Finance

What is Folio Number in Mutual Funds?: If you invest in mutual funds, folio numbers are crucial. It’s similar to the account number given to you when you open a bank account. The definition and meaning of the Folio Number are explained in this article. Finding and maintaining the folio number is also briefed in this article.

Folio Number

When a mutual fund investor invests in the fund, an asset management firm assigns him or her a folio amount.

• It’s similar to the account number given to you when you open a bank account.
• The folio number is used to classify fund investors and track information like how much money each investor has put into the fund, their transaction history, and contact information.
• When you make your first mutual fund investment through one platform, a folio number is created. For instance, you purchased Mutual Funds using Zerodha Coin and the Groww App. You will be assigned a folio number for each mutual fund on each platform.
• Each fund house has its Folio number. As a result, when you invest in the XYZ fund for the first time, you will be given a folio number different from the one you were given when you invested in the ABC fund.
• For all investments made under the same unit-holder combination, most fund houses have one folio number and many account numbers in the same folio. This makes it easier to keep track of all of your assets with the same fund house.
• Some investors purchase mutual funds from the same mutual fund business in various ways, such as via a broker, directly through one platform, and other platforms. As a result, they may have different folio numbers for the same Mutual Fund firm. You can, however, combine all of your assets into a single folio number at any time.
• The folio number can also be seen on investment statements or requested from the fund house.

Folio Number’s Benefits

• It’s the most convenient way to look up an investor’s background.
• The investor’s folio number can be used to track funds invested in various fund plans.
• It will look up transaction history and contact details for investors.
• Using the folio number, obtain investment statements at any time.
• Use this number to get an instant list of your AMC units.
• It eliminates the need to go through the KYC process with the same fund house again.
• A folio number not only saves investors the trouble of remembering hundreds of account numbers in their phone or diary, but it also allows them to transact from anywhere at any time.
• As a result, it assists the AMC in verifying the unit holder’s authenticity.

Folio Number Mentioned on the Mutual Fund Account Statement

In two or three days of investing in a scheme, you will receive a fund statement. If you requested a physical copy, it would arrive in seven to ten working days; if you requested an email copy, it would arrive in three to four working days.

You can always contact the AMC/RTA that manages your fund if you have not got one.

A Mutual Fund Account Statement is sent by the mutual fund firm and contains all of the information about one’s investment.

Things to Search for in the Mutual Fund Account Statement

• Keep track of your folio number in a safe place.
• To prevent complications at the time of redemption, double-check that the bank’s name and account number are correct.
• Make sure you’ve completed your KYC requirements and filed your FATCA declaration. FATCA is a US law that requires Indian fund investors to declare whether they are US citizens or not, according to an India-US treaty.
• Check out the details of your purchase. This section lists the different types of transactions you’ve chosen, such as purchases, SIPs, SWPs, and so on.
• If you invested through an agent, the account statement would display his or her name code and EUIN number.
• Recognize the load structure. It tells you what you need to know about your investment’s entry and exit costs.

What is the Significance of the Folio Number to Investors?

Statements from mutual funds are significant because they summarise your investment history in that fund. A bank account statement, for example, displays any purchase you make on a specific bank account. As a result, the folio number is a crucial part of your mutual fund statement. You must ensure that this number remains consistent each time you invest. It will be simpler for you to handle your investments with the AMC if you use the same folio number. They must give you an email statement within 2-3 days of your investment and a hard copy within 7-10 days.

Base Fare, UDF, Passenger Fees and Fuel Surcharge: What Is Base Fare? A base fare on a plane ticket is the price of the airline ticket before the addition of fees, taxes, and any surcharges. In most cases, a traveler’s base fare is going to be lower than the final price of the ticket. Some fares, such as ones to any international destinations, might increase significantly from the base fare when the additional taxes are added.

Fees Added To A Base Fare

Airlines are now adding fees to the base fare for things that were earlier be included in the price of the ticket. People are getting used to the baggage fees, but that is only one example of the fees.

One can now be charged for food and beverages, reserving a premium seat (not just a first-class seat but also a window or aisle seat might incur a fee), getting an advance seating assignment, a second carry on, early boarding, and even to have services from the airport ticket agent to do things such as print the boarding pass for you.

When a discount is offered, it is generally on the base fare. For instance, an airline offers a 30% discount for Rs. 10,000 tickets from Kolkata to Gujarat. One may think that the discount is being offered on Rs.10,000. However, that is not the case. The discount is only being provided on the base fare.

Hence, if the base fare is Rs. 2,500, the discount is Rs 750, and then the ticket will cost Rs 9,250. Let’s take a look at the other costs, Fuel surcharge, taxes, User development fees which inflate the price of the ticket.

Fuel Surcharges, User Development Fees, PSF Charges By Airlines

Fuel surcharge, Indian Airlines started charging this component on every ticket to account for the volatile fuel prices somewhere during 2005-06. Fuel surcharge benefits airlines offset part of their operations costs in which fuel bills contribute the most – nearly 40 percent. This is charged globally.

The majority of the airlines, including the Emirates, American Airlines, British Airways and Qantas, involve a fuel surcharge in the original price of the ticket. Other airlines add on a fuel surcharge during the booking process.

The airport charges User Development Fee (UDF) for each departing passenger, a charge levied by the airport operator on passengers for recovering the investment that is made on the development of the airport. The User Development. Charges vary from Airport to Airport and also for domestic arrival and domestic departure and International departure.

For example, for Bangalore UDF, in June 2014, Rs 260 and Rs 1,070 for the international passengers and UDF for Ahmedabad is Rs 124 for domestic flights and Rs 466 for international departure. UDF or User Development Fee at different airports can be found on the webpage of AirIndia on UDF.

Several airlines charge other fees such as convenience fees or the Printout charges from their passengers.

Name	Agency	Brief Description
Base Fare	Accrued by the airline	The fare charged by the Airline. Discount offered by the airline is generally on this fare.
CUTE Fee	The AAI (Airport Authority of India) and the private airports at New Delhi, Mumbai, Kochi, Bengaluru and Hyderabad.	Common User Terminal Equipment for services such as check-in etc.
Goods and Service Tax		12% for premium and 5% for the economy (for both domestic and international)
Passenger Service Fees	The AAI (Airport Authority of India) and the private airports at New Delhi, Mumbai, Kochi, Bengaluru and Hyderabad.	For covering Security and Facilitation all the AAI airports as well as private airports.
User Development Fees	The AAI (Airport Authority of India) and the private airports at New Delhi, Bengaluru and Hyderabad.	For funding passenger facilitation at selected airports, levied by the airports.
Fuel Surcharges	Accrued by the airline	Airline fuel surcharge to account for the volatile fuel charges.

The Base Fee and the Fee Surcharge varies according to the airline.

A CUTE fee is Rs 50.

User Development Fee (USD) and Passenger Service Fee

User Development Fee (USD) and Passenger Service Fee (each departing passenger) is charged at some significant airports is as stated below: –

Airport	D/I	Passenger Service Fee	User Development Fee
Chennai	Domestic	0	81
Chennai	International	0	81
Amritsar	Domestic	91	177
Amritsar	International	105	1240
Bengaluru	International	0	1447
Bengaluru	Domestic	0	361
Mumbai	Domestic	0	0
Mumbai	International	0	328
Tiruchirappalli	Domestic	91	177
Tiruchirappalli	International	105	491
Vishakhapatnam	Domestic	0	354
Delhi	Domestic	91	0
Delhi	International	91	0

 

HRA Increased from 24,000 to 60,000 Under Section 80GG: On the 29th of February, 2016, Finance Minister Arun Jaitley presented the 2016-2107 budget. He said that he proposed to increase the limit of the deduction of paid rent that had been set at ₹24,00 a year to ₹60,000 to provide relief for all those living in houses that are rented. Since then, there have been many questions about how one would be able to claim higher HRA exemption now. For someone that is a salaried employee and gets HRA, there would be no change in it. The limit on the HRA is for all of the other taxpayers, like self-employed professionals that are not getting the benefits of the HRA and they haven’t claimed the expense for the rent that is paid and comes under the other sections of the income tax while claiming a deduction that comes under Section 80GG. In this article, we will look at a few more specifics about this.

