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SDNS AND NFV ARE COMPLEMENTARY AND CORE COMPONENTS OF MODERNIZED NETWORKS

SDNS AND NFV ARE COMPLEMENTARY AND CORE COMPONENTS OF MODERNIZED NETWORKS

Software-defined networking and network functions virtualization both untie tasks and functions from hardware and provide agility, one for the network itself, the other for network services..

The terms software defined networking (SDN) and network functions virtualization (NFV) are often used interchangeably, which is incorrect.  In a sense, the two are tied together as companies start using NFV as part of their SDN plans but that doesn’t have to be the case.

Enterprises could maintain their current network architecture and shift to NFV or they could roll out an SDN and never leverage the benefits of NFV, so it’s important to understand what each is and the benefits of both.

What is software-defined Networking

SDNs are a fundamentally different way to think about networks.  Technically, SDNs can be defined as the separation of the management, control and data-forwarding planes of networks.  Many people, including technical individuals read that definition and say, “So what?”, but the separation of these planes has a profound impact on networks and enables things that have never been done before.

Historically, management, control and data forwarding were tightly coupled together. This meant each network device such as a router or a switch needed to be configured independently, typically through a cryptic command line interface (CLI), which makes operating a network challenging.

Any time a change needed to be made to the network, even a small one, each network device had to be reconfigured independently.  For small networks, this is an annoyance.  For medium and large networks, the manual nature of the work could bring things to a crawl.  In fact, ZK Research conducted a study in 2017 and found that in large enterprises it took an average of four months to implement a change network wide.

This might have been fine a decade ago when businesses weren’t as dependent on their networks as they are today, and network changes were only made infrequently. In today’s digital era, companies compete on speed, and four months is far too slow for the network to keep up with the business.

SOFTWARE

What is software-defined networking (SDN)?  (2:37)

SDNs decouple control, management and data forwarding

By extracting the control and management planes from the underlying hardware, they can be abstracted into a software layer that is independent of the hardware and centralized via a controller.  The controller can be a physical device, virtualized or deployed in the cloud.  This model enables network engineers to make a change in a GUI – instead of using CLI – and then propagating it across the entire network with a single click of the mouse.  Network changes can be done at the speed the business requires.

SDNs improve security

In addition to speed and agility, another benefit of SDNs is improved security using micro-segmentation.  Traditional networks use virtual LANs (VLANs) and access control lists (ACLs) for coarse-grained segmentation.  SDNs enable the network to be partitioned at a much more granular or fine-grained level. Also, because the segmentation operates in an overlay network, devices can be assigned to segments by policy. If the device moves, the policy follows without automatically.

SDN enables programmable networks

Another benefit of SDNs is the network becomes programmable.  SDN controllers expose northbound APIs that application developers can use to interface with the network so applications can dynamically configure it to reserve bandwidth, apply security or whatever else the apps may require. The programmability also enables networks to be orchestrateable through the use of common orchestration tools like Chef, Puppet and Ansible.  This means networks can be better aligned with DevOps initiatives.

SDNs work with most hardware

Also, with SDNs the network becomes hardware agnostic where the overlay controllers can work with a wide range of hardware, include white-box switches.  Most customers choose a turnkey solution that includes hardware and software from the same vendor, but SDNs do present the opportunity to move away from that model, if a business chooses.

One of the more underappreciated benefits of SDN is that it increases network uptime.  ZK Research has found that the largest cause of downtime, 35%, is from configuration errors related to human errors.  This happens because of the manual nature of a CLI and the fact that tasks have to be repeated over and over.  SDNs automate the configuration, which can eliminate self-inflicted downtime. Offloading these tasks also lets network engineers focus on more strategic initiatives instead of spending most of their day “keeping the lights on.”

What is network functions virtualization (NFV)?

An SDN is a critical step on the path to a modernized network, but many services, such as routing, WAN optimization and security are still tied to the underlying hardware.  As the name suggests, network functions virtualization solves this problem by decoupling the network function from the hardware, virtualizing it allowing it to be run in a virtual machine on any compute platform a business chooses.

NFV is similar but different from server virtualization

NFV is similar to the transition that the server industry experienced when server virtualization went mainstream.  With server virtualization, applications ran as virtual workloads in software, which lowered cost and increased hardware utilization. With NFV, these benefits can be applied to the network as network services running as virtual workloads.

