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How to Show Personal Tour as Business Travel and Claim Expenses in India

In India, any person who earns above the base tax slab from his business or profession is legally obliged to pay Income Tax as in the rate, in which slab he falls, notified by the Government of India in a financial year. However, the Income Tax Act 1961 allows professionals and businessmen to deduct expenses incurred while performing profession or business in the financial year from the net income in the same period. Cost of travelings for the purpose of business and profession is one of the major areas where you can save your hard earned money from paying Tax.

In this article, you will learn which all travels are counted as business travel and how to mention business travel cost in your Income Tax Return and claim Tax exemption.

Why Should We Include Business Travel Expenses in IT Return?
Income Tax Act allows any person to deduct the amount he spent on travels he made in order to perform his business and profession. Here profession means a work done by a person in order to make a living usually in a self-employed manner.

So anyone who makes earning by using his intelligence or physical strength (not salaried employees) like a practicing doctor, CA, Lawyers, Freelance Engineers, Bloggers etc can be termed as professionals.

Traveling for the sole purpose of profession and business is common among these people and Tax authorities understand it well. So they are allowed to deduct any money they spent on travels associated with pursuing an existing business.

So the total revenue under 'Profits and Gains of Business or Profession' is the amount after deducting all expenses including business travel expenses.
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Which Type of Travel Expenses Are Counted As Business Travel Expenses
It is important to note that, not all your travel expenses can be treated as business travel expenses and you cannot blindly ask tax deductions for those. Income Tax Department will look into the nature of your journey and they must be convinced that the trip you made was essential for your business or profession.

Another point Tax authority will check is the travel cost. You cannot claim unbelievable cost for the journey and demand Tax exemption while submitting your ITR.
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  3. How to Link Aadhaar With Your SBI Account

How Can I Show My Vacation Tour As Business Tour to Cut Tax?
You might be disappointed after listening to the answer. You cannot claim any Tax deductions for your vacation trips. For example, if you went to Manali for a week to enjoy with your family for the purpose of entertainment, you cannot show the cost of this journey as a business expense in ITR. However, if you met some potential clients and you spent any money to arrange a meeting with them, you can claim that amount as a business expense.
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Important Points to Remember While Claiming Business Travel Expense
  1. Keeps All Bills and Receipts
    First of all, you must keep the receipts and bills related to the journey and all documents which prove why this trip was necessary for your business.

  2. Sole Purpose of The Travel Must be Business
    It is not necessary that you made any business during this journey but you must show Tax authority that this tour was for the sole purpose of your existing business. You cannot claim a trip as business trip if that trip is not related to any of your existing business or profession.

    In simple words, you cannot ask Tax benefits for the trip made for the needs of the future business. For example, if you are in the catering business and you are planning to start a construction business.

    As long as you have not started a construction business, you cannot claim tax relaxations as business travel for any of your trips related to your intention on future construction business.

  3. Travel Cost Must be Realistic
    You cannot claim an unrealistic amount as your business travel cost. You must also show the authority the mode of transport and where you stayed. You can include Hotel room rent you paid, laundry bills, Internet and phone bills (must be related to your existing business), meals bill etc in the travel expense.

  4. Travel Requirement Must be Justified
    Another important point you should remember while marking a journey as a business journey is the point whether you can justify the intention of that trip. For example, if you are a businessman in Delhi and want to purchase an item which is available in Delhi.

    If you go to Mumbai for the sole purpose to purchase that item without much difference in quality or price from Delhi market, you cannot justify that trip.

  5. Mode of Payments
    It would be helpful for you while showing travel expenses if you made the digital mode of payments as much as possible.
Which All Expenses Can be Included Under Travel Cost
You can include the cost of the mode of transport you used, room rent you paid, meals and other petty expenses while journeying, laundry bill, tolls if you paid any during the drive, entry fee you paid if it was necessary for your profession, cost of arranging meetings with potential clients etc.

Simplest Method to Link Aadhaar With PAN & Solve Any Error

The government of India has made it mandatory for everyone to link their PAN cards with Aadhaar card numbers issued to them. If you have not yet linked your PAN card with Aadhaar card number issued to you, you will not be able to file Income Tax Return. Why does our Government force everyone to connect Aadhaar and PAN cards? It is a revolutionary step taken by the Government of India and Income Tax department to stop people from acquiring multiple PAN cards for the purpose of Tax evasion. Since there is no biometric information collected while applying for a PAN, it is possible to obtain more than one PAN card and use it without the Tax department's detection.

As biometric information is collected while registering for Aadhaar, it is impossible to have more than one Aadhaar card with a person. Any extra PAN cards with a person will be deleted automatically as they wouldn't be linked to Aadhaar number.

In this article let us check different methods to link a PAN card with Aadhaar card and the common reasons to get an error while linking a PAN card with Aadhaar card details.

