DON'T RETIRE RICH

Monday 31 July 2023

Not posting TAX returns before 31st July ?? THEN...GOD BLESS YOU !!!

If you have ever had such a thought, dismiss it immediately. The disadvantages are significantly huge and the advantages, if any .... ABSOLUTELY ZERO !!!

Filing returns is mandatory for individuals and Hindu Undivided Families (HUFs) with earnings exceeding Rs. 2,50,000.
Once it crosses Rs.2.5 lakhs...then you are supposed to file ITR even if you do not have taxable income (after deductions)
YOU ARE STRONGLY SUGGESTED TO CONTACT YOUR CHARTERED ACCOUNT FOR MORE DETAILS 

If your income does not exceed the tax limit...you have nothing to fear...RELAX
But, if it does cross the Limit...then you better file the returns or you better be prepared to face the Music
 
WHAT IF I AM NOT ABLE TO FILE THE RETURNS?

Not filing an Income Tax Return before 31st July will be held as TAX EVASION and you could get a notice from the Income Tax Department

PENALTY : 




if you cannot pay by then...then thankfully, under Section 234f, you can file by paying a LATE FEE of Rs.1000 before 31st December, if your income is below Rs.5 lakhs
If the income is above 5 lakhs (even 5 lakhs Rs.1) then you will have to pay a penalty of Rs.5000. You will also be liable to pay penal interest (Section 234A) at 1% per month!
Besides the above,  
IF YOU FAIL TO FILE BEFORE 31ST JULY, THE BENEFIT OF CARRY FORWARDING OF ANY LOSSES WILL NOT BE ALLOWED

WANT SOME MORE REASONS TO FILE TAXES ON TIME? 

Well... here goes
You may also be levied a Penalty for CONCEALMENT OF INCOME (IT Department will obviously think you have deliberately concealed the income and not filed the returns)


OH MY GOD! ANY OTHER IMPLICATIONS?

Yes. Definitely.

1.               You will not be allowed to carry forward losses you may have incurred in your business or investments. (Normally this is allowed for up to 8 years and can be set off against Profits). This could affect your Financial situation) However, Loss from House Property is still allowed to be carried forward


2.              
You are disallowed to claim a refund of any Excess Taxes you may have paid.
Sometimes due to some error, oversight, or omission, you may have paid Excess Taxes, or a wrongful TDS may have occurred. In normal Tax Filing, you are entitled to claim a refund and get back your rightful amount but this is disallowed in the case of Belated Return Filing!

3.               You may not get Life Insurance Cover.

Normally Life Insurance Companies require you to submit your IT returns while you are taking a Life Insurance Policy and they may well reject your policy in case of non-submission of IT Returns

 

4.               Even your Credit Card company may reduce your Credit Limit and may even cancel your Card

5.               Your Credit Standing will get hugely affected and you may face problems while applying for loans....personal loans...home loans...whatever!

Easy loan processing: At the time of applying for a loan, banks ask applicants to furnish copies of tax returns for the past 2-3 years. This helps banks understand your financial position and ability to repay the loan. Providing a copy of returns helps in faster approval.

4.               Some countries may even deny you a VISA if you are not able to submit your IT Returns.

 


FINALLY, in the worst-case scenario (your bad luck) 

 under sec 276cc you may notice for prosecution and get JAILED with a Rigorous Imprisonment of upto 7 years!!!!!!!!!




A
NY OTHER ADVANTAGE OF FILING RETURNS??


YES.

A person should file IT returns irrespective of whether the income is within the exemption limit. Don’t we need to produce IT return statements when we apply for loans? Exemption is a privilege and we shouldn’t use it as an excuse for not filing returns.


LAST MINUTE TIP :

And, despite your best efforts you still could not file your returns....then note there is still time on December 31st, 2023 to file a


BELATED RETURN is permitted

Finally, you are advised to take the advice of a good qualified Chartered Accountant for all Tax Related Matters.

Best of luck,

Srikanth Matrubai






All the best,
Regards,
Srikanth Matrubai
MUTUAL FUND DISTRIBUTOR
REBALANCE VOLATILITY CERTIFIED COACH
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH


You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 
join my TELEGRAM channel
WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

Wednesday 19 July 2023

THE ULTIMATE WEALTH CREATION TIP


Greetings,

Let’s say that you are fasting just like that… you say “Not feeling like eating... I will not eat today” and there is no specific motive for avoiding food.

And wow… in front of you, your best friend opens his Lunch Box and there you see your favorite Pizza… 99 out of 100 times, you will lose your resolve, succumb to the tempting yummy Pizza and go ahead to munch on the cheesy delight breaking your fast!

 

 Do you know why this happened?

There was no clarity on the PURPOSE behind the fast and thus getting lured and swayed by the yummy food is natural.

But if you were fasting due to a religious belief…say Ekadashi, Dasara festival, or a Ramzan, you wouldn’t get tempted come whatsoever as there is a CAUSE behind your action.

The strength behind you maintaining your fast in this case remains resilient and you wouldn’t budge no matter how tempting the Panner Butter Masala may be as now you have a PURPOSE and a REASON behind the fasting.

Without a clear purpose behind your fast, you are more vulnerable to being influenced by enticing options that appear in front of you.
Likewise, having no specific financial goal for your savings can lead to reckless spending or diverging from your investment plan when attractive but unplanned expenditures arise.

=======================================

We keep meeting all varieties of Investors. Some are truly well-intentioned but still not able to create Wealth.

Let me give you an example.

