Tuesday, March 16, 2010

Fundamental Flaws in Indian Financial System

Friends

Today morning during car pool discussion, I noticed two very huge flaws in Indian Financial system. So I thought to write them down for general feedback and comments. Also, my friends who are abroad can throw more light on how things happen there

1. The Auditors are appointed by organisations and their term can end any day

While remembering PWC-Satyam incidence, I thought who is to blame. Is PWC the real culprit or the system itself. When Mr Raju would have asked Satyam to do those fudging, what options do they had. If auditors actually audit accounts of Indian companies, they would be appointed auditors anymore. So the major work of auditors is to cook your books in compliance with legal and statutory obligations which they did.

2. Anyone can deposit money in your account:

people and I used to wonder why and how someone would exploit this. I need protection that no one should be able to withdraw my money, who cares if someone deposits by mistake.

But actually this deposit can have more serious consequences as government is bothered more about deposits than with drawls in your account. So If I deposit Rs 10 lakhs in your account, you can safely in IT net for next 5 years or may be more. The bigger the amount, the more is the trouble.

If I remember few scenes from movie, Guru, this was a strategy adopted by Guru in a very effective way. Be it pressurizing the IAS officer or the minister, always a threat of huge deposit was given to them.

Can anyone throw some more light on this








Sunday, March 7, 2010

Roles that Participants Play in a Group Discussion

Roles that Participants Play in a Group Discussion

There are a number of roles that a candidate can play in a GD. It has been observed that many candidates act or behave in a certain way or make their points in a particular manner.
Let us discuss some of the roles that candidates may choose to play:

The Initiator

Such a person typically is the one who tries to commence the discussion and make his point in the beginning. He may try to give direction to the GD and speak as much as possible in the beginning, before the GD gets too noisy or chaotic.
However, this person does not speak much later or participate in subsequent stages of the discussion. It appears that he has exhausted himself early in the game.
• Remember that if you initiate, do so with a structure and aim to give direction to the discussion. Lay down the ‘paramaters’ of the discussion-i.e. what all can be discussed
• Do not think speaking in the beginning is enough. You need to participate actively throughout the discussion

The Data Giver

The person playing the role of a data giver provides all the statistics and data relevant to the discussion. He seems to be a ‘talking newspaper’ or ‘talking journal’. However, he does not use the data that he gives to present his point of view in a logical manner.
Thus, the points he makes can be considered as being incomplete-although the supporting statistics are there, it is not really clear what the point of presenting them is.
You must try and go beyond just giving data in the Group Discussion-you are not meant to play a role of being a ‘talking newspaper’!

The Criticiser

Some participants play this role, in which they contradict or criticize the points that others make. Whatever others say, these participants object and state that the point may not be correct or accurate.
However, such participants do not make sufficient and impactful points of their own; they merely respond to the points that others make. They are unlikely to score well.

The Supporter

These participants play an opposite role to that described above. Here, participants agree with or support the points that others make. Whatever others say, these participants indicate their agreement, possibly by nodding their heads or saying, ‘hmm’.
Once again, the issue is that such participants do not make sufficient and impactful points of their own; they merely respond to the points that others make. Hence, just like above, they are unlikely to score well.

The Questioner

Rather than make points of his own, the ‘Questioner’ asks others questions-he solicits the opinions of others or asks them for data. He seems to almost play the role of an interviewer.
Since he doesn’t make substantial points of his own, the evaluation panel is not going to be too impressed with his performance and will not award him too many marks.

The Gatekeeper

Have you ever heard, during a Group Discussion, someone suddenly state that the others had better hurry up as only a few minutes were left?! This is the gatekeeper’s role, among other things.
This role is played by some participants who keep a check on various aspects-the time that has elapsed during the discussion or the time left, who all have spoken and how much etc. They seem more bothered by these aspects and in maintaining order and decorum rather than in making substantial and impactful points of their own.

