Volume No. 1, Issue No. STUDENT CIRCUITcompany, to be successful, being good at a subject and ... qualified Cost & Management Accountant & why Cost & Management Accountants are in

STUDENT CIRCUITSTUDENT CIRCUIT

E-mail: [email protected]

Ph: 040-27635937, 27607893

CMA BHAVAN

A News Magazine from

the Hyderabad Chapter of

The Institute of Cost Accountants of India

Volume No. 1, Issue No.3, JANUARY, 2020

Date of Publication on 20-1-2020 & Date of Posting on 25-1-2020

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Ceremonial Lighting of the Auspicious Lamp on the occasion of the Chapter's Formation Day

Honouring Shri Arun Kumar, Superintendent of GST

The Chairperson

writes to you...

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Dear future torch-bearers,

Greetings !

Hope you all have done well in your exams. Success is not something that comes in a day. Be it an individual or a company, to be successful, being good at a subject and constant learning and improvement are very much essential. Let us talk about a few qualities that all successful companies possess.

Firstly, they all observe the customers constantly and know their needs. They focus on what the users want. Today’s touch-screen phones existed only a few years ago, today’s social networking through web existed only a few years ago. These products have come up just because the customers were focused for their wants !

Secondly, they reinvent rather than revise. we typically keep hearing from our elders and seniors that the wheel need not be reinvented, that we start from the point and take up things from there. But this is not the case with successful companies. The most impactful innovations are those that people haven’t even thought of yet.Companies like Apple, Amazon and Uber gave us new ways of living, not by modifying what already existed, but by reimagining what should exist.

Thirdly, they learn and improve constantly. If you see the journey of Netflix, they have started as a DVD-mailing service provider, then came streamlining video, and know we all know they produce original content. Evolution of ideas, giving them a proper nurture to be successful is very important. It is equally important to move away from what the companies have been doing and adapt to new conditions if the market demands so.

So, my dear friends, do not get disappointed or discouraged. Join me in invoking the blessings of Swami Vivekananda to all of us, who birthday has been recently celebrated by all over the world. This great noble soul said, “Arise, awake and donot stop until the goal is reached.” Self-motivation is the key to success. Do believe that you are the creator of your destiny and you alone can change it. Do not let anyone let you down. Together, we all can achieve.

CMA KVN Lavanya

Chairperson

Dear Student ,

A very Happy New year 2020 to you and to your family and

there are many more months to go . you must be still in that

festive mood as Sankranti/ Pongal happened just few days

back. You must have enjoyed a lot.

We want to take you to some good reading stuff this month

too.

One write up is as to what you do once you become a

qualified Cost & Management Accountant & why Cost &

Management Accountants are in demand !. This is penned

by ( not literally ) by Ms Saba –a student like you. Read it

and feel proud as a prospective Cost & Management

Accountant . You are not very far off .

There is another good article from Ms Bhargavi on Direct

Taxes. This is about Medical Insurance Premium /

expenditure . Feel free to get in touch with her to answer

your queries.

Now come to a quality read authored by one of our senior

Members . He talks about cultivating a strong hobby which

complements your career growth. He quotes examples of

great achievers who did the same and immensely benefitted

.

As I see, cultivating a ( right ) Hobby is a strong & great

lateral connect that will definitely help you & support your

career. Read it your self.

Why don`t you start writing for our ̀ Student Circuit ̀ - Saba

just did that.

Wishing you all the best,

Anand Satchit Jammalamadaka

From the Edit Room...

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INDEX

Page No.

v ALL THAT YOU SHOULD KNOW ABOUT SEC. 80D 4

v FUTURE COST AND MANAGEMENT ACCOUNTANT 8

v HOW HOBBIES HELP CAREERS 16

v LATERAL CONNECTS 19

DIRECT TAXES

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DIRECT TAXES

ALL THAT YOU SHOULD KNOW ABOUT SEC. 80D

YOU CAN GET ADDITIONAL DEDUCTION UPTO RS. 1,00,000 (OVER AND ABOVE RS.1,50,000

U/S 80C) FOR MEDICAL INSURANCE PREMIUM / MEDICAL EXPENDITURE.

FIND OUT HOW??

APPLICABLE TO

Individual and HUF

v

v Medical insurance policy can be taken in the name of any of the following: the taxpayer or the spouse,

parents or dependent children of the taxpayer.

v Dependent Children (i.e. legitimate or legally adopted children). Children above 18 years, if

employed, cannot be covered. Male children, if not employed, but a bonafide student can be covered

upto age of 25 years. Female children, if not employed, can be covered until the time she is married.

v Parents of Individual – need not be dependent on the Assessee.

v HUF (Hindu undivided Family) may be resident or non resident.

v In case of HUF, the medical insurance policy can be taken in the name of any member of the family.

v Senior citizen means an individual resident in India who is of the age of 60 years or more at any time

during the relevant previous year.CONDITIONS TO SATISFY

v For claiming deduction under section 80D, the payment can be madeby any mode other than cashin all

cases.

v However preventive check up can be made in cash.

v The medical insurance should be in accordance with a scheme made in this behalf by GIC (General

Insurance Corporation) approved by Central government or IRDA.

v The amount must be paid out of income, which is chargeable to tax.

