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Tax

All You Need to Know About Tax Audits in India

Do you file your taxes in India? Do you prepare your tax returns, or do you have someone else do it for you? If you make any errors while filing your taxes, then you could receive a letter from the government. They may ask you to show the details of your taxes and other financial information. What happens in these audits varies, depending on where and how much money is involved. Let us attempt to know what is involved in the process of tax audit in India so that you don’t end up owing more than expected. [B-01] What is a Tax Audit? A tax audit is a process conducted by the authorities to determine whether you’re correctly reporting your income and paying the requisite taxes. The provisions of Section 44AB deal with the class of taxpayers whose accounts need to be audited by a chartered accountant (CA). The audit under Section 44AB is designed to ensure compliance with various income tax slabs and other requirements. The Objective of a Tax Audit in India A tax audit is an examination of your books, papers, and related records by a government auditor. A tax audit is carried out to accomplish the following objectives: Ensure that taxes are paid on all taxable income as per the income tax slab. To determine whether a taxpayer is complying with tax laws. To verify the accuracy of financial reporting by taxpayers. Types of Tax Audits in India As per the Indian government, there are three types of tax audits. We will discuss all of them below. Field Audits: A field audit is when a tax auditor comes to your house or office and takes a look at your reports or financials. It can happen at any time. But it’s not common for them to come unannounced. Office Audit: An office audit is when a tax auditor comes to your place of business. They take a look at your business’ financials or reports. Correspondence Audits: A correspondence audit is when you receive a letter from the Indian Revenue Service (IRS), asking for certain documentation. Who Conducts Tax Audits? The Indian Income Tax Department conducts tax audits. This department collects income tax and keeps track of taxpayers’ records. While you may only be familiar with paying taxes, a tax auditor, or CA, is responsible for ensuring that you are filing your taxes correctly. They also make sure that your company has filed its taxes correctly as per the income tax slab. At times, there may be some discrepancy between what you report on your personal tax return and what was reported by your employer. A CA investigates these issues and determines whether any action needs to be taken. Who Needs a Tax Audit in India? The Income Tax Department has set rules for who is supposed to have a tax audit. Certain taxpayers have to file their tax audit report every year, according to the Income Tax Act of 1961. These include professionals like doctors, lawyers, accountants, and business owners whose annual income exceeds Rs. 50 lakh. Additionally, if a taxpayer’s assets are worth more than Rs. 10 crore or their annual turnover is greater than Rs. 2 crore, they will be subject to a tax audit as well. Calculate Taxable Income for the Taxpayer One of the easiest ways you can mishandle your tax filing is by incorrectly calculating your taxable income. It’s one of those things that sounds really easy. But it has a lot of moving parts. What is the best way to do it? Hire an accountant. If you don’t want or can’t afford one, here are some tips for how to calculate taxable income on your own while keeping in mind the income tax slab: First, you need to know what business expenses are deductible. That means knowing what expenses are considered ordinary and necessary for your industry. As far as business expenses go, there are two kinds: direct costs and indirect costs. Direct costs are pretty self-explanatory. They’re just your actual expenditures on things like supplies or payroll. Indirect costs are a little trickier. How to Perform Tax Audits in India The entire purpose of conducting tax audits is to determine whether taxpayers have reported their income accurately and whether they’ve paid the requisite amount of tax. In other words, if your taxes are lower than what you’re supposed to pay according to what you report, you’ll be served underpayment penalties. There are the most common tax audits required in India: Form 3CA: Professionals and businesses that require an annual audit need to fill this form out. Form 3CB: For companies that are not required to be audited. Form 3CD: This form includes all transactions and important details about a company. Form 3CE: This form is for foreign companies or NRIs that receive royalties from Indian companies. Penalties For Not Getting Accounts Audited If individuals fail to obtain an audit of their accounts or do not obtain a certificate as required under Section 44AB, they shall be punished with a fine that may extend up to Rs. 1.5 lakh or 0.5% of total sales. [B-02] Conclusion There is no doubt that a tax audit is a major stressor. The anxiety of thinking you owe money or might be at risk of getting audited can make you feel pretty down and out. Before you let your imagination take center stage, consider these points: Most people get audited because they forgot or missed one line on their income tax return. In all likelihood, there’s nothing to worry about if you have your documentation ready. Piramal Finance offers you accurate information on such concerns and other banking and financial services. Make sure your financial knowledge is up to date on essential services and products, such as audits, personal loans, and financial calculators, by reading the informative blogs on their website.
08-11-2023
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General Insurance

