And one more journey rolls over…

There is no direct road for this journey; sky is the limit then. Today when I am writing this post, the countdown has begun, next Thursday I am flying to United States. I don’t know how this last week is going to be nor have I planned anything yet. It seems to be busy and anxious, just like one last month.

The last month, June, was very random, unpredictable and changing. First, I met a girl at a time when I was about to leave the capital after a week or two. We didn’t have great time to know more about each other, get close to each other and share some quality moments. No worries, though. God must have planned an awesome feast for me, waiting somewhere around in this world. Second, officially, 8th was my last working day with Ericsson, however, farewell and get together parties were on highs from last one week. The good part: I was enjoying the fiesta time with my mates and friends; the sad part: it is not going to repeat for a long time now. A day out with friends at Connaught Place, time spent with college mate at a beer bar in Janakpuri, visiting friends, kicking back to under-grad campus and the heart touching, farewell treat & gift from office lunch group - one I am going to miss alot. Third, I had to leave the place that was like second home to me. I had been in Gurgaon for last 7 years and I loved the place, the traffic chaos, the people, the shops and malls, the night life and everything. It was really painful to leave behind this city after such a long period. So finally I was home now. Home sweet home, but you know the month of June. It had to be different this time. Dad had already made arrangements to sell my car – the one that I loved to drive and that was always with me whenever I was alone. Next started the preparation of lists for shopping, purchasing, packing and blah blah. Shopping is awesome, I enjoy it. But it was not clothing, footwear, apparels, books or gifts this time, instead, medicines, kitchenware, food items, luggage bags, sheets & pillows etc etc. Past month, there wasn’t a single day when I didn’t go out to market place. Oh yes, alongside I had to execute the list of visiting relatives, and I loved it. It was really glad and jolly to see kids, cousins, uncle, and aunt after a long time. No no, I didn’t want to mention, however, it is my sheer desire to include an important part that made the month more chaotic – online courses to be completed before joining the campus. It has all started again – assignments, courses, scores.

I am going to join a grad school next week and I know it is going to be a tough ride, very hectic and stressful. Although I like such rides, now I want to relax, to be patient and to embrace each and every moment with my family, friends and place. Now when all seems set & prepped and lists have narrowed down to bottom, while in middle of courses, I am planning to change the course of starting July with no anxiety, worries and stress. I know I won’t get such moments, days and week again in my life. With July rolling over, this last week on homeland, I am going to have fun and hang out with school friends, collect great moments with my family, finish the courses (only if it is comfortable, w/o any stress), eat a lot - I won’t get this food for a long time now, visit office at Gurgaon to meet my lunch group & enjoy the last moments in the city before setting out to Airport.

That’s all for now, but I know there must be more to do and add on. I am more excited to move on now to a new life across borders at St. Louis, USA. Yeah!!

Do you KNOW what you KNOW ??

A kind of Self – Audit or Reflection of oneself identifies 4 categories as per one’s knowledge of own knowledge.

1) One who DOESN’T KNOW and DOESN’T KNOW that he doesn’t know is a FOOL.

2) One who DOESN’T KNOW and KNOW that he doesn’t know is a CHILD and need teachings.

3) One who KNOW and DOESN’T KNOW that he know is ASLEEP and DUMB.

4) One who KNOW and KNOW that he know is WISE and INTELLIGENT.

Who are you ??

Game of 3Es

Here, I am referring to numerous discussions with people of all ages regarding the education in our country and high rate of unemployment. Data from the various publications implies that education is on the great move and nation has the profound working population (youth of the nation). Ironically, the same publications identify the high and surging rate of unemployment inside the borders. Why so ?? Where are we ??

As per my analysis and readings, this whole game revolves around 3Es (Education - Employability - Employment) while the above datum is taking into account - 2Es. Education doesn’t leads to Employment; there is Employability in between. Education of a person increases her employability and then, in turn, leads to an employment. It seems that, in our system, we are skipping the vital part – employability and trying to jump over to employment directly from education. Even the rate of unemployment is calculated on the basis of number of people who are educated and jobless, again taking into account only 2Es. According to the demands of the market place and the stiff neck to neck to competition in the global economies, education is nothing but literacy – ability to read and write. Being educated is not sufficed to get employment, one has to be employable. Unemployment data should be figured out as unemployed head count only if those unemployed are really employable, not merely educated, and jobless.

My office cab driver once asked me to get a job for him while he was explaining that he did his under graduation in Arts with a degree in honors. He was wordless to my question – “what do you know and what can you do”; meaning he doesn’t know anything and can’t do anything other than driving a cab (that is what exactly he is doing). In fact, his employability quotient is zero, although he is educated or literate. What I saw was sense of dissatisfaction from his education and there are innumerable friends to him, he is not alone.