To date, the majority of NFV deployments have been carried out by service providers, but recently NFV has become a priority for digital companies.  A 2017 study by ZK Research found that 61% of respondents are researching (29%), testing (13%), planning to deploy (10%) or have deployed (9%) NFV; NFV is coming quickly.

While there are similarities between server virtualization and NFV, there is a major difference. The primary use case for server virtualization has been to consolidate servers in a data center. NFV can be used in a data center, but it’s sweet spot is bringing network services to other points in the network including the branch and the cloud where there are no local engineers.

NFV increases service agility

For example, a business that wants to take advantage of local internet breakout where branch workers can access internet services – such as accessing SaaS apps directly instead of going through a central hub – could leverage NFV to secure the traffic. Typically, this would require a physical firewall (or a pair of them for redundancy) to be deployed in every branch office with local internet breakout.  This can be a very expensive undertaking given the cost of next-generation firewalls.  Also, it could take months to purchase the firewalls and have an engineer travel to the branch and deploy them.  With NFV, the firewall functionality can be virtualized and “spun up” almost instantly, making them fast and easy to deploy.

Today, competitive advantage is based on a company’s ability to be agile, adapt to changes and make rapid transitions to capture new business opportunities. Virtualization and containers have increased compute and application agility but the network has remained relatively static. The long lead times to deploy, change and optimize the network should be considered the hidden killer of companies as that can hold companies back from implementing digital initiatives.

Software defined networks increase the agility of the network ensuring it is in alignment with the rest of the business.  Network functions virtualization is a complimentary technology that makes network services agile.  The two together are core building blocks to modernize corporate networks.

This story, “SDNs and NFV are complementary and core components of modernized networks” was originally published by Network World.

APPLE BANS CRYPTOCURRENCY MINING APPS ON IOS TO PROTECT MOBILE USERS

APPLE BANS CRYPTOCURRENCY MINING APPS ON IOS TO PROTECT MOBILE USERS

Apple has created new rules for app developers that ban the creation of cryptocurrency mining services on mobile devices.

Using an iPad or iPhone to mine bitcoin or other cryptocurrencies would be hard to do, as the CPU power available to complete the task would be a drop in the bucket compared to what’s needed.

But using a portion of the CPU power from thousands of iPads or iPhones to mine cryptocurrency makes more sense – and that’s exactly what some malware has been doing.

Apple is now moving to stop the practice.

The company released several rules changes for developers at WWDC last week, but rolled out the modifications with no fanfare. This week, however, Apple Insider discovered a section of the company’s developer guidelines under the heading Hardware Compatibility specific to the malware issue; it states that any apps, “including third party advertisements displayed within them, may not run unrelated background processes, such as cryptocurrency mining.”

Though some might question the Apple edict, the decision still makes sense, according to Martha Bennett, a principal analyst at Forrester Research.

“Just like with all the cryptocurrency mining utilities you get for PCs (in the shape of apps or browser plug-ins, most of which are malware), they thrash your CPU, and if you’re running on battery, which you almost invariably are on a mobile device, they drain your battery,” Bennett said via email. “Plus, Apple won’t want to be associated with all the shady stuff that’s going on in relation to cryptocurrencies.”

Apple may not be the only taking that tack. While there has been no similar change yet on the Android side of things, Google is keeping the door open to the same kind of move. The company updates its user policies on a monthly basis, a spokesperson said, when asked about the possibility of a cryptocurrency mining ban.

The problem with malware that siphons CPU cycles from desktops and mobile devices for the purpose of cryptocurrency mining is relatively new but growing quickly. For example, cryptocurrency mining service Coinhive has been cited as one of the top offenders for spreading malware for its own purposes.

Coinhive uses a small piece of JavaScript that installs on websites and in advertisements; the code then hijacks a portion of the compute power of any device using a browser to visit that site. Essentially, it unwittingly enlists a device to mine Monero cryptocurrency. The practice is known as cryptojacking.

Not surprisingly, the rise of “cryptomining” malware over the past year seems to reflect the rise of cryptocurrency itself, according to antivirus vendor Trend Micro.

Trend Micro’s research data showed cryptocurrency mining has overtaken ransomware in North America. The first quarter of 2018 saw information theft malware being the most detected event in end user devices, with cryptocurrency mining close behind, a report stated.

