Tuesday, October 30, 2012

Benefits Of Forex Trading Vs Stock Market Investments

The foreign exchange market is also known as the FX market, the forex marke or the currency market, in basic terms it is a worldwide investment market for trading currency. Trading that takes place between two counties with different currencies is the basis for the forex market and trading in this market involves just that - buying an amount of one currency with the amount of another currency . The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of numerous currencies.

The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions of dollars that are traded daily on the forex market, in 2010 there was almost four trillion dollars traded on a daily basis. The amount traded daily on the forex market is much higher than the money traded on the daily stock market of any country. The forex market involves large banks trading billions each day, central banks who use currency targets to control national inflation and interest rates, commercial companies who trade with foreign currency when buying and selling goods, investment managers, retail brokers, and the list goes on.

What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.

The difference between the stock market and the forex market is that the forex market is global, worldwide while the stock market is limited to trading that takes place only within a country. The stock market is based on businesses and products that are within a specific country, and the forex market takes that a step further to include any country in the world.

The stock market also has set business hours. Generally, this is going to follow the normal hours of a business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones that there is a market open somewhere at any given time. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.

The stock market in any country is going to be based on only that countries currency, say for example the Euro and the European stock market, or the United States stock market and the US dollar (USD is the most heavily traded currency). However, in the forex market, you are involved with many types of countries, and many currencies.

While there are many differences between Forex Trading and Stock Market investing, it will always still depend on what you as individual would prefer. Just remember that the popularity of Forex Trading is growing for a reason and the time to get involved and learn is now. Technological advances has made it much easier for electronic trading via online portals and therfore much easier for you to also be involved.

Thursday, October 25, 2012

Save Tax Through Section 80d Of The Income Tax Act, 1951 With Medical Insurance

India, as a country, has benefitted greatly from the opening up of its economy, and has got access to newer technology in the field of medicine over the past few years. This has allowed our country to improve the overall health of its population significantly over the last few decades, giving us better health and longer lives.
With better technology, we have had to incur more costs over the years to get this better health care for ourselves. Today, it makes a lot of sense to get medical insurance for ourselves to ensure that we are ready to take on these additional expenses to take care of our own health. As a result, Medical insurance should be taken very seriously and considered a part of our lives.

In India, most people know that a person can also save on their tax up to Rupees 1,00,000/- under section 80C of the Income Tax Act 1961, and payments which have been made towards medical insurance under section 80D of the Income Tax Act, 1961 can also help you save Income Tax. According to section 80D of the Income Tax Act, 1961, any individual can claim a deduction in respect of a medical insurance premium paid up to Rupees 15,000/- for himself and his spouse and dependent children. He can also claim a further deduction from taxable income for the medical insurance premium up to Rupees 15,000/- for his parent(s). Add to this a further deduction of upto Rupees 20,000/- in case this premium is paid for a senior citizen of age 65 years or more, and you can see how payments made from medical insurance can help you save tax every year.

To help understand the concept, here is an example. Let us say that Ram has paid two medical insurance premiums. One is for himself, his wife, and children, while the other is for his dependent parents who are both over the age of 65 years. He pays Rupees 13,000/- and Rupees 24,000/- respectively towards these two medical insurance premiums every year. As discussed earlier, he will be eligible to get deductions under section 80D of the IT Act, 1961. For the 1st premium (Rupees 13,000/-), the entire sum will be allowed as a deduction for tax calculation purposes, as deductions are allowed on actual premium payments made up to Rupees 15,000/-. In case of the 2nd premium of Rupees 24,000/-, he will only be able to claim a maximum sum of Rupees 20,000/- for the medical insurance premiums he has paid for his parents who are 65 years of age or above, since the maximum limit allowed for deduction is Rupees 20,000/- only. Hence, his total deduction allowed under medical insurance will be Rupees 33,000/- (Rupees 13,000 + Rupees 20,000/-) in total for both these medical insurance policies.
Some medical insurance providers have come up with new and innovative medical insurance policies that allow you to get the maximum deduction allowed (i.e. Rupees 15,000/- per year) while adjusting the sum insured every year. Those who want to use medical insurance as a tax saving tool can look into these policies like ICICI's Health Advantage Plus, for example.

Monday, October 22, 2012

The Best Way to Safeguard Your Confidential Documents

We all recognize that lawyers, doctors and banks obtain confidential information from their clients, but every business, large or small, has sensitive information that needs to be secured. Identity theft and fraud are on the rise. Businesses collect information about employees, customers, company financial information, and product development. Sensitive documents that most businesses have on hand are employee records, customer and vendor records, financial and budgeting data, and product specifications or drawings. The best way to safeguard your confidential documents that are to be destroyed is to use a paper shredding service.