Last week, I had a new investor through a reference. He said “Sir, me and my wife do save religiously. We save for months but suddenly something comes up and we end up using not only our savings but even our Credit Card. We assure you, Sir, we both are SAVERS and not at all spendthrifts


They literally begged, 
“Please help us ACTUALLY SAVE”!!

 

This was not peculiar to me at all.

This happened to them as they did not have a FINANCIAL GOAL in Mind.

While every one of us is driven by Financial Aspirations and a promise of a better tomorrow, somehow the bag of money saved vanishes when an Amazon Prime Day Sale comes up or one of our cousins puts up a photo on Instagram enjoying a Scuba Diving in the Maldives and lo! We too must do the Scuba Diving or similar and end up spending ……totally unplanned!

The Key to Successful Saving (and investing) lies in linking these to Well-defined Goals.

You first need to understand “WHY YOU NEED MONEY
Just saying
“I need lots of money” is not enough.
Answer the WHY… Know the purpose and the reason for needing the money.

 

 

WHY DO WE NEED MONEY?

The need for money could be varied and needs to have a target. It could be anything like a wish fulfillment, making your life better, lifestyle expenses, or reducing loans! It could be anything.

To make it easier for you, I have listed some here.

To get rid of a Loan (Home loan, Education Loan, Personal Loan)

To start a new business, a new factory, a new branch

To travel, to explore new places.

To plan for kids’ future (education, wedding)

To plan for my own RETIREMENT!!


When you know why you need the money (purpose), you will be in a better position to make the BEST USE OF RESOURCES you have to achieve Financial Freedom

The goals can be anything. It could be your Annual Vacation, your new car, or your down payment for that dream home. Now that the goals are linked, you will find a purpose, motivation, discipline, and direction for your savings.
Visualizing you achieving your goal will keep you motivated enough and ensure you don’t redeem that FD / Mutual Fund which is growing quite well.

This linking of goals will also make you more motivated to find ways to increase your percentage of savings and maybe even your ways of increasing your income!

And once you achieve a Goal, it will give you that confidence that yes… you can do it. It will give you a sense of fulfillment and reaffirms your own ability to take control of your financial life.

 

THE MORE SPECIFIC YOU ARE, THE BETTER

In fact, having a SPECIFIC goal will help you not only visualize better but be motivated much more in saving and achieving that goal.

For example, I want to buy a car is a goal but “I want to buy a 6-seater Toyota SUV is very specific”.

This will give you an idea of “How much” is needed for that goal and “When” you can reach that goal.

Begin with Short Term Goals and then gradually go for Medium Term Goals and finally the big ones. And that’s your Long-Term Goals

Setting short-term goals is the perfect way to build confidence and establish a foundation for greater success.  Small wins lead to big accomplishments!


Now that we know the goal…it’s easy to PLAN.

Suppose you say I need Rs.2 lakhs for my Singapore Trip 2 years from now. Good. Now that we know you need Rs.2 lakhs and we have 2 years’ time.
It becomes now easy to calculate how much you should keep aside every month for that Singapore Trip and you can achieve the same.

 

FOR THE LONG TERM TOO:

This can and must be applied for the long term too.

Instead of saying “I want to retire rich”, you can have a specific number in mind and say, “I want to retire with Rs.5 crores of Net worth”.

Now that you know you need Rs.5 crores when you are 60 and suppose you are 35 now., you have a good 25 years to plan.

Let’s look at an example.

Suppose you start with zero (0) and start saving at age 35.

All you need is less than Rs.30,000 per month! And now you know that 30k is enough for your 5cr retirement target corpus, you can plan easily and direct savings to that goal.

Having a financial goal will help you stay focused and be disciplined with your money.

It gives you a reason to save, and invest rather than splurge on impulsive purchases.

With a goal in mind, you will also be able to track your progress and celebrate the reaching of goals.

 

DON’T SAVE… INVEST!!!

I have seen many who save religiously but do not invest wisely. Saving is only the 1st step but the 2nd and most crucial step is INVESTING.
  

Saving is like putting your money in a Piggy Bank. It will keep your money safe but will not grow due to the effects of inflation and taxes.

Investing is like planting a variety of seeds in a garden. The seeds may and will take time to grow into plants and then trees but the effort is worth it as you can reap the rewards regularly.

Investing is the right way to grow your wealth and reach all your financial goals on time.
Yes… Investing is a difficult process especially when it comes to not only identifying the right asset class but also the right instruments and the percentage of amount that needs to divide among these many varieties

That’s where the requirement of an Experience Investment Expert will come in handy. She will help you navigate the market fluctuations, maximise returns without compromising on risk by understanding your risk profile, asset allocation, and guide accordingly.

 

THE BIGGEST ADVANTAGE:
Once the Goal/Purpose/Target is identified, automatically the WANTS will get reduced and may even be eliminated as now the inner mindset will be focused on reaching the goals.

 

Making sure you INVEST the saved amount in Equities is what will ensure that you just DONT RETIRE RICH but retire WEALTHY!!

So don’t just save, invest. Saving is good, but investing is better.  Saving is necessary, but investing is smart.

Saving keeps you safe in a cage.

Investing will elevate your financial status and help you soar to new heights.

 




                                                                                Invest…don’t just save.

 

 

THE ULTIMATE WEALTH CREATION TIP IS

a.  HAVE A GOAL FOR YOUR SAVINGS

b.  DON’T SAVE BUT INVEST FOR THAT GOAL



All the very best to your Financial Freedom Journey

Srikanth Matrubai

Author — Don’t Retire Rich





All the best,
Regards,
Srikanth Matrubai
MUTUAL FUND DISTRIBUTOR
REBALANCE VOLATILITY CERTIFIED COACH
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH


You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 
join my TELEGRAM channel
WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

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