Hence, the evaluation panel will not give such a participant high marks.

The Traffic Policeman

This person behaves like a traffic policeman trying to control the flow of traffic. He makes a number of gestures with his hands, trying to stop someone from speaking or waving his hands about while making a point.
Too many gestures are unlikely to impress the evaluation panel; so try and avoid this. do not stop others from speaking by raising your hands!

The Spectator/ Audience

These participants hardly say anything on their own, but almost seem part of the audience or spectators. They make no contribution, except nodding their heads or saying ‘Hmm’ almost to themselves!
When probed as to why they did not speak, they sometimes claim to be listening to others in the group. Such participants are unlikely to get selected.

The Leader

This is the role that you should try and play. We have discussed in another module as to how you could be perceived as the leader of the group.
Keep in mind that if you wish to be recognized as the group leader, then:
• You must try to initiate the discussion and provide a structure to the discussion
• You must try and provide a direction to the GD
• You may try and lay the framework or boundaries of the discussion
• You support your points by strong logic
• You give adequate examples to support your views
• You may try and involve others in the discussion
• You could try and manage the ‘flow’ of the discussion
• In the end, the ‘leader’ may try and summarize the discussion and review all the ideas discussed

The Summariser

This person tries to summarize the discussion at the end. Remember that this could be a good strategy, but you also must participate during the course of the discussion; you cannot only summarize!
Keep in mind, the following points while summarizing the discussion:
• Present both sides of the discussion while summarizing, not only the points reflecting the view you support
• Do not add new points during the summary-typically limit the summary to what was discussed during the GD
• Remember that you need to summarize the points that the group as a whole discussed, not just the points you made!
• Points mentioned during the summary must be in brief; yet the summary as a whole should be comprehensive: Present both sides of the picture, as mentioned earlier, and try to mention at least 4-5 points that came up during the discussion in the summary

Wednesday, March 3, 2010

Impact of Budget'10 on Salaried people

Dear All,

I have compiled some FAQ's on impact of Budget'2010 on salaried people.