Where lumpsum health insurance premium is paid (single premium) covering insurance for more than a

year, then, deduction is available on proportionate basis.

- Bhargavi Vathsan

Individual (resident or non resident, Indian Citizen or foreign citizen)

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QUANTUM OF DEDUCTION

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KEY POINTS

Ø Deduction in respect of payment towards preventive health check-up - to the extent of ₹ 5,000 shall be

allowed.

Ø ₹ 5,000 is within the overall limit of ₹ 25,000 or ₹ 50,000 specified above.

Ø If part payment is done by you and part payment by the parent, both can claim deduction Under Section

80D to the extent of their contribution subject to maximum allowed but amount should be paid directly to

insurance company and paid through mode other than by cash.

Ø If office deducts for medical insurance for employee and his family from his salary, the assessee can

still claim the benefit under this section provided he gets a certificate from the employer regarding

deduction of amount for medical insurance purpose.

Note:Group medical insurance policy taken by the employer for the benefit of the employees and their

families is a deductible expenditure for the employer if the premium is borne by the employer and not

deducted from the employee's salaries.

FYI–The benefits of group medical insurance borne by the employer are:

1. He can claim deduction as business expenditure.

2. The point that employee's safety is employer's responsibility is conveyed. So it has an additional

benefits of raising employee morale substantially.

3. He can lure employees as it is shown as CTC in the offer letter.

4. As compared to any of the individual plans the premium for the group insurance schemes are much

lower.This is because the risk is evenly distributed evenly by the entire group. Thus employees always

prefer this.

5. It covers even those employees who cannot afford for individual insurance plan. SoIt is a win-win

situation for both employer and employee as such plans by their very nature enhance trust and loyalty and

thus work as retention plan.

6. In group insurance schemes that cater for gratuity and annuity the assets can be managed by the more

experienced and professional experts of the insurance company thus providing greater returns for the

employees being covered.

FUTURE COST &MANAGEMENTACCOUNTANT

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FUTURE COST & MANAGEMENT ACCOUNTANT- SYED SABA

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HOW HOBBIES HELP CAREERS

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HOW HOBBIES HELP CAREERS

- N. Srinivasan

Let's start with a snap quiz…

What is common to these celebrities – Sachin Tendulkar, Shah Rukh Khan and Amitabh Bacchan?

For one thing, they all have hobbies.But, different ones.

Next, can you match their hobbies with them - Blogging; Collecting CDs; Playing video games?

If you matched CD collection with Sachinand Video Games with SRK (of course, blogging/tweeting is AB's hobby),then treat yourself to a cup of Irani Chai or a Cadbury Milky Chocolate bar.

Having a good hobby may not get you a job but it can certainly help you through your career progress. A good hobby, Viswanathan Anand, the former World Chess Champion, had said recently, helps you to take your mind off a tough problem at work and engage your body and mind in something very different. It recharges your batteries and prepares you to take a fresh look later at the tough problems you have to solve at the work place.

An interesting hobby, Anand added, has the potential to liven up your social conversations when you meet up with new people in social gatherings or when you travel to new places. On a long flight, if your fellow passenger happens to be reading a PG Wodehouse novel, you might be able to strike up a conversation easily with him or her, if you are also a fan of the wisdom of Jeeves. The in-flight 'connect' may blossom into a lifelong friendship or provide the bridge for your next career move. Who knows!

A third benefit of a serious hobby is a perspective that my young friend Atul Deshpande shared with me in a conversation.You can appreciate the depth of a field and the achievements of a master in that field far better, say painting, if your hobby is also painting. The advantage is that while you may have a measure of its scope and richness, you are not under any pressure to compete and achieve those levels that a master had reached. You are just the hobbyist and not a professional with a compulsion to compete.

While it is not for me to suggest what hobby you must choose, I can a broad but short list of criteria for choosing one:

1) The hobby must fascinate

2) It must fully engage your mind and body such that, as long as your engaged with your hobby - say composing a song, if you are song writer - you will be steering away from thinking and worrying about the pressures, problems and priorities of your work.

3) The hobby must be accessible to you whenever you have time away from your work and other family and social duties.

In my extremely limited research, I have not come across the answer to two interesting questions:

1) Is there a correlation between hobbies and personalities?

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2) Do you choose a hobby or the hobby chooses you?

Finally, I would like to share with you a quote from a much decorated scientist on the need for a hobby for every professional and soon-to-be professional like you:

“When I was young, I was able to work all day, because it was so interesting. But it is quite sure that effective work needs a certain rest. It is very important for anybody to have a hobby - painting or sculpture - and I would combine it with science. I would learn sculpture, painting, or music as early as possible, paralleled with science so that in my hobby, I am not an amateur but I could reach a certain level which would satisfy me. It is the switch from science to the hobby that is very relaxing. We can't avoid failures in science, real failures which cannot be overcome otherwise than by taking a rest. For that small rest, the hobby is very important. So a hobby is, in my opinion, a necessity and I could have improved my research work by having a well-defined creative hobby”, says the Hungarian scientist Georg von Bekesy.