Section 80GG

Section 80GG has provisions for Deductions for House Rent paid, but this is provided that the deduction for paying the House Rent hasn’t been claimed under any other section that is under the Income Tax Act. To put this simply, if a salaried person is given HRA by the employer and he claims a deduction under it, he can’t claim a deduction for the payment of rent under Section 80GG. The ones who can claim for a deduction under Section 80GG are those taxpayers that are not getting the HRA benefit and haven’t claimed the expense for the rent under any other section that comes under the Income Tax Act. And as mentioned before, the HRA limit coming under Section 80GG has had a proposition to increase it from ₹24,000 to ₹60,000.

House Rent Allowance

House Rent Allowance or the HRA is something given by the employer to their employee so that they can meet the expenses of rent for the accommodation taken by the employee for residence. Salaried employees that live in rented places can claim HRA for lowered taxes and this can result in being partially or completely being exempted from taxes. The allowance is only for the expenses that have to do with rented places. If you’re not living in an accommodation that is rented, the allowance is entirely taxable. The HRA is to be calculated by the employer and must be shown in Form 16 if the receipts for rent are being submitted in time.

Self-employed professionals cannot claim this as they don’t earn a salary. But they can claim the benefits on expenses for house rent that comes under Section 80 GG but it is subject to specific conditions.

Can you Use 80GG if the Employer Hasn’t Provided HRA?

If payments are being made for rent for an unfurnished or furnished accommodation for residence but don’t get HRA from the employer, you do meet the conditions to claim the deduction that is provided under Section 80GG.

Can Both HRA and 80GG be Claimed?

This is possible for a person that is salaried for a part of the year and the rest of the year they spend being self-employed.

How Much Tax Can Be Saved From This Increase?

The HRA increase from ₹24,00 a year to ₹60,000 results in the saving of the following that is for different salaries.

Income	Five lacs	Ten lacs	Twenty lacs	One crore	One Crore
Increase under 80 GG	3708	7416	11,124	11,124	12792.6

Conditions to Meet So That HRA Can Be Claimed Under Section 80GG

Section 80GG of the 1961 Income Tax tax states that a businessman, self-employed person and a salaried person can claim for a tax deduction incurred from house rent.

• You are either salaried or self-employed.
• You haven’t received HRA at any point in the year that you are claiming 80GG in. If you are salaried, then you shouldn’t have in the receipt of the house rent allowance that is given.
• You, your child, minor or otherwise, your spouse, an undivided Hindu family that you’re a part of, should not be owning a residential accommodation in that very place.
• You have to be a resident of the house you’re claiming the tax exemption for. Any person can live with you, so you can claim this deduction.
• Deduction under Section 80GG isn’t allowed if you own residential property from where you’re getting income for house property that comes under the applicable sections. This means that you are the owner of a house in another city and use it for residence and have not rented it out; you can’t claim the deduction even if you live in a rented house and pay rent at the location of your work in another city.

If a taxpayer claims a deduction under Section 80GG, they would need to show a declaration in Form 10BA stating that they have satisfied the conditions. The amendments have been proposed to be made effective from April 1st, 2017.

How HRA can be Calculated Under Section 80GG

Let’s talk about how HRA can be calculated under Section 80GG. The lowest amount that can be considered for deduction under Section 80GG is as follows:

• 25% of the total annual income.
• Actual rent that is less than 10% of the income
• ₹2,000 a month or ₹24,000 per annum. And ₹5000 from the financial year for 2016-17 or ₹60,000 per annum.

When it comes to the calculator of the deduction for house rent, the total income is to be calculated post the reduction of tax deduction under the various sections of chapter VIA apart from Section 80GG, short term as well as long term gain.

How Is The Exemption From The HRA Calculated for A Salaried Person That Is Receiving HRA?

The deduction that is available would be the minimum of the following amounts:

• The HRA that is received.
• The actual amount paid for rent.
• 50% of the basic salary of all those living in metro cities, but for those in non-metro cities, it goes down to 40%.

The Total Income for the Purpose of Section 80GG

The income that comes in the 80GG calculation refers to the Adjusted Gross Total Income that is to be claimed to post the deduction of long term capital gain as well as short term capital gain that comes under Section 111A, 115a, or 115D and the deduction of 80C to 80U.

Compare Direct Mutual Funds Investing Platforms: Many of us are aware of the fact that investment in mutual funds is the new trend in the investment market. People prefer to invest in mutual funds because they are promised higher returns than fixed deposits. But most of them are not acquainted with this kind of investment, and they have a lot of questions such as how to invest in direct mutual funds?  Which platforms are available for investing in mutual funds? Is it safe to invest through these platforms? Comparison between some of the popular Mutual Funds Platforms such ETMoney, PayTM Money, Zerodha Coin, Kuvera, Groww? In this article, we will try our best to answer some of these questions and make people more clear about investment in mutual funds.

How to Buy Mutual Funds Directly?

Regular and direct mutual funds are considered to be the options available for buying the same mutual fund scheme, managed by the same fund managers who basically invest in the same stocks and bonds. The difference that lies between a regular mutual fund and a direct mutual fund is that in the case of a regular mutual fund, the investor has to pay a commission to the broker, whereas, in the case of direct mutual funds, the investor is not obliged to pay any commissions to anybody. Thus, due to this scheme, an investor can earn 0.50% – 1% more when he/she decides to invest in direct mutual funds.

According to recent Amfi data, direct mutual fund plans successfully managed to make a hold on 40% market share in the last six years.

If one has a proper understanding of mutual funds and has enough time and discipline to make an investment in mutual funds, then he/she can think of investing in mutual funds directly. Choosing mutual funds which have higher returns or have performed well in the last year is not the right approach for investment. There might be chances one can lose money if he/she chooses the wrong mutual fund.  One needs to understand that choosing the right mutual fund involves determining its return in the long term. So avoid being penny-wise and a pound foolish. Always try to gain knowledge about the tax rules associated with mutual funds.

Nowadays, with the advancement of technology, one can invest in mutual funds through apps and websites. Presently, there are 44 mutual fund companies in the country. Each company offers its customers an app or a website for investing in mutual funds. But before investing, one has to open an account with a mutual fund company. For example, if one is planning to invest in HDFC Equity Fund, then he/she needs to open an account with HDFC mutual fund. Similarly, if one is planning to invest in ICICI Prudential Bluechip Fund Direct, then he/she needs to open an account with ICICI Prudential Mutual Fund. One needs to open only one account with the mutual fund company, then he/she can invest in any of their mutual funds.

People generally search for platforms where one can find most of the mutual funds in one place. Platforms like ICICIDirect, HDFC Net banking provide these kinds of services, but they charge some commission for that.

