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Guide on Compound Interest and How to Use Compound Interest Calculator?

Do you want to calculate your interest savings? Use a compound interest calculator. You get complete details about interest and the principal amount in moments. Compound interest calculates the principal deposited amount and the overall interest on the total previous savings. Compounding is the best way to increase your wealth. [B-01] Let’s make it simple to understand. Let’s say you have INR 100 in your savings. Now, the compound interest is 10% per annum. You want to save money for 5 years. Since we follow a compound interest, you will have INR 157 total. But if we had followed simple interest, the total value would be INR 140. So, in compound interest, in the first year, you have INR 109. Now, your principal amount becomes INR 109. So, the next year, that total value is INR 119. This process goes on until the fifth year. That’s how your wealth increases exponentially. You get big results with a high initial principal amount and long tenure. Significance of Compound Interest Compound interest earned on a savings account helps build a nest egg faster than simple interest. Like the snowball effect, your savings continue to grow over time. You can measure it and know what amount you will have five years later. It becomes a kind of loop that grows your investment at a reasonable rate. The highlighting factor is that you don’t need to invest additional capital. This investment cycle has the potential to grow on its own. Therefore, many people are talking about the power of compound interest on the internet. Compound interest is no less than an economic phenomenon and an intelligent way to build up your finances and practically achieve all your financial objectives. Benefits of compound interest-based investments Try to invest regularly in small amounts. You can accumulate a large amount over time by investing in small amounts. When you make a compound interest investment, you prefer to keep the tenure longer, as compounding works well for the longer term. The quicker the frequency of investment, the larger the interest earned. Make sure you put your investment in a scheme where you get higher returns, like a mutual fund investment or SIP investment. Compound interest manual formula There are a few formulas that you can use to calculate Compound interest; however, the following is a common and also an easy one: A = P (1 + r / 100)n t Each letter in the compound interest formula represents a pre-set value. These values are as follows: A: Total amount you get at the end of the period P: Principal amount in which you invest initially R: Annual interest rate N: Number of times the interest compounds year on year T: Time over which the interest accumulates Excel Formula FV- Future Value Rate- Interest rate n- number of times interest calculation takes place PMT- Any additional money if you are adding PV- Initial Deposits take place if any Type- Either number 1 or 0 0 means payments are due at the end of the period 1 means payment is due from starting Compound Interest Calculator: How Does it Work? The formula for calculating compound interest is FV = PV (1 + r / n)n t Where P = Principal Amount A = Compound Interest R/r = Rate of interest N/n = Number of times interest compounds in a year T/t = Number of years For instance, if you plan to invest Rs 10,000 for ten years at a 5% interest rate. Based on the formula, Rs 500 is the interest amount. P = INR 10,000 r = 0.05 n = 1 t = 10 A = 10000 (1 + 0.05/1)10 = INR 16,288.95 So, the total interest you earned would be INR 6,288.95. Difference between Simple interest and Compound interest There are two types of interest – simple interest and compound interest. Here’s a fundamental difference between the two for your knowledge. Simple InterestCompound InterestHere, you only earn your interest on the principal amount.In this case, you make interest on the principal amount and previous interest earned. It is getting interest on interest.The primary investment remains the same. The primary investment changes after every compounding cycle. The formula to calculate simple interest is SI = (P x T x R)/100The procedure to calculate compound interest is CI = P (1+r/n)nt Top Factors that Will Impact Your Compound Interest Returns Time: time is the first and foremost factor affecting your investment growth. The more time you give to your investment, the better. So, if you want to grow your wealth, go for a longer tenure. Interest rate: Choose an investment scheme where you are getting a higher interest rate on investments. Principal Amount: The higher the principal amount, the bigger the investment. Steps to use the Compound Interest Calculator Firstly, use the slider to use the compound interest calculator. Choose the compounding frequency per your convenience: daily, weekly, monthly, quarterly, annually, and semi-annually. Then share the principal amount. Once you share the required details, the calculator will display the results. Benefits of a Compound Interest Calculator With a single click on the online compound interest calculator, you can figure out compound interest. A compound interest calculator will be a great financial tool for understanding how to grow money faster. Shares accurate results Using the compound interest calculator, you can easily find compounding and deposit intervals. The compound interest calculator is easy to use; only you are required to share the beginning amount, tenure, and interest rate offered by the financial institution. You will get results right away. [B-02] Final Thoughts Overall, compounding is no less a power everyone should know about. It will help you streamline your financial goals and facilitate achieving them. A compound interest calculation is needed when you are willing to apply for a long-term loan. It is a foundational concept that works best for accumulating wealth.