Our education system is giving lot of engineering graduates year on year, however, these engineers are educated (read as Literate) but not employable. N.R. Narayana Murthy said in one of his interview: “Seventy-five per cent of our engineers are not employable”. Most of the colleges and universities are only educating the students, whether under grads or grads, and not making them employable. Although there are institutions that facilitate lots of opportunities and work towards the student’s employability quotient, the students are not receptive and adaptive to the required changes.

Also, it is not the case that there are scarce jobs in the market. McKinsey said Indian IT can get to about $300 billion by 2020 (from the current $60 billion), for which better and more talent is required. There is no magic silver bullet for this problem. The only solution is to sit down with an open mind and improvise our education system to impart knowledge and excellence along with literacy. No doubt we have achieved high rate of education or literacy, we are still far behind the high rate of employability and employment.

Economics of Relationships

“Couples are made in heaven” – this saying was relevant only till we didn’t have lot many marriage consulates and high tech communications in place. Now, everything is planned and manual - from the growth of fruits (using chemicals) to setting human relationships.

It hardly happens that a boy from highly affluent family is engaged to a girl from middle class family or a girl from rich family is engaged to a boy from a family with handful of resources. This set up has got a very sleek economics behind it. Economics is not only about studying the money, trade and industry but also about how money influences the trade, industry and society.

This economics revolve around the concept of social set. Actually, every person interacts in her own social set - people of same thoughts, mental level, lifestyle, income, expenditure, consumer surplus and everything. Her each activity, involvement, interaction, entertainment, workplace involves friends, relatives, colleagues within that same social set. When her life is constricted to a single social set only, how is it possible to get into relationship with someone from different social set. In short, relations usually make up between families within same social set, whether it is an arranged marriage or love marriage. In case, someone encounters the other social set (higher or lower), it is very tough and technically, challenging to jump onto another one, leaving behind own set.

Changing social set means shifting paradigms, changing thought process, modifying lifestyle, leveling income & expenditure, getting recognition in other social set, achieving new professional milestones and lot many other attributes. Other than the ability to overcome these materialistic disparities, one must have high emotional quotient and power to get rid of the old habits, when making this drastic and rational change.

People usually uplift individually while remaining in their own social set, however, don’t update their social set. Migration among social sets is not only a function of achievement and abilities but also a function of time. It may take generations to update the so called – social set. Now, I am trying to change (read it as update) my social set before I get into relationship :) :)

A lovely girl and the lake

This is a small story of a beautiful girl and a placid lake. Somewhere far in the forests, there was a beautiful girl living nearby a peaceful lake, flowing like a soothing breeze. Lake was really appealing due to the lots of blossoming lotus flowers and the green valley visible in the top layer of lake. The girl’s beauty was no less than lake’s. She was incredible having big blue eyes, long hairs and impeccable body.

She used to knelt besides the lake, almost daily, and contemplate her own beauty. Talking to the lake while staring at her (saw her beauty in the lake), the girl became accustomed to lake’s company. However, she was so obsessed with herself and her beauty that one day she fell into the lake and drowned. A flower was born at the spot where the girl drowned and the flower was disparate from others, very beautiful like the girl.

After few days, the goddess of forest appeared and found that the lake, which had fresh water, has transformed into a salty lake.

Goddess asked the lake: “Why are you weeping?”

Lake replied: “I weep for the girl”

“Aah no surprise that you weep for her, you and girl were so accustomed to each other. Everyone pursued her in the forest but she knelt beside you everytime and contemplate her beauty”, goddess said.

“Was she too beautiful?” asked the lake.

“Who know better than you? After all, you were the one who could appraise her beauty at close hand” goddess said in great wonder.

The lake and goddess were silent for few moments.

Then the lake said: “I weep for the poor girl, but I never noticed her extreme beauty. I weep because each time she knelt beside my banks, I could see, my own beauty reflected in depth of her eyes”

****

What a lovely story!!

Moral: God created the beautiful world so that, through its visible objects, we could understand his power of creation and admire the nature. Unlike the lake and the girl, who were obsessed with their own beauties, we must admire the beauty of others.

Disclaimer: The story is not one of own creations. I read the context somewhere and, here, it is re-framed in my own words and the moral, which I inferred.