Comparison Between Direct Mutual Funds Platform: ETMoney, PayTM Money, Zerodha Coin, Kuvera, Groww

Description	ET Money App	Paytm Money	Zerodha Coin	Kuvera	Groww
Play store Ratings	4.6	4.3	3.7	4.7	4.6
Incorporation Date	November 2016	September 2018	April 2017	October 2017	April 2017
Number of Users/Money Handled	The platform has 75 lakh Indian users and handles around $1 billion of investments.	It captured a 40% share in the mutual fund market within one year of its incorporation. They are targeting to cross the 1 crore SIP investor mark soon.	The platform has 1.5 lakh Indian users and handles around 3400 crores of investments.	The platform handles around 5500 crores of investments.	The platform has 30 lakh + Indian users
Number of Installations	5 million +	1 million +	100K +	100K +	1 million +
Mobile App Platforms	Android/ IOS	Android/ IOS	Android/ IOS	Android/ IOS	Android/ IOS
Official Website	It doesn’t have a website	It has an official website	It has an official website	It doesn’t have an official website	It has an official website
Features Offered other than Direct Mutual Funds Investment	Insurance purchase Getting Approved Loans Tracking and managing expenses	They are planning to launch a stock brokerage service soon, and the platform will allow its users to manage their pension via a single platform.	Users can invest in stocks, ETFs and bonds.	Users have the opportunity to buy or sell 24K 99.9% pure digital gold easily and securely.
Number of AMCs supported	All are supported	All are supported	40 are supported	38 are supported	35 and more are supported
How the company helps in mutual fund investments	The app gives recommendations and automates investments with smart and advanced solutions.	The app offers investment ideas and free risk investments.	–	The app provides advice for funds selection and also offers features like goal planning, tax savings and smart rebalancing.	They offer a whole list of mutual fund recommendations from experts and a list of top mutual funds from different categories.
Tracking of external investments	Yes, one can get a free portfolio health report for external mutual fund investments.	They keep a detailed tracking of all the investments.	Not available	Not available	One can track his/her investments from other apps such as ET money, Paytm Money, etc.

Be Careful of Direct Investments in Mutual Funds

One should not eye on huge returns and invest without planning properly. Investment without proper planning can turn out to be dangerous.

Those who do not have ample amount of time, knowledge and patience to keep an eye on their investment then they must consider hiring an advisor who can manage their investment and make a properly planned approach during every investment.

Don’t ever buy a lot of funds because they click away; always try to diversify thing to get a better return in the long run.

Vijay Kedia: Dr. Vijay Kishanlal Kedia is one of the most renowned and popular Indian stock market investors. He has been trading in the market since he was 14. He has been titled the “Market Master” by the Economic Times. As we all know, investing in the stock market is very risky, and one can lose almost everything; similarly, Dr. Vijay also lost and failed many times while investing in the market. At one point in time, he sold his mother’s jewelry to pay out his dues. But, he never lost hope and kept on investing, and today, he is one of the top Indian Investors and has a net worth of over 394.3 crores. He is an inspiration for many who are investing in stocks. His story of success, perseverance, and love for the stock market inspires many youngsters. In this article, we will unfold the life story of Dr. Vijay Kedia, his struggles, his quotes and his philosophies.

Journey In The Stock Market

Dr. Vijay Kedia is an eminent name in the stock market. He is known as the master of the market and has a net worth of crores. Dr. Vijay was born in a Marwari family in Kolkata. He belongs to a family of stockbrokers and started trading at the age of 14 with his grandfather. He lost his father when he was 19 years of age. He has been in the market for a very long now and has seen many ups and downs. Dr. Vijay Kedia is the director of Kedia Securities Pvt. Ltd., and his company is the largest stockholder of several listed companies. He and his company hold stakes in large companies like Aegis Logistics, GoDr.ej properties, Atul auto and several other listed companies.

When a person starts investing in the stock market, most family members oppose their decision thinking the stock market is for gambling. Similarly, when Dr. Kedia started investing in stocks, he faced criticism and opposition from his family members. His aunt once told him not to invest in the stock market as it is for gamblers, and if he did so, no one would marry him. But, with all these oppressions, he never lost hope and kept on investing, and today, we all know where Dr. Kedia stands in the market.

We all know that when we start to invest in the stock market, it isn’t easy, and sometimes we end up losing everything to the market. In an instance, Dr. Kedia also lost most of his money to the market and there came a time in his life, where he sold his mother’s jewellery to pay out his debts. After that incident, Dr. Vijay felt terrible and stopped trading in the market. After this instance, he started his business, where he supplied materials to tea gardens in Kolkata. Unfortunately, his business also failed. After this failure, Dr. Kedia again returned to the stock market and started trading, but after 10-12 years of trading, he realised that he hadn’t made a lot of profit. He mostly used the profits made by him to cover up the losses.

The journey of Dr. Vijay is full of hardships and sheer dedication. He failed many times trading in the stock market, but he never gave up. He also came to Mumbai in search of good business opportunities but was not successful.

Dr. Kedia is a successful speaker. He was a keynote speaker at IIM Ahmedabad and Banglore. He has delivered very significant speeches in different places, including the Bombay Stock Exchange and TEDxAmritsar. He was also invited to deliver a speech at the London Business School. In 2016, Dr. Kedia was featured on the Business World List of Successful Investors in India, and he was number 13 on the list.

Early Investments

Dr. Vijay is involved in the market since a very young age. During his early years in the market, he saw a lot of downfall and failures. But in the year 1990, He came to Mumbai with the help of his friend Sameer Kedia. While he came to Mumbai, he just had 1 lakh in his savings. For the first two years, he faced many troubles, staying as a paying guest and changing places.

In 1992, he bought shares of ACC for ₹300, which were sold at ₹3,000 within a year. With the proceeds, he bought a 1BHK in Mumbai and called his family. In 1992, he also invested money in Punjab Tractors which moved 4-5 times within three years, giving Dr. Kedia a good profit.

In 2004-2005, he invested in three such shares, which appreciated more than 100 times in the next 10-12 years. Those shares were Atul Auto, Aegis Logistics, and Cera Sanitaryware. In 2017, his stock portfolio rose to 170%. In 2016, Dr. Vijay Kedia conferred his doctorate in the field of Management.

Investment Strategy of Dr. Kedia

Dr. Vijay Kedia adheres to a simple strategy called SMILE which translates to Small in size, Medium in experience, Large in aspiration, and Extra-large in market potential. On being asked about his strategy, Dr. Kedia replied, “One should scout for companies with good management. Find very good management, very honest management, and see the products in which the management is going to grow, going to outperform its peers and the economy… invest in those companies for the nest 10-15 years, and one cannot go wrong.”

He always says that one should always bet big and ride through tough times. According to Dr. Vijay, luck plays a big part in stock investments, and knowledge, courage, patience are the cornerstones.

Stock Portfolio of Dr. Vijay Kedia

Here we have provided the stock portfolio of Dr. Vijay as of March 2021:

Name Of Stock	Percentage Holding	Value Of Holding (in₹)
Innovators Facade Systems Ltd.	10.66%	8.8Cr
Lykis Ltd	9.98%	5.3Cr
Repro India Ltd.	7.46%	34.5Cr
Tejas Network Ltd.	4.20%	72.5Cr
Everest Industries Ltd.	3.94%	19.8Cr
Vaibhav Global Ltd.	1.92%	271.7Cr
Neuland Laboratories Ltd.	1.56%	40.4Cr
Cheviot Company Ltd.	1.54%	7.3Cr
Atul Auto Ltd.	1.47%	6.1Cr
Ramco Systems Ltd.	1.47%	26.5Cr
Panasonic Energy India Company Ltd.	1.24%	2.0Cr
Cera Sanitaryware Ltd.	1.04%	54.1Cr
Heritage Foods Ltd.	1.04%	16.2Cr

Lessons to Learn From Dr. Vijay Kedia

In an interview, Dr. Kedia said that he started as a compelled trader in Kolkata as he had significantly less money to invest in stocks. He also said that the stock market rewarded him as a beginner, but he saw more downs than ups on a later part. From his failures, Dr. Kedia learned that the stock market is the hardest way to making the easiest money. Trading in stocks requires a lot of concentration and discipline. He finally learned the art of cutting losses, which is most important in stock market trading. He said that learning to cut losses changed things for him in the stock market positively.