08-11-2023

Tax Savings

All You Need To Know About New Taxability Of Dividend Income

As a taxpayer, you should be well aware of the tax on dividends. But if you are not, do not worry. We have got you covered! The dividend income taxability was tax-exempt under the hands of the shareholder. This was so because the respective firms had already paid dividend distribution tax. Since 1st April 2020, this exemption has been removed. The Finance Act 2020 has moved the responsibility of paying tax on dividend to the hands of the shareholders. Now, the treatment will depend on the shareholder. Let’s say you are a trader and have received a dividend on a particular share. It should be shown under “Income from business or profession”. But, if you are an investor, the dividend received should be shown under “Income from other sources.” [B-01] Types Of Dividends Before we dive deep into the taxability of dividend income, let us understand the classification of dividend income: Based On Time Interim Dividend Final Dividend. Based On Source Received from investment in shares of a domestic company Received from investment in shares of a foreign company Received from investment in equity mutual funds Received from investment in debt mutual funds Tax Deducted At Source (TDS) On Dividend Income The tax on dividends is due from investors now. The Finance Act 2020 has levied TDS on investors’ dividend income from their money invested in firms or mutual funds. If you have a dividend income of more than Rs. 5,000, the TDS payable will be 10%. This tax paid will be taken as a credit from your ITR filing from your total tax liability. For example, you got a total of Rs. 7,000 as dividend income from the firm. Now, you will have to pay a 10% tax on dividends. But, this will not be deducted during your ITR filing. The company will deduct Rs. 700 (10% of Rs. 7,000) from your total dividend, and you will get Rs. 6,300. For NRIs, the tax deducted at the source rate is 20%, which depends on the double taxation avoidance agreement (DTAA). If the NRI wants to avail of the tax rate deduction due to their country’s treaty rate, they have to submit documents such as Form 10F, a tax residency certificate and so on. If these documents are not submitted, there will be no deduction in the tax rate. When Is Tax On Dividend Income Charged? The final dividend is taxable in the year in which the firm gave it. In the case of interim dividends, the tax is reduced on a receipt basis. Expenses Deducted From Dividend Income This is divided into two categories: When The Dividend Income Is Treated As Business Income: The taxpayer recognises the dividend as an income from a business or profession. They can make deductions from expenses that they incurred to earn this income. These expenses could be loan interest, collection charges and so on. When The Dividend Income Is Treated As Income From Other Sources: The taxpayer recognises the dividend income as income from other sources. They can only make deductions of interest expense that they incurred to earn this dividend. It can only be deducted up to 20% of the total dividend earned. No other expense can be deducted. When Does A Resident Have To Submit Form 15G Or 15H? If a resident’s annual income is below the exemption limit, they will have to submit Form 15G. This must be given to the company or the mutual fund that is paying them a dividend. In the case of a senior citizen whose taxable payable is zero, Form 15H is to be given to the firm or mutual fund. The dividend declaration is given via mail by the firm or mutual fund. They need Form 15G or 15H from the firm to pay them dividends without tax deducting. Advance Tax Levied On Dividend Income Assume your total tax liability exceeds Rs.10,000 in a financial year. Advance tax provisions will apply to you for that respective financial year. If you do not pay the advance tax or pay short of the total amount, you will be charged interest and a penalty. Tax On Dividend From Foreign Countries Tax on dividends from foreign countries will come under the head “Income from other sources.” This income will be taxed at the tax slab under which the taxpayer falls. So, if you fall under the tax slab of 30%, foreign countries’ dividend tax will be deducted at the same rate. You will only be allowed to deduct up to 20% of your dividend income as interest expense. If you do not submit your PAN card, the firm giving out a dividend will cut tax on dividends at a rate of 20%. Relief From Double Tax On Dividends Assume you receive dividend income from shares of a foreign company. This dividend tax is deducted in the foreign company’s home country. The same happens in India. On this, you can claim relief from the double tax paid. The double taxation avoidance agreement can receive this relief. This is possible if the Government of India is present in a foreign company’s home country. It can also be done through Section 91 in the absence of such agreements. [B-02] Final Words Taxpayers should always be aware of their tax liability. The Government brought down the payable tax rate on dividend to 7.5%. This happened during the pandemic. This article should help you know more about the tax on dividend. It will help you understand the new laws regarding the taxability of dividend income. Like this article? Visit Piramal Finance to read more such ones.

08-11-2023

Electronics

Hammer Headphones: Are They Worth the Hype?