Crossword – ‘TAXATION’ solved here

So you too are wrapped in the taxation web, don’t know how tax is calculated and call this taxation system – bull !#$% Then don’t worry, this thread of my blog would be helpful to you to finish the crossword of taxation as the last date of filling ITR – 31^st July is approaching. Though there are lot many tools and sites available to calculate your tax, I have tried to simplify the things as far as possible.

Before starting, you must be clear that solving the taxation crossword is in favor of YOU not of your employer or IT dept.

Myth: Filling ITR (Income tax Return) is a burden and is of no use for me.

Fact: First, read it as - Return my Income Tax. Yes, ITR is filed to claim your tax refund from the IT Dept. not to pay the taxes (mostly not always). As per the taxation rules and guidelines, it is the duty of employer to deduct the tax before paying the salary to his/her employees. This tax is called as TDS*. Now, ITR is filed to get your tax refund, in case TDS deducted is more than the actual tax payable while you have to submit/pay the extra taxes in case TDS deducted is less than the actual tax payable. In each case, proofs and documents required to be submitted along with ITR.

Myth: I have no refund to be claimed so I need not file ITR.

Fact: As I have already mentioned that the ITR is filed to claim your tax refund from the IT dept, but it does not mean that if your TDS is equal to the actual tax payable then you need not file ITR. As a process, every person whose income is taxable (over and above the exempted limit) should file the ITR, irrespective of the fact that tax refund needs to be claimed or not.

Also, ITR has got other advantages other than claiming tax refund

• Standard Income Proof
• Speed up your loan application process

*TDS: TDS is Tax Deducted at Source. Source refers to Source of Income. It can be Salary from employer, any kind of bonus from employer, interest paid by bank, gift or prize money etc. In every case, it is the duty of employer, banker or one who is sponsoring the gift/prize to deduct the tax & submit it to IT dept. Hence, you ll get the money after deduction of tax named as TDS.

As now you are aware that filling ITR and managing your income and hence, income tax is good for your financial health, lets learn to calculate the taxes.

It would be much easier if you go through these attributes and keep the corresponding figures handy, whichever is applicable for you.

Gross Income	total annual salary (total amount not the amount credited in your salary account)
Income from other sources	refers to income other than salary; rental income, interest on FD, capital gain, income from stocks/mutual funds, gift/prize money, income from any other business or source
Savings/Investments under section 80C (max. upto 1 lac)	includes PF deducted from monthly salary, investements in PPF, tax saving FD, ELSS MF, ULIP, KVP, NSC, LIC etc.
Deductions/Exemptions
section 80D	amount paid as premium for Medical Insurance of parents
section 80E	repayment of interest on loan for higher education
section80DD	in case of disability of dependant
section 80U	in case of self disability
section 80G	donations to charitable trusts, NGO etc.
section 24B (max. upto 1.5 lac)	amount paid as home loan interest
section 10 (13A)	HRA - amount paid as house rent
others	various exemptions are provided on the allowances included in the salary: conveyance allowance, medical allowance, LTA exemption on these allowances is subject to respective limits and conditions

Exemption/Deduction under various sections is subject to guidelines and maximum limits. For example, section 80D provides 100 % exemption on the amount paid as premium while section 80G provides 50% exempt on the amount donated. Exempt on HRA is calculated in a complex manner, 3 figures are calculated and minimum is counted for exemption. All these will be taken as a separate thread but for the time being you can obtain the exemption figures from Taxation Portal of your organization or from FORM-16 provided by the employer.

An easy generalized way of calculating your tax (refer to example for better understanding)

1. Total Income/Credit = (a) Gross Income + (b) Income from other sources

2. Total Debit = (a) Investments + (b) Deductions/Exemptions

3. Taxable Income = Total Credit - Total Debit

4. Tax on Income = calculated according to tax slabs for the assessment year

5. Education Cess = x% of (Tax on Income)

6. Net Tax payable = Tax on Income + Education Cess

7. Tax already Paid = TDS

8. Refund to be claimed = Tax already Paid - Net Tax payable

Example of a person X having following financial details:

· Annual Gross Income = 9,60,000 (12 x 80,000)

· Income from MF and stocks = 60,000

· Income from Rental property = 40,000

· Total PF deducted by Employer = 20,000 (deducted every month from salary)

