7th Pay Commission's Highlights, Key points about 7th pay commission

7th Pay Commission's Highlights and Key points

1. The hike in pay will benefit over one crore government employees and pensioners.

2. An overall increase of 23.55% in the basic salary and allowances of government employees.

3. Entry level pay will be raised to Rs 18,000 a month which is more than double the current pay of Rs 7,000 a month.

4. The maximum salary will be about 2.5 lakhs a month which is also more than double the current highest pay of Rs 90,000 a month.

5. The pay revisions are effective from January 1, 2016.

6. The rate of annual increment has been retained at 3 per cent.

7. The hikes in pay will come with the August paychecks and the arrears for the 6 months will be disbursed during the current financial year itself.

8. Grade Pay & Pay Band system will be replaced by a new pay matrix which will ensure increased transparency.

9. Gratuity ceiling doubled from Rs 10 lakh to Rs 20 lakh.

10. This is the lowest pay hike in the last 70 years.

7th Pay Commission's Highlights, Key points about 7th pay commission

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All you want to know about E-Wallet - Digital Wallet

What is an E-Wallet?

An e-wallet is a virtual wallet which works as a prepaid account where you can store money to pay your bills. In India e-wallets are emerging as the preferred means to pay your bills and slowly beginning to replace other traditional payment methods. You might have seen the advertisement of freecharge, MobiKwikk or Paytm. All these are e-wallets. E-wallet is fastest and convenient method to make cashless payment online and offline. In addition to convenience these e-wallets offer flat discounts and exciting cash back on your online shopping on various websites. Today you can purchase a range of products from airline tickets to grocery items using e-wallet. You can save a lot of your precious time, efforts and your hard-earned money using this medium for your shopping

How to use E-Wallet?

1. Go to the sites where e-wallet services are available or download e-wallet app.
2. Register and create a new wallet for yourself by providing required information.
3. Transfer money to your e-wallet from your bank using online transfer, credit card\debit card.
4. Make payment using e-wallet when buying something.

Types of E-Wallet

There are four types of e-wallets in India – closed, semi-closed, open and semi-open.
1. Closed wallet:-A closed wallet is one that a company issues to its consumers specifically to be used with that company only. These type of wallet is offered by several companies such as Flipkart, Jabong, Meru Cab and MakeMyTrip. This is basically an account where money gets credited in case of a refund.

2. Semi-closed wallet:-A semi-closed wallet allows you to make to make purchase and payments at select merchant locations that have a contract with the issuing company to accept payments through these wallets. Internet companies like Paytm, PayU money, MobiKwik and Oxigen provide semi-closed wallets. These wallets are approved by RBI. Cash withdrawal or redemption is not allowed in these wallets.

3. Open wallet:-An open wallet allows all functions of semi-closed wallet and also allows cash withdrawals at ATMs or banks and transfer funds. These open wallets can only be issued by banks. SBI buddy, HDFC chiller and M-Pesa by Vodafone and ICICI are examples of open wallet.

4. Semi-open wallet:-Semi-open wallet allows you to transact with merchants that that have a contract with the issuing company. Airtel Money is an example of semi-open wallet. You can not withdraw cash or get it back. You will have to spend all the money that you have loaded.

Advantages of E-Wallet

1. Easy and cashless payments as no need to swipe credit\debit card.

2. E-wallet is a prepaid account, hence no chance of declining payment.

3. You can transfer money from one wallet to other wallet.

4. Get exciting cash back offers for every amount you spend.

5. E-wallets offer flat discounts for shopping on various websites.

6. E-wallets give you the freedom of paying for exact change.

7. Simple and user-friendly payment mode.

8. Money will be refunded incase failure of transaction.

Where can you use E-Wallet?

You can use your e-wallet at multiple places, few are mentioned below

1. Utility bill payments

2. Recharging mobile phones\DTH

3. Online grocery stores

4. Online travel portals

5. E- commerce portals

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E-Wallets in India

1. Paytm

2. PayU money

3. MobiKwik

4. Oxigen

5. Citrus

6. SBI Buddy

7. Citi MasperPass

8. ICICI Pockets

9. HDFC Chillr

10. Lime wallet

11. Freecharge

12.  Airtel Money

13. Vodafone M-pesa

14. mRupee
15. Novopay

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Income tax provisions in the Budget 2016.

Income tax provisions proposed by Finance Minister Arun Jaitley in the Budget 2016.

1. Deduction limit under Section 87A of the Income Tax Act raised from Rs.2,000 to Rs.5,000 per annum. This applies to those with total income of less than Rs.5 lakh. According to Finance Minister this move will help more than 2 crore taxpayers.

2. The finance minister also raised the relief under Section 80GG for individuals paying rent but not receiving house rent allowance from employers from existing Rs. 24,000 to Rs. 60,000.

3. First-time home buyers to get additional deduction of Rs 50,000 on interest for loan upto Rs 35 lakh, provided the cost of the house doesn't exceed Rs.50 lakh.

4. Those with an income of over Rs.1 crore will have to pay more taxes as surcharge has been raised from 12% to 15%.

5. No change in Income Tax slab (Currently, a resident individual below 60 years of age, income up to Rs 2,50,000 is exempt from tax, income from Rs 250,001 to Rs 5,00,000 is taxed at 10%, from Rs 5,00,001 to Rs 10,00,000 at 20% and above Rs 10 lakh at 30%.)

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