Cryptojacking malware cryptocurrency bitcoin
Cryptojacking malware was second only to information theft malware.

“Cryptocurrency mining presents a more furtive and passive alternative to ransomware,” a Trend Micro spokesperson wrote in an email reply. “Due to the nature of cryptocurrency mining, a single infection might not provide cybercriminals as much profit as they would from other types of malware. However, a cryptocurrency miner’s stealth and longer infection time mean less work on the attacker’s end.”

Cryptocurrencies are created through a process known as Proof of Work(PoW). PoW algorithms force computers to expend CPU power to solve complex cryptographic-based equations before they’re authorized to add data to a blockchain-based, distributed ledger; those computer nodes that complete the equations the fastest are rewarded with a portion of digital coins, such as bitcoin. The process of earning cryptocurrency through PoW is known as “mining” – as in mining bitcoin.

Garnering valuable cryptocurrencies has become so popular that people, groups and even companies have set up mining rigs and data centers with thousands of servers for the express purpose of generating bitcoin or other cryptocurrencies.

The purchase price of GPUs and ASICs has shot up as a result and some nations and cities have even restricted mining operations because of the amount of electrical power they’re using.

For a single iPhone or iPad, the CPU drain from mining could be significant, even as part of a hive mining cryptocurrencies.

“I’m not sure many users would be sophisticated enough to understand that mining takes up all of the resources on the device. And if it’s a third party installing it on devices in secret, that’s even worse for the end user and the ramifications it could have with Apple support, not to mention all the negative social media posts,” said Jack Gold, principal analyst with J. Gold Associates.

“It makes sense to me that Apple be proactive and make sure this doesn’t become a real problem,” he said. “It will be interesting to see if others go down the same path.”

This story, “Apple bans cryptocurrency mining apps on iOS to protect mobile users” was originally published by Computerworld.

WINDOWS SERVER 2019 EMBRACES SDN

WINDOWS SERVER 2019 EMBRACES SDN

Software-defined networking in Windows Server 2019 includes virtual network peering and encryption, auditing, and IPv6 support.

When Windows Server 2019 is released this fall, the updates will include features that enterprises can use to leverage software-defined networking (SDN).

SDN for Windows Server 2019 has a number of components that have attracted the attention of early adopters including security and compliance, disaster recovery and cusiness continuity, and multi-cloud and hybrid-cloud.

Virtual-network peering

The new virtual networking peering functionality in Windows Server 2019 allows enterprises to peer their own virtual networks in the same cloud region through the backbone network. This provides the ability for virtual networks to appear as a single network.

Fundamental stretched networks have been around for years and have provided organizations the ability to put server, application and database nodes in different sites. However, the challenge has always been the IP addressing of the nodes in opposing sites. When there are only two static sites in a traditional wide area network, the IP scheme was relatively static. You knew the subnet and addressing of Site A and Site B.

However, in the public cloud and multi-cloud world – where your target devices may actually shift between racks, cages, datacenters, regions or even hosting providers – having addresses that may change based on failover, maintenance, elasticity changes, or network changes creates a problem. Network administrators have already  spent and will drastically increase the amount of time they spend addressing, readdressing, updating device tables, etc to keep up with the dynamic movement of systems.

With Vnet Peering, while the external location and fabric that the host and applications systems are running in may drastically change, the virtual network remains consistent.  No need to change source and target addresses within the application, no need for Web and Database pairs to change settings.

Virtual-network encryption

Another significant improvement in Windows Server 2019 is the ability for virtual-network traffic to be encrypted between virtual machines. Traffic encryption is not new to the industry, however having the encryption built in to the operating system as the basis of hypervisor communications, server communications and application communications provides both flexibility and that in the past was frequently done at the application layer.

Now with Vnet encryption, entire subnet communications between host servers can be protected, and all network traffic within that network is automatically encrypted. For organizations looking to ensure communications between a Web server and a database server is encrypted, Vnet encryption in Windows Server 2019 can be enabled. Since the communications is at the network/subnet level, if additional Web frontends and backend databases needed to be added, all those servers join the same encrypted communication stream, offloading the secured communications away from the application itself, improving performance and efficiency.

Some of this protection can be accomplished by isolating servers and systems on the same VLAN, but organizations can more simply and quickly encrypt the communications between systems as a method of secured communications and data protection. As organizations look to enable protection through software defined controls and eliminate complexities, configurations leveraging virtual network encryption greatly enhance security in a simplified manner.