According to Dr. Kedia, no academic degree can guarantee success in the stock market, only experience and learn from mistakes is the key to success in the stock market. Trading in stocks is a continuous learning process.

Quotes By Dr. Vijay Kedia

Being a successful Investor in India, Dr. Kedia has said some of the most beautiful and inspiring lines on the stock market. Here, we present to you quotes by Dr. Kedia.

• “Only two people can buy at the bottom and sell at the top – One is God, and the other is a liar.” – Dr. Vijay Kedia.
• “Read not only between the lines but also what is not written.” – Dr. Vijay Kedia.
• “Market rewards you as per your perception about it. If you treat it as gambling, then it will prove a gamble for you.” – Dr. Vijay Kedia.
• “Investing is like Yoga. Body, mind, and soul have to be aligned.” – Dr. Vijay Kedia.
• “Better to lose money in a good company, rather than making a profit in a bad one.” – Dr. Vijay Kedia.
• “Do not always trust what you see. In a bull market, even a duck looks like a swan.” – Dr. Vijay Kedia.
• “In the market, stupid actions do not have an equal but severe opposite reaction”. – Dr. Vijay Kedia.
• “Investment is somewhat like cricket, where you change your game plan as per the format.” – Dr. Vijay Kedia.
• “Liquidity is as essential for the market as blood pressure to the human body. But it is not good either on the higher or lower side. It should be balanced.” – Dr. Vijay Kedia.
• “Investing is a business, investment is a project, and investor is a promoter.” – Dr. Vijay Kedia.
• “A Bull market is very much like being in love. You don’t realize its value till it’s gone.” – Dr. Vijay Kedia.
• “Always have fixed source of income as the stock market is volatile.” – Dr. Vijay Kedia.

In The End…

It can be easily seen from the story of Dr.. Vijay that investing in the stock market can be very risky and, at the same time, much rewarding. Stock market investments require sheer dedication, discipline, and concentration. Dr. Kedia inspires many with his story of perseverance, patience and passion for the stock market. We should all learn from Dr. Vijay Kedia to be successful in the market.

Understanding Returns: People invest their money in different platforms with the objective to earn returns. Before investing, one has to calculate his/her return from different platforms so that he/she can make the right investment choice. There are different ways that are used for calculating returns, such as CAGR, XIRR, Rolling Returns. For example, people usually prefer simple point-to-point returns (absolute returns) when the investment period is less than one year, and they prefer CAGR in the case of long-term investments. In this article, we will discuss some ways that are used for calculating returns for the purpose of comparison.

How to Calculate Returns?

Return is considered to be the gain or loss of an investor, which is calculated in the value of an asset over a period of time. Returns are generally represented in the form of a percentage. In simple words, the investment return is considered to be the change in the value of investment money over a period of time. For example, Rohan invested 10000/- in a mutual fund, and after holding it for 2 years, the invested money became 20000/-

The general rule which most investors are aware of is that the more risk one takes, he/she becomes more potential to earn higher returns. This return might also turn into loss if things go sideways. Return on investment seems to have two basic components:-

Interest or dividends – This is the income that is generated by the underlying investment.

Appreciation (Depreciation) – This is considered to be an increase or decrease in the value of an investment.

Necessary To Find Return On Investment

It is necessary to find the return on investment because:

• calculating the return on investment plays a key role in the investment review planning process. This will help a person to know whether his/her investments are on the right track or not. If they are not on track, then he/she needs to make the necessary adjustments as soon as possible.
• calculating the return on investment also helps in making the right investment choice among the options that are available in the market, such as investment in gold, real estate, stocks, mutual funds, etc.

Absolute Return

Absolute return is considered to be the increase or decrease in the value of an investment over a particular period of time. This return is expressed in percentage terms. This return seems to get calculated through the following process:

Absolute returns = 100 × (Selling Price – Cost Price) / (Cost Price)

For example, A person invested in an asset in January 2013 at a price of  Rs 12000.  And you sold the investment in January 2020 at the cost of Rs 32000. Absolute returns, in this case, will be:

Absolute return = 100 × (32000 – 12000)/12000

= 100 × (20000/12000)

=  166.67%

This technique of measuring the return on investment is the simplest as it doesn’t consider the time period. Most of the time, this technique shows a huge amount of return, thus making people excited and impressed.

Simple Annualised Return

This is considered to be the increase in the value of a particular investment. This seems to be expressed as a percentage per year.

Simple Annualized Return = Absolute Returns calculated / Time period given.

Suppose investment of Rs 1,00,000  becomes 1,30,000 over three years.

Absolute Return = 100 × ( 130000 – 100000/100000 ) = 30%

Simple Annualised Return = 30/3 = 10%

Average Annual Return (AAR)

Average Annual Return is considered as the average of a series of the rate of returns on a particular investment over a period of time. The formula of AAR is as follows:

AAR = (Return from Period 1 + Return from Period 2 + Return from Period 3 + …Return from Period N) / Number of Periods or N

Assume that an investment ABC seems to records the following annual returns:

Year	Annual Return
2017	20%
2018	25%
2019	22%
2020	21%

AAR = (20% + 25% + 22% + 21%) / 4

= 88/4

= 22%

Compound Annual Growth Rate (GAGR)

CAGR is considered to be the year over the year growth rate of a particular investment over a specific period of time. It is considered as an imaginary number that is meant for describing the rate at which the investment must have grown if it grew at a steady pace.

Let’s assume a person invested Rs 10,000 in Apr 2019, and by Apr 2020, his/her investment became Rs 30,000; by Apr 2022, it became Rs 15,000. Calculate the return on investment for the period.

Description	Profit/Loss ( In a particular period)	Initial Amount for the particular period	Profit/loss percentage in that period
Return in 2019 – 20	20000	10000	100 × (20,000/10,000) = 200%
Return in 2020 – 21	-15000	30000	100 × (-15,000/30,000) = -50%
Absolute Return between 2019 – 21	15000 – 10000 = 5000	10000	100 × (5,000/10,000) = 50%
Simple Annualised Return between 2019 – 21	5000 in two years	10000	100 × [(5000/10,000) × 2]= 25%

CAGR is considered to be the best way to smoothen out the returns. It helps to calculate the annual growth rate on the investment whose value has not been the same over the years and has fluctuated year to year.

CAGR Formula = [(Ending Value / Beginning Value )^ (1 / Number of years) ] – 1

Relative Return

Relative return enables a person to determine the true return he/she had earned from the invested fund over and above the benchmark. It determines how the return of stock performs when it is compared to the benchmark. This can be very useful while making decisions regarding investments. For example, if the stock one is holding achieves a return of 20% while the benchmark index informs that the nifty managed to get a return of 15.58%, then it is considered that the particular stock has achieved a relative return of 4.42%. A stock that seems to fall less than the benchmark is considered as a good performance stock because it manages to contain losses for the investor.

Peer Returns

Let’s say a person invests in the State Bank of India, and the value of the stock increases by 7% in a year. The value of other bank stocks also increases, such as HDFC bank by 9%, ICICI Bank by 6.5%, Punjab National Bank (PNB) by 5% and Banking Index by 6%. This shows that SBI has given a better return than the banking index and, from among its peers, better than PNB but less than HDFC bank and ICICI bank. Peer return helps to select where to make the investment within a particular sector or sub-group of an asset class such as banking stock, as per the above example.

Internal Rate of Return

The internal rate of return is considered to be a metric that is generally used in financial analysis for estimating the profitability of the potential investments. The internal rate of return is considered to be a discounted rate that makes the net present value of all the cash flows zero when it is used in discounted cash flow analysis.

