10 Most Expensive Currencies in 2015 (Hint: #1 Isn’t the U.S. Dollar)

As of April 23, 2015, the most expensive currency in 2015 is not the U.S. dollar, the British pound, or the euro. Surprisingly, the most valuable currencies in the world don’t always belong to the wealthiest economies. The following list of currencies gives the U.S. dollar a run for its money when it comes to the most expensive currency in the world. All exchange rates are as of April 22, 2015.

10. Canadian Dollar (CAD)

One Canadian dollar buys US$0.81.
At its recent peak, which was in April 2011, the Canadian dollar was able to purchase US$1.05. The Canadian economy fared much better during the Great Recession, with no banks needing bailouts and home prices only declining modestly. Since then, the Canadian economy has expanded, slowly growing at an average pace of 2.0% and 2.5% in 2013 and 2014, respectively. These factors have helped it

9. Azerbaijani Manat (AZN)

One Azerbaijani manat fetches US$0.95.

Azerbaijan, located between the Black and Caspian Seas, has Russia and Georgia as its neighbors to the north, and Turkey and Iran as its neighbors to the south. This oil-rich nation grew at 4.5% in 2014 and is expected to benefit from an expansive network of oil pipelines running through its borders.

8. Swiss Franc (CHF)

One Swiss franc is equivalent to US$1.03
On January 15, 2015, the Swiss National Bank removed its cap on the Swiss franc, momentarily sending the currency 15% higher against the U.S. dollar. The floating of the exchange rate was a result of continued demand for the Swiss franc as a safe-haven currency from a well-diversified, export-focused economy.

7. Euro (EUR)

One euro buys US$1.07.
After the global financial crisis, the European Union only managed to exit from its recession in the first quarter of 2014. The latest gross domestic product (GDP) readings still indicate that the economy is growing at less than one percent per year. However, the euro remains the currency of the world’s largest economy, the European Union.

6. Cayman Islands Dollar (KYD)

One Cayman Islands dollar buys US$1.21.
With a population of 60,000, this offshore tax haven boasts zero unemployment and more than 90,000 businesses, mostly in financial services. While there is no direct taxation, such as corporate or income taxes, the government derives revenues mostly from duties on imported goods and tourism.

5. Jordanian Dinar (JOD)

One Jordanian dinar is equal to US$1.41.
The Jordanian dinar may be one of the biggest anomalies in the currency market. Jordan remains reliant on foreign assistance for essentials to fight poverty. Moreover, Jordan is one of the smallest economies in the Middle East, which currently imports the majority of its energy needs and continues to battle budget deficits. (Source: CIA World Factbook, last accessed April 23, 2015.) Still, its currency is valued at more than 40% higher than the U.S. dollar.

4. British Pound Sterling (GBP)

One British pound sterling purchases US$1.50.
The United Kingdom is the third largest European economy only behind Germany and France. Financial services, including banking and insurance, constitute the majority of the U.K. economy, however, manufacturing still accounts for roughly 10% of the economy. (Source: CIA World Factbook, last accessed April 23, 2015.) Recently, the United Kingdom has economically outperformed the rest of Europe, growing at above 2.5% since the start of 2014.

3. Omani Rial (OMR)

One Omani rial is worth US$2.59.
Oman, which borders with Saudi Arabia, the United Arab Emirates, and Yemen, is an energy-rich nation with 77% of its government revenues being derived from oil. (Source: CIA World Factbook, last accessed April 23, 2015.) Prevailing low oil prices will clearly add to budget deficits, as Oman has an expansive social safety net; but the Omani government intends to reduce its oil sector contribution from above 40% in 2014 to below 10% by 2020. This suggests low oil prices will have less of an effect on Oman’s rial.

2. Bahraini Dinar (BHD)

One Bahraini dinar is worth US$2.65.
With the second most expensive currency in 2015 so far, Bahrain is another Gulf state for which oil accounts for a majority of government revenues, totaling 88% as of 2013. (Source: CIA World Factbook, last accessed April 23, 2015.) The Kingdom of Bahrain is a tiny island nation that’s one-tenth the size of Hawaii, but boasts 1.2 million citizens. Bahrain has grown its economy at 3.4% on average over the last four years. (Source: The Heritage Foundation web site, last accessed April 23, 2015.)

1. Kuwaiti Dinar (KWD)

One Kuwaiti dinar is equivalent to US$3.30.
As a member of the Organization of the Petroleum Exporting Countries (OPEC), Kuwait was the 10th-largest exporter of oil in 2013 and has the sixth-largest oil reserves in the world as of 2014. (Source: U.S. Energy Information Administration web site, last accessed April 23, 2015.) Kuwait’s oil revenues enabled the country to continuously save 10% of its government budget annually, protecting it—and, in turn, the Kuwaiti dinar—from the effects of the current downturn in oil prices. (Source: CIA World Factbook, last accessed April 23, 2015.) Currently, the Kuwaiti dinar is the most valuable currency and the most expensive currency in the world.