Hammer headphones are some of the most popular and effective wireless earbuds in the market today, praised by customers and users alike for their versatility and high quality. Hammer Wireless Earbuds are the current rave of the audiophile community, with some also claiming that the hammer headphones when compared to other models on the market, make your favourite songs sound better than ever. The company offers several different styles of headphones and earbuds, including wireless options, over-ear models, and in-ear versions that are all designed to fit any activity or budget. Here, we’ve made a comparison among Hammer’s three main products- The Hammer Bluetooth Calling Smartwatch, the Hammer Wireless Earbuds, and the Hammer Headphones. [B-01] The Hammer Bluetooth Calling Smartwatch The Hammer Bluetooth Calling Smartwatch is a new product released by Hammer that has been getting a lot of attention lately. The watch has just as many features as any other smartwatch and is priced at about half of what you would expect to pay for an Apple Watch or Samsung Galaxy Watch. Other features include a heart rate monitor, fitness tracker, and 7-day battery life with up to 10 hours of talk time. It has a 1.3 display with Gorilla Glass, an IP67 waterproof rating, and a 3D pedometer for tracking your steps. It also comes with sensors such as a heart rate monitor and oxygen sensor. The Hammer Bluetooth Calling Smartwatch does come in two colours: black and white. For some people, this watch will be worth the hype because of its reasonable price point and because it can do so much more than most other smartwatches in the market. The Hammer Wireless Earbuds When people talk about Hammer headphones, they often mention how amazingly clear and crisp their sound is. In our testing process for the Hammer Wireless Earbuds, we found that to be true for both the bass tones and the higher register notes. The Hammer Wireless Earbuds come with three different sizes of foam inserts that are designed to provide a personalised fit. We found them to be comfortable and stable when we wore them during workouts or while just walking around. You can get up to 8 hours of playtime on one charge (with the volume set at 50%). The Hammer Headphones Many people are wondering whether Hammer is worth the hype. With so many different brands and models of headphones to choose from, it’s important to be sure that you’re buying a quality product. First off, they’re affordable. With prices starting at just INR 999, they have something to offer those looking for a new pair of earbuds. Hammer Wireless Earbuds also come in many different colours, which may seem like an insignificant detail, but it’s one thing that sets them apart from other brands that only offer black-and-white options. One downside, though, is that they don’t last very long. If you use your hammer headphones daily, chances are that they’ll stop working after about six months. Another problem with hammer headphones is that even after being charged fully, their battery life doesn’t last very long. While these are not high-end headphones, to begin with, the sound quality isn’t anything special. Some users even found it muffled when compared to competing products. There are a lot of options in this range, and it can be difficult to decide which one is best. Hammer has great reviews, but other brands like Klipsch also have many satisfied customers. Hammer’s price point might make them an attractive choice for someone who wants high-quality sound but doesn’t want to break the bank. Hammer also has a lifetime warranty on their products, especially their Hammer Bluetooth Calling Smartwatch. They’re available in both black and silver colour schemes, so there’s something for everyone! The unique curved shape makes these earbuds more comfortable than some others. The cord length is also perfect for any use case, from working out to just relaxing at home. Hammer’s Reputation as a Brand Being a relatively new brand, the Hammer Wireless Earbuds have already become quite popular. If you’re looking for a pair of high-quality earbuds that won’t break the bank, these might be perfect for you. The most noticeable thing about these Hammer Wireless Earbuds is their sound quality. With bass that is deep and rich, Hammer has created a pair of earbuds that any audiophile will love. The sound is accurate and detailed without being overly warm or tinny. The balance between treble and bass is also great, with a frequency range from 20 Hz to 20 kHz. Common Problems with Hammer Headphones There are a few common complaints about Hammer products: First, some people have said that Bluetooth connectivity is not very good with Hammer Wireless Earbuds and the Hammer Bluetooth Calling Smartwatch, and you may need to constantly switch out your connection to get a clear signal. Second, many people find the battery life of these products to be too short – even though they take only an hour or two to charge fully. Finally, some people have mentioned problems with their Hammer Bluetooth Calling Smartwatch breaking after just a few months of use. However, despite these drawbacks, it seems like the pros outweigh the cons for this brand. They are also affordable compared to other brands, so if you’re on a budget and still seek good quality, Hammer Wireless Earbuds and headphones might be right for you! [B-02] Conclusion If you want to find a good deal on quality headphones or a Hammer Bluetooth Calling Smartwatch, then Piramal Finance might be able to help. The finance company offers personal loans for a variety of purposes, including buying new earphones. It’s easy enough to apply for a loan online, even if you’ve never done it before. Just fill out an application with your contact information, employment history, and bank account details. You’ll also need to provide some details about your proposed purchase—like how much you plan to spend and what brand you want—so that Piramal can give you an estimate of what your monthly payments will be.