What is Electronic Insurance Account or eIA?: Insurance policy papers are difficult to manage. Ensuring that the health insurance policy of the entire family stays at one place along with other types of insurance papers such as your life insurance is cumbersome. To have all your insurance policies stored in one place safely and in a well-mannered way would be of so much help.

An electronic insurance account helps you in just that. Much like the certificate of securities, bonds and mutual funds can be stored in the Demat account in the electronic format, insurance policies can also be stored electronically in a separate distinct electronic insurance account with an Insurance repository. Here in this article, we will discuss the ins and outs of an electronic insurance account and guide you on how to open your electronic insurance account.

E-insurance Policy

All the insurance policies stored in an e-insurance account are termed as an e-insurance policy. An electronic insurance account acts as a depository for all of your health insurance policies, life insurance policy and other insurance policies. It is a safe and effective method to store your insurance policies in a much more manageable and less tiresome method. It saves you from all the unnecessary paperwork. Also, all your insurance policies are just a click away and in a matter of seconds, all of your insurance policy is in front of you along with all the relevant information.

An eIA is a depository for all of your insurance policies stored in an electronic manner. An eIA can be opened by a person who has insurance policies or who proposes to take insurance policies on his own. In the case of a minor, An eIA can be opened by his legal and natural guardian who proposes the life of a minor in case of life insurance policies. Only some certain companies, who act as insurance repositories can store the data in electronic form for insurers and open electronic insurance accounts for policyholders.

Both new and existing life, health and other general insurance policies can be credited to this account. The e-Insurance account can be used to hold all insurance policies such as health insurance policies, life insurance, car insurance etc. are eligible to be held in electronic form as per the IRDA guidelines. It includes-

• All the individual life insurance policies including those issued to groups by registered life insurance companies with IRDA.
• All general policies held by individuals including those held by groups.
• Any other class of Insurance policy if notified by IRDA under the guidelines.

It is mandatory for you to appoint an authorised representative and mention his contact information. In case the account holder is incapable of accessing the account, the authorized person can access the e-Insurance account. The authorized person is the one appointed by the account holder, who can access the account in the absence or demise of the account holder.

Features of an E-Insurance Account

Some of the salient features of an Electronic insurance account are as follows:

• An individual can only have one eIA in his/her name.
• All the insurance policies such as life insurance policy, health insurance policies and other general insurance policy from multiple insurers can be maintained in the same account.
• A unique account number is assigned to your account that can be used for all correspondence.
• To issue the policy in an electronic format one can simply insert the e-insurance account number in their proposal form and request your insurance policy electronic format when buying an insurance policy online.
• One is not required to submit the KYC details again as they are already verified by the insurance repository.
• A unique login ID and password is provided for every account so that the account holder can access their e-insurance account.

Advantages of an E-Insurance Account

Having an e-insurance account comes with a lot of added benefits. These are mentioned below:

1. Safety and Security- By having an e-insurance policy you can save your policy from theft or damage. And since they are in electronic format you need not worry about losing them as well.
2. Consolidated view- By storing all of your insurance policies in a single place you can view them all at once and keep track of a variety of insurance policies at once.
3. One-Time KYC Submission- You are required to submit your KYC details only once when creating your e-insurance account. For all the insurance policies you then purchase online you are only required to submit the e-insurance account number and the policy will be issued.
4. Environmental Friendly- Having an eIA saves you from unnecessary paperwork and promotes a paperless environment that is beneficial for our natural surroundings as well.
5. Easy Premium Payments- After the e-account is active, you can pay the insurance premium online. This saves you a lot of time spent on long queues paying for your premium through cash or cheques in a much hassle-free way.
6. Easy Monitoring- WIth all your insurance policies in one place you can easily monitor your insurance policies. Also, the insurance repository sends a yearly account statement for you to keep track of your insurance policies.
7. No Insurance? No Problem- It is not necessary to purchase an insurance policy before you can open your e-insurance account.
8. Better Service- An eIA holder can easily make any changes in the contact details, address for all of your insurance policies.

What is an Insurance Repository?

Insurance repositories are companies that are approved by IRDA that store your information online and open an e-insurance account for the policyholder. A total of four insurance repositories are registered with the IRDA. These are-

1. Central Insurance Repository Ltd.
2. NSDL Database Management Ltd.
3. CAMS Repository Services Ltd.
4. Karvy Insurance Repository Ltd.

List of Various Insurance Companies

The list of various insurance companies tied with these insurance repositories are as follows:

Insurance Repository	Insurance Companies
NSDL Database Management Ltd.	ICICI Prudential Life Insurance Company Limited HDFC Standard Life Insurance Company Limited PNB MetLife India Insurance Company Limited Star Union Dai-chi Life Insurance Company Limited IndiaFirst Life Insurance Company Limited Reliance Life Insurance Company Limited Future Generali India Life Insurance Company Limited
Karvy Insurance Repository Ltd.	Bharti AXA DLF Prameica Future Generali ICICI Prudential Life Insurance Company Limited Edelweiss Tokio TATA AIG Insurance
CAMS Repository Services Ltd.	ICICI Prudential Life Insurance Company Limited PNB MetLife India Insurance Company Limited IndiaFirst Life Insurance Company Limited Reliance Life Insurance Company Limited Kotak Life Insurance
Central Insurance Repository Ltd.

How to Open an E-insurance Account?

Opening an e-insurance account is an easy and well-defined process. Here is the step-by-step information of opening an e-insurance account.

• First of all, you will have to choose your preferred Insurance repository out of the four approved by the IRDA.
  • Central Insurance Repository Ltd.
  • NSDL Database Management Ltd.
  • CAMS Repository Services Ltd.
  • Karvy Insurance Repository Ltd.
• Download the eIA opening form and fill in your relevant details.
• Attach self-attested documents including copies of identity proof, date of birth proof and address proof for KYC.
• Provide personal details, bank details through a cancelled cheque and contact details.
• Submit the following form to your insurance company.
• In case of opening an eIA account through your insurance provider, you need not fill in the KYC details. Your insurance provides will send your KYC details to the repository itself.

Necessary Documents Required for Electronic Insurance Account or eIA?

The following list of documents is required to open your e-insurance account.

• A cancelled cheque, containing your bank details.
• A latest passport size coloured photograph.
• Self-attested identity proof such as Voter ID card, Aadhaar card, passport etc.
• Self-attested copy of age proof.

Conclusion on What is Electronic Insurance Account or eIA?

Having an e-insurance account will help you in managing your insurance policies well. It will allow you to better monitor your policies and pay the premium with ease. Also, if you are dissatisfied with the service provided you can change your insurance repository anytime. An electronic insurance account has a lot of benefits and features that help in managing and monitoring all of your insurance policies.

About the Legislative Assembly Member (MLA)

The Indian political structure has a three-tiered federal design, with every level providing administrative positions. According to the Constitutional Provisions of India, the Federation or Central Government is the country’s highest regulatory assemblage.

It outlines a portion of its responsibilities to the representative federal entities that represent each state’s State And local governments. This is the second level in the construction.

In other words, each state is vested with exclusive constitutional action and is overseen by the governing authorities in each state. The local-level Government of Panchayats and Municipalities is the third layer of the federalist system.

The State Legislative Assembly is the legislative body of a state in India. Much the same as the central Government has the Parliament as its legislative body, and each state has its own regional Parliament called the legislative assembly.

The parliament-passed legislation, on the other hand, stretches to the whole country. Instantaneously, the provisions issued by the state legislative assembly correspond only to that particular state.

State Legislative Assembly is likewise called Vidhan Sabha. In addition, states either have a unicameral or bicameral assembly.