This is the current list dated 6th July'2015 and is ranked per their value against US Dollar. Most valuable currency doesn't necessarily mean that the currency is better investment option or that it represents a better economic health of a nation. Please find below the list of expensive currency in their order of expensiveness:

1. Kuwaiti Dinar (1 KWD= 3.30 USD)

In an area slightly smaller than New Jersey, lies the home of the world’s most valuable currency. Kuwait has been involved in talks this year with five other Gulf Arab monarchies to form a single currency. The Kuwait currency is currently pegged to the dollar.

2. Bahrain Dinar (1 BHD= 2.65 USD)

A small island nation, approximately 2.65 times the size of Washington DC, Bahrain is geographically central in relation to its Persian Gulf neighbors. Its industry relies on petroleum production and refining, as well as financial services and construction. With an exchange rate to the US dollar at around $2.65 for one Bahraini Dinar, it’s the third most valuable currency in the world. It’s also expected to be relatively steady, as it was officially pegged to the dollar in 2001.

3. Omani Rial (1 OMR = 2.60 USD)

Oman, officially called the Sultanate of Oman, is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It has a strategically important position at the mouth of the Persian Gulf., has had its currency exchange rate pegged to the dollar at a rate of 1 OMR = $2.60 US since 1986. With that pegged relationship holding firm, seems as though the Rial’s fate remains tied to the fate of the dollar.

4. Latvian Lats (1 LVL= 1.61 USD)

One Lats is currently worth $1.61 US. The country, about the size of West Virginia, has entered the process to phase out the Lat in favor of the Euro, which is expected to be the official currency around 2012.

5. UK Pound Sterling & Gibraltar Pound (British Overseas Territory located on the southern end of the Iberian Peninsula at the entrance of the Mediterranean) (1 GBP = 1.56 USD)

This holiday season, it seems now more than ever, citizens of the UK are taking advantage of their favorable exchange rate and coming to the US, where for them everything is half-off.

6.  Jordanian Dinar (1 JOD =1.41 USD)

Jordan may lack water and crude oil but the Mideast kingdom has one thing going for it – a strong currency. From 1927 to 1950, the Palestine Currency Board issued Palestine pound as the official currency in both Palestine and the Trans-Jordan Emirate, according to Wikipedia. When Jordan became independent in 1946, the country wanted its own currency and Jordanian dinar became the kingdom’s official currency.

7. Cayman Islands Dollar (1 KYD = 1.22 USD)

With no direct taxation, the islands thrive as an offshore financial center, with hundreds of banks, insurers and mutual funds. One Cayman Islands Dollar equals $1.22 US. The earlier currency used in Cayman Islands was Jamaican dollar, which was replaced in 1972. On the islands, the US dollar is accepted as legal currency.

8. European Euro (1 EUR = 1.11 USD)

Officially introduced in 1999, the multinational Euro didn’t begin changing hands until January 2001. After a rocky start, the Euro has gained on the dollar for years. The currency is the official currency of eurozone that comprises of 17 countries. Some these include Belgium, Finland, France, Germany, Greece, Italy, Netherlands, Portugal, and Spain. The currency is the second largest reserve currency as also the second most traded in the world.

9. Switzerland franc (1 Franc = 1.06 USD)

Switzerland has a stable, prosperous and high-tech economy. In 2011, it was ranked as being the wealthiest country in the world in per capita terms (with 'wealth' being defined to include both financial and non-financial assets). It has the world's nineteenth largest economy by nominal GDP and the thirty-sixth largest by purchasing power parity. It is the twentieth largest exporter, despite its size. Switzerland has the highest European rating in the Index of Economic Freedom 2010, while also providing large coverage through public services.

10. Bahamian Dollar (1 BSD = 1 USD)

The dollar has been the currency of The Bahamas since 1966. It is divided into 100 cents. The Bahamian dollar is pegged to the U.S. dollar on a one-to-one basis which means that any business will accept either U.S. or Bahamian currency and many of the businesses that serve tourists have extra U.S. dollars on hand for the convenience of American tourists.

- See more at: http://www.foxnews24x7.com/2013/04/10-most-expensive-currency-in-world.html#sthash.ASyoKO9P.dpuf

આઈડીએફસી બેંકની 70.5 રૂપિયા પર લિસ્ટિંગ

આજે બજારમાં આઈડીએફસી બેંકની લિસ્ટિંગ થઈ છે. આઈડીએફસીથી અલગ થયા બાદ આઈડીએફસી બેંકની લિસ્ટિંગ થઈ છે. બીએસઈ અને એનએસઈ પર આઈડીએફસી 70.50 રૂપિયા પર પ્રતિ શેરના ભાવ પર લિસ્ટિંગ થઈ છે.