How to zip the directory in linux with command line

In this tutorial we will learn,how to zip the directory in linux with command line.Zip is a compression and file packaging utility for Linux,Unix,Windows and various Operating system. The zip helps to compress and reduce the size of file and directory.To zip a directory,first of all we will check ,do we have zip command installed in Linux system.

Note: For more detailed zip examples with command line, read out this post (How to zip directory in linux explained with examples).

The below command will help to find is zip installed or not.

# which zip   (It will show the absolute path of zip)

In CentOS

# rpm -q zip

In Debian or Ubuntu

$ sudo dpkg -l zip

If you find it is not installed in system then install with given below command.

In CentOS or Red hat
# yum install zip

In Debian or Ubuntu
$ sudo apt-get install zip

After confirmation of installed zip package,now we will zip or compress the directory in Linux system.
Use the given below command.

zip -r GiveAnyName.zip  /path/of/Directory

for eg.
 We have a backup directory in /root/ (i.e /root/backup)

zip -r backup.zip /root/backup

The command will compress the directory with extension .zip .
In above given eg. the compressed file name would be backup.zip

zip linux command exclude folder

zip -r myarchive.zip dir1 -x dir1/ignoreDir1/**\* dir1/ignoreDir2/**\*

Tech tips: Here’s how to download your WhatsApp data

Tech tips: Here’s how to download your WhatsApp dataTech tips: Here’s how to download your WhatsApp data

WhatsApp has updated its Terms of Service and Privacy Policy, thanks to European Union’s new data privacy rules. EU’s new General Data Protection Regulation (GDPR), that come into effect on May 25, allows users to download their data and transfer it. Facebook and Instagram already have a feature to request account information for their users.

The Facebook-owned chat app is giving more power to its users by bringing in more transparency in its data sharing policy. The chat app, in a blog post, announced a new feature that allows user to download WhatsApp data from its server.

“In the coming weeks, you will be able to see and download your WhatsApp account information and settings. This feature, Request Account Info, will be rolling out to all users around the world on the newest version of the app,” notes the blog post. However, it is important to note that this new feature does not include your chat history. The Request report feature cover information like your profile photo and group names.

WhatsApp says that your report will be available approximately 3 days after the date requested.. WhatsApp clearly states that actions like deleting your account, changing your number or device or re-registering your account, if done while your request is pending, will cancel your request.

So how do you access this new feature. Please note that this feature is still in beta phase and will be gradually rolled out to all users. So here is a quick guide on how to use this feature.

1. Open WhatsApp.

2. Go to Settings.

3. Now tap on Account.

4. You will see a Request account info option. Tap on it

5. When you tap on Request report, it will give you the date by which you your report will be readied. You will be given few weeks to download your report after it is available.

The report can be downloaded in your phone. You can also permanently delete the downloaded copy from your phone. Deleting the report will not delete any of your account’s data.

HYPERCONVERGENCE BREATHES NEW LIFE INTO DESKTOP VIRTUALIZATION

HYPERCONVERGENCE BREATHES NEW LIFE INTO DESKTOP VIRTUALIZATION

Virtual desktop infrastructure (or VDI) has been an intriguing idea for a long time. We look at the pros and cons of VDI and whether the emergence of hyperconverged infrastructure (HCI) will finally make implementing virtual desktops feasible.

Virtual desktop infrastructure (VDI) is one of those tantalizing technologiesthat looks great on paper, but hasn’t gained much traction over the years for a variety of financial, technical, cultural, even philosophical reasons.

However, a relatively new framework called hyperconvergence, which combines compute, storage and networking in a single data center appliance, could breathe new life into VDI by reducing the cost and complexity associated with a VDI rollout.

The argument in favor of VDI, also known as desktop virtualization or thin-client computing, makes perfect sense.

What if enterprise IT could get off the expensive and time-consuming cycle of replacing desktops and laptops every two or three years, then constantly dealing with patching, updating and maintaining those devices?

And what if it could essentially eliminate the possibility of endpoint data loss?

With VDI, the operating system and all applications are hosted on virtual machines (VMs) running in a secure data center. Companies save on hardware costs by deploying inexpensive thin clients, repurposing old desktops or taking advantage of the BYOD movement and having employees buy their own devices.

