Friday, March 30, 2018

Not posting TAX returns before 31st March?? God Bless you!!!

I will file returns AFTER March 31st.....I am very busy these days......

If any of such thought has ever crossed your mind......then discard that thought immediately!!
The disadvantages are huge and the advantage......absolutely ZERO.

Individuals and HUFs earning above Rs.2,50,000 compulsorily have to file returns
Mandatory filing of the income tax return:
Income Tax Slab for Individual Tax Payers & HUF (Less than 60 Years Old) for FY 2016-17 – Part I
Income from Rs 2,50,000 – Rs 5,00,000   10%
Income from Rs 5,00,000 – 10,00,000       20%
Income more than Rs 10,00,000 30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
(Contact your Chartered Accountant for more details)
If your income does not exceed the tax 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
F or the Financial Year 2016-17 (AY 2017-18), the return can be filed by the 31st March 2018.


The implications could be many and to begin with you may
1)      Get a Notice from the Income Tax Department asking for Explanation and proofs for delay in filing (or not filing at all)
2)      You could be penalised ranging from Rs.5000/- to Rs.10,000 besides being levied with 1% interest on Tax Due on per month basis  () Penalty of Rs.5000 before Dec 31, 2018 and Rs.10,000 thereafter till March 31 2019)

 (Important Note:

This penalty provision has been abolished in relation to the return of income required to be furnished for any assessment year commencing on or after the 1st day of April, 2018.

New section 234F in the Act provides that a fee for delay in furnishing of return shall be levied for the assessment year 2018-19 and onwards.)]

3. 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)
4. 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!!!!!!!!!

Yes. Definitely.
  1. You will not be allowed to carry foward losses you may have incurred in your business or investments. (Normally this is allowed for upto 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 refund of any Excess Taxes you may have paid.
    Sometimes due to some error, oversight, omission, you may have paid Excess Taxes or a wrongful TDS may have occured. In normal Tax Filing, you are entitled to claim refund and get back your rightful amount but this is disallowed in 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

  1. Even your Credit Card company may reduce your Credit Limit and may even cancel your Card
  2. Your Credit Standing will get hugely affected and you may face problems while applying for loans....personal loan...home loan...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.
  1. Some countries may even deny you a VISA if you are not able to submit your IT Returns.

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.

Those friends who are stuck while filing tax return for AY 2016-17 for foreign companies due to lack of Indian bank account details, please fill up NNNN0NNNNNN in the IFSC Code field.
And, despite your best efforts you still could not file your returns....then note there is still time till March 31, 2019 to file 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

You can invited to join my TELEGRAM channel MF World  http:/http://

You can also listen to my talk on this subject which was beamed LIVE on RADIO CITY
Disclaimer : Its in KANNADA
Listen to File Tax before 31st March.3gpp by Srikanth Matrubai #np on #SoundCloud


Srikanth Matrubai on Radio City on

You have to FILE tax returns before 31st March

Also visit http:/http://

Monday, March 5, 2018


Laying on a Hospital Bed, I could write a Tragic Story as to why me?
I dont smoke
I dont drink
I dont eat non veg
I maintain strict diet
But, fate is like that..It can be very cruel. Thankfully, it has given me another shot at life so hence I thought why not write things which I have learnt from the Hospital Bed

We Financial Advisors are always tuned to be ready for ANY emergency and keep telling our clients the same.
But, when that Emergency hit ME, it was nothing of a shock.
What started with a small pain in Chest led to a "just to be safe" check thing led to another and lo! within a couple of days my Heart was injected with STENT!
Life can change in a jiffy!
Laying on the Hospital Bed, I observed many things which gets connected with our Financial Plans and here are some of those musings.

As I came down after climbing the Tirumala Hills, I didnt have discomfort but the next morning, immediately after breakfast...I started feeling Stomach Heavy and a very light Chest Pain.
I asked the ISKCON people for guidance and they guided me to REDDY & REDDY colony.
Now, this Reddy & Reddy Colony has about 1200 buildings and every single building (repeat, every single building) consists of
1. An Hospital or
2. A clinic or
3. Diagnostic Centre or
4. Medical Shop or
5. Ayurvedic Centre
et al........every single building had some kind of a connect with Health! Never ever seen or heard of anything like this before.
Finally, went to the Doctor recommended by the ISCKON people. The Doc immediately did an ECG, gave a tablet and said "Mr.Srikanth, you can go back to Bangalore now..but do get a complete check-up done there".
And I was off!