એનએસઈ પર લિસ્ટિંગના બાદ આઈડીએફસી બેંકના શેરે 73.4 રૂપિયાના ઉપરના સ્તર બનાવ્યા. હાલમાં એનએસઈ પર આઈડીએફસી બેંકના શેર 71.6 રૂપિયાના ભાવ પર કારોબાર કરી રહ્યા છે. આઈડીએફસીના શેરધારકોને આઈડીએફસીના 1 શેરના બદલે આઈડીએફસી બેંકના 1 શેર મળશે

ગોલ્ડ મોનેટાઈઝેશન સ્કીમ

તમારા નાણાં અને અમારૂ આયોજન, એટલે આ શો મની મૅનેજર. તમારા ફેવરેટ શૉ માં, એક નવા ટોપિક સાથે, તમારા કિંમતી નાણાંનું શ્રેષ્ઠ આયોજન કરાવવા માટે. તમને નવી નવી અને ઉપયોગી ટીપ્સ આપવા માટે.

મની મેનેજરમાં આજે વાત કરીશું સરકાર દ્વારા લોન્ચ થયેલા ગોલ્ડ મોનેટાઈઝેશન વિશે. શું છે સોવરેન ગોલ્ડ બોન્ડ ? અને કેટલો થઈ શકે લાભ?

સામાન્યરીતે આપણે વર્ષોથી સાંભળતા આવ્યા છીએ કે મુસીબતના સમયમાં કોઈ વસ્તુ અચાનકથી કામમાં આવી શકે તો તે છે સોનું... જો તમારી પાસે થોડું પણ સોનું હોય તો તમે સમસ્યામાંથી કામ ચલાઉ નિવારણ લાવી શકો છો... પણ હવે આ સોનાની પરીભાષામાં એક નવું તત્વ જોડાયું છે. તે છે સરકાર દ્વારા લોન્ચ થયેલી ગોલ્ડ મોનેટાઈઝેશન સ્કીમ. અને સોવરેન ગોલ્ડ બોન્ડ્ઝ. સરકારે આ સ્કીમમાં 3 સિક્કાઓ રજૂ કર્યા છે, જેમા અશોક ચક્ર અને ગાંધીજીનું ચિત્ર બનાવવામાં આવ્યું છે. શું છે આ સ્કીમ અને કેવા છે તેના લાભ. તેના વિશે જાણકારી મેળવીએ .

આ સ્કીમમાં સોનાના સિક્કા મળશે. સોનાના સિક્કામાં અશોક ચક્ર બનાવવામાં આવ્યું છે. સોનાના સિક્કામાં ગાંધીજીનું ચિત્ર બનાવવામાં આવ્યું છે. સરકારનો હેતુ એ છે કે ભારતનું સોનું ભારતને ઉપયોગી બને. આ સ્કીમ દ્વારા સરકારને અને સામાન્ય જનતા દરેકને ફાયદો થશે.

આ સ્કીમમાં પહેલા તમારા સોનાને ચકાસવામાં આવશે. આ સ્કીમમાં સોનાને પીગળાવી તેની લગડી બનાવવામાં આવશે. પીગળાવેલા સોના પર એક એકાઉન્ટ બનશે અને તેના પર વ્યાજદર શઝ્ર થશે. જે તે દિવસના સોનાના ભાવની હોલ્ડીંગ ગ્રાહકોને મળશે.

ઘરેણાને જો તમે જમા કરાવશો તો તેને પણ પીગળાવવામાં આવશે. 1 થી 3 વર્ષ માટે શોર્ટ ટર્મ બેન્ક ડિપોઝીટ બની શકશે. 1 થી 3 વર્ષ બાદ 5 થી 7 વર્ષ માટે ડિપોઝીટ થઈ શકશે. 12 થી 15 વર્ષ સુધી સોનું ડિપોઝીટ થઈ શકશે. ગોલ્ડ મોનેટાઈઝેશનમાં ટેક્સ ફ્રિ કેપિટલ ગેઈન મળશે.

આ સ્કીમનો લાભ લેવા માટે ઓછામાં ઓછી 30 ગ્રામની હોલ્ડીંગ કરવાની રહેશે. આ સ્કીમ માટે લોકોને ઘણી મુંજવણો ઉદ્ભવી શકે તેમ છે. સરકારનો ઉદ્દેશ્ય આ પાછળ બિનઉપયોગી સોનાને ઉપયોગમાં લેવાનો છે. આ સ્કીમમાં પ્રતિ વર્ષ 500 ગ્રામનો બોન્ડ લઈ શકાય છે.

આ બોન્ડ માટે એપ્લિકેશન પોસ્ટ ઓફિસ, આરબીઆઈ વેબસાઈટ વગેરેમાંથી લઈ શકાશે. ફિઝીકલ ગોલ્ડમાં સંગ્રહ કરવાનું જોખમ રહે છે. પેપર ગોલ્ડમાં હોલ્ડીંગ સ્થિર રહે જ છે. આ સ્કીમમાં રેટ ઓફ ઈન્ટરેસ્ટ 2.75 % નો રહેશે. આ બોન્ડ તમારા ડિમેટ એકાઉન્ટમાં પણ મળી શકશે. આ સ્કીમમાં મળતા લાભ પર ટેક્સ લાગશે.