08-11-2023

Home

Buy Home Theaters And Sound Bars Online At Best Prices

You may have already spent a lot of money on a high-quality TV and a streaming device so you can watch Netflix. However, regardless of how large or expensive the screen is, the TV speakers are likely to be subpar. Adding a soundbar or home theatre to your great screen will make your viewing experience much better. The sound effects are audible, the dialogue is clearer, and you might hear subtle changes in the sound for the first time in your favourite movies. Are you having trouble deciding which sound bar will serve your needs the best? We’ve got you covered. The best home theatres are listed here for your convenience. [B-01] 1. JBL BAR 9.1 by Harman JBL is a leader in making different kinds of music systems because they are always coming up with new ideas and following market trends. JBL’s BAR 9.1 is a big plus because it adds to their successful line of home theatre products. Its high price tag is understandable, given the superb quality of the many individual parts that go into it. The system has an in-built Dolby Atmos system, which produces a 3D sound field and powerful bass and sound levels. Price: INR 99,999 Pros: In-built Dolby Atmos to change the way sound comes out. The Dolby Atmos technology is a high-end feature that makes it work with Ultra HD 4K. It comes with two speakers that are truly wireless and can be put anywhere for a great movie experience. This home theatre’s Bluetooth system has been improved so that it can connect to more devices and work better. Cons: Prices are a little too high. Some things can be done to improve customer service. 2. Denon DHT-S316 Dolby Digital, DTS Encoding, and Denon’s superb Dialogue Enhancement System are all available in the DHT-S316, making it the only product you’ll need. Since the two-way subwoofer is a wireless component of the system, you may set it wherever you like in the room to best suit your needs. The least amount of sound distortion is guaranteed when using an HDMI cable to make the connection. Price: INR 34,900 Pros: No matter how loud you set the volume, the Denon Dialogue Enhancer system makes the dialogue in movies and TV shows sound better. It also has an optical output and an HDMI cable for connecting to other devices. Dolby Digital software and DTS Decoding are built to give you an unbeatable musical experience. It works with a wide range of devices, including TVs, computers, tablets, and even smartphones. Cons: Not using external speakers to add more output channels. The customer may have trouble finding an authorised service centre. 3. Sony HT-Z9F 5.1Ch Dolby Atmos Sony, a household name in technology, has also transformed the sound industry. Sony makes home theatre systems for every budget. Also among 2022’s top home theatre systems is the Sony HT Z95. A 5.1 speaker system is included, which is more than adequate for a family room. Every component, including the wireless subwoofer and the Dolby Atmos decoder, works together to produce an exceptional surround sound experience. Price: INR 86,990 Pros: The home theatre is powerful and has a sleek design that goes well with the rest of the room. It works with 4K video because it has high-resolution sound. With a Dolby Atmos Surround system and a wireless subwoofer, it can give you a real movie theatre experience. It supports Google Chromecast, Amazon Alexa, and Google Assistant. Cons: Prices are a little too high. The wireless subwoofer’s sound quality can be improved. 4. boAt AAVANTE Soundbar For a theatre-quality listening experience at home, the boAt AAVANTE bar 1700D includes a 60 W wired subwoofer that is compatible with Dolby Audio. This is an excellent option for a home theatre system because it is compatible with TVs, mobile devices, and tablets. Price: INR 9,499 Pros: The bass is deep and clear. Even at louder volumes, the woofer’s bass output remains consistent and powerful. Stylish design The volume level is suitable for a room with 100 people or so. The remote itself has nearly all of the necessary controls. Cons: Very often, when the volume is turned down, you won’t be able to hear the song because of the bass’s weight. 5. JBL Cinema SB120 The booming bass of the JBL Cinema SB120 comes from 110 watts of power from two full-range drivers and a hidden subwoofer. The powerful low frequencies come from the subwoofer that is in-built. You don’t need to put another box and wires all over your living room. Price: INR 10,399 Pros: Highly polished audio quality Makes watching TV way more fun than it already is. Super thin and simple to install. There are more than one ways to connect. Cons: There isn’t a 3.5-mm audio jack. There is no specialised screen for this. Weak stereo visuals. 6. ZEBRONICS Zeb-Juke Soundbar This sound system includes a Dolby 5.1, 225 W soundbar, 150 W subwoofer, as well as two wireless 75W satellites. Dolby Audio is used to ensure a high-quality audio experience. Price: INR 16,999 Pros: Two HDMI outputs with support for 4K high dynamic range Quick and simple installation with no special tools required. 5.0 Bluetooth Cons: There is more to be desired, as the overall sound output is very bass-heavy. 7. Yamaha YAS-109 Soundbar Featuring in-built subwoofers and DTS Virtual:X technology, the Yamaha Soundbar can simulate a 5.1-channel surround sound environment. It works well with Alexa voice control, so you can easily use voice commands to control it. Price: INR 19,990 Pros: There are EQ settings already programmed in. Effectiveness in terms of latency. Cons: Irregular and unimpressive surround sound. Lack of Atmos support. [B-02] Conclusion A high-quality sound bar can do wonders for your home theatre. It’s a must-have for any home theatre setup. You’ll adore your home theatre system’s surround sound if you invest in a reputable brand, such as the ones we’ve mentioned. We hope that this post was useful and that it will be simple for you to select the best home theatre and soundbar for your needs. Read more related blogs on the Piramal Finance website, or explore our financial products and services, such as personal loans, credit cards, and financial calculators.

08-11-2023

Wedding

Why Invest In Buying Wedding Sherwani?