With so many many doctors, hospitals, I could have easily lost my place and gone any kind of a quack but thankfully I chose the one recommended by ISKCON and thus landed safely in Bangalore.
Likewise, there are so many many funds, you could easily choose A WRONG FUND and lose your capital forever. Its best to stick to a Advisor and his choices

As I was waiting for my turn for the check up, the Doctor was examing two friends and said "Tum Muslim Ho? To Roz 5 Baar Namaz Karna Padega...Ise Dil mazboot ho ga" ("You are a MUslim? Then you have to do 5 times Namaz....this will make your Heart Strong)
and turning to his friend said "Tum Jesus Ko sirf Sunday Yaad karne se kuch nahi hoga....Har Roz Pray Karna Padega" (Remembering Jesus only on Sunday isnt enough...pray daily)
This is  TRUE SECULAR INDIA. A Hindu Doctor....she could have talked about Bhagwad Gita but she did what is good for patient and will ACTUALLY FOLLOW.

When an Advisor gives you advise to invest in Emergency Fund or an Insurance....he is interested in YOUR growth.
Some advisors may not be able to effectively communicate but you as Investors have to get the INTENT behind the advise and follow them.

Right opposite my bed lay a 60+ patient and throughout the night he used to call out to God "Hey Prabhu....Sirf 6 maine Aur de do....Phir mujhe Utha lena" (Give me just 6 more months and later take my life)!!!
While the matter is definitely sad, its also comical that almost every person on a death bed has the similar prayer. Just step back and try to recollect...isnt it??
Now, at least in terms of financial goals, we can be PREPARED for such eventuatility.
Expecially, good Advisors ensure that they underpromise and overdeliver.
Meaning...if a goal requires say about 25 lakhs....advisors tend to play safe and provide for 20% back up at 30 lakhs which a Self Advised (Direct Investor) will not.
Even in terms of returns too, more or less same pattern is observed.
So, at least Financially, a Good Advisor will ensure that you are prepared for any Eventuality/Goal much ahead of its actual requirement.

4. 2 Patient, 1 Attender
Each patient was allowed a personal attender (family member/friend).
My wife revealed that she observed that 2 Patients in another ward had only 1 single attender!
Now, this attender had a tough time managing to look after both the Patients (husband and brother) all at the same it feeding the patients, bathing...all  in that limited time period. She was not able to concentrate on either of the patients fully. Sad.
Takeaway :
2 takeaways actually.
1. Have seen many investors have 2 or 3 advisors "just to be safe". this is ridicilous!! Stick with 1 Good Advisor and it should be find otherwise you will only be confusing not only your yourself but even your advisors.
2. Have seen many investors invest in funds suggested by a Good Advisor with small amount and then going DIRECT and invest BIG to save expenses. Another bullshit idea!
Its a Plain PAISA WISE RUPEE FOOLISH startegy. The Calculations, et al could go for a toss and you could well land up in a mess.
Stick to 1 Good Advisor and he will guide you to your Goals.

Thankfully, almost the entire hirerachy of the Hospital were known to me.  (Some of them were my investors, some friends, and most importantly, some close relatives).
This ensured that I was looked after well and extreme care was taken to ensure that I recovered as quickly as possible.

When it comes to investments, it makes sense to have all kinds of asset classes and all kinds of funds in your portfolio.
Your portfolio should be truly diversifed!!!
Depending on the risk profile and time horizon, you need to have an
Equity Fund (inevitable)
Debt Fund
Balanced Fund
Liquid Fund
Gold Fund
Small Cap, Mid Cap, Large Cap
this ensures that when the time comes, each and every single fund will ensure that you are SAFE truly.

6. Insurance
My Health Insurance ensured that the LEAST of worry for my family was the HOSPITAL BILL.
I had myself sufficiently covered from my health Insurance from APOLLO MUNICH.
the claim was settled cashless and my family did not even have to call any Apollo person.
What this means is.....any expenses spent on Insurance is NOT A WASTE OF MONEY.

Finally, if you have observed, in the beginning of the article I have mentioned about a CHECK UP....
Due to this Check up...the problem was deducted and my life was saved.
Similarly, do not wait for a Financial Emergency to hit you and then go running to a Good financial it right now!
The earlier the better for your portfolio to get corrected and help you achieve your goals.

All those GET WELL wishes, you people have sent, will surely make GOD think twice of sending me to an hospital purely for the large number of wishes.
God will surely envy my well wishers.
Thank you friends.