New Requirements from 1st November 2015 FATCA-CRS-UBO

In terms of the MCAA, all countries which are a signatory to MCAA, are obliged to exchange a wide range of financial information. India has joined MCAA on Automatic Exchange of Financial Account Information on June 3, 2015. Additionally, Governments of India and USA have signed an agreement to improve international tax compliance and to implement the FATCA in India.
Further, to combat the problem of offshore tax evasion and avoidance and stashing of unaccounted money abroad requiring cooperation amongst tax authorities, the G20 and OECD countries worked together and have developed a Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI).
As per above agreements and towards compliance with tax information sharing laws, such as FATCA/CRS, requires the financial institutions of the “source” jurisdiction to collect and report information to their tax authorities about account holders “resident” in other countries, such information having to be transmitted “automatically’ on yearly basis. The information to be exchanged relates not only to individuals but also to shell companies and trusts having beneficial ownership or interest in the “resident” countries. This also mandates all financial intermediaries to seek additional personal, tax and beneficial owner information and certain certifications and documentation from our account holders. Intermediaries are also obliged to share information on your account with relevant tax authorities and other competent authorities.
Vide SEBI Circular CIR/MIRSD/2/2013 dated January 24, 2013, SEBI has guidelines on identification of Beneficial Ownership and mandated all Intermediaries to identify & verify such beneficiary owners
Following information is mandated as part of FATCA-CRS-UBO requirements and also additional Supplementary KYC Information as per AMFI guidelines:

1. 1. Country of Birth / Incorporation
2. 2. Place of Birth / Incorporation
3. 3. Address Type [Residential or Business, Residential, Business, Registered Office] for the KYC registered address
4. 4. Occupation
5. 5. Applicant Income details
6. 6. Net Worth details
7. 7. Details of PEP [Politically Exposed Person]
8. 8. Information on specific Corporate services [applicable for Non-Individuals]
9. 9. Information about Ultimate Beneficiary Owner(s) / Controlling Person(s) [applicable for select category of Non-Individuals]
10. 10. If your [customer] tax residency is other than India, then following information for all countries in which you are resident for tax purposes is required:

Country of Tax Residency [also include USA, where the individual is a citizen / green card holder of The USA]
Tax Identification Number [If not available, kindly provide its functional equivalent]
Identification Type [TIN or Other, to be specified)]
All investors [both Individuals and Entities] are required to fill-up the applicable FATCA-CRS Declaration &-Supp. KYC Information Form and submit to Fund/CAMS for update. For more details, refer the following forms and FAQs

New Requirements from 1st November 2015

Towards compliance with tax information sharing laws, such as FATCA/CRS, all financial intermediaries are mandated to seek additional personal, tax and beneficial owner information and certain certifications and documentation from account holders. They are also obliged to share information of your account with relevant tax authorities and other competent authorities.

Vide SEBI Circular CIR/MIRSD/2/2013 dated 24th January 2013, SEBI has issued guidelines on identification of Beneficial Ownership and mandated all Intermediaries to identify and verify such beneficiary owners.
Vide AMFI Circular dated 18th September 2015, following information has been made mandatory w.e.f. 1st November 2015 for new investors to the respective Fund/from 1st January 2016 for the existing investors

Additional KYC Information

Ultimate Beneficiary Ownership [UBO] declaration from Non-Individuals

Accordingly, following information is mandated as part of the above requirements:
Country of Birth/Incorporation
Place of Birth/Incorporation
Address Type [Residential or Business, Residential, Business, Registered Office] for the KYC registered address
Occupation
Applicant Income Slab details
Net Worth details
Information about PEP [Politically Exposed Person & its relatives]
Information on specific Corporate services [applicable for Non-Individuals]
Information about Ultimate Beneficiary Owner(s)/Controlling Person(s) [applicable for select category of Non-Individuals]
If your [investor] tax residency is other than India, then following information for all countries in which you are resident for tax purposes is required:

Country of Tax Residency [also include USA, where the individual is a citizen/green card holder of the USA]

Tax Identification Number [If not available, kindly provide its functional equivalent]

Identification Type [TIN or Other, to be specified)]

All investors [both Individuals and Entities] are required to fill-up the applicable FATCA-CRS Declaration and Supplementary KYC Information and UBO Declaration Form and submit to CAMS/CAMS serviced Mutual Fund AMC branches for update.

US: જાણો, નવેમ્બર-2015માં તમારી કેટેગરીના વિઝાનું સ્ટેટસ

અમેરિકામાં નવેમ્બર માસનું વિઝા બુલેટિન જાહેર થયું છે. ઓક્ટોબર મહિનાની સરખામણીમાં નવેમ્બર મહિનાનું બુલેટિન અત્યંત નિરાશાજનક જણાય છે. ફેમિલી સ્પોન્સર્ડ તથા એમ્પ્લોયમેન્ટ બેઝ્ડ વિઝાની મોટાભાગની એપ્લિકેશન અંદાજે એક વર્ષ સુધી પાછી ઠેલાઇ છે.  લેટેસ્ટ વિઝા બુલેટિન અનુસાર વિવિધ કેટેગરીના વિઝાનું કરંટ સ્ટેટસ આ પ્રમાણે છેઃ

 

ફેમિલી સ્પોન્સર્ડ વિઝામાં પહેલી કેટેગરી 14 માસ પાછળ ખસી છે, જ્યારે F2A કેટેગરી સાડ દસ મહિના પાછી ઠેલાઇ છે.  તે સિવાય F2B કેટેગરી દોઢ વર્ષ પાછી ખેંચાઇ છે. જ્યારે ફેમિલી સ્પોન્સર્ડ વિઝામાં ત્રીજી  કેટેગરી દસ મહિના જ્યારે ચોથી કેટેગરી 11 મહિના પાછી ઠેલાઇ છે.