A wedding is one of the most important days of anyone’s life. Be it the bride or the groom, the seven vows are something that will change their lives forever. A wedding is a special occasion for everyone, and when it comes to the brides, they remain very excited about the wedding dress. But have you ever thought about what goes in a groom’s mind? Of course, it is the tried and tested sherwani. Well, just like the bride, grooms are also worried about their wedding sherwani, as they too want to look the best on their special day. But more than the wedding sherwani itself, they are more concerned about the decision to buy a wedding sherwani or possibly rent it out. [B-01] A stylish ethnic dress for guys is the sherwani. The main feature of a sherwani is a fitting long coat that is complimented by a dhoti, pajamas, or churidar. For occasions like weddings, engagements, festivals, etc., Indian men wear their finest. The exquisite fitting of the sherwani and the spellbinding embroidery in the most enticing colour combinations make a man look impeccably smart. This is one of the most elegant dresses available for men and therefore the price is usually steep. Simple sherwanis are affordable, but more elaborate ones for weddings and engagement ceremonies can be a bit expensive. The truth is, just like brides, grooms also want to own an elegant sherwani that they can cherish their entire life. Before getting into why to invest in a wedding sherwani, let’s see what factors determine the sherwani’s price. Factors Responsible for Wedding Sherwani Price Material The material is the primary factor in determining the cost of a sherwani. Sherwanis are made of a variety of fabrics, although they are solely used as a base. The price of a sherwani is ultimately determined by the style, cut, and level of craftsmanship. However, keep in mind that on your wedding day, a low-quality fabric will seem cheap and entirely odd. No matter how much embroidery is on a sherwani, it would not be appropriate if the cloth is of low quality. Design The design and level of craftsmanship decide the fate of a sherwani. Therefore, this factor accounts for a sizable portion of the overall cost. There are many different styles available, and as the groom, you should choose the one that makes you appear no less than regal. If you want something straightforward, get a printed or sparsely embroidered sherwani with some chickenkari embroidery. This pattern will look elegant on dupion or synthetic cotton cloth. Style The sherwani is the pinnacle of male Indian fashion, but the look has changed over time. Many fashion designers have developed their own interpretations of the sherwani and altered the style to establish their distinctive looks. The shape and style are significant factors that contribute to the sherwani pricing, in addition to the fabric and design. Sherwanis are typically worn with churidar pants or dhotis and some Kundan pearl jewellery to look suave. A big shawl can be slung over the shoulder. Fit The worst decision you can make is to select a sherwani that does not exactly fit you. Try out the designs that are tailored to your body type when you visit the store. You can appear shorter and thicker than you actually are if your clothing is poorly suited. If you are really thin, for instance, you might want to get a sherwani with thick shoulders to make you appear well-built. A sherwani that does not suit you well might also make you uncomfortable. Nothing is more crucial than your comfort on your wedding day. It is only then can you pay attention to the rites and participate in the revelry. Colour Try to bring your fiancé along with you when you go wedding shopping. Before going to the store to get the wedding sherwani, discuss with your wife the colour of the wedding lehenga. Make sure the colour of her outfit doesn’t conflict with your sherwani. You ought to appear harmonious with one another. Your wedding attire should match the bride’s attire so that you both seem like a match made in heaven. In those stunning wedding pictures that will last a lifetime, horribly clashing colours in your wedding attire might make you both seem uneasy! Why Buy a Wedding Sherwani? Sherwani is a symbol of grace and respect. An exceptional designer’s embroidery and rich fabric will make it the groom’s preferred pick. Men cannot deny the allure of wearing a sherwani since it is a symbol of Indian culture. Large parties, socializing, and meeting all of your loved ones are all part of the wedding proceedings. It is the ideal setting to highlight your most admirable qualities. Moreover, the traditional kurta pajama can become a little too basic and monotonous, while the formal Western attire might make you appear too solemn. Sherwanis might really make a difference for you in this situation. They are constructed with luxurious materials and ornaments that capture the occasion’s atmosphere. Setting a budget for your wedding suit is crucial since it will help you balance all the other wedding-related costs. So, decide on your wedding dress after you have a clear idea of how much you can spend. [B-02] Conclusion You want to look your best on your wedding day by donning the finest designer sherwani as the groom-to-be. Guys, it’s time to invest in stylish wedding sherwanis while the ladies are busy getting dressed up in sarees and lehengas. These stunning outfits will transform you with their distinctive colour schemes, materials, textures, designs, and cuts. Don’t compromise on your wedding day. Invest in life-long memories with great and elegant outfits. Read more related blogs on the Piramal Finance website to explore our financial products and services, especially those on personal loans, credit cards, and financial calculators.