Different Methods to Link PAN Card With Aadhaar Card Details

  1. Simplest Method to Link PAN Card With Your Aadhaar
    The simplest way to link your PAN card with Aadhaar number is to visit Income Tax Department website and enter your name, PAN card number, and Aadhaar number. Step by step procedure to link PAN to Aadhaar using official Income Tax Department web portal is given below.
    1. Visit the link below
      https://incometaxindiaefiling.gov.in/e-Filing/Services/LinkAadhaarPrelogin.html

    2. Fill the fields of your name, PAN and Aadhaar.

    3. Check the box at "I have only the year of birth in Aadhaar card" and enter the captcha

    4. Click the button "Link Aadhaar"

    PS: If your name in PAN card and Aadhaar card does not match exactly, you will be prompted to verify Aadhaar OTP from your registered phone number.

  2. Send SMS to Link Your PAN and Aadhaar Card Numbers
    If you are not interested in using Income Tax e-file portal, you can simply send an SMS to link Aadhaar with PAN. SMS format to link PAN with Aadhaar and the number to send SMS are given below.

Issues While Linking Aadhaar With PAN Card Details

It is possible that you might face some issues while linking PAN with Aadhaar Card number. A major reason for getting an error while linking Aadhaar with PAN is the changes in the name on both cards. Even a small change in name will result in an error and the process of linking PAN with Aadhaar will not be completed. Change in gender and different Date of Birth are other two important reasons.
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Solve Problems In Aadhaar PAN Linking

  1. One Step Solution to Fix Error in PAN Aadhaar Linking
    If the error is due to a minor change in the name on both cards, you can fix it simply by verifying Aadhaar OTP from your registered phone number. However, it is possible only if the gender and the Date of Birth are same in both Aadhaar Card and PAN card.
  2. How to Solve Complex Change in Details
    If it is not minor changes, you have to edit either PAN or Aadhaar card details to continue the process to link both cards.

Comparison - Kerala Vs Gujarat Development Models

In contemporary India, while considering development, Kerala and Gujarat are two leading states. I have been watching a lot of heated arguments from different corners about the comparison of the different model of development adopted in these two Indian states. Some say the Kerala Model of Development outshines Gujarat Model of Development while others argue the opposite. Not only the common people but also the world famous economists are taking part in this debate. It is a very interesting discussion, and it includes the overall economic conditions, GDP, investments attracted, number industries present, healthcare, wealth generation, literacy, etc.

I am not going to press my views on whether development in Gujarat or Kerala is better on this article but I will share statistical data published by Government agencies and reputable NGOs. Once you have completed the reading, you won't face any issues to decide the winner. I leave the judgment of whether the Kerala Development Model or the Gujarat Development Model is better for the readers.


Compare GDP Growth Rate of Gujarat With Kerala

As we know the Gross domestic product (GDP) is the net market value of all final goods and services produced in a region. While comparing GDP of the Indian state Gujarat with another Indian state Kerala, we can see Gujarat performs better than Kerala.
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Historical GDP value and rank of Gujarat and Kerala is given in the chart below.
Financial YearGDP of GujaratGDP of Kerala
2014-2015 INR 895,202 CroreINR 519,896 Crore
2013-2014INR 806,745 CroreINR 462,916 Crore
2012-2013INR 712,123 CroreINR 412,313 Crore
2011-2012INR 594,563 CroreINR 307,906 Crore
2010-2011INR 521,519 CroreINR 263,773 Crore
2009-2010INR 431,262 CroreINR 231,999 Crore

Comparing Kerala With Gujarat on HDI

Human Development Index (HDI) is the best unit to measure the quality of life of people resides in a particular region. By comparing the HDI of two regions, we can easily find out people of which region live in better living conditions. If we compare HDI of Kerala with HDI of Gujarat, anyone can see the life standard of people in Kerala is superior.
YearHDI of Kerala HDI of Gujarat
20150.7120.6164

Comparing The Literacy Rate Of Kerala With Gujarat

Now let us compare the rate of literacy in Gujarat and Kerala. While considering the literacy rate, Gujarat is far behind Kerala. The chart given below shows historical literacy rate in Kerala and Gujarat.
YearLiteracy rate in Kerala Literacy rate in Gujarat
201192.28%79.31%
200186.66%69.14%

Comparison of Unemployment Rate Among Gujarat & Kerala

Gujarat has the lowest unemployment rate in India. Kerala is one among the Indian states with the highest unemployment rate. Below chart shows the unemployment rate (number of unemployed people per 1000) with rank among the other Indian States.
YearUnemployment Rate Kerala Unemployment Rate Gujarat
2015-16125 (3rd Position)9 (29th position)

Comparison of Life Expectancy Among Kerala & Gujarat

While considering the expected life span of people in Kerala and Gujarat, Kerala performs better. People of Kerala has the highest life expectancy in India.
YearLife Span Kerala Life Span Gujarat
2010-1474.968.7
2002-0674 64.1