એમ્પ્લોયમેન્ટ બેઝ્ડ કેટેગરીમાં પ્રોફેશનલ ડિગ્રી ધરાવનારાની E-2 કેટેગરી અંદાજે ત્રણ વર્ષ જેટલી પાછી ઠેલાતા યુવાનોમાં ભારે નિરાશા છે. જ્યારે E-3 કેટેગરી પણ 14 મહિના પાછી ઠેલાઇ છે. તે સિવાય અન્ય કેટેગરીઓ એપ્રિલ-2015 માસ પ્રમાણે યથાવત્ છે.

ફેમિલી સ્પોન્સર્ડ કેટેગરી સંપૂર્ણ વિઝા ઇન્ફર્મેશન

 

F1- યુએસ સિટીઝનશિપ ધરાવનાર વ્યક્તિના 21 વર્ષથી વધુ વયના અપરણીત દીકરાઓ તથા દીકરીઓ
F2A- કાયમી વસવાટ કરનારાઓના પતિ-પત્ની તથા અપરણીત બાળકો
F2B- કાયમી વસવાટ કરનારાઓના 21 વર્ષથી વધુ વયના અપરણીત દીકરાઓ તથા દીકરીઓ
F3- યુએસ સિટીઝનશિપ ધરાવનાર વ્યતકિતના પરિણીત પુત્રો અને પુત્રીઓ
F4- યુએસ સિટીઝનના એડલ્ટ બ્રધર અને સિસ્ટર

 

નવેમ્બર-2015 માસની ફેમિલી સ્પોન્સર્ડ કેટેગરીની વિગતો

 

કેટેગરી	કટ-ઓફ ડેટ
F1	22 ફેબ્રુઆરી 08
F2A	15 મે 14
F2B	08 ફેબ્રુઆરી 09
F3	15 જૂન 04
F4	01 માર્ચ 03

 

એમ્પ્લોયમેન્ટ બેઝ્ડ પ્રેફરન્સિસના વિઝાની વિગતો

 

E1 -  પ્રાયોરિટી વર્કર્સ (ચઢિયાતા કામદારો)
E2 - પ્રોફેશનલ ડિગ્રી ધરાવનાર વ્યક્તિ
E3 - સ્કિલ્ડ અને પ્રોફેશનલ વર્કર
E4 - સ્પેશિયલ ઇમિગ્રન્ટ્સ
E5 - ખાસ પ્રોગ્રામ, નક્કી કરેલા વિભાગમાં રોજગાર ઉત્પન્ન કરનાર અને ખાસ પ્રકારની નોકરીઓની તક

 

નવેમ્બર-2015 માસની એમ્પ્લોયમેન્ટ બેઝ્ડ વિઝાની ઇન્ફર્મેશન

 

કેટેગરી	કટ-ઓફ ડેટ
E1	કરંટ ડેટ
E2	01 ઓગસ્ટ 06
E3	01 એપ્રિલ 04
E4	કરંટ ડેટ
E5	કરંટ ડેટ

 

Save more tax by creating a HUF [with Examples]

Do you know how you can use HUF to reduce your overall tax liability? In this article I will give you tips and real life examples on how you can use the concept of HUF and reduce your taxes perfectly legally. Before that let’s understand what HUF is.



HUF Hindu Undivided Family



The concept of HUF says that apart from individuals there is another separate entity called “Family” which can also have its own assets and liabilities and even regular source of income, which should be taxed separately. For example, if an ancestral residential property is rented out, then the rent arising would be considered as Family’s income and not as income of individual. In real life this rent is shown as income of one individual and he pays the tax on it, however a HUF can be formed and the rent can be shown as the whole family income (HUF) and it can be taxed separately.



Until a few years, many Indians used to keep multiple PAN cards and used to show Income under different PAN cards and used these tricks to avail the benefit of slab rates by showing themselves as different persons. This however is illegal by law and is a punishable offence as one person cannot have more than 1 PAN Card. But, one legal way of obtaining an extra PAN Card is to form an HUF. As the Income of an HUF is taxable in the hands of HUF and not in the hands of any Individuals, a separate PAN Card is issued for an HUF and the benefit of slab rates can be availed on this PAN Card.