08-11-2023

Tax Savings

10 Ways To Save Income Tax This Financial Year 2022

The amount of savings is actually how much people earn. Every taxpayer tries to evade taxes in several ways. However, there are some legal tax-saving options to gain financial savings. The Indian income tax regime offers multiple ways for taxpayers to save on taxes. Working-class people can invest money in various tax-saving schemes to reduce their net taxable income. There are also multiple expenses they can incur to help income tax savings. One must note that the income tax regime has various deductions and exemptions to save income tax based on various income slabs. One must choose the correct tax saving options as per their income slab. This article explains the top 10 ways to save income tax and manage finances with utmost ease. [B-01] Choosing the best tax-saving options Many people find it disheartening to spend a huge portion of their income on paying taxes. It is important to be aware of the productive income tax saving options per the new income tax rules. The 10 ways t save on income tax are as follows: 1. Availing of a home loan – If individuals take a home loan and fulfil all the required conditions of section 80C deduction, they can claim a deduction of a maximum of ₹1,50,000 under this section. It must be noted that this limit of ₹1,50,000 is only applicable for the repayment of the principal amount. The provision for saving tax on payment of interest falls under section 24 and is titled ‘House Property’. This allowed deduction is for up to ₹2,00,000. Furthermore, if an individual takes a joint home loan, each joint holder can avail of these deductions. Other popular investment options under section 80C are: • National Pension Scheme • Public Provident Fund • Fixed Deposit for 5 years • Children’s Tuition Fees • National Savings Certificate 2. Loan taken for educational purposes – The amount of interest on a loan taken for educational purposes is completely allowed as a deduction under section 80E. The government has not specified an upper limit on the deduction applicable to date. 3. Health Insurance Premium – The provisions of section 80D of the income tax state the deduction of health insurance premiums. The premium paid on a person’s health insurance and his/her family helps them save tax. The deduction limit is ₹25000 and an additional ₹25000 for the parents’ health insurance. If any individual is a senior citizen, the deduction amount is ₹50000 instead of ₹25000. 4. Treatment of dependent disabled – As per section 80DD, one can claim a flat deduction of ₹75000 for the treatment of a dependent disabled with 40%–80% of disability. In case of more than 80% disability, they can claim a flat deduction of ₹1,00,000. For this, individuals must provide a valid disability certificate to avail of the benefits of this deduction. 5. Treatment of specific diseases – Section 80DDB provides the benefit of saving taxes on expenses incurred for the treatment of specific diseases. This tax-saving option applies to diseases like cancer, dementia, AIDS, etc. One can claim a deduction of up to ₹40,000 under this section. In the case of the treatment of a senior citizen, the amount of deduction is up to ₹1,00,000. 6. Donation to charity – Section 80G of the income tax act allows deduction on the amount donated for charitable purposes. People can donate their money to charitable institutions or relief funds. They have to submit a valid certificate obtained from the institution to avail of the deduction. Certain donations fall under the deduction of the entire 100% donated amount, while others fall under the category of 50% donated amount. It must be noted that donations in kind, such as food, clothes, etc., are not applied as deductions under this section. 7. Donations to a political party – People can also donate to a political party for tax savings. Section 80GGC allows the entire amount donated to a political party as a deduction. The entire 100% amount is allowed as a deduction. However, it must be noted that the donation made in cash is not eligible for deduction under this section. 8. Donation for scientific research or rural development – Section 80GGA allows the deduction of 100% amount donated for scientific research or rural development. It must be noted that one must not have any income from a business or profession to avail of this tax-saving option. 9. House Rent Allowance – Section 10(13A) allows house rent allowance for salaried individuals. One can avail of this exemption if one lives in a rented home. The limit of exemption is the least of the following • Actual HRA received • 40% of the amount of HRA if residing in a non-metro city and 50% in case of a metro city (Delhi, Chennai, Kolkata, and Mumbai) • Rent paid – 10% of the annual salary 10. Voluntary Retirement Scheme – Many individuals apply for the voluntary retirement scheme and take their entire payout. The amount received for voluntary retirement is not taxable until it is above ₹5,00,000. [B-02] Final Thoughts Tax saving schemes prove to be the most effective way to minimise the tax burden. As per the new income tax rules, there are various deductions or exemptions that people can claim and forego. Also, one must carefully study all the deductions and take the benefits of only those schemes that suit their financial needs. They must be clear with their goals for saving income tax. We hope that this article has explained several tax saving schemes. Taxpayers can also consult the experts at Piramal Finance for other financial assistance like business loans and solutions.

08-11-2023

Other

Low-investment Business Ideas in India

Most of you want to start a small business of your own rather than work for a boss. You think starting a business enables you to make huge profits. You always associate a business with large capital investments, many employees, and many resources. Today, there are many businesses that you can start with a small capital investment. In this digital age, there are many professions you can pursue from the comfort of your home. This article outlines various low-investment business ideas that are available in India. You can also become self-sufficient in a short time. [B-01] Some of the best business ideas in India include the following: Wedding planner: Indians love to celebrate weddings. Wedding planning is a big industry in India. You can build a lot of contacts and also become successful in a short time. You can develop very good creative and planning skills in this profession. You may need to invest a small amount of capital to start with. Freelance computer programmer: India is fast becoming digital. Computer programmer jobs are also outsourced to India from abroad. If you have good knowledge as a computer programmer, you can succeed in this profession. You need to invest in a computer programming course. Once you build your credibility, you can get many freelance jobs online. You can earn anywhere between Rs 3 lakhs p.a. and Rs 20 lakhs p.a. Your pay scales will depend on your skill levels. Breakfast joint/tea and coffee centre: You can rent the premises. You can start serving a small number of dishes. You can always expand your selection of food items as you grow. There is a lot of potential for this business in cities and metros. Tailoring and embroidery shops: Shopping centres and eCommerce stores are growing. Still, custom–made clothes are in high demand. If you are good at designing, tailoring, and embroidery, this niche is just for you. You can begin by renting a small space and hiring a few tailors. Online services: If you are active in providing online services or on social media, this is tailor-made for you. The jobs include those of social media influencers, YouTubers, SEO experts, website designers, and developers. For this job, you must have a good internet connection, a laptop or mobile device, and the correct software. This is one of the business ideas in India that you can pursue. Online classes: You can conduct online classes to teach any skill you are good at. Cooking, painting, academic subjects, and coding are some classes that you can take. Online classes are very popular in small cities and metros. Everyone can access the internet on their mobile phones. During the COVID pandemic, many students pursued online classes from their homes. This form of teaching remains popular even today. This is a low-investment business idea, that is remunerative. Photographer: People celebrate many occasions with their families and friends. This includes birthdays, parties, and weddings. Photography can provide a good source of income. You need to invest in a good-quality camera, a tripod stand, and a video camera. Salon/Beauty parlour: If you know the art of grooming and providing beautician services, this can be a good career option. All office workers and college students like to look good. This provides a steady flow of business. There is more demand during the wedding season and other festive occasions. You can provide these services and create a good business. This is one of the best business ideas in India for metros and Tier II cities. Ice cream parlour: You can buy the franchise of any good ice cream brand. This can help you start an ice cream parlour. If the ice cream brand has a specialty that sets it apart from other brands, you can make money with this low-investment business idea. Setting up an eCommerce website: This can cost anywhere between Rs 1 lakh and Rs 10 lakh. You can sell jewellery, groceries, clothes, and footwear. You can differentiate your eCommerce store from others using unique features. You can also sell specialty goods. Blogging: This requires an investment of up to Rs 50,000 in a good-quality laptop and internet connection. You can earn a considerable sum by blogging online. If your articles are in a specific field, companies that specialise in that field may advertise on your blog. Consulting services: If you are retired and you are a subject matter expert in any field, you can join the consulting field. You can consult if you have several years of experience in any particular field. It can be in IT, HR, finance, marketing, or any other field. Food catering business: You may have several people at home who are skilled in cooking. Catering services are in high demand if you serve good quality, home-cooked food. This is a low-investment business idea with the potential for big returns. Interior designing: There is always demand for good interior designers due to the growing real estate market. If you have good ideas that create an aesthetic interior, then this low-investment business idea will suit you very well. Organic farming: With the price of vegetables and fruits rising, many people in cities have taken to organic farming. They convert balconies in their flats into mini gardens and grow vegetables. Hydroponic gardening for growing vegetables is very popular. This technique does not require a lot of water for your garden. This is a profitable business. Home-based chocolates and cakes: Celebrating birthdays with a well-decorated cake is becoming popular. You can take baking and chocolate-making lessons. You can become an expert baker and make lovely cakes for your customers. Specialized cakes sell for a hefty price. Insurance agency: If you have a good personality and are a good communicator, you can become an insurance agent. You must first acquire some knowledge of financial products and insurance. You can develop a strong network and sell insurance products on behalf of different insurance companies. [B-02] Key Takeaways If you do not wish to continue in a job but want to start a successful business, you can adopt any of the low-investment business ideas in India discussed above. You can become successful with these business ideas in India. If you liked reading this article, visit Piramal Finance for more. https://www.piramalfinance.com/ If you need financial help to pursue your business idea, visit Piramal Finance and find out more about business loans. For more information on financial matters or about personal loans, credit cards, and financial management, check out more blogs on their website!

