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by Nirupam Biswas

Deep dive into new tax regime of Budget 2020

Budget 2020 is a mixed bag and for the first time it provides the option to choose your tax slab. You have two slabs to choose from. The well understood old one and the new one. New one offers lower tax slabs but without any deductions (except for select few like 80CCD(2)).

There is nothing simple to having two slabs as option. Let’s compare the two and try to understand which one is better and under what circumstances.

Circumstance is the key word here; hence there are so many articles and videos which try to explain this using specific examples. I am not going into a specific case. But will use the power of graphs to plot all possible scenarios from income level 0 to 2Cr. This will hopefully provide some more insight into this mess.

In the below interactive chart the blue line is the tax amount (including applicable surcharge and 4% cess) as per the new slab. The orange line is the tax as per the old slab but without claiming any deductions. It is clear that purely slab-wise the new plan is lighter on tax. The jumps at 50L and 1Cr points are due to surcharges – 10% after 50L and 15% after 1Cr. Irrespective of that the tax as per new slab linearly increases similar to old slab while maintaining almost same difference.

See the Pen New vs Old Tax Comparision (data only) by Nirupam (@applegrew) on CodePen.

Interactive chart 1

From the graph above it might look like taxes from both slabs are exactly equidistant but if we zoom onto the green line at the bottom, we can see that it is not exactly that.

The difference increases as we move towards higher income. It is fixed after 15L slab. After that it increases in steps at 50L & 1Cr points.

What is clear is that as your income increase you need to claim more deductions to benefit from the old slabs.

Zooming into the portion before 15L shows a pretty unpredictable “wavy” difference. That means predicting if you will loose or gain if you use the new plan is much harder here. What is clear is that as your income increase you need to claim more deductions to benefit from the old slabs.

The below interactive chart shows the amount of deductions you need to claim in old slab to just match the tax benefits you get from new slab. In the topmost interactive chart this data is shown by red line near the bottom of the chart.

See the Pen Tax deductions comparision only (data only) by Nirupam (@applegrew) on CodePen.

Interactive chart 2

From 15L point it pretty fixed. You need to claim more than 2.5L of deductions to get benefit from old slab.

From 15L point it pretty fixed. You need to claim more than 2.5L of deductions to get benefit from old slab. If you cannot then switch to new slab. Out of 2.5L 50k Standard deduction you get for free, so what is left is 2L deduction. For that you need to max out your 80C, and NPS or 80D. If you have a home loan then it would be easier because you can claim 2L per annum of interest amount you paid for home loans. However, loans typically have more interest component towards the start and more principal amount at the end. To see how much interest you are paying year wise see – https://blog.applegrew.com/2019/01/calculating-amortisation-schedule-of-your-loans/.

The big dips after exact 50L and 1Cr points are due to surcharges. Even claiming a small deduction can bring your income to a slab where surcharge is zero or less, making your taxes match the gain in new slab. However, this lasts for approximate 4.5L range.

Let’s have a look at the range before 15L point more closely.

From 5L to 7.5L range the required deduction linearly increases from zero to 1.24L. So if you max out your 80C then that is good enough reason for you to keep using old slab.

From 7.5L to 10L range the rate of increase in required deduction amount lessens. At 10L point the required deduction is 1.88L. This plateaus out and continues until 12L point like that. Removing 50k, we are left with 1.38L deductions to fulfil. Here too if you just max out your 80C then old slab is great for you.

12L to 12.5L is one small range and then 12.5 to 15L range. The deduction for this range varies from 1.88L to 2.08L and 2.08L to 2.5L respectively. Here you need to pretty much max out 80C with NPS or 80D or should have home loans.

Finally

HRA is also one significant amount which I have not considered here. All in all figure out your gross income then use interactive chart 2 and locate your income level on x-axis. That should provide you with the min deduction amount you need claim to benefit from old slab. Add all your actual deductions and see if that fits the requirement.

However, even after the flat 50k deduction if you have the need to switch to new tax then you are not saving enough!

Addendum

Update1: I almost forgot about Standard deduction of 50k which you get in old slabs but not in new one. Updated the article accordingly.

by Nirupam Biswas

ServiceNow: Setting up Zoom with Notify

Disclaimer: The information presented here is unofficial and is not endorsed or supported by ServiceNow. This has been published here in good faith that it can help someone.

First ensure that you are at least on New York release Patch 1 and Notify is installed there (ref).

Next you need to install two Store apps :-

  1. Zoom Spokes – https://store.servicenow.com/sn_appstore_store.do#!/store/application/5192d6d90b4233006237818393673aea/1.0.2
  2. Notify Zoom Connector – https://store.servicenow.com/sn_appstore_store.do#!/store/application/613f88810b0233008e64aabcb4673a50/1.0.3

Now follow the video below.

Instruction video

The video should be comprehensive enough to get you started.

Known issues:

  • The Zoom integration will not work when run as non-admin user (PRB1360915) – The workaround is to make use of the Zoom integration as admin user at least once. Make sure to Create/End Conferences, Add participants to it, etc. The issue is that all Zoom Spoke Actions need to be run as admin at least once. When done then you can use it normally without admin privileges. This issue has been addressed in Orlando and will probably be backported to some New York later patches.
  • Misleading error message when OAuth expires (PRB1360395) – If the OAuth has expired or has not even been fetched, then trying to use the integration will show an error like – ‘Meeting host must have a valid Zoom account’. The issue will be fixed in next version on “Notify Zoom Connector”. Current version is 1.0.3.

by Nirupam Biswas

Applying for Mutation of resale property in Hyderabad

Typically for buying a resale flat you goto the Registration Office which transfers the title to your name from previous owner. This process is known as Registration. However, you also need to update Municipal records. This will ensure the next Property Tax demand slip is generated in your name and not previous owner. This process is known as Mutation.

