deduction for the medical expenditures of such citizens has been hiked to Rs 75,000 from the earlier Rs 50,000. In case of severe disability this limit has been hiked to Rs 1.25 lakh from the earlier limit of Rs 1 lakh. 
The BJP government also wants you to be conscious and put away money in a retirement corpus. Therefore, for making a contribution towards any pension fund and the New Pension Scheme, you get a deduction of Rs 1.5 lakh from the earlier deduction limit of Rs 1 lakh. 
 
If you have a girl child, there is further good news for you. The finance minister has announced that all investments in the recently launched “Sukanya Samriddhi Scheme”, a small savings account for the girl child, as well as all payments to the beneficiaries including interest payment is exempted from taxes. 
 
Fuelling the Indian passion for gold 
 Indians have traditionally been smitten by the yellow metal. But they have a tendency to hoard it, which does nothing for the economy. The <keyword id="6360789" type="ORGANIZATION" weightage="80" keywordseo="Modi-Government">Modi government</keyword> has, therefore, come out with new ways to fuel this Indian fascination for gold. Firstly, the finance minister announced the introduction of a Gold Monetization Scheme. This will work just like a deposit scheme, where you can deposit your gold in a bank and earn interest on it. There will also be a new sovereign gold bond that can serve as an alternative to purchasing the metal gold. This bond will carry a fixed rate of interest and can be redeemed against the face value of gold at the time of redemption. Further to discourage those who purchase gold coins from abroad, the finance minister announced that work shall soon commence on developing an Indian gold coin that will carry the imprint of the Ashok Chakra. 
 
Uplifting the youth –Make in India 
 The BJP government has taken cognizance of the fact that in order to boost the population of a nation like ours that is young and aspiring, concrete steps need to be taken to encourage <keyword id="107737" type="ORGANIZATION" weightage="80" keywordseo="Entrepreneurship">entrepreneurship</keyword>. Therefore, the finance minister announced the allocation of Rs 1,000 crore to encourage entrepreneurship and startups in the country. Further, the finance minister announced a special fund allocation of Rs 150 crore for the creation of a new innovation platform called the <keyword id="2746648" type="UNKNOWN" weightage="60" keywordseo="Atal-Innovation-Mission">Atal Innovation Mission</keyword>, which will encourage research and development and promote a network of innovation hubs across India. It was heartening to note that the government believes that the youth of India should be “job creators” and not “job seekers”. Therefore, the Centre has introduced these steps to motivate the Indian youth. 
 
The other laudable initiatives towards harnessing the power of the youth that Arun Jaitley announced were the proposals to launch the “National Skills Mission”. It will focus on skill development and vocational training and the formation of a new scheme called “Nayi Manzil”, which will bring confidence among the unemployed youth minority in India. 
 
All of these measures have been taken keeping in mind the “Make in India” initiative of the central government. The policymakers seem keen to harness the great potential of the Indian youth to give a boost to manufacturing, entrepreneurship and creativity in the nation. This will take the country to its next growth trajectory. 
 
What gets cheaper and what gets costlier 
 After every budget is announced, all that the common man wants to know is what gets cheaper for him and what is it that he will have to shell out more for. So here is the lowdown. As a precursor to the Goods and <keyword id="645517" type="COMPANY" weightage="80" keywordseo="services-tax">Services Tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="80" keywordseo="GST">GST</keyword>) that comes into play from April 2016, the government has proposed a consolidation of education cess and <keyword id="6355686" type="COMPANY" weightage="60" keywordseo="Service-tax">service tax</keyword>. Thus, the service tax that you have to shell out is 14% instead of the earlier 12.36%. As a result, restaurant bills, laundry services, visits to the beauty parlor, gym memberships, air travel, radio taxi travel, watching movies in multiplexes, and cigarettes are set to get costlier. 
 But wait, all is not lost! For those who have a shoe fetish can rejoice as leather footwear is set to become cheaper. The reason being that <keyword id="6356916" type="UNKNOWN" weightage="80" keywordseo="excise-duty">excise duty</keyword> on leather footwear has been brought down from 12% to 6% for those footwear that are priced at more than Rs 1,000 per pair. Other items that are set to get cheaper are locally manufactured mobile phones, LED/LCD panels (go ahead and change your television set now!) LED lights, biscuits, juices, processed foods, refrigerator compressors and microwave ovens. Visits to museums, zoo and national parks will also be cheaper. 
 
In conclusion, it is therefore right to say that the finance minister did not go overboard to make populist announcements and given the fiscal constraints that he is still operating under as a legacy of the previous government, he has done his bit to boost the spirits of the ‘aam aadmi’. Sure, cigarettes and eating out are set to become costlier, but that is not such a bad thing is it? How about giving your lungs some fresh air and cooking up a storm at home? 
(Image: BCCL) 
(About the author: Rajiv Raj is the director and co-founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>.)

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