Comparison of Suicide Rate Among Gujarat & Kerala

While considering the suicide rate in Gujarat and Kerala, Gujarat has a lower suicide rate compared to Kerala. Below chart shows the suicide rate in Kerala and Gujarat per 100000.
YearSuicide Rate in Kerala Suicide Rate in Gujarat
201224.311.8

Comparing The Road Density of Kerala With Gujarat

Road density in a particular region tells the accessibility of the people living there. If we compare the road density of Kerala with the road density of Gujarat, Kerala is at a better position.
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YearRoad Density of Kerala Road Density of Gujarat
201637.49m/km^216.55 m/km^2

Telephone Density in Kerala & Gujarat

Kerala and Gujarat are the two leading states with high telephone density in India. Kerala has the highest telephone density in India.
YearTelephone Density of Kerala Telephone Density of Gujarat
201495.96%93.34%
http://www.thehindu.com/news/national/kerala/kerala-figures-among-high-teledensity-states/article8177628.ece

Comparison of Ease of Doing Business -Gujarat Vs Kerala

When we consider ease of doing business, Gujarat is one of the best investor friendly states in India. Kerala is far behind in ranking while considering Gujarat as an Investor friendly state. http://www.firstpost.com/business/andhra-telangana-gujarat-best-in-ease-of-doing-business-niti-ceo-3799445.html
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Comparing The Infant Mortality Rate in Kerala & Gujarat

Infant Mortality Rate in Gujarat is higher than the Infant Mortality Rate in Kerala. While considering the chart below, anyone can understand Kerala is far better in Healthcare. Below chart provides Infant Mortality Rate (IMR) (per 1000 live births) of Kerala and Gujarat.
YearIMR of Kerala IMR of Gujarat
20131236
20121238
20111241
20101344
http://niti.gov.in/content/infant-mortality-rate-imr-1000-live-births

How to Use Section 80CCD For Tax Exemption of Extra 50000 Rupees

If you are looking for a way to reduce your tax burden, Government of India announced a way to claim the tax deduction for an extra 50000 rupees from your taxable income. So far the exemption anyone could claim by using the Income Tax Act section 80C and 80CCC combined was 150000 in a financial year. Now under Income Tax Act section 80CCD(1b), you can claim Income exemption for addition 50000 Indian Rupees. All you have to do is to invest 50000 rupees to National Pension Scheme (NPS) and show it under section 80CCD once the combined investment limit under Sections 80C and 80CCC are exhausted at the amount of 150000 rupees in a financial year. This extra 50000 rupees tax exemption can be claimed by anyone in any tax slabs.

How to Claim Tax Exemption Under Section 80CCD

Though there are some confusions remain in how to take benefit from Section 80CCD in Indian Income Tax Act, by carefully planned investments you can take full benefits of Tax exemption allowed by Section 80CCD. While computing your Tax returns, one point you must remember is to avoid duplication. That is if you have claimed your investments in NPS under section 80C, you cannot use the same amount for tax exemption under section 80CCD. So you must use the following procedure if you want to claim section 80CCD. Easy procedure to claim Tax Exemption for Extra 50000 rupees under Income Tax Act 1961 Section 80CCD is:
  1. Calculate your taxable income for the current financial year

  2. Deduct all expenses related to your business from the income under Business and Profession

  3. Make sure all investments under section 80C are added up to 1.5 lakhs. Here you should consider your investments in Employee Provident Fund (EPF), Public Provident Fund (PPF), Tax Saving Mutual Fund Schemes (ELSS), Tax Saving Fixed deposits with five years locked in period etc. It is better you should not show your investments in NPS under section 80C unless you have invested enough money in NPS to claim section 80CCD too. It is important to note that even if you use the benefits of sections 80C and 80CCC, 1.5 lakhs is the upper limit.

  4. Show your investments in NPS tier-1 up to 50000 under section 80CCD(1b)
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Points to Remember Before Investing NPS to Claim Section 80CCD

Congratulation to all who are planning to take benefits of Section 80CCD to claim tax exemption for another 50000 rupees. However, I would like to remember you a few points before you invest in NPS for the sole purpose of Tax Exemption.
  • NPS has two different accounts: tier 1 and tier 2. Only the investment to NPS tier 1 account is tax exempted.
  • National Pension Scheme tier 1 account is for retirement purpose. That means withdrawal from tier 1 account has certain restrictions.
  • Any withdrawal from NPS tier 1 account attracts Tax burden. You must pay tax at the time of withdrawal, once the account is matured, at the rate of your tax slab.
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Usage of Section 80CCD For Government Employees