Data is not at risk because the virtual desktop doesn’t have a hard drive. VDI offers the benefits of centralized management. And VDI enables employees to securely access their virtual desktops at any time from any location on any device.

How VDI works

VDI requires an end user device, network connection and VMs located in the data center. Typically, the virtualized desktop is equipped with nothing more than flash memory and a display protocol client like Microsoft’s RDP, VMware’s PCoIP or Citrix’s HDX.

In the data center, IT administrators create pools of identically configured VMs for specific job functions. When an end user establishes a session, the connection broker assigns the session to an available virtual desktop from the appropriate pool.

There are two ways to operate VDI. Persistent VDI provides each user with their own desktop image which is saved for future use. Non-persistent desktops revert to their original state each time a user logs out.

VDI Pros and Cons

VDI promised to be a huge money saver, but adopters discovered that VDI didn’t reduce costs, it just shifted them. Instead of spending money on new desktops, companies had to upgrade the network to provide the reliability and user experience that employees expected.

Companies then had to add expensive storage and compute power to the data center. And VDI required re-architecting data center assets in order to handle VDI-specific situations like the daily login storm at 9 a.m.

Management is another area where VDI’s purported benefits proved to be somewhat illusory. The notion that IT could create a “golden image” of the end user desktop and update or patch thousands of desktops with one click sounds great.

And it works in specific use cases, such as employees who can do their job entirely within the parameters of that standard desktop image, in call centers, warehouses and retail locations, or with contractors.

But in most other circumstances, real life is a lot messier and less controllable. You have employees with their own devices, running a variety of operating systems. Some employees rely on a legacy or customized app to get their job done. And even employees in the same department might have their own specific mix of applications.

There are two other big cons for VDI. If the VDI server goes down or if the connection to the VDI server is interrupted, nobody works. Second, with VDI, employees can’t work offline because nothing is stored on the device.

Technologically, VDI is easier to deploy today that it has ever been thanks to a range of factors including better graphics, faster chips, cheaper storage, reliable broadband and easier VM deployment and management.

But trying to impose centralized control runs counter to the personalization and customization that employees have come to expect. Imagine telling a Millennial that if they come to work for your company, they won’t be able to use their preferred cloud-based productivity apps or work offline while on a plane, even on their own device.

VDI and the Cloud

Cloud computing has cast a shadow over VDI in a number of ways. First, VDI was originally based on companies having an on-premises data center, but enterprises are increasingly moving their data centers to the cloud, or at least moving to a hybrid cloud model.

You could certainly run VDI from the cloud, but that creates new security, connectivity and cost issues.

And many applications don’t live in an on-premises data center or even in cloud-based servers. For example, for companies that have moved to or are thinking about moving to Office 365, those email and productivity apps live in Microsoft’s Azure cloud. So, how does that affect the golden image?

Beyond that, what makes cloud computing attractive to enterprises is that it’s all about agility and flexibility. Employees want the freedom to take out a credit card and quickly access a new cloud-based app or switch from one productivity app to another. And what about commonplace, on-the-fly situations where somebody wants you to join a WebEx and download a presentation or grab a document from their Dropbox folder?

So, there’s certainly a practical and philosophical side to the question of whether VDI is the right fit for your company or at least which subset of workers would be appropriate for a VDI scenario.

VDI vs. DaaS

One alternative to an enterprise IT department running its own VDI deployment is Desktop-as-a-Service or DaaS. In the DaaS scenario, companies hand control of their desktops to a cloud services provider.

With hosted desktops, you don’t need to own data-center servers or storage at all. And the DaaS provider takes care of patching, maintaining and updated applications. Outsourcing desktop virtualization to the cloud can provide flexibility, mobility and general ease-of-use for users and administrators.

Of course, DaaS has its own potential downsides. You’re giving up control over your data and trusting a third-party to protect your information. You’re relying on the cloud-services provider not to have an outage that prevents employees from working. And software licensing is an issue with DaaS.

VDI and HCI: Hyperconvergence may be the answer

VDI has been around in one form or another since the `90s, so it’s fair to ask: If VDI hasn’t taken off by now, when will it?

The answer may lie with a relatively new framework called hyperconverged infrastructure (HCI), which combines hypervisor, compute, storage and networking in modular building blocks. HCI can also include backup, replication, cloud gateway, caching, WAN optimization and real-time deduplication.