Formation of HUF



A false impression amongst people is that HUF needs to be created whereas the truth is that an HUF comes automatically into existence at the time of marriage of an Individual and no formal action needs to be taken for the same. However, in case a person who wants to specifically register for creating an HUF, he can furnish a creation deed on a stamp paper (The Format of Creation Deed can be downloaded from here) .As HUF is governed by the Hindu Law and not by the Income Tax Act, individuals belonging to other religions are not allowed to form HUF except Jain’s and Sikhs who can create HUF even though they are not governed by the Hindu Law. Two entities are extremely important for you to know in HUF are the coparceners and members.



Coparcener is someone who has the right to demand the share of the property of family; coparceners are generally the Karta (Main decision maker of family, usually the Father , but Manmohan Singh had 5 years ago brought an amendement which stated that Females can become Karta & there can be an all female HUF as well), then sons & daughters, grandsons and great grandsons in order of their first right. Wife of the Karta is not a coparcener or even spouse are not coparceners and hence can’t demand/ ask for any share in HUF, they are just merely members of HUF.

Example of Tax Saving by forming an HUF



As discussed above, the main advantage of an HUF derives from the fact that an extra PAN Card is issued for the HUF. We’ll explain this benefit with the help of following example.



Lets say there are 4 members in a family



Husband – Salary 9 lacs

Wife – Salary 7 Lacs

2 Children without Salary

Additionally, one ancestral property which fetches them an annual rent of 6 Lacs p.a



Now the Question is – In whose hands should this Rental Income of Rs. 6 Lakhs p.a. be taxed? In real life, the most sought after solution is to show the rent as income of wife or anyone who has no income or less income so that the tax liability is least. But is it the best solution? Let’s see 3 different cases here in which this additional rental income can be shown and how tax can be saved!



Option 1 – If this Rental Income is shown in the hands of the Husband.



Hindu Undivided Family HUF tax advantage



Option 2 – If this Rental Income is shown in the hands of the Wife



Hindu Undivided Family HUF tax advantage

As this Income is arising to the family as a whole, the Govt has also extended this option of taxing this Income in the hands of the whole Family. Although very few people in India know this fact family income can also be taxed in the hands of the whole family by forming an HUF.



Option 3 – If this Rental Income is shown in the hands of the HUF



Hindu Undivided Family HUF tax advantage



The above 3 options clearly indicate that Option 3 is the best option as the least tax would be payable by the family if the Rental Income is taxed in the hands of the HUF. The tax saved by showing this income in the hands of the HUF is Rs. 1,18,000 (i.e. difference between “tax paid if rental income is taxed in the hands of HUF” and the “tax paid if shown in the hands of the wife which is the 2nd best alternative”)



Please Note: For the sake of simplicity, Taxes have been computed without taking into account the “Deductions available under Section 80C” and “Education Cess applicable on the Tax Payable”



Procedure to create HUF



These are the steps to create capital of a HUF.



First one should open a bank account with the name of Hindu undivided family like “AJAY HUF” with a stamp, ID Proof and the proof of the members of the family of HUF.

Important :- While opening a Bank Account in the name of HUF – Banks always ask for a rectangular stamp which states the name of the HUF and also the Karta who is signing it. A round stamp is not accepted as per RBI Circular. The same applies at the time of opening of bank account of Sole Proprieter as well.

Next is to apply for PAN (Permanent Account Number) of the income tax.

Now transfer money by gifts etc to HUF capital keeping in view the clubbing provisions and tax on gifts under Income tax act, Remember there is no Tax on gifts in kind though they may attract clubbing provisions in some cases.



3 real life tricks of saving taxes through HUF



1. Saving tax by getting gifts



One way of saving tax is by transferring the money received from strangers or family are taken as gifts in name of HUF. So if Ajay starts his HUF called “Ajay HUF” and he is getting some gifts from his father, friends or anyone else, he can ask them to give it to “Ajay HUF” and not Ajay itself. That way the gift will be treated as income/asset of HUF and taxed separately. One important point here, if some stranger is giving gift to HUF, there is a limit of Rs 50,000 on which no tax has to be paid, but actually it can go up to Rs 1.8 lacs as the taxable limit is that much, and if one also has to do investments of 1.2 lacs (total 80c limit), then one can afford to receive up to Rs 3 lacs of gifts in a financial year and there will be no tax liability at all.



2. Assign ancestral properties and wealth to HUF and invest it



If family is going to receive an ancestral property or any wealth, then it’s better to transfer it on HUF name so that whatever earnings happen in future in form of rental income or capital appreciation of assets becomes income of HUF itself and taxed in its own hands. That way the total tax liability of family can be minimized.



3. Use HUF income for expenses and Insurance for Family



As HUF enjoys separate tax benefit under sec 80C, one can use the income of HUF for buying Life & health insurance for family and the permissible deductions can be availed for tax purpose in hands of HUF, so if the total premiums for insurance requirement of family is Rs 50,000 per year, then It can go from HUF income and also the individual can exhaust his 1 lac limit separately via PPF, ELSS and other tax instruments. Also family day to day expenses can be used from HUF income and hence it will leave other members with more disposable income which one can use to service higher EMI’s if required.