Question:
Has Gratuity exemption limit raised in the Budget from Rs 3.50 lakh as was widely predicted ?
Answer: No.
Question: The budget speaks about audit for Professional income beyond 15lakhs. Is this something existing already or newly introduced? Who fall into this Professional category?
Answers, Actually, earlier one needed to audit one's income if it crossed Rs 10 lakh. Now it is required only if it crosses Rs 15 lakh.
Question : My CTC is 60 Lacs so now what will be my tax
Answer: You are likely to save in excess of Rs 50K pa. One would need to try and understand components and see if there is any further tax saving opportunities, but because of the budget, you are likely to save about Rs 50 k in taxes for the year.
Question :My salary is 6 lakh including Rs. 9000 as HRA, I am paying Rs. 9000 as rent and getting Rent Receipt, and also investing Rs. 100000 u/s 80, now what will be my benifits in new budget
Answer: On account of the lower tax slabs , you are likely to save around 20K in taxes.
Question: Hi, My Annual Income is 8.5 and taxable income say 6.5, how it will affect me
Answer you will save in excess of 30K of taxes.
Question: What are your views on the current tax policies. Don't you feel that govt. has ignored the lower class and middle class ppl who earn about 3-5 lac p.a. Because govt could have easily exempted taxes for the 0-3 lac Rs. and 10% for 3-5 lac Rs. and so on. This is because the standard of living has increased drastically and 3lac is not what 3 lacs used to be 5 years ago.
Answer: Yes.. there is no benefit for those below Rs 3 lakh.. however keep in mind that one is already at the lowest tax bracket of 10%. Yes, increase in tax slabs could have helped especially considering the inflation rates.
Question : My sal is 8L P.A, how much tax will I have to pay considering I invest up to the ceiling of all the sections
Answer: There could be some difference between your salary stack and your taxable income due to exemptions of some components. If your taxable income is Rs 8 lakh, then you will pay 96K of tax instead of 1.48 lakh for the year subsequent to this change. The budget will be very beneficial for you.
Question : I m having a home loan on flat under construction & will be completed in Jun-2010. Will i get Income-Tax rebate on Interest Part.
Answer: Tax benefit starts only after occupation of the property. So you can get a benefit from financial year 2010 -2011.
Question ... do u think gov will remove the tax benefit to Home Loan EMI ?
Answer: As per the new tax code this could happen, though I believe that the govt will hesitate to remove a deduction as this could impact growth in the economy. Spending in housing and infrastructure benefits several other sectors and employment as well. We will have to wait and watch.
Question : How can this budget help a salaried person but not working in IT sector or in Government sector, whose income is only 1.8lac?
Answer : For a person in this income range, the tax payable will be the same as last year. Those with income above Rs 3 lakhs will benefit from the increase in the 10% tax slab
Question : I want to know about the addition of 10 K investment in Infrastructure Bonds.
Answer : Additional deduction is 20K. This is for infrastructure bonds. It is likely to be like a fixed deposit for fixed tenure. We will have to await launch of these bonds to assess the interest rates that one would get.
Question : is there a way of claiming tac deduction under section 80GG? How can I avail of this tax benefit?
Answer: This section is for a non-salaried person or a salaried person who is not getting house rent allowance. One can claim the deduction for the rent one pays to the extent of the least of the following: (i)Rent paid in excess of 10% of total income. (ii) 25 per cent of total income. (iii) Rs 2,000 per month. The total income of the individual is computed after reducing the amount deductible under other sections, receipts exempt from tax, and long-term & short-term capital gains taxable at concessional rates. Deduction is even not allowned, if the assessee owns a house in any other place, and the concession of self-occupied house is claimed by him.
Question: I am getting Rs 22000.00 per month as HRA what kind of rebate is expected as this is being acconted as perks and included in my income
Answer: HRA exemption will be to the extent of the minimum of 3 conditions - (i)the HRA component (ii) 40% of basic (50% of basic in 4 metros) (iii) Rent paid - 10% of basic. The rest will come in as taxable income.
Question : right now my package is 5.85 LACS PA, if i invest and utilize all 80CC then what will be my income? How much i can get more compared to prev year? Thanks in advance!
Answer: It would depend on the salary components. It is likely that your taxable income comes to about Rs 5 lakh. I am assuming you will claim exemptions like HRA, conveyance, food coupons, etc to the extent of Rs 85K. In that case, your tax as per the new slab is likely 35K for the year after the budget Vs 55.6K before the change. This results in a decent saving of about 20K because of the budget change.




Question: does the new tax slabs will be applicabal from this year?
Answer: Next financial year.
Question : MY CTC is 6.5. I am taking full benefit of 80 C and House loan exemtion. other than this i have medical allowance of 15000 so what will be my tax after and before budget. Thanks in advacne.
Answer : You are likely to save around 20K in taxes for the year.
Question : Hi my gross salary is 9.2 lakhs and taxable income is 6.75 lakhs. can you tell me aproximately how tax can i save?
Answer: closer to 40K will be the savings




Question :There has been an announcement by FM about 80 C Exemptions available for additional 20 K in addition to current 100k, Is there any restriction on where this investment can be
Answer: Only in infrastructure bonds.
Question : does the new tax slabs will be applicabal from this year?
Answer: Next financial year.
Question.. MY CTC is 6.5. I am taking full benefit of 80 C and House loan exemtion. other than this i have medical allowance of 15000 so what will be my tax after and before budget. Thanks in advacne.
Answer" You are likely to save around 20K in taxes for the year.



