The gifts received in the names of one’s minor children will be clubbed with the parents’ income for taxation purpose. Also the taxman is very alert in saying that, in case of both parents having income, clubbing will be done with that parent who is earning more. So one cannot hide under the cover of their minor child (ren) receiving the gifts.
High Value Gifts were a safe haven to show one’s love to others financially. Now the tax man has tightened (putting it mildly) the strings attached to gifts. In fact the rule has become so tight that it may be the end for all high value gifts in India.

Gift Tax Earlier
Since 1998, there is no Gift Tax per say in India. The gift is added to the income of the receiver and is taxed accordingly. Earlier (prior to October 1st 2009), gifts in kind (a car or a house) were not considered at the cash value.

Also all gifts received at the time of marriage were exempt from tax. The gifts could have been from anyone and of any type. This made very high value gifts the norm at the marriages of very rich people. The taxman was hoodwinked by making marriages occasions for large scale conversion of illegal money (black money) into legal gifts.

The New Rule
The change in the rule related to gifts says that the receiver has to pay tax for receiving any gift valued at Rs.50,000 and more. The ‘any gift’ clause means that not only cash but all gifts of any value. So if someone receives a gift of a house worth Rs.30 lakhs, then he/she is automatically in the highest income bracket and has to pay 30% + surcharge on value of the house as tax (close to Rs.10 lakhs in this case). The rule thus effectively prevents money laundering in the guise of high value gifts.

Which Donor’s Gifts are Exempt
There is exemption for gifts received from certain people. The gifts that one receives from relatives on the occasion of marriage, the gifts receives from parents and grand parents, the gift received by a daughter-in-law from her parents-in-law, and gifts received by way of a will and inheritance are exempt. The gifts received by a son-in-law from his parent-in-law will be taxed. An NRI can gift to his/her parents in India from their NRE account without their parents suffering any tax.

Gifts Received by Children
The gifts received in the names of one’s minor children will be clubbed with the parents’ income for taxation purpose. Also the taxman is very alert in saying that, in case of both parents having income, clubbing will be done with that parent who is earning more. So one cannot hide under the cover of their minor child(ren) receiving the gifts.

Other Deals that Comes under the Hammer
Not only gifts, but any real estate deal done for values lower than the state governments fixed rates, will also be taxed. Here the tax will be charged on the difference between the state government’s rate and purchase price. The tax needs to be paid by the buyer of the property.

Conclusion
The tightening of the rules related to gift tax will curb money laundering to a great extent. However it does protect genuine gifts from relatives and loved ones. Several guises used earlier to cover up transactions as gifts are now taxable.
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What is deposit insurance?
It is a limited level of protection provided by the government to depositors against bank failures. Every bank is mandatory covered under the level of Deposit Guarantee and the Insurance Corporation of India. It is particularly relevant in countries like India where financial literacy is very low. At a macro-level, its objective is to contribute to the stability of the financial system.

Which entities are covered under deposit insurance in India?
All commercial banks, including the branches of foreign banks functioning in India, local area banks and regional rural banks are covered under the deposit insurance scheme.

Which entities are covered under deposit insurance in India?
All commercial banks, including the branches of foreign banks functioning in India, local area banks and regional rural banks are covered under the deposit insurance scheme. Even co-operative banks are covered. The scheme, however, does not cover deposits with NBFCs and company fixed deposits.

What is the amount covered and how is the premium charged?
Under the provisions of the DICGC Act, the insurance cover deposits up to Rs 100,000 under the deposit insurance. The premia to be paid by insured banks are computed on the size of their deposits. Insured banks pay advance insurance premia to the Corporation semi-annually, within two months from the beginning of each financial half year, based on its deposits at the end of previous half year. The premium is currently pegged at Re 1 for every Rs 1,000 of the deposits.

What types of deposits are covered under the scheme?
The Corporation insures all bank deposits, such as savings, fixed, current, recurring, etc., except deposits of foreign governments; deposits of central/state governments, deposits of state land development banks with the state co-operative banks, inter-bank deposits, deposits received outside India.

How are the claims settled?
In the event of winding up or liquidation of an insured bank, every depositor is entitled to payment of an amount equal to the deposits held by him at all the branches of that bank as on the date of cancellation of registration (i.e., the date of cancellation of licence or order for winding up or liquidation), subject to set-off his dues to the bank, if any. However, the payment to each depositor is subject to the limit of the insurance coverage fixed from time to time.
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Money does not grow on trees is an old saying. But when it comes to children, they actually need to be taught that.

For instance, when parents have withdrawn money from automated teller machines (ATMs), their children think that it is a machine that dispenses cash for one and all.

Seldom do they realize that to withdraw money, their parents have to earn and deposit it in the bank.

There are many irresponsible money habits. But the biggest is impulse spending. How many times have you walked into a store, seen something and immediately picked it up?