· Investments in PPF = 50,000

· Tax saving FD = 30,000

· Premium for med insurance of parents = 5000

· Donation made to PM relief fund = 20,000

· Medical bills submitted against medical allowance = 10,000

Gross Income	960,000.00	salary
Income from other sources	60,000.00	MF and stocks
	40,000.00	rental income
Total Income / Total credit	1,060,000.00
Investments	20,000.00	PF
	50,000.00	PPF
	30,000.00	FD
Exemptions/Deductions	5,000.00	80D (100% exempt)
	10,000.00	80G (50% of 20,000)
	5,000.00	50% of 10,000
	7,500.00	exempt on conveyance allowance (from Form16)
Total Debit	127,500.00	Inv + Exemptions
Taxable Income	932,500.00	Total credit - Total debit
Tax on Income	183,750	see annexure below**
Education Cess	5512.5	3% of Tax on Income
Net tax payable	189,262.50	Tax + Edu cess
Tax already paid	194,000.00	TDS deducted each month
Refund to be claimed	4,737.50	TDS - Net tax payable

**Annexure: Tax on Income is calculated according to slabs applicable for a particular financial year. Slabs vary for men, women and senior citizen. In our case, slabs of FY 09-10 for men are used to calculate tax:

upto 1.6 lac	nil
1.6 lac to 3.0 lac	14,000	10% of 1.4 lac
3.0 lac to 5.0 lac	40,000	20% of 2.0 lac
5.0 lac to 932,500.00	129750	30% of 4,32500.00
	183,750

Hope my work helped you somehow somewhere. I would love to clarify any queries or specific user requirements.

Money mantra: If you can’t manage your money, you can’t hold the same.

Good Luck. Keep Earning Keep Enjoying.

I like her... BUT..

The case was presented in court of heart last week when I saw her in my office. I don't know who she is, what is her professional status, nothing about her but one thing is sure she has that charisma that attracted me and forced me to think about her.

The first encounter with her was at the reception where I use to sit for few minutes to read the newspaper. The place is bit noiseless & gives me few relaxing moments along with sealed newspaper. She came there to escort 2 expiates to get them in the office. That was the first sight but not the love at first sight. At that moment, I was engaged with my articles and just caught a sight of her. I liked the way she communicated with the expiates but this went like a euphoria. I forgot about her the very next moment as my mind was already involved in the articles and the pile of work waiting for me to clear off. I didn’t know that my heart was out of sync with my mind and was involved somewhere else.

2nd: I was not even aware of anything going inside me, actually it was not yet. As usual, we (teammates) went to cafeteria for lunch. We were in middle of our meal that she came there with those expiates. This time I noticed her intentionally. She reminded me someone acquainted of mine. I shared this with my teammates that few people have very close resemblance with others while staring at her. She was wearing a sand coloured punjabi suite and was looking good. My colleague noticed the connection of my eyes & words and asked "Whose resemblance?" I myself was not clear about my thoughts and in the mean time she was out of sight as well, so I refuted saying "no one" and thought about her for very few seconds. Yet again, this all seemed just like an attraction as usual and I didn’t notice anything strange.

3rd: After 2 days, next came across was in the parking basement. Co-incidentally, we had to park at consecutive slots. I took the glimpse when she stepped out of the car and mumbled "oohhh no, again she". I followed her to the lift while scanning her perfect formal attire. She was in solid colored top & skirt and high heels. We were facing each other at an inclination. Fortunately or unfortunately, she got a company and was busy gossiping with her. I kept on staring at her and couldn’t take my eyes off her. It’s not that I have never seen anyone fairer or gorgeous than her but she is quite pretty, soft and placid like a lake. Because of closer met around in the lift, I made an idea that she must be in her early thirties or late twenties (here is the BUT). And finally, 'ping pong' at 1st floor & time to get out of the lift though I didn’t want to do so. As soon as I disembarked the lift, first thought was of 'Dil Chahta Hai' (Akshay Khanna & Dimple Kapadia). Ironically to the fact that I know her attributes, all of which coercive me NOT to think about her, I was diving in her glimpses while moving towards my workstation.

4th: As usual, I was at the reception running through the newspaper. Now this is co-incidence or something else, she pass through the reception and this time we had an eye connection. Her facial expressions said that she tried to recognize me (bcoz we shared sights in lift). This time, I had to leave ET to think about her, though for a while only. I don't know what was it, but next was going to be the third encounter in a day. This time I spotted her in her cubical while going towards the cafeteria. After a while, she also joined there and I kept looking at her eyes (she is so calm) and impeccable way of everything, or anything.

Now, while I am aware of the reality and doesn't let my heart pace over my mind, I intentionally attempt to seek her just to have a glimpse. Today, I just had a little look of her. She was wearing a maroon colored sari and looking too descent like a traditional Indian woman. I don't know what is going on & even I don’t the reason for all this. Obviously this is not radical but I have to endure this change and will have to live with it while trying to get rid of her lovely charismatic glimpses or looking for many more...