HCI can cut costs in several ways. First, buying an HCI appliance with all of the data center components already bundled is less expensive than buying those pieces individually. HCI delivers simpler management, automated updates, reduced maintenance costs and faster, easier scalability.

HCI vendors are specifically targeting their appliances at the VDI market and some are offering automated VDI deployments.

For companies concerned about the security of their endpoints or looking for an alternative to the traditional desktop lifecycle, VDI on HCI is something to consider.

This story, “Hyperconvergence breathes new life into desktop virtualization ” was originally published by Network World.

Electric Car Sales Set To Accelerate As Costs Fall And Production Scales Up

Electric Car Sales Set To Accelerate As Costs Fall And Production Scales Up

The Chinese-made $1.5million NIO EP9 at the Shanghai auto show. AP Photo/Ng Han Guan

The electrification of the transport system is set to accelerate in the late 2020s, with electric buses leading the way, a new report claims. Electric vehicle sales will surge thanks to tumbling battery costs and increasing scale in manufacturing.

Bloomberg New Energy Finance says that sales of electric vehicles (EVs) will reach 11 million by 2025 before racing to 30 million by 2030 as they become cheaper than petrol and diesel vehicles, up from just 1.1 million last year. By 2040, sales will have doubled once again to 60 million, which will be more than half of the market (55%). Electric cars will be 28% of the total market by 2030, while 84% of buses will be electric.

The transition will be led by China, which will account for half of sales in 2025, before falling back to 39% by 2030. Electric buses will dominate the market even earlier, by the late 2020s and here China is even more dominant – of the 300,000 e-buses on the road today, 99% are in China.

The rapid domination of e-buses will come about because the business case is so compelling – the total cost of ownership of electric buses is set to be cheaper than traditional models as early as next year.

This rapid growth means that oil demand for passenger cars is set to peak as early as 2022, just four years away, at 24.2 million barrels per day before declining to less than 16mpd by 2040. In the mid-2020s, sales of internal combustion engine cars will also start to fall as their cost advantage over EVs disappears and then goes into reverse. By contrast, the EV surge will require 2,000TWh of power in 2030, leading to a 6% increase in global electricity demand and displacing more than 7mpd of oil demand.

It will also lead to a significant increase in demand for lithium and cobalt, which are vital raw materials for battery production. Supply constraints for these two metals, along with the speed of the rollout of charging infrastructure and the rise of shared mobility – most of which will be electric –  could slow the market’s growth.

Salim Morsy, senior transportation analyst, said: “While we’re optimistic on EV demand over the coming years, we see two important hurdles emerging. In the short term, we see a risk of cobalt shortages in the early 2020s that could slow down some of the rapid battery cost declines we have seen recently. Looking further out, charging infrastructure is still a challenge.”

Colin McKerracher, lead analyst on advanced transportation for BNEF, commented: “The big new feature of this forecast is electric buses. China has led this market in spectacular style, accounting for 99% of the world total last year. The rest of the world will follow, and by 2040 we expect 80% of the global municipal bus fleet to be electric.”

“Developments over the last 12 months, such as manufacturers’ plans for model roll-outs and new regulations on urban pollution, have bolstered our bullish view of the prospects for EVs,” McKerracher says.

Ali Izadi-Najafabadi, lead analyst for intelligent mobility at BNEF, added: “We predict that the global shared mobility fleet will swell from just under 5 million vehicles today to more than 20 million by 2040. By then over 90% of these cars will be electric, due to lower operating costs. Highly autonomous vehicles will account for 40% of the shared mobility fleet.”

The pace of electrification in transport will be fastest in Europe, where 44% of light vehicles will be electric by 2030, followed by China (41%) and the US (34%), while Japan will lag behind with just 17% of cars being electric. The market in India will be held back by a shortage of charging infrastructure and a lack of affordable models, so just 7% of cars will be EVs in 2030.

Soa Technology

DR DRILL of GST System on 2nd June 2018

DR DRILL of GST System on 2nd June 2018

Dear Taxpayer, 

GSTN is tentatively planning Disaster Recovery Drill of GST System on Saturday, 02nd June 2018 between 09:00 to 15:00 Hrs. GST system services will NOT be available during this time.

You are requested to plan your GST related activities on GST portal accordingly. Inconvenience, if any, is regretted.

Regards, GSTN Team.