Unicameral typically includes only one legislative chamber, whereas bicameral refers to having two authoritative chambers.

In the bicameral framework, the lower House of a state’s legislature is categorized as the State Legislative Assembly, and the upper House is known as the State Legislative Council.

India as a country consists of 28 states and nine union territories. 22 of the 28 states have unicameral state legislatures, while six have bicameral state legislatures. Three of the nine union territories have state legislative bodies.

What Exactly is a Member of the Legislative Assembly?

MLA is an abbreviation for Member of Legislative Assembly. A state legislative assembly a particular number of electorates relying upon the state’s demographics.

A candidate is chosen directly by the constituency members and who at that point becomes a Member of the Legislative Assembly or MLA. MLAs are elected for a five-year term.

Qualification Standards for an MLA Candidature

• A person must be a citizen of India and must be at least 25 years old.
• A person must also be a suffragist or elector for any Legislative Assembly constituency in that state under the Representation of the People Act, 1951.
• An individual does not hold any profit-making office under the Government of India or any state government other than a Minister for the Indian Union.
• A person’s mind must be of sound mental health.
• An individual cannot remain an MLA if he or she has been convicted by a court or charged and convicted in any particular case, according to the Representation of the People Act, 1951.

The Procedure Followed for Electing an MLA

After the Legislative Assembly’s current tenure expires, the members are elected directly by the voters of each district. Elections to the Legislative Assembly are organized in each state at regular intervals on a five-year cycle.

One should take note of the fact that the assembly elections to every one of the states are not held together around the same time. Representatives are directly elected by an electorate that votes in accordance with universal suffrage.

Each Legislative Assembly Member is expected and essentially needed to address and voice the worries of their constituents.

The Governor of a state has the authority to choose one individual of the Anglo-Indian minority when they believe that the community does not have sufficient representation in the assembly and needs satisfactory portrayal.

The MLA’s Position and Duties

1. Legislative authority – MLAs utilize their parliamentary power when it comes to enacting legislation. A bill will not become law in the event that the bill doesn’t gain the approval of the majority of MLAs in the House.
2. Financial authority – The legislative assembly makes all economic decisions. It would be not easy to pave the way for the entire state’s development without appropriate monetary, budgetary allocations. After submitting a concise report of formative exercises in their separate legislative constituency, MLAs receive budget approval from the state.
3. Electoral rights – When it is time to choose the President of the country, elected MPs and MLAs are given the opportunity to carry out their electoral obligations. They vote in Favour as to who will become the succeeding President.
4. Executive authority – The efficacy of any scheme is dependent on its timely execution. MLAs discharge their corporate management here. They must guarantee that all potential recipients receive the guaranteed advantages. Aside from that, MLAs maintain that government offices do their part appropriately.
5. Constructional rights – Based on the current Constitutional Provisions of India, a portion of the state rules can be changed if a bill has the assent of at least half of the elected MLAs in the provincial legislature.

An MLA’s Pay

A Member of the Legislative Assembly of a state in India, as a Member of the Parliament of the nation, receives few different recompenses other than the fundamental compensation, such as constituency compensation, sumptuous remittances, expense allowances, and day by day recompenses.

MLAs’ annual remuneration fluctuates, relying on their month-to-month pay rates determined by the particular jurisdiction.

According to the provisions, as mentioned in Article 164 of the Indian Constitution, the allowance of an MLA in the country is determined by the respective state legislatures. As a result, it differs starting with one state then onto the next.

Telangana currently pays the most significant wage to MLAs, Rs. 2.5 Lakh a month, compared to other states. Tripura, on the other hand, offers the lowest paycheck to MLAs at Rs. 17,500.

Different Additional Advantages

Aside from their monthly income, MLAs often obtain additional resources to pay other expenditures. They have an everyday stipend for gasoline bills. Besides that, government authorities cover both their official and recreational tours.

The state authority compensates their office personnel. The Government also provides them with medical services. As a duly elected MLA, each and every one of them is entitled to extra payments to pay for lodging, phone and other communication services, and utility bills.

Former MLAs are Eligible for A Pension

When a member retires from their MLA role, they are entitled to a pension for life from the provincial Government.

The sum of the grant will be determined by the last paycheck received. If the previous MLA dies, his or her partner will receive the benefit of the pension as a family pension.

Each state has Its Own Pay Structure

The salaries paid by different states are listed below.

• Telangana offers a salary of 2,50,000 (Two lakh fifty thousand) per month to the members of the legislative assemblies.
• Uttar Pradesh pays a monthly salary of Rs.1,87,000 (One lakh eighty-seven thousand) to the Members of the legislative assembly.
• Andhra Pradesh offers a monthly remuneration of Rs.1,30,000 (One lakh thirty thousand) to the Members of the legislative assembly.
• Delhi offers a salary of Rs.2,10,000 (Two lakh ten thousand) per month to the Members of the legislative assembly.
• Maharashtra has a salary structure of Rs.1,50,000 (One lakh fifty thousand) per month for the Members of the legislative assembly.
• Members of the legislative assembly in Himachal Pradesh are paid a monthly salary of Rs.1,25,000 (one lakh twenty-five thousand).
• Tamil Nadu has a monthly salary of Rs.1,13,000 (One lakh thirteen thousand) per month for the Members of the legislative assembly.
• Madhya Pradesh offers a monthly salary of Rs.1,10,000 (One lakh ten thousand) to the legislative assembly members.
• Haryana’s legislative assembly members are paid a monthly stipend of Rs.1,15,000 (one lakh fifteen thousand).
• Jharkhand pays Rs.1,11,000 (One lakh eleven thousand) per month to the Members of the legislative assembly.
• Chhattisgarh offers a salary of Rs.1,10,000 (One lakh ten thousand) per month to the Members of the legislative assembly.
• Goa gives Rs.1,00,000 (One lakh) per month to the Members of the legislative assembly.
• Punjab has a monthly salary of Rs.1,00,000 (one lakh) for the Members of the legislative assembly.
• West Bengal offers a monthly remuneration of Rs.96,000 (Ninety-six thousand) to the legislative assembly members.
• Bihar has a pay scale of Rs.1,00,000 (One lakh) per month for the Members of the legislative assembly.
• Karnataka offers a salary of Rs.60,000 (Sixty thousand) per month to the Members of the legislative assembly.
• Gujarat pays a monthly salary of Rs.47,000 (Forty thousand) to the Members of the legislative assembly.
• Sikkim pays Rs.52,000 (Fifty-two thousand) as the monthly salary to the Members of the legislative assembly.
• Rajasthan provides a monthly salary of Rs.40,000 (Forty thousand) to the Members of the legislative assembly.
• Kerala provides a salary of Rs.42,000 (Forty-two thousand) per month to the Members of the legislative assembly.
• Odisha has a pay structure of Rs.30,000 (Thirty thousand) per month reserved for the Members of the legislative assembly.
• Uttarakhand offers a monthly salary of Rs.35,000 (Thirty-five thousand) to the Members of the legislative assembly.
• Arunachal Pradesh has a monthly salary structure of Rs.25,000 (Twenty-five thousand) for the Members of the legislative assembly.
• Manipur offers a monthly remuneration of Rs.18,500 (Eighteen thousand five hundred) to the Members of the legislative assembly.
• Meghalaya pays a salary of Rs.28,000 (Twenty-eight thousand) per month to the Members of the legislative assembly.
• Nagaland offers a monthly salary of Rs.18,000 (Eighteen thousand) to the Members of the legislative assembly.
• Tripura has a salary structure of Rs.17,500 (Seventeen thousand five hundred) per month for the Members of the legislative assembly.
• Assam provides a monthly salary of Rs.20,000 (Twenty thousand) to the Members of the legislative assembly.