“Who is Georg von Bekesy?” I hear your question!

Well, I don't want to rob from you the fun and joy of discovering for yourself who is Bekesy!

*Source about celebrities and their hobbies - Business Insider, India.

LATERAL CONNECTS

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MANAGING FINANCE

- from Economic Times as compiled by CMA J. S. Anand

I think finance needs to be demystified, and, two, it needs to be rehabilitated. Demystified means finance

gets mischaracterised by a lot of people today and they’re intimidated by it, and we need to make finance

open to people so that they stop demonising it in the way they do, and so that they can be empowered to

learn the underlying ideas.…

I wanted to make it all about stories. That is, I think, the best way to demystify finance. And then the second

thing I wanted to do was I think finance needs some rehabilitation.…

The fantastic part of finance in the last 60 years has been the quantitative rigour and the abstraction and the

theorising that has allowed us to make what I think are really important gains, but it means we talk to

ourselves more often than not and we’re hyper-specialised.

One of the motivating essays for the book is this ‘Two Cultures’ essay by C P Snow, who articulated how

there are these two worlds of science and humanities and they’ve grown apart; the exact same thing

applies to finance. His point and the point I’m trying to make is it’s a loss to both sides.

Humanities are losing their ability to speak to people who have real-world concerns, and they have this

caricature of finance as being evil, while, in fact, there are chunks of it that are, but there is a huge amount of

good that’s there. Similarly, people in finance characterise people in the humanities as having nothing to

say, and that obviously is wrong as well.

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GROWTH ACCOUNTING

- from Economic Times as compiled by CMA J. S. Anand

Modern national accounts of the type used by virtually every country in the world today only really began to

take shape in the 1930s. Simon Kuznets is usually credited with the invention of GDP, the quintessence of

the national accounting system. But Kuznets soon saw his creation take on a life — and a direction — of its

own.

The man who is said to have invented our way of measuring growth was born in 1901 into a merchant family

in the town of Pinsk in what was then part of the Russian empire.… Kuznets was a brilliant student and by

his early twenties had published his first paper on the wages of factory workers in Kharkiv.

His studies at the university were interrupted by the Russian civil war; in 1922, the family fled, via Turkey, to

the US.… Kuznets continued his education at Columbia University, graduating in 1923 and receiving his

PhD in 1926. The following year he joined the National Bureau of Economic Research, a think tank founded

in 1920. Kuznets would become a distinguished academic economist.…

His most lasting achievement, however, came in the intersection between economics and the real world.

Kuznets loved data. He worked closely with the first director of research at the National Bureau of Economic

Research, Wesley Mitchell, who was also chairman of President Herbert Hoover’s Committee on Social

Trends. That work took Kuznets into the heart of government policy.

CHAPTERS FORMATION DAY CELEBRATIONS

Honouring Chief Guest Sri V.N.V. Ramana Murthy, Music Director

Honouring CMA K. Narasimha Murthy, Practising Cost Accountant Honouring CMA R. S. Raju, Associate Director and CFO of NCC Ltd,

CMA Bhanu Prakash Mono Action by CMA Khaja Jalaluddin & Party

CMA N. Alakananda Baby Amrutha

Honouring CMA V.V. Ravikumar, Executive Director and Chief Financial Officer of Laurus Labs Ltd

CULTURAL ACTIVITIES

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CHAPTERS FORMATION DAY CELEBRATIONS

Baby Abigna, Master Akshit CMA D. Zitendra Rao Baby Amrutha

GAMES TIME

CULTURAL ACTIVITIES

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HONOURING PAST PRESIDENTS, CHAIRMEN AND COMMITTEE MEMBERS

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HONOURING PAST PRESIDENTS, CHAIRMEN AND COMMITTEE MEMBERS

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Views expressed by contributors are their own and The Institute of Cost Accountants of India - Hyderabad Chapter does not accept any responsibility.

Editor: CMA Lavanya K.V.N., The Institute of Cost Accountants of India – Hyderabad Chapter, 1-2-56/44A, 5th Street, Himayatnagar, Hyderabad - 500 029.

Posting under registration No. HD / 1181 / 2016-18. Printed and Published by: Mrs. K. Kavitha, Superintendent on behalf of Hyderabad Chapter of Cost Accountants, 1-2-56/44A, 5th Street, Himayatnagar, Hyderabad-500 029 and printed at Gayatri Printing Press, 5-18, Durganagar, Dilsukhnagar, Hyderabad – 60 and published at Hyderabad Chapter of Cost Accountants, 1-2-56/44A, 5th Street, Himayatnagar, Hyderabad-29. Phones : 27635937/27611912.

To PRINTED MATTER - BOOK POST

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HYDERABAD CHAPTER OF COST ACCOUNTANTSCMA BHAVAN, Street No. 5,Himayatnagar, Hyderabad - 500 029.Ph. 040-27635937, Telefax: 040-27607893Web: cmahyderabadchapter.inEmail: [email protected]

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