Some important Points you should know about HUF



For creating the HUF one need to get married, there is no need to have child or children for creating the HUF.

An HUF can recieve any amount in gift from bigger HUF’s (HUF of Father, HUF of Grandfather) or any gifts received by the members of HUF (birthday, marriage, etc.) can be treated as assets of HUF , but stranger can gift HUF, not more than 50000 rupees.

Daughter also continues to be a Coparcener after her marriage of that family whether she also will be a member of HUF of her husband. So that way daughters can be co-parancers in two HUF’s :)

HUF can pay remuneration to the KARTA of family for the interest and expenditure to run the family business.



Be cautious with HUF creation



While all the above points excites people on opening a HUF account immediately and start taking tax benefit, there are some caveats and one has to be little careful. Remember that HUF is a separate entity and represents the whole Family. So once some assets is assigned to HUF, then it becomes part of HUF only and one can be suddenly take money from HUF for personal purpose . If other co-parceners of HUF demand the partition of HUF only then one can get his/her share of the HUF. Otherwise it will not break. Also for taxation point, a lot of people mislead the tax department buy using fake HUF transactions and therefore, HUF is looked with high degree of scepticism.



If the HUF is not formed properly and if the assets are income are fudged for evading tax, it can get you in trouble, therefore it’s highly advisable to hire a good CA and create your HUF in the best possible manner with right advice. There is no harm in paying 10,000-12,000 to a CA if HUF can give you 5-10 times tax savings. It would be a great investment, not an expense!



HUF property cant be mentioned in the WILL



Though HUF is very useful tool but one has to use it very judiciously and thoughtfully. Don’t look for tax benefits only , but practical problems also. Be aware that you cannot make a will out of HUF property. Once transferred to HUF, the assets /property becomes of HUF and you no longer have any individual right on it. To explain with example -



“A”, who has 2 daughters and a son.He long back ago purchased a house in the name of HUF and put that house on rent, so that the Rental income comes to HUF and will not be be added in his or his spouses’s income . But now , he ‘s retired and wants that this property should be transferred to his son after his demise. But this is not possible as that property belongs to HUF. He can’t even write a WILL for HUF property and with the huge rise in Real estate prices, none of daughter is ready to leave her share in it.



Thanks to Manikaran Singhal to add this point



Who should actually go for HUF



HUF will be extremely efficient for those people who have a higher income and high saving rate and some form of ancestral assets which can be marked as “Family Assets”. Evaluate if HUF can really give you that kind of tax advantage or not for people who do not have high salary or who do not have a big enough family. So make sure you can get the maximum out of the HUF and understand the limitations of opening HUF before you go for it.



Can you share how was the article and did it help you in understanding HUF ? Are you going to open a HUF account ?



This article has been authored by CA Karan Batra who blogs on charteredclub.com (Content added by Jagoinvestor with inputs from Karan)

Advice to Indians on Pattaya trip (Thailand)

Hey guys, As number of folks who travel to Pattaya from India keeps on increasing and a barrage of bad service to racial discrimination reports we hear often. I thought i will put out some points for future newbie Indian monger to help them solve the pattaya matrix and get laid like others.
I'm going to warn you though, its very long and it won't be all sweet talk to my countrymen. It's my attempt to deal with facts, so that negative experience don't happen to us again.
Let me get straight to the points...
1. Number 1 thing to remember and do is.. forget about all you have learned ever in school, college, from parents and society about what sex and love is, what Indian cultural is, what concept of karma is etc etc. Never ever relate to what you see in Patts to what you have experienced or taught back in India. Thailand is 100 years ahead in terms of general infrastructure and cleanliness and 1000 years ahead in terms of sex and love. Come with a clean state of mind.
2. DO NOT come in groups, the one thing, that i see and many others have noticed and commented are, Indians come in groups of 5-10, take one girl and talk of sharing with all of them. You don't have to show, we are the second most populated country in the world by been in a group and showing numbers count. It doesn't, Individuals travelers are gaining more respect everywhere now a days. The most you get respect and attention are from girls in Pattaya, it doesn't offend them, they are more free to approach you. Its really safe to travel alone in Thailand. You see 99% of Indians who travel to Thailand are in groups. Agree, that western men and Japanese too travel in groups, but if you notice, they have folks who travel alone more like 60 to 40 ratio. Try your best to travel alone or max with a friend. Not more than 2. It spoils for everyone. Remember, you are representing every other Indian monger who would travel in future, make a point to leave a good impression.
3. We Indians bath regularly at least once a day, but somehow, it gets lost and everyone says that we Indians smell a lot like curry etc etc. Well, I have news flash for you. Everything, you have heard about Indians been smelly is 100% true, only thing that comes in your way of accepting the truth is your ego and the nationalistic fed media that says Indians are the best and we are special etc etc. We do not have in our culture of using deodorants and perfumes, western men smell sometimes as bad as us, but they cover it up by using deo and perfumes. I don't have scientific facts, may be its due to what we eat... lots of spicy foods or our climate or gene adaptations. The facts is when you sit near a bar girl, they have a dog nose and if you even sweat a drop, they will sense it from far away.
The first thing you do, when you get down at suvernabhumi airport is to buy an expensive deodorant/perfume. Do not buy Indian deo's they are crap.
I have been with girls of almost all east Asian countries and NONE have bad odour and they could sense my bad curry from 10 feet away, until i learned the lessen......as they say, adapt or perish....very true for us.
4. We Indians smile a lot in India, but when we go abroad we show a sorry face, smile around...Thailand is Land of Smiles. Be friendly, show respect...the thing is when you are alone...you naturally do all these things, when in group, we tend to go wild and loose the respect of others. Be charming, decently dressed, learn few words of Thai.
5. Now the Main part. Avoid all bars on walking street, You will not be much entertained there, Go to discos in walking street, you are welcome there.
 