Question: I left the previous Employer in Aug-09 & joined new one. How should i evaluate my Income-Tax at the time of filing Saral-Form (when i will have two Form-16), if any part of Income Tax not paid, then what is the time limit to pay extra Income Tax. both Form-16s will be recieved after mar-10.
Answer: Each company will give a separate form 16 and when you club this together there will be a double count of deductions and exemptions and hence tax is likely to go up. You will need to make an estimate before march end and pay advance tax on the same. Interest will be charged right from the current financial year.

Question : dont you think we should get tax rebate in personal loans also? one more thing for equity related mutual fund if we keep more than year we should get tax benifit of the same
Answer: Only home loans have a benefit since the govt is trying to encourage spending on the sector as it has a positive impact on the economy. Tax benefits are only available on ELSS funds and not any other equity MFs.

Question: CAN I GET 80 G DEDUCTION 4 PURPOSE OF MY TDS FROM MY EMPOLYER
Answer: No. One needs to separately claim

Question: There has been an announcement by FM about 80 C Exemptions available for additional 20 K in addition to current 100k, Is there any restriction on where this investment can be
Answer: Only in infrastructure bonds.

Question: does the new tax slabs will be applicabal from this year?
Answer: Next financial year.

Question: , please could you provide the details about Service Tax rule for under construction property, How it will work?
Answer: There have been a lot of questions on service tax. The same is payable by the contractor and not by you. However, the contractor is likely to recover the same from the builder. The tax is not on the full property, but only to the extent of the contract. Costs are likely to be higher by about 3-5% on an average and depends on how much of the building is contracted. I hope this clarifies to queries of all persons in this regard.
Question : I left the previous Employer in Aug-09 & joined new one. How should i evaluate my Income-Tax at the time of filing Saral-Form (when i will have two Form-16), if any part of Income Tax not paid, then what is the time limit to pay extra Income Tax. both Form-16s will be recieved after mar-10.
Answer: Each company will give a separate form 16 and when you club this together there will be a double count of deductions and exemptions and hence tax is likely to go up. You will need to make an estimate before march end and pay advance tax on the same. Interest will be charged right from the current financial year.
Question :dont you think we should get tax rebate in personal loans also? one more thing for equity related mutual fund if we keep more than year we should get tax benifit of the same
Answer: Only home loans have a benefit since the govt is trying to encourage spending on the sector as it has a positive impact on the economy. Tax benefits are only available on ELSS funds and not any other equity MFs.
BHARTI asked, CAN I GET 80 G DEDUCTION 4 PURPOSE OF MY TDS FROM MY EMPOLYER
Answers, No. One needs to separately claim



Friday, February 26, 2010

Vivek Gupta in press

Time to have some footage. Below are the links of my press coverage

http://www.merinews.com/article/studyplacescom-launches-personality-profile-test/133524.shtml

http://www.dmanewsdesk.com/StudyPlaces.com_-8-2412-1.html

http://www.alootechie.com/node/584

http://www.financialexpress.com/news/investing-in-elearning-proves-to-be-lucrative/314400/

http://www.pressbox.co.uk/detailed/Education/StudyPlaces.com_A_unique_web_based_platform_for_career_counselling_education_information_search_a_186444.html

http://www.merinews.com/article/crack-the-cat-book-launched/155654.shtml

http://www.india-now.net/artdisplay.aspx?cat_id=263&art_id=19277

http://www.blogcatalog.com/directory/blogging/

Cheers

Saturday, February 13, 2010

Sexual Harrasmant: How much Clothing is the reason

Hi guys,

I shall start this by sharing a personal thing and do not assume that I am sick. After 5 years of my marriage, I just saw that my wife wear blouses which shows her cleavage. I asked her a very innocent question , " is this because of some design issue" ( May be the blouses can't be stitched neck high" . She just smiled and told me that I am stupid.

Then I observed that just about every woman in my neighborhood wear these kind of blouses including my mother. The reason told by my wife is to arouse sexual feelings in Man. Very fair as pole can't erect on his own as it needs some kind of stimulus.