What Exactly is a Member of Parliament?

Aside from MLAs, MPs, or Members of Parliament, grab a chair in the legislative House. These people have a specific role within the administrative House. These individual people may appear from both political and non-political foundations.

An MP’s Position and Functions

The elected MPs have three essential obligations.

They host their commitments towards their respective political party, their electorate or voting demographic, and the Parliament.

They host their commitments towards their respective political party, their electorate or voting demographic, and the Parliament.

When the Parliament is in session, they are supposed to secure parliamentary meetings.

They actively participate in the voting process and other democratic interactions and play an important role in enacting legislation.

Every one of the MPs must raise the topics that are prevalent in their respective legislative zone.

They should do whatever it may take to eliminate these issues from their constituencies.

Monthly Salary of an MP

A Member of Parliament gets a monthly pension of Rs. 1 lakh. Previously, they were entitled to a less sum of money.

With the revision of the Pay Commission, the sums have been expanded to remunerate the MPs sufficiently.

Salary Every Year

Each MP receives a yearly compensation of up to Rs. 12 lakhs. A gauge shows that consistently, the central Government spends up to Rs. 2.7 lakhs a month on each MP.

This figure incorporates the salaries as well as all other fixed provisions.

Details on Allowances and Other Extra Perks

Previously, each MP was entitled to Rs. 45,000 as constituency reimbursement. However, currently, MPs will obtain Rs. 70,000 as constituency allowance after the revision of the pay commission.

In addition, their office salary has been gone up Significantly from Rs.45,000 to Rs. 60,000. The furniture budget was Rs. 75,000, but the Parliamentary committee multiplied it to Rs. 1 lakh.

Aside from that, they would get resources to pay for their official employees. They will likewise get an extra travel recompense.

Pension Specifics of former MP

The Indian Constitution also has a clause for retired MPs to get a pension benefit. The central Government would include a monthly pension to all people who have formerly served as Members of Parliament.

Each and every former MP will earn a monthly pension of Rs. 20,000. If the person served as an MP for more than five years, he or she would be entitled to an additional payment of Rs. 1500.

Besides these benefits, retired legislators would be eligible for free AC train tickets and medical treatment facilities. After the death of the former MP, their partner or dependent family members may still earn a family pension.

The family pension is equivalent to half of what the previous MP used to get.

Which Department is Responsible for Monitoring Salary Payments?

The Union Finance Department screens all cash contributions rendered to Members of Parliament. The central finance department monitors all charges.

You will receive a solid history of budgetary dispatches in separate accounts, regardless of whether it is the monthly payout of wages and allowances or the pension.

The compensation and remittance of MPs have been highly expanded as a result of the latest reforms.

This increased remuneration provides them with the much-needed boost to carry out their roles and obligations. The MPs are responsible for the constituency’s growth.

Indian Prime Minister’s Salary and Benefits

We all seem to be informed that the Indian Prime minister enjoys numerous offices and decent compensation.

The Prime Minister of India is the head of the Government, and simultaneously the Chief Advisor to the President of India, the Leader of the Council of Ministers, and the Leader of the lion’s share party in the Lok Sabha, as indicated by our Constitution.

He is the Leader of the State of India’s legislative body.

In any case, few people are informed of how much compensation and what offices are presented to the Prime Minister of India.

The Procedure Followed for the Prime Ministerial Election

According to the guidelines as mentioned in the Indian Constitution, the Prime Minister of India is appointed by the President of India, who nominates the party’s Leader with the lion’s share of the vote in the Lok Sabha as the Prime Minister of India.

Under a situation when no one party or coalition has a majority, the President appoints the Leader of the strongest party or alliance as Prime Minister. But even so, the PM must secure the parliamentary majority in the Lower House right on time as could be expected.

The Prime Minister may be chosen by either the Lok Sabha or the Rajya Sabha. When the PM is not a member of any House of Parliament, they must be voted to one within six months of being appointed.

He is the Leader of the House, of which he is a member, as the Prime Minister of the nation.

Prime Minister’s Term and Retirement Age

The Prime Minister, unlike the President, does not have a predetermined term of service. The Prime Minister’s overall tenure is five years, which matches the Lok Sabha’s running life period.

However, given the situation that he fails the vote of confidence in the Lower House, his term could end earlier. In this way, it tends to be said that he stays in power as long as he appreciates the confidence of the Lok Sabha.

Through official writing to the President, the Prime Minister can likewise make his resignation known.

The Prime Minister’s position has no specific term limits. In addition, there is no official retirement age as well.

Qualification Criteria to be Elected as the Prime Minister of India

To be qualified for the role of Prime Minister of India, an individual must:

• The said person must have been a member of either the Lok Sabha or the Rajya Sabha.
• An individual has to be a resident and citizen of India essentially.
• Complete 25 years old in the event that he is an individual from the Lok Sabha or 30 years on the off chance that he is a Rajya Sabha part.

An individual cannot contest for the position of the Prime Minister of India if he holds any profit-making office under the Government of India, any state government, or any local or other authority is liable to the jurisdiction of any of the governments as mentioned earlier.

What is the Prime Minister of India’s Salary?

• The Prime Minister is paid approximately Rs.19.2 lakh a year. His monthly wage is 1.60 lakh rupees.
• Along with this, the PM is entitled to many of the government benefits and amenities. According to the RTI of 2013, the Prime Minister’s fixed allowance is 50 thousand rupees, the MP pension is 45 thousand rupees, and the special pay is 3000 rupees.

What Other Services is India’s Prime Minister Entitled To Enjoy?

• Besides the salary given to the country’s Prime Minister, several other amenities are provided as well, such as 7 RCR’s luxury bungalow in Delhi known as the “Panchavati,” the unique protection limousine vehicle, security such as SPG, a private jet plane for official use and personal workers, so on and so forth.
• Besides that, the Government of India also pays for the Prime Minister’s stay, lodging, and other travel-related interests while on an official tour or otherwise.
• The prime minister drives the ministerial state sedan, which is a BMW 750i currently at the minute. In addition, when he has to fly to various countries or regions, he uses the official Air India aircraft reserved for him.

Pension Payment Benefit for the Prime Minister

• The pension scheme provides free lodging so they will stay in for the rest of their life.
• Even after they have resigned, they will have unrestricted admission to all trains in India. They will be able to fly to any place and at whatever point they need for the rest of their lives, as well as six business class domestic airline tickets for the first year.
• For about the initial five years after their discharge, they will be assisted by a secretarial aide-de-camp of 14 individuals picked and funded by the Government.
• However, the Vajpayee administration allowed both PV Narasimha Rao and Gujral to increase their staffing levels as appropriate.
• In the wake of the completion of the very first five years, they will be given one personal secretary, a peon, and Rs.6000 every month to keep the office functioning.
• They are registered for SPG security for the first year.

SPG’s overall budget in the year 2003 was Rs 75,000 crore, and it recruited over 3,000 employees.

The Lok Sabha subsequently passed the Special Protection Group (Amendment) Bill, which reduces the Prime Minister’s SPG protection for one year after retiring, i.e. the former prime minister would only have SPG security for one year.

Meaning of Relative for Section 56(2): The gift is something we prefer to get from our adored ones, yet are we mindful about the assessment suggestions on the equivalent. Under Income Tax Act 1961, there are numerous standards on accepting blessings dependent on the idea of the blessing and from whom the individual has gotten the gift.

This article gives a rundown of family members covered in Section 56(2)(VII) of the Income Tax Act,1961. According to Section 56(2)(VII), if any gift from relative who are covered under after rundown will be excluded from the collector’s possession.