08-11-2023

Electronics

Things To Know About Refrigerators Before Buying

Refrigerators are now part and parcel of our daily needs. We hardly know any house that does not have a fridge. But still, buying the best refrigerator is important. Earlier, buying a fridge used to be quite easy as there were just a few choices in the market. Well, times are different now. So, you can choose a fridge with a wide range of innovative smart features. A good refrigerator can completely change your kitchen. You now have many colour and design choices. You need to be aware of a few things before you wander off to that electronics store to look at refrigerators. For instance, a fridge is more than just its colour and door design. You must be aware that refrigerators are available in many different sizes, designs, and finishes. Not just the typical ones you find at those electronics stores. Popular choices of fridges, including LG fridges and Haier fridges, are available in various models and ranges. So, let us go over some factors you should think about before you even start buying. The following are a few things that you need to keep in mind before buying any type of refrigerator. [B-01] Things to know before buying a refrigerator Capacity Before buying a new fridge, you must first check its capacity. You should consider how much space your fridge will need before choosing the model that best suits your needs. A refrigerator should always be as big as your home can accommodate. Haier fridges have a huge capacity, for example, as do some models of other popular brands, making them the perfect pick for your home. Power Saving One of the most crucial details to keep in mind when buying a fridge is the energy rating or power-saving rating. Check the energy ratings of all the refrigerators, and choose the one with the highest rating. To have a better understanding of how much electricity you can save, you should look into this feature first. Model You may choose whatever fridge model you wish. You have many choices in this regard, including single-door, double-door, and maybe multi-door refrigerators. You may also take notice of or consider the refrigerator’s size, shape, colour, and overall look. Price Before going shopping, you should also be aware of your spending limit. Your choices should be based once your budget has been established, and that is when you can make a wise decision. The price range of fridges varies a lot and mainly depends on the brand, model, feature, and many other factors. Frost free Although the older models of fridges do not have such functions, this is one of the latest features that are present in almost every refrigerator. The frost-free setting prevents the entire freezer from becoming frozen. Style Even though refrigerators are huge containers, they are not all one solid piece. They are available in various sizes, shapes, and patterns. Each style has its pros and cons. Some fridge models tend to be less pricey yet give few fancy features. Others frequently come with all the newest bells and whistles, a hefty price tag, and a sizable size. Buying the incorrect style of equipment might become a trouble. You can be forced to settle with an extra charge, absolutely no extras, or something that won’t fit where you want it to. Things to Remember There are some factors you might remember to skip when buying a fridge, but there are many that you must have. Read to know them: Movable shelves have many benefits. By moving the shelves, you may modify the interior’s capacity to keep larger containers. Sleek shelves with a spill-proof feature are important. So that whatever you spill on them won’t leak into the other parts of the fridge. You can store more big containers if you have deep door pockets and shelves. A high energy rating will also enable you to save money and electricity. Another useful feature is a cool pad. This gel-filled pad will maintain the fridge’s temperature even during power cuts, keeping your food fresher for longer. If the electricity situation in your neighbourhood is not particularly steady, get a voltage stabilizer. Today’s fridges include built-in surge protection, but they may also be more expensive. A stabilizer will be quite useful if you don’t want to spend extra money on it. A good extended warranty program that will cover any future service or repairs. [B-02] The Bottom Line A fridge has now become a crucial part of our homes. Those who do not own a fridge are looking to buy one, and those who own one are looking to upgrade it. Thus, it is right to say that a kitchen is not complete without a fridge. Now that you are aware of the crucial factors to take into account when buying a fridge, you are all set to go shopping. LG refrigerators and Haier fridges are popular among customers. Many LG fridge models give almost all of the above-listed things which should be in a fridge for household use. Before you buy a refrigerator, always keep the following factors into account choose the kind, verify the refrigerator’s size and the space you have in your house for it, and also the use of electricity, capacity, and budget. If you keep these things in mind then you are ready to buy your ideal and best fridge. Choosing the best refrigerator will be easy if you get the right guidance. To get detailed information on buying and financing options, visit the official website of Piramal Finance. With their easy financing solutions such as EMI, personal loans, and credit cards, you can choose the refrigerator of your preference. Budgets would not be a concern anymore. Read more informative articles on their products and services and other topics related to finance.