As per information online the Mutation process is automatically kicked off when you do the Registration. In fact the Registration Office do collect the fees of Mutation at that time.

In my case however, after waiting for many months nothing happened and then I raised grievance with GHMC. After about a month I got reply from GHMC that I needed to submit some documents to kick off the Mutation process! I did not know about that. The internet was silent on this. The Registration Office also did not say anything like this while collecting the fees for Mutation. This post is to bring awareness about it and help hapless citizens like me.

You will need the following documents :

  • Your Sale Deed copy. All pages of this needs to be notarised or attested by a Gazetted Officer.
  • The previous owner’s Sale Deed copy. All pages of this needs to be notarised or attested by a Gazetted Officer.
  • Last Property Tax paid receipt copy.
  • Copy of DD which was used to pay Mutation fees.
  • Copy of challan copy of Registration fees.
  • One Rs. 20 Stamp Paper. (Higher denomination Stamp Paper will also do if not available.)
  • One Rs. 50 Stamp Paper.
  • If the property was registered more than three months back then you goto Registration Office again and get the current market valuation certificate of your property. If the market valuation has increased then you will need to prepare a DD for Mutation fees of the difference amount.
  • You will also need EC (Encumbrance Certificate) from Registration Office or MeeSeva for your property.

One Stamp paper was left empty and I forgot what was printed on the other one. The notary guy will know what to print. Let him know it is for Mutation application.

You will then need submit these documents at GHMC office’s Mutation section along with a filled up form which you will get there.

Below is the location of the municipality office at Chandanagar. The Mutation section there is on the first floor. Goto first floor then from stairs take left. Go in and straight in. At the end goto the corner office at right. There should be a paper label marking the Mutation section. The main official in-charge sits right at the room’s entrance. Nice guy. If all documents are in order then it is a 10mins job.

by Nirupam Biswas

Calculating Amortisation Schedule of your loans

Be it home loan, car loan or any other loans; they all have same style of calculation. These calculations are non-trivial and it becomes more complicated if you are going to make some prepayments.

To make it all too easy I have built an app to do all the hard work for you. You will get insight into how much interest money you are really paying on your “low interest” rate loans, and how a small repayment early can save you big money. Also it gives you visibility into exactly how much interest vs principal you are repaying on your each EMI.

If you are new to this then the last statement might not be very clear to you. Each month you pay a fixed amount as EMI (Equated Monthly Instalments), however, each of those EMIs pay off part of the principal amount (the loan amount you borrowed) and part of the overall interest amount. The interesting thing is that percentage principal and percentage interest amount you pay in each EMI is not fixed. Towards the start of loan period the interest part is more and the principal part is less, as the loan progresses their ratio gradually progressively approaches 1:1 near the mid of your loan tenure then it flips and your principal ratio becomes more than your interest. Eventually it is only principal which is left; at which point the loan is fully repaid.

That is why making lump sum prepayments towards end of loan tenure is not too beneficial as you are only repaying the principal which anyway you need to repay. Where you can save on, is the interest part. Always keep in mind the amount of interest you are paying is directly proportional to the amount you loaned and the time you are taking to return that amount.

Play with different values in the calculator below and notice the pattern in the graph.

by Nirupam Biswas

Good old coding days

Today I noticed a Facebook post from Ubuntu.

It took me back to my 6th-8th grade school days. These kinds of interesting games with such graphics made me want to immediately code them on my own with my own little spin. They were hugely satisfying. At that time I did not own a computer at home so I would take a notebook and write pages after pages of codes. Then I would coax by dad to get access to computer at his office. His office had only one computer and that too only in my dad’s boss’ cabin. His boss was the head of the office.

Once I got the access to the computer, usually on off days, I would copy all the codes from my notebook to the computer and save it on my floppy disks (yup floppy disks). This would go on for few turns as computer time was limited. Then I would get the chance to finally test the codes.

There was some kind of charm to it and they got me real high.

Now I develop web based applications for a living. I am a full stack developer, in layman terms I build from the engines all the way to seat covers of a car. It has its high moments but I still feel I have and always have had an itch to create games.

by Nirupam Biswas

Wifi STB Remote+ (JAVA) for laptop and desktops

My Android App Wifi STB Remote+, which works as a remote for TataSky+ HD Settop boxes, now has a laptop/desktop counterpart.

Wifi STB Remote+ JAVA - Main screen

Wifi STB Remote+ JAVA – Main screen

Wifi STB Remote+ JAVA - All channels screen

Wifi STB Remote+ JAVA – All channels screen

This application is built over Java and packaged as a Jar file. (Download link below.) So, Java (JRE 8 or JDK 8) needs to be installed on the computer where you want to run this.

Please note this is an experimental application. Unlike its Android counterpart this application is not that chatty and articulate about the issues it faces while making connection to the STB (Set Top Box).

To start this app usually just double clicking on it should work. If that doesn’t work then use then you need to open command prompt and use cd to goto the directory where you have kept this app then use the command – java -jar WifiStbRemotePlus.jar.

To use the app make sure your computer is connected to the same Wifi as the STB. Then click on “Connect Device”. When the connection is successful then you will notice a “Connected” message. If you keep on seeing “Connecting…” message for a long time then that means something is not right and it is unable to reach to the STB. In that case fix the issue and click “Connect Device” again. Note unlike the Android app this app does not let you choose the STB. It just finds the STB and when it finds it simply connects to it.

Download WifiStbRemotePlus jar file