Anyway, the meaning of the term ‘Relative’, which is given in the first clarification to the stipulation to area 56(2)(VII), is extremely wide on its own.

According to the Income charge act, the expression “family members” is portrayed in detail. As gift got as money, cheque or great from your relative is wholly excluded from the charge. So if you get cash from any of your family members recorded underneath, you are not responsible for paying any expense on something very similar.

Gifts Received From Relatives

• Father or Mother of the person
• Sibling or Sister of the person
• Child or little girl of the person
• Fantastic child or Grand girl of the person
• A mate of the individual, i.e. spouse or wife of the person
• Sister’s Husband or Brother’s Wife of the person
• Sibling or Sister of the life partner (Wife) of the person
• Sibling or Sister of the mate (Husband) of the person
• Sibling or Sister of the Mother of the person
• Mother’s Sister’s Husband of the person
• Spouse’s sibling’s significant other of the person.
• Father’s Brother of the person
• Father’s Brother’s Wife of the person
• Father’s Sister’s Husband of the person
• Father’s Sister of the person
• Granddad or Grand Mother of the person
• Incredible Grand Father or Great Grand Mother of the person
• Little girl’s Husband of the person
• Child’s wife of the person
• Spouse’s Father or Wife’s Mother of the person
• Spouse’s Father or Husband’s Mother of the person
• Spouse’s Grand Father of the person
• Spouse’s Grand Mother of the person
• Spouse’s Grand Father of the person
• Spouse’s Grand Mother of the person
• Spouse’s Great Grand Father of the person
• Spouse’s Great Grand Mother of the person
• Spouse’s Great Grand Father of the person
• Spouse’s Great Grand Mother of the person
• Sibling’s wife of the person
• Mother’s Brother’s Wife of the person
• Spouse’s Brother’s Wife of the person

Maternity Benefit Act: Maternity Leave in India has changed considering the current situation where women are dominant members of any work arrangement. Pregnancy is a phase in life; many families anticipate it to happen to them someday. Many families plan on pregnancy and child-birth, and with childbirth, there is always an associated concern with the joy and excitement that it entails. The Maternity Benefit (Amendment) Act, which the Rajya Sabha passed in August 2016, has also been approved by the Lok Sabha in March 2017.

Maternity leave is an act to regulate women’s employment in a specific establishment for a certain period before and after childbirth. A woman employee is entitled to maternity benefits at the rate of her average daily wage for her absence, for a maximum period of 26 weeks as per the Maternity Benefits Act of 1961. HR policies for Maternity Leave differ from company to company. One needs to check with their company’s HR department to find out more about its policy on maternity leave.

Maternity Benefit Act

1. The employment of women before and after childbirth is regulated by the Maternity Benefit Act.
2. It provides maternity leaves and certain other benefits such as medical termination of pregnancy, miscarriage, etc.
3. It applies to factories, mines, the circus industry, plantations and shops and institutions employing at least ten employees, except female employees who are covered under the Employees’ State Insurance Act, 1948 (ESI Act)
4. Provides maternity compensations to female employees working in specified companies and prohibits women in the unorganised division
5. Female employees working in covered organisations are entitled to maternity benefits if they have worked with the last twelve months prior to the delivery date for at least a period of 80 days

In addition to the Maternity Act, special other labour laws in India also provide for maternity privileges. The ESIC Maternity leave salary procedure includes payment of wages to an insured woman during her 26-week maternity leave. Women serving in publications or journalists are also authorised to maternity leave of 3 months under the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955. Similarly, female workers working in factories are allowed three months of maternity leaves with complete wages under the Factories Act, 1948.

ESIC Maternity Leave

ESI stands for Employee State Insurance conducted by the Employee State Insurance Corporation (ESIC), an autonomous body formed by the law under the Ministry of Labour and Employment, Government of India. The ESIC maternity leaves salary procedure presents 100% of average daily wages in cash up to 26 weeks in confinement and six weeks in the cause of miscarriage, during maternity leave and for adopting and commissioning mothers, a period of 12 weeks.

Wages and Employee Rights

The Maternity Benefit Act states that a woman will be paid from her average daily wage in the three months preceding her maternity leave during her pregnancy. However, the woman must work for the company for at least 80 days in the 12 months before her expected delivery date. The Maternity Benefit Act initially provided a maternity benefit of 12 weeks, out of which six weeks can be claimed before delivery.

In 2017, the law changed, and from 12 weeks, it was extended to 26 weeks, out of which eight weeks could be claimed before delivery. If the woman has more than two children, maternity leave is provided for 12 weeks only. Women undergoing a tubectomy surgery also get a paid leave of two weeks following the surgery. In case of medical termination of pregnancy or miscarriage, the law allows women six weeks’ leave after the procedure.

Additional benefits

The law also authorises companies to allow women workers to work from home if the type of work allows that. This Maternity Benefit Law was further changed in 2017 to make it compulsory for corporations with more than 50 workers to build creches. The Mothers are permitted to visit the creches up to four times a day and get two nursing breaks per day and several other gaps that are available as a matter of course until the child attains the age of 15 months. No one can terminate a woman for maternity leave and cannot serve a termination notice on maternity leave, which expires before the maternity leave ends. Also, an employer cannot change the service terms to the woman’s disadvantage during her maternity leave.

How to Claim Maternity Act Benefits?

According to the Maternity Benefits Act of 1961, a female employee must give her employer notice in writing claiming maternity leave and benefit. One should contact their HR to apply for medical leave. Any woman who had not given the notice when she was expecting may provide the information soon after the pregnancy. They need to specify that they will not be serving the company during the time they receive the benefit.

If the mother takes six weeks of leave before the delivery, the law authorises them to get the corresponding salaries before the delivery if they provide proof of being pregnant. Under the ESIC maternity leave salary procedure, payments corresponding to the six weeks of maternity leave after the confinement should be proffered once they give evidence of having delivered.

If the employee becomes sick or ill due to any sickness arising out of pregnancy, she is allowed an additional 30 days leave with payment under the Maternity Benefit Act. One requires to submit proof of illness, and the company has to agree to it. Leave Without Pay (LWP) shall only be permitted for use if the employees have no SL or EL, but it again depends on the employer’s HR policy and relationship with the manager.

Maternity Leave Compared with Global Standard

Women employees now have a cause to celebrate as organised sector women will now get six months of paid maternity leave, as the Lok Sabha amended the law on maternity benefits. This move gives women more than double the current leave. The law will apply to all establishments employing ten or more people. India is undoubtedly making progress when it comes to women’s rights. In fact, it has knocked many advanced nations with this move. According to PRS Legislative Research data, the USA gives 12 weeks of maternity leave, which is unpaid leave.

The UK and Australia offer one of the longest paid maternity benefits globally, which stands at 52 weeks. Some countries like South Africa, UK, Brazil, France, Singapore and Australia also allow paternity leave. The cause of funding for these paid maternity leave varies from country to country. For instance, in India, the money comes from the employer. In Australia and Canada, it’s public funding. At the same time, other countries either use insurance or a combined employer, employee and government contribution. According to Sweden’s official website, parents are entitled to 480 days of paid parental leave when a child is born or adopted.

Conclusion on Maternity Benefit Act

India has already transitioned to a nuclear family approach; it is challenging to have help from home. Moreover, couples have migrated from their hometowns to different places in search of work. A lot of opinions and predicaments have led to several women employees losing out on their rightful share. Some women employees even resign as severe health issues do not allow them to continue working during the pregnancy period. The government supports maternity leave strongly. A woman can avail all the significant advantages and have a well-informed resolution on her pregnancy and maternity leave. This Maternity Leave change is set to help ensure pregnant women their jobs and have a serene time with family in the happiest phase of their life.