Now let us consider the case of both Central Government and State Government employees who are contributing to NPS tier-1. For Government employees, it is mandatory to contribute a certain amount to NPS tier-1 and a matching amount (10% of Basics + DA) will be contributed by Government. Now the question is whether a Government employee can claim his mandatory contribution to NPS for additional tax exemption for 50000 rupees per year. The answer is yes. See the chart below to understand how to use section 80CCD by a Government employee to reduce his tax burden legally.
SectionExplanationBenefits
Section 80CCD(1)10% of Basics and DAUp to 1.5 lakhs is tax exempted (clubbed with Section 80C)
Section 80CCD(1b)Contribution to NPS tier-1 account up to 50000 rupeesExtra Tax exemption for 50000 Rupees (in addition to the section 80C)
Section 80CCD(2)Government contribution up to 10% of Basics + DA Additional Tax Exemption (not clubbed with Section 80C)
So if you are a government staff who is trying to make maximum tax benefits using section 80C and Section 80CCD, follow the tips below.
  • Government contribution {Section 80CCD(2) }upto 10% of Basic plus DA is fully exempted
  • Show your contributions up to 50000 to NPS tier-1 account under Section 80CCD(1b)
  • Any remaining contribution to NPS tier-1 should show under Section 80CCD(1) which will be clubbed with Section 80C up to max 1.5 lakhs limit

Setup & Troubleshoot FASTtelco Wireless Router and Compare With Other ISPs

FASTtelco is one of the leading Internet Service Providers in Kuwait. They provide high-speed ADSL broadband service to both business and residential users. This tutorial explains how to configure FASTtelco ADSL modem by yourself without the assistance from any experts and troubleshoot both Internet and wireless connection issues with FASTtelco router. Next part of this guide explains how to check FASTtelco Internet usage and pending bill payment by login to FASTtelco payment account and comparing the monthly data charges of various Fast telco broadband plans with competitors monthly charges.

How to Setup FASTtelco ADSL Modem

To install any modem/router with FASTtelco ADSL broadband connection, follow the instructions below.
  1. Connect FASTtelco Modem with Computer
    Make sure the LAN port of FASTtelco modem/router is connected to Ethernet port of Computer using an ethernet cable. Modem WAN port should be connected to Phone cable.

  2. Login to FASTtelco Modem Setup Page
    If you don't know the default login IP address of your FASTtelco modem or do not know the modem login username and password, follow the instructions provided in the link below.
    Find Default Login IP Of a Modem

  3. Click on New Connection button on Configuration/Setup Page

  4. Continue FASTtelco Connection Setup Wizard

    You will be asked to enter following FASTtelco ADSL parameters in different pages.
    FASTtelco Connection typePPPoA VC-Mux
    VCI value35
    VPI0
    IP ControlStatic IP
  5. Enter FASTtelco Broadband Username and Password. You will receive these details from FASTtelco support.

  6. Reboot FASTtelco Modem

Compare Fast Telco With Other ISPs in Kuwait
Choosing an Internet Service Provider from a list of ISPs in Kuwait should be based on your requirements. You should analyze your requirements with the packages offered from various ISPs in Kuwait. Here you can compare the Internet speed, broadband charges and quality of service from FAST telco with other companies in Kuwait. You may have a look at the chart below to compare Fast telco Internet with its competitors.
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FAST telco Network Connectivity Issues Solution

Once the modem is configured correctly, you will be able to access the Internet without any trouble on your devices. However, it is possible that sometimes you may face issues with connecting the Internet with your FASTtelco ADSL connection. The guide given below will assist you to find the reasons of not able to access the Internet from FASTtelco modem.
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Installing FAST Telco Internet With Second Router
FAST telco supplies its own modems from different vendors like Zhone, Belkin, Netgear, Linksys, Cisco etc. While configuring FAST telco Internet connection with Zhone router, Cisco router etc, you may find different user interfaces. The same problem happens while you add a second router to Fast telco modem. The below chart shows how to configure routers from Zhone, Netgear etc with FASTtelco modem.
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Important Points
  1. FAST Telco ADSL Broadband Monthly Plans
    You can see the latest FASTtelco ADSL Broadband Internet monthly charges for different plans based on data transfer speed from the link below.
    http://www.fasttelco.net/residential/

  2. Check Fast telco Connection Speed
    It is important to check your broadband speed once the fast telco modem is installed at your place. You can use the tools provided below to check fast telco download and upload speed.
    Online Tools to Check Internet Speed

  3. Customer Support
    FASTtelco Customer Support number is 1886666
    http://www.fasttelco.net/support/

  4. Fast telco Online Payment Page
    You can pay your pending FAST telco broadband bill by visiting the page:
    http://www.fasttelco.net/online-payment/

  5. Improve FAST telco Internet Speed
    There might be many reasons for not getting faster FASTtelco Internet connection. Follow the instructions given below to increase the fast telco broadband speed.
    Increase Internet Connection Speed