08-11-2023

Other

Is it possible to generate an ATM pin on mobile?

Just receive a new ATM card? Want to learn how to generate an ATM PIN? This guide is for you. We cannot imagine a life without an ATM card today. But to use a new ATM, we need to do the process of pin generation. Some years ago, banks sent you your first ATM pin. It was printed on a letter. The letter came along with the ATM card. Part of the letter had to be torn to reveal the 4-digit pin. The paper was then destroyed so that no one else could see it. Users could then change the ATM pin to personalise it. There was no need to generate the ATM pin. However, there was always a risk of someone else seeing the letter. [B-01] Green ATM Pin With advanced technology, the above problem no longer exists. Now banks provide paperless or green pin generation options. They don’t send it in printed format anymore. This is done to ensure your PIN does not fall into the wrong hands. You can use net banking or mobile banking to generate an ATM pin. Why do we need an ATM pin? The ATM pin is a security measure to ensure your money is safe. You cannot withdraw money from an ATM without a pin. You also cannot swipe your card without the pin. Hence, anyone who knows the PIN can transact money using your card. So, be smart and never share your PIN with anyone. ATM pins ensure that no one can transfer money using your card if it is lost/stolen. Can we set an ATM pin for the first time using our mobile? Yes, it is possible. To do this, please note your bank must have your KYC details. This means your mobile number is registered with your bank account. This is important because banks use OTP confirmation in the pin generation process. Here are the ways by which you can generate an ATM pin using your phone: Via Net Banking portal: Every bank provides a Net Banking facility these days. It is also known as Internet Banking. It is an easy process that uses the internet to do an online money transfer. You can choose to activate this facility at any time. However, most banks provide it when opening an account with them. The bank will provide you with a username and a login password. Using these, you can access the bank’s net banking website. You can use net banking to transfer money to anyone. The transfer happens and is recorded in real-time. Follow these steps to do pin generation using net banking: Log in to the net banking portal. Use the username and password provided by the bank. Choose the account that the account holder wishes to generate the ATM PIN for. Then choose the “ATM Card Services” option. You will find an option like “Change/Reset/Generate Pin” for your card Enter the desired ATM PIN. It must be strong and secure. Make sure that your pin is not easy to guess. Avoid birthdays, car numbers, etc. An OTP will be sent to the mobile number for verification. You will get a confirmation message on your registered mobile number. The account holder will now be able to use the new ATM PIN. However, you must note an important point here. The net banking password expires after a certain period. But you can quickly generate a new login password. Just click on the “forgot password” button. You must remember the old password to set a new one. Via mobile banking apps:Almost all banks have their separate mobile banking apps these days. The login details for the app are usually the same as net banking. Mobile apps are better than net banking portals. Using mobile apps, you do not need a computer to do internet banking. Here is how you can generate an ATM pin using the mobile banking app: Open the mobile banking App and login into it. Use the details provided by the bank. Browse through the app so that you can select the card which you need to manage. You will find a sub-section that deals with managing the ATM pin of the account. Same as in net banking, set a strong and secure ATM pin. Click on ‘Generate OTP’ for mobile verification. Type in OTP that you receive on the mobile. Click on ‘Submit’. Your ATM pin will now be set. Via Interactive Voice Response (IVR)/Call Centre: Most banks also provide this facility. You can call their helpline number for pin generation. An automated voice or service assistant will help you on the phone. Call Customer Care from your registered mobile number. Select the option which helps you with your banking account. Further, interact till you hear an option that says ‘Generate PIN’. Then they will ask you for details. Enter the details as requested. They might ask for more information like the 16-digit card number, CVV, your name, and date of birth. After entering those details, you will receive an OTP. Enter the OTP, and then they will ask you to enter a 4-digit PIN. Select the Submit option after entering the PIN. Your ATM pin is now set. Some banks might only provide an OTP. This OTP is valid for 24-48 hours. You must go to your nearest ATM to generate the PIN using the OTP. [B-02] Conclusion It is simple to generate your ATM pin using a mobile. However, some banks recommend going to an ATM after pin generation. They recommend changing the pin within 48 hours after you have generated it. This is done to ensure that your pin stays cyber-secure. You can also generate the ATM pin using SMS. In that case, you will get an OTP. Then you must go to the bank’s ATM and use the OTP to set up a pin.

08-11-2023