Avoid going to western owned bars. Most of the bars on walking streets are owned by western expats. I hope western mongers who read this will excuse , but most of the western owned bars/hotels in Pattaya are sometimes discriminatory and does not entertain Indians and Arabs. Thai owned bar are less discriminatory, but they too have bad perception about Indians or let me just say this...what ever bad perceptions the western owned or Thai owned bars have about Indians...is TRUE.....They are not at fault...90% of the Indians who go to Thailand think they are the world and Indian culture is at the center of the universe and everyone thinks and behaves like Indians do. It will take sometime before we change that perception, it all starts with you and me.
Read pattaya-addicts and other forum for couple of months to know which bars welcome Indians, don't just show up. research everything. Go to bars in Soi 6/Soi 7/Soi 8, there are 100's of bars in all threes soi's which will welcome you. Walking street is NOT THE PLACE TO GO....You see a western monger travel 16+ hours and spends 800+ dollar to come into Pattaya. We just need a couple of hours and 200 dollars to come to pattaya...we should be at the forefront of mongering in Pattaya...but we are not, got lot to do with money and cultural issues back home.
6. Do you know why Japanese are more respected in Pattaya than western tourists or Arabs or Chinese or any other race. Not only in pattaya, Japanese tourist are consistently ranked number one, well behaved tourist in all countries and categories. Not to mention the monger classic 3-3-3 > 3 Inch - 3 Min - 3 thousand baht folklore invented by western men to keep their ego in check as some can't digest the fact that Japanese men get more attention to them even when they have bigger d**ck than Japanese and they were taught from an early age that having bigger d**ck is the secret of conquering the world not money, manner and respect... Not in pattaya atleast to their surprise . I'm making this point, cos when you read forums, this point invariably comes up and the main plot gets lost. I personally feel there is lot we can learn from the Japanese tourist and how they earned the respect.
Remember, it was barely 60 years ago, that, the same Japanese occupied most of Asia and did unspeakable crime to east asians...now they get more respect than Indians who never conquered anyone ...yet they are looked down upon...the point is perception could be changed faster than we think. Even Chinese, korean have more respect for the Japanese than Indians....hell, 90% of Thai culture is Indian...yet...what crime did we do...bad smell, cheap charlie anyone Not that bar girls care about world war 2 but even educated ones seems to respect japanese....yeah by gones are by gones...we need to also change this....Indian mongers have been short changed for far far too long than history could remember in pattya
Most folks think Japanese are stupid for spending too much money, if only they read the history books and know how less time they took to win the hearts and minds of Asians they would think otherwise.
Ok...i understand the above para was cheesy in bringing in history and all..but almost every country in east Asia hates indian's when it comes to mongering.
You don't have to splash money as the Japanese do, but atleast, you can buy few more drinks to the girls around, throw in one drink to the bar manager, mamasan....get the crowd into your side. Whenever, I enter a bar, i get the usual cold look , but when i buy a couple of drinks to manager, mamasan and girls, they light up. I got the crowd to my side and It will always be like that the second, third time i visit. In soi 6 bars, I always get a complimentary beer for the fact that, i gave them a drink on my first visit and they remembered and they see me as a potential repeat customer.
You won't be learning anything from the western mongers, they are way way ahead of us in terms of mongering, morality and manners. They have everything set up for them in Patts, all they have to do is put the money and pants down and its ready to go. We are just beginning, learning the tricks to earn respect. It will take time, but it can be done.
We have to go from aaa Indians cold boring smelling when a bar girl looks at us to ...ohhhhh wow..my lucky day god INDIANS hansom man level..it could be achieved.....atleast if some of us does things rightly here...we are already paved a way for better tomorrow.
7. Finally, to conclude, Man up, be brave, travel alone, no body is after you, you are safe in pattaya, show respect, smile around, you hear people say, spend wisely,,,no spend more than a bit than you think its necessary to clear the mess around called Indians are here...money does clear lot of mess. Go to Soi 6,7,8 NOT to walking street. research and learn from other mongers and on and on...be safe, Don't judge bar girls due to their profession......like yoda would say....Respect Soon Earn We Will of Pattaya