All levels of government have passed legislation to protect the confidentiality and privacy of individuals and corporations. Managing information has become an important function in any business. Document shredding services can help your business develop a records management program, advising your company how long to keep records, how to keep them secure, and when to destroy them. Document shredding professionals are informed about current federal, state and local regulations, and will ensure that your company is compliant. Storage of sensitive documents must be augmented with a retention plan. Document shredding services provide steps to securing those sensitive documents, ensuring that confidential information will not fall into the wrong hands. Document shredding services also offer individuals and small businesses a secure drop-off location for personal records to be shredded.

When a business wants the reassurance that its information is secure, it can call on a document shredding professional to assess the needs of the company, and provide mobile, off-site or one-time shredding services. A secure bin is given to collect papers to be shredded. A secure shredding vehicle will arrive at the business as scheduled, and the papers are shredded on-site. Screened and insured shredding professionals safely handle the documents during the entire process. If a company prefers, shredding can be done with company personnel present to supervise. A dated report which is a Certificate of Document Destruction is provided confirming the destruction of the material, providing proof of compliance with regulations, and protection against fraud activities.

Recycling sensitive documents does not satisfy government regulations for privacy and confidentiality. There is not a secure path from the recycling bin to the recycling depot. Paper shredding companies help the environment by recycling the shreds that are produced in the process, providing compliance and security at the same time. Office paper shredders may be convenient, but they are not secure. For instance, documents are easy to get to while lingering around the office to be shredded. A professional document shredding service frees up staff time while maintaining the privacy of those papers.

Maintaining an office shredder utilizes staff time and physically putting the papers into the shredder takes up a great deal of time which hinders business productivity. Document shredding services eliminate that chore, leaving staff time for more productive actions. While most information is generated electronically today, much of that information is printed out and filed. Document shredding services are an efficient and secure answer to the question of what to do with all the accumulated paper-based data that businesses, both large and small, accumulate. Document destruction companies are the best way to safeguard your confidential documents.

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Thursday, October 18, 2012

How Us Protectionist Policy Will Affect Indian Bpo Industry?

Ever since, US President Obama vowed to punish U.S. "corporations that ship our jobs overseas," the backlash in India against such a disastrous move has spread to officials from government, IT industry associations, and leading Indian IT services companies such as Infosys and Wipro. And while they say they want to wait for more details, they are also clearly deeply concerned about the huge implications such policy would have.

While today's highly interdependent global economy renders Obama's 19th-century notion of "our jobs" meaningless, the bigger issues are the impact such a move would have on the overall Indian economy's ability to continue being a major consumer of U.S.-made products and services, and the likelihood that other countries would react to Obama's protectionist stance with their own equally unproductive and trade-reducing positions.

Volume of concern from India
According to the sources US President Barack Obama's statements on curbing tax breaks for outsourcing companies in the US set alarm bells ringing in the Indian IT sector.

Nasscom president Som Mittal, noting that American companies generate 50% of their revenue outside the U.S., said, "To be globally competitive, they also depend on globally shared services." The body also said that any protectionist move by the US that adversely impacts the domestic outsourcing industry might trigger retaliatory measures by India.

Infosys in a statement said, "We are confident that the US will not take any measure which might hurt its global competitiveness and policies of protectionism would only hinder the revival of the world economy."

Impact on the US

Obama's tax proposals on the foreign investments made by American companies, if accepted by Congress, could affect their global competitiveness and would leave them at significant disadvantages against non-US companies. The report said while there are no direct proposals that impact off-shoring to India, the US corporations having business presence abroad could be saddled with increased tax cost if these proposals are enacted.

As per US government's estimate, Obama's proposals will generate 0 billion in revenue over 10 years. The new tax proposals also seek to tighten the foreign credit rules. It proposes to disallow foreign taxes paid on income, which is not subject to US tax. This may lead to double taxation and discourage US companies to invest overseas.

The Evasive Measures
US protectionism forces TCS to hire more foreigners: Seeking to mitigate protectionist measures like visa restrictions being adopted by countries like US, the top Indian IT exporter, TCS, is looking to employ more local nationals in key markets.

NASSCOM to meet FM for pre-budget consultations: The members of NASSCOM will meet Finance Minister to put forward their demands for the sector.