Soa Technology

INCOME TAX SAVING: NEW TAX RULES WHICH WILL HELP YOU SAVE TAX IN FY2018-19

INCOME TAX SAVING: NEW TAX RULES WHICH WILL HELP YOU SAVE TAX IN FY2018-19

As the new financial year has already begun, people have started mulling over where to invest and how to save tax during this year. Here are the key tax changes which may impact your cash flows and investment decisions for FY2018-19.

Benjamin Franklin had rightly said that only two things are certain in this world – death and taxes. So, while there can’t be any escape from taxes, particularly if someone has taxable income, everyone tries to save as much tax as possible. As the new financial year has already begun, people have started mulling over where to invest and how to save tax during this year. However, saving the maximum tax is not possible without looking at the changes introduced in the Union Budget 2018. So, let us review the key tax changes which may impact your cash flows and investment decisions for the financial year 2018-19:

1. Standard Deduction for Salaried Individuals and Pensioners

The Finance Act, 2018 re-introduced standard deduction of up to Rs 40,000 for salaried taxpayers. Such deduction is allowed in lieu of the current transport allowance of Rs 19,200 (Rs 1,600 p.m.) and reimbursement of medical expenses of Rs 15,000 p.a. The net benefit for the employees already claiming a deduction for transport allowance and medical reimbursement will be Rs 5,800 (Rs 40,000 – Rs 19,200 – Rs 15,000).

“It is important to note here that pension received for past employment is also taxable as salary. Therefore, the benefit of standard deduction will also be available to pensioners. Till now pensioners were not allowed any exemption for transport allowance or medical reimbursement. Therefore, it will result in additional Rs 40,000 tax- free income for all pensioners,” says Chetan Chandak, Head of Tax Research, H&R Block India.

2. Enhanced deduction u/s 80D

Earlier, an individual was allowed a maximum deduction of up to Rs 30,000 in respect of expenditure incurred by him for the medical insurance for himself, his spouse or children. He was also allowed additional deduction of up to Rs 30,000 for the expense incurred for the medical insurance policy for his parents. The deduction of Rs 30,000 was restricted to max Rs 25,000 if the insured persons were less than 60 years of age.

“In case the assessee himself or his/her spouse or any of his/her parent was 80 years or more and was not covered under any insurance policy, then the deduction u/s 80D he/she was allowed to claim for the medical expenditure incurred on the health of such a person was Rs 30,000. The Budget 2018 extended this benefit to all senior citizens (i.e. 60 years and above),” says Chandak.

Also, this limit has now been increased to Rs 50,000 from the existing Rs 30,000 in case of all senior citizens (i.e. above 60 years). In a nutshell, an individual taxpayer can claim a maximum deduction of up to Rs 1 lakh under Section 80D if he or his family members and his parents are 60 years or above.

A summary of deduction allowable under Section 80D is explained in the table given below:

Nature of amount spentFamily MemberParents
Age below 60 years (value in Rs)Age above 60 years (value in Rs)Age below 60 years (value in Rs)
A. Medical Insurance25,00050,00025,000
B. Central Govt Health Scheme25,00050,000
C. Health Check-up5,0005,0005,000
D.Medical Expenditure50,000
Maximum deduction25,00050,00025,000

Further, in case of single premium health insurance policies which cover more than one year, the deduction shall be allowed on a proportionate basis for all those years for which health insurance coverage is provided, subject to the specified monetary limit.

3. Deduction limit under section 80DDB raised to Rs 1,00,000

This deduction u/s 80DDB is allowed to an individual or HUF taxpayer who pays for the medical treatment of critical illness for himself or any other family member. At present, this deduction is allowed up to Rs 80,000 for the very senior citizen, up to Rs 60,000 for the senior citizen, and Rs 40,000 in any other case.

The Budget 2018 has raised the limit of deduction under this section to Rs 1,00,000 for all senior citizens (i.e. any one above 60 years in age). There is no change in the deduction allowed for expenditure incurred in any other case. i.e. for person who is below 60 years of age.

4. Bank interest up to Rs 50,000 will be tax exempt for senior citizens

A new section 80TTB has been introduced from AY 2019-20 which allows deduction of up to Rs 50,000 to any senior citizen (above 60 years) having interest income from deposits with banks or post office or co-operative banks. Aggregate interest earned on saving deposits and fixed deposits will be eligible for deduction u/s 80TTB up to Rs 50,000.