But then why the woman wear same kind of clothes i work places and then complian of sexual harassment. Don't you think like your husband, other Men shall also be aroused by seeing your cleavage or bare back or thighs underneath your short skirt.

When I shared this to some of my female friends, they told me that they have right to wear anything till they are comfortable. There is no consideration about making others uncomfortable.

We all in India and most of us have brought up seeing certain things. By wearing too much of revealing clothes, woman makes most of the men uncomfortable. Then they also expect them not to stare t their thighs or cleavages though they could have easily wore a top which doesn't show the cleavage. In other words, woman show you cleavege and then expect you t be totally self controlled. But if you are a husband , you are supposed to see that get arousal.

How difficult is the life of Man in this woman's world.

Luck-The biggest Succuss Factor

Friends

For quite long, we have always seen and heard that the world is not fair. The most hardworking, honest and talented people keep struggling whereas some good for nothing chaps are found to be CEO's of very prestigious organizations.

Many reasons are discussed for this including right timing, right place at right timing, diplomacy, network, good connections, influential parents etc all contributing in establishing the above phenomenon.

Recently, we say the biggest case of pure luck to prove the title that only luck can override all fairness of the world.

The scenario is India Vs South Africa test series, test Match 1. Selectors know that Rahul and Yuvraj can't play to their replacements are Murli Vijay and Badrinath. As the match is happening in India, Srikanth decided to follow an Autralian model. As There was Duleep trophy final coming on same days and no dubt that Kartik would be warming benches in Nagpur, Selectors decided to give international dressing room exposure to a guy called Wridhimman Saha. Two days before match, there were concerms about Laxman so selectors called Rohit Shrama as back up. So the line up was decided as

Segwag, Gambhir, Murli Vijay, Sachin Tendulakar, Laxman/ Rohit, Badrinath, Dhoni and then 4 bowlers. Mithun and Saha are surely to sit out and the only suspense was the choice between Amit Mishra/ ojha.

Match moening and just about 15 minutes befre the toss, Rohit Sharma is injured ( or he never wanted to face Dteyn, god knows) and guess what, Mr Wridhimman saha made his test debut after playing first class cricket for only 2 years, scoring 1200 run at average of 35.

Though as expected, the bugger failed as a batsman and I realy do not know when he wud be again in 15 member team. But just Imagibe if he would have scored a 100. he would have been playing in 2nd test as a batsman and another 50 wouldhave made him a specialist batsman.

people like Badrinath, Rihit Sharma, Kaif, Pujara would hev waited for another 7 years to see Sehwag retiring before getting next chance.

So, my point is basically most of the top 0.001% people are same. Most of the IIM guys with 10 years of ex can be CEO's and can manage companies. The luck is some got that chance and some are still business analysts


Luck..What a Fuc_

Tuesday, February 2, 2010

Are we really living in Democracy

Dear All,

In the recent past, MNS ( Maharashtra Nav Nirman Sewa) or Shiv sena actions have created a doubt in my mind about our freedom. I am wonderign these days do we really live in a free country.

As per the constitution, one of the fundamental rights are ' Right to Speech'. But be it Sachin Tendulkar, Aamir Khan or recently Shahrukh Khan, all have been targeted because they expressed their views in open.

They beat North Indians who are in Mumbai, burn public property and I am yet to see Bal Thackerey or Rak Thackrey behind the bars seriously. Going for a 2hr or one day picnic is fine but what about serious punishment.

Rahul Gandhi took an aggressive approach by telling them it were North Indian who saved Mumbai during 26/11 attack. That is 100% true. Why Shiv Sena do not object every non Marathi person living in Mumbai. They target only poor as they are easy prey and create a furore in their vote bank.

I used to be hard core BJP/ Shiv Sena supporter and a 100% Hindu by heart. But if a Muslim PM comes and take my country to 20% GDP growth and allows to me to keep my religion, I would welcome all muslims to come and rule by country.

God Saved India from MNS/ Shiv Sena