Outsourcing companies take cost-cut call: India's billion IT outsourcing industry, struggling to cut costs without compromising on seat capacity, is now reinventing the wheel. Some of them have stitched up deals with telecom companies, outsourcing their own communication infrastructure, a model now known as hosting services.

Sunday, October 14, 2012

How to Counter Recession

While everyone lament shortage of money during recession, one sure shot way to be financial comfortable is often not heeded. The way is to reduce the expenses and needless purchases. The expenses may include foreign trips, home makeover or any new gadgets. Any purchase that is not essential and can be put off should be put off for the future when the cash flow is much better.

For most people, these times are trying and hard. The economy is not going to get better anytime soon and in fact, we may see a double dip very soon. So while government does it part to manage economy, we can help ourselves to make our lives tad easier in this downturn economy.

1) Love your Job: First casualties in recession are new jobs. Companies stop hiring new recruits and in fact lay off many jobs. At this time the best job is the job you are holding. So, stay put where you are working right now and work hard. Banish any thoughts of finding job in any other company and cement your position in your current job.

2) Cost Cutting: Cost cutting is just not for corporates. You too should avoid lifestyle purchases like new smart phones, laptops, play station etc.

3) No new Loans: Do not make any purchases which mean new Loans. New cars or house are a strict NO when there is no job guarantee. EMI may mean additional strain on your budget. In a scenario where you can be laid off or you may face salary cuts, this is suicidal.

4) No Risky Investments: This is a time for conserving your resources. Do not invest in risky avenues like equity. Only invest considering your risk appetite. If you are in a business, then hold off your business expansion plans. Slow market may mean that you won't get returns soon or as expected.

5) Insure yourself: Even in downturn you need health and term Life Insurance Plans. Make sure that in your absence, your family can live comfortably without any fear of future. One basic rule is to have a minimum of 12 times the annual income as life cover in a term plan.

6) Continue SIP: During the recession, the stock market also will be low. This is the time when you can get best shares at cheapest prices. Keep faith in SIP to minimize your loss. Do not stop systematic insurance plans as you will loss the advantage of cost averaging. Cost averaging has two facets - buying more when the market is low; growing all when the market is high. We buy more units for the same investment, as the units of the mutual funds at a lower NAV (Net Asset Value). By stopping the SIPs we loss out at the buying more stage. This will also mean that you lose out during grow-all stage as you will not have adequate units in your hands for them to grow.

7) Learn: During downturn, it's the survival of the fittest. Companies want the best people to maximize their expenses. Also, educating yourself all the while makes you much more prepared for the upturn.

Sunday, October 7, 2012

Google Apps Reseller Program

The initial idea that everyone gets from hearing the word reseller' is that there is a third party involvement while procuring google apps. This idea is partially right though. Google apps is an extensively researched and highly advanced set of applications that focuses on smooth running of businesses without a lack of communication. It is available for a small fee per month, per user, per business. Sometimes the users' companies lack the time, expertise and human resource maximum usability of these applications i.e. the users are not fully aware of the functionalities. This is where a reseller comes in.


A Google Apps Reseller may either be a set of individuals or a company that is certified by Google as a legal Google Apps Reseller. This certification is procured from Google. This entity acts as the third party vendor by setting up the apps with cloud computing for their client businesses. Google has taken this initiative to spread out the reach of their apps maximally and thus increase business efficiency. It is a win-win situation for Google, the resellers and the end users. Five reasons why one must go for a reseller program are:

Resellers have a definite process in place.

They provide the required training for working with Google apps optimally.

Software setup like plug-ins and networks for cloud computing are provided.

Data and information security which is critical to businesses is guaranteed.

System maintenance with almost negligible downtime is provided.

Google Reseller relationship

Google provides its resellers with the rudimentary tools to flag off Google apps at the client base. These tools include reseller training and support, sales and marketing tools and user database maintenance tools. The credentials that will be given are Authorized reseller' certificate and the reseller logo. Once the training manuals and subject expertise are imparted to the resellers, Google will have nothing more to do with the resellers. After that it is completely up to the resellers to get their business going. Google will not have any share in the profit or the margin whatsoever.

Becoming a Reseller

One can become a reseller in three steps. Firstly apply online by filling up the reseller application. The pre-requisites include being registered as a legal business and having a Google account. The next step is to qualify for being an authorized reseller. That is one must demonstrate the set up of customer google apps account for at least 25 end user accounts. These will all be temporary reseller accounts that can be merged into actual business accounts once authorization is procured. The last step is performed by Google which is a credit check run on the business that is applying for authorization. Once all these steps are completed the vendor business is awarded the reseller authorization.