Originally, you might have just gone to buy a pen. But you come back with a bagful of other goodies. It might not matter where the person is a judicious saver. However, if this irresponsible habit goes overboard, it can slowly turn into a nightmare.

The best way to address impulse spending is to teach your children to delay gratification.

Tell them to mull over the purchase of a big-ticket item, don't forget to set the limit or ask them to set a limit on what is reasonable and what is expensive. Chances are they will forget about it.

If they press for something, tell them they do not need it now and you can look at it later; this tactic works especially well with small children. Take them away from the store and chances are they will never ask for it, unless you go back to the same store.

Teach your older kids that a credit card is a smartly packaged, high-cost loan. If they must buy, it must be with money they have and not borrowed. Tell them to carry cash in their wallet, as they grow older. You can swipe a card for Rs 10,000 but if you have to pay the same amount by cash, you will rethink your purchase.

This habit of impulsive spending develops at a very young age. If your kids ask you to buy everything they see, you must not oblige them all the time. Hence, the importance of saying no and sticking to that decision, no matter the degree of the tantrum or the duration of the tears.

Kids should understand they will not get everything they want. This is a good lesson for life and trains them for the real world. Besides impulsive spending, other dangerous areas could be stealing money from the cupboard or wallet, betting, spending indiscriminately on friends just to be seen as a 'cool dude', doing drugs and several other things.

You will not even realize when these things turn into addictions. Parents should see warning signs, such as:
Money or things frequently missing from home
Money beyond pocket money levels in the child's possession
Loss of interest in studying and sudden drop in examination marks
Expensive things in their possession that you have not bought or they have not got as a gift
Sudden change in personality and spending a lot of time away from home
Educating children is a key step in addressing money and other issues they could face.
Your role is extremely important and hence you must not leave such responsibilities to teachers and educators. Think over what messages you been sending them about your values and beliefs around money. For instance, if you lead an ostentatious life, with late night parties happening every other day, your children will want to do the same.
And someday, you may feel that this lifestyle has taken a toll on your health, and wealth as well. But at that juncture, expecting your children to follow your footsteps would be silly.
In an ideal situation, thriftiness should be inculcated at an early age. But if, as a parent, you are unable to do so, make sure that you aren't the bad example that children follow.
Nowadays, many parents are often unable to spend enough time with their children. Instead, they are left at with servants.
One is typically reminded of the Amitabh Bachchan starrer 'Sharabi', where the young boy is addicted to alcohol because the father recommends brandy for the son if he suffers from cough, cold or lack of sleep. The situation may not be so bad most of the time but it is important to spend time with your child, and counsel him regularly.
Sometimes, you may need professional help or help of other family members. But don't shirk away from seeking such help. Often, parents feel that exposing a domestic problem in front of others is shameful. But it can only worsen matters. A professional counsellor can provide private sessions and recommend solutions.
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Consuming certain foods has been proven to help lower cholesterol levels, thus helping you to avoid cholesterol medications or take a lower dose of medicines.

We all are familiar with the idea that egg yolk, butter, and fried foods are bad for your cholesterol levels. But are you aware that in addition to cutting down on these bad foods, you can also add some foods to your diet to lower your cholesterol? Consuming certain foods has been proven to help lower cholesterol levels, thus helping you to avoid cholesterol medications or take a lower dose of medicines. Of course, these foods work only when taken as a part of an overall low cholesterol diet and alongside optimum physical exercise. We will tell you more about some of the best cholesterol lowering foods and how you can incorporate them in your diet plan.

Olive oil
Olive oil is good for you, not only because it does not raise your 'bad cholesterol' (LDL), but also because it actually lowers it without bringing down your 'good cholesterol' (HDL). Isn't that absolutely amazing! So if you're concerned about your cholesterol levels, get a bottle of extra-virgin olive oil on your next trip to the grocery store.

As per the scientific data available and the recommendations of the Food and Drug Administration, you should be consuming about 23 grams (2 tablespoons) of it every day. That is not at all difficult to manage. Mixed with some vinegar, olive oil makes a great salad dressing. You can also use it in place of other oils or butter while sautéing or marinating. Stick to extra-virgin olive oil, because it has more antioxidants than the further processed 'light' olive oils (light in this case doesn't mean less fat!).

Soluble fibres
You may think of soluble fibres like a sponge that soaks up the cholesterol in your diet and prevents it from getting absorbed. Oatmeal, apples, pears, barley and prunes are some of the foods rich in soluble fibres. Now this does not mean that you are free to eat cholesterol-rich food with a bowl of oatmeal. You need to take these good foods for that added benefit as a part of a low-cholesterol diet. About 10 grams or more of soluble fibre a day is required to decreases your total and LDL cholesterol. Having one and a half cups of cooked oatmeal for breakfast will give you about 6 grams of soluble fibre. Add a banana to it to get the remaining 4 grams.