“No deduction under section 80TTA shall be allowed to the senior citizens claiming the benefit u/s 80TTB starting AY2019-20. Further, the corresponding amendment has been proposed in section 194A to provide that no tax shall be deducted at source from payment of interest to a senior citizen up to Rs 50,000,” says Chandak.

5. Enhanced Tax Benefit on Gratuity

Gratuity received on retirement or on becoming incapacitated or on termination or any gratuity received by the widow of the deceased employee, children or dependents was till now exempt up to Rs 10,00,000 as per the recent changes in the Gratuity Act. This exemption will be enhanced to Rs 20,00,000. So the taxpayers who are going to retire or receive gratuity starting 1st April 2018 will be able to claim higher exemption.

6. NPS withdrawal exemption extended to non-employees

Any amount received by an employee from the National Pension System (NPS) either on closure or opting out from the scheme is exempt up to 40% of the total accumulated balance in his NPS account at the time of withdrawal. Till now this exemption was not available to non-employee account holders. The Budget 2018 has extended the said benefit to all NPS subscribers.

7. No capital gains tax if the variation in stamp value and the actual consideration is up to 5%

Earlier, if a taxpayer sold an immovable property for a consideration which was less than the value adopted by the Stamp authorities, then the stamp value was deemed as the actual sales consideration. “This treatment resulted in higher amount of capital gains even if the seller had not actually gained anything due to such higher stamp valuation. Further, such difference in the stamp value and the actual consideration disclosed by the parties was also taxed in the hands of the buyer. This resulted in hefty double taxation,” says Chandak.

In order to minimise hardship in case of genuine transactions, now no adjustments shall be made in a case where the variation between stamp duty value and the sale consideration does not exceed 5% of the sale consideration.

Source – financialexpress.com

Xiaomi’s Mi Credit offers instant loans up to Rs 1 lakh to MIUI users in India

Xiaomi’s Mi Credit offers instant loans up to Rs 1 lakh to MIUI users in India

Expanding its portfolio of value-added internet services, Xiaomi has launched its own instant lending platform Mi Credit in India. The platform lists financial loan providers that MIUI users can access to apply for quick loans.

MIUI users can avail personal loans from Rs 1,000 to Rs 1 lakh from the only loan provider listed on Mi Credit, Kreditbee. Xiaomi claims that loans can be initiated in 10 minutes through Mi Credit with simple KYC verification. All loan verification and user information input is done on the partner platforms, while Mi Credit only lists loan providers.

“Xiaomi provides internet services to give our users a complete mobile internet experience, and MIUI functions as an open platform for us to deliver our wide range of internet services, such as content, entertainment, financial services and productivity tools. The connectivity between our devices and the seamless integration between hardware and internet services enable us to provide our users with better user experience. Mi Credit is another big step in bringing an important internet service to India and we trust that our users would be able to truly benefit as the service becomes more sophisticated,” said Manu Jain, Vice President, Xiaomi.

Notably, Kreditbee is the only loan provider listed on the Mi Credit. While Xiaomi’s lending platform is exclusive to MIUI users, Kreditbee on its own is available acorss the Android ecosystem via its mobile application, and is expected to make an appearance on the iOS platform some time soon. Thus, even non-MIUI users can also avail loans from Kreditbee.

All that is to know before getting a loan from Kreditbee

Kreditbee calls itself an instant personal loan platform for young professionals which offers them salary advance up to Rs 1 lakh with different repayment tenures. The first is personal loan between Rs 1,000 and Rs 9,900 which has to be repaid within 15 days of the loan processing date. The next is a short-term personal loan starting from Rs 10,000 to Rs 1 lakh. The loan repayment tenure varies from 30 days to 90 days, depending on the loan amount.

The Mi Credit website lists the monthly interest rate at 3 per cent for loans up to Rs 1 lakh from Kreditbee. “For 15-day loan products from Rs 1,000 to Rs 9,900, we charge a flat interest at 1.48 per cent (annualized interest rate: 36 per cent per annum). For 30-90 day loan products from Rs 10,000 to Rs 1 lakh, we charge an annualized interest rate of 36 per cent per annum,” Kreditbee says.

Kreditbee also charges a processing fee ranging from Rs 100 to Rs 1000 depending on the loan amount. This processing fee is deducted up front from the loan amount and before it is disbursed to the loan applicant’s account.

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