Walnuts
Walnuts are a rich source of polyunsaturated fatty acids that keep your arteries healthy and supple. In scientific studies, regular walnut consumption was seen to significantly reduce blood cholesterol. A handful (about 10 to 11 halves) everyday is good enough to give you all the heart-health benefits. They make a tasty and crunchy snack and would surely be a pleasant addition to your diet. If you don't want to go for walnuts, try almonds, hazelnuts, or peanuts. They too can have a good effect on your cholesterol level. The most important factor is limiting the amount that you consume. Since nuts are calorie dense, too much will be counterproductive as your total calorie consumption will shoot up.

Omega-3 fatty acids
Omega-3 fatty acids are good for your health in more ways than one. And their benefits include lowering blood cholesterol. Non-vegetarians can get their omega-3 fatty acids from two servings of fatty fish such as tuna, salmon, mackerel, lake trout, herring or sardines every week. Vegetarians can use flaxseed or canola oil for cooking to get omega-3 fatty acids. Omega-3 or fish oil supplements are also available in the market. You can discuss whether they're right for you with your doctor.

Plant sterols
Sterols are substances found in plants that help block the absorption of cholesterol. Margarines, orange juice and yoghurt are some of the sterol fortified foods that are available in the market. About 8 ounces (237 millilitres) of fortified orange juice can lower LDL cholesterol by 10 percent or more. The American Heart Association recommends foods fortified with plant sterols for people with levels of LDL cholesterol over 160 milligrams per decilitre. Sterol fortified foods do not have any adverse effect on 'good' high-density lipoprotein (HDL) cholesterol or the absorption of the fat-soluble vitamins (vitamins A, D, E and K) in your diet.
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YOU just got news that your home loan has been approved and you are on your way to see an existing model of your future home. Your heart is pounding with excitement, but wait, the tedium of paperwork is not over yet. You need to ensure that your agreement with your builder has no unforeseen loop holes that can plunge you in a legal mess!

Here are five essential steps you need to take to avoid such situations.

Aspect 1: Cost of your dream home
There are various costs attached to the owning your home besides its cost. The cost covers basic utilities like electricity, water, parking space, various taxes and in certain instances the registration charges as well. These may come as part of the deal or may be charged under separate heads. Make sure all these costs are factored into the final price you pay.

Safety points
Scan the agreement with great care for all these charges
Get the agreement ratified with a real estate lawyer to see if there are any hidden or missed out charges. So, you can have an upfront discussion with the builder and have the document corrected.
If the extra charges are for alterations made to the original plan, ask the builder for the sanction letter provided by government authorities for such alterations.

Aspect 2: Size of the house
Look for the specifications in the agreement that defines the size of the house. This should be clear and specific. Also, look for a clause that says ‘…the plans, designs, and specifications are tentative and the developer reserves the right to make variations and modifications….’ This might mean that you may agree for a certain size, but the builder can give a different size.

Safety points
Do a thorough check on the builder to determine his track record in project delivery. The way the builder has handled the past projects should serve as a measure to how your project is going to turn out.
Discuss with your lawyer and think about including another clause that provides a definite range to the maximum and minimum size beyond or below which the builder cannot venture.

Aspect 3: Carpet area
Carpet area is the space where it’s possible to lay the carpet. It does not take into account the area of the walls and balcony. When you include these areas as well to the carpet area you obtain the total built up area of the house or apartment. Additionally, if you include common spaces like lobby, lifts, stairs, garden, swimming pool etc., then its termed as the super built up area. The actual carpet area is bound to be around 20 to 30 per cent lesser than the super built up area.

Safety points
Always base your purchase decision on the carpet area of the flat.
Double check if this area is specified in the agreement.
Discuss with your builder and the lawyer to make sure it’s possible to include a termination clause if the final construction of the house has a carpet area lesser than what is specified in the agreement.

Aspect 4: Completion of construction and date of possession
During the realty crash that occurred in the recent past, there have been several instances where projects have not been completed on time. Though agreements have a tentative date of possession it is important to for you to check this aspect of the deal.

Safety points
Monitor the progress of the construction and keep a regular tab on it.
Follow up with the builder if you find the progress painfully slow and request him to step it up. Keep in touch with the builder as the work progresses.
Establishing a society with other buyers in the case of an apartment complex, will ensure that things happen at a decent pace from the builder's side.

Aspect 5: Completion certificate
When the project is completed and the house is delivered to you ensure that the builder provides you with a completion certificate. This certificate provided by the municipal authorities authenticates that the building complies with the approved plan and obeys all government norms and specifications. This certificate is critical for the registration of the house and to complete other legal formalities.

Safety points
Make sure the agreement has a clause that indicates the certificate will be handed over to you on completion and hand over of the house/apartment.
Again a society could help move things faster if the builder is laid back about this aspect.
Apart from the above mentioned aspects an overall quality check on the construction, society management etc. are important. Ensure these aspects are also covered in the agreement. Be aware and clued on about what you are getting into before you sign the dotted line.
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