Compare and Calculate your Term Insurance Before Buying

Are you one of those people who constantly feel anxious about life’s uncertainties? If so, it might be time to think about term insurance. Term insurance is a type of insurance that provides protection against a range of events that could happen during the period you have coverage, typically ranging from 10 to 30 years. And guess what? You can compare and calculate your term insurance rates online right now! [B-01] What is term insurance? Term insurance is a policy that provides temporary coverage for a set period, typically three years. The policy pays out a fixed amount each month, regardless of whether you are insured or not. It can help you afford to replace income if you’re unable to work due to an illness or injury. You can compare term insurance policies online using our simple term insurance calculator. Just enter your required information, and we will show you the best options based on your needs. How does term insurance work? Term insurance works like this: You purchase a policy that will pay out a certain amount if you die before a set date. The payout is calculated on the age at the time of death, not how long you have been alive. Understand how the term plan calculator payout works. If you are younger than the specific policy age limit, your payout will be smaller than if you are older. Term insurance does not protect you from expensive medical bills or lost income. It only pays out if you die before the policy expiration date. Make sure you understand the policy exclusions. These are specific situations in which your policy will not pay out, such as if you die of a natural cause or if the policy is cancelled. Types of term insurance Many term insurance policies are available, and each of them offers different benefits and protections. Therefore, before deciding which policy to buy, it is ideal to compare and calculate your term insurance options. One way to compare term insurance policies is to think about how much coverage you need. Most term policies offer a range of total annual premiums, so you can find one that is affordable for your needs. To figure out the coverage amount you need to multiply your age by the premium for the policy that is closest to your age, or you can even use a term plan premium calculator or term insurance calculator to calculate. Once you have an idea of the amount of coverage you need, you can look at the specific benefits and protections offered by each policy. Some policies offer lifelong protection while others only cover a certain period (for example, up to 10 years). You’ll also want to consider whether the policy has a deductible or co-payments associated with it. How to compare term insurance plans? When you are ready to buy term insurance, compare and calculate your options to find the best policy for you. Age is the most important factor to consider when buying term insurance. The older you are, the higher your risk of health problems and death. Some plans have lower premiums for people over 65, while others have higher premiums for younger individuals. Ensure that the policy you choose covers the types of risks that are likely to affect you the most, such as heart disease and cancer. Health status is another important factor. Some plans have higher premiums for people with pre-existing conditions, while others have lower premiums regardless of your health history. Ensure that the policy you choose covers the types of risks that are likely to affect you the most, such as health problems. Your needs are also important when comparing term insurance plans. Some plans have lower premiums for people who want to cover a certain number of days per year, while others have higher premiums for people who want to cover a certain amount of money per day. Ensure that the policy you choose covers the types of risks that are likely to affect you the most, such as accidental death and disability. How to calculate your term insurance quote? When buying term insurance, it is necessary to get a quote from several providers so you can compare pricing and coverage. There are a few steps you need to take to get a quote: Find the policy type that best fits your needs. There are three types of term insurance: whole life, universal life, and variable life. Each has its benefits and drawbacks. A term insurance premium calculator will give you a complete breakdown of the pricing for a better understanding. Decide on the term length of coverage you require. Term lengths range from three months to 10 years. The longer the term, the more expensive the policy will be. Calculate your risk factors. It includes your age, health history, occupation, and marital status. These factors will affect how much coverage you need and how much premiums you will pay per month for that coverage. Compare prices based on these risk factors and the term length of coverage required. Remember to add in any applicable taxes and surcharges that may apply to your state or province. Once you have completed these four steps, you are ready to get a term insurance quote. You can even use the term plan calculator to compare all quotes to make more informed decisions. When it comes to term life insurance, comparing rates can be a daunting task. It is especially true if you have a policy with multiple companies. To make the comparison process easier, use a term plan premium calculator. The tool will help you determine how much your policy would cost with each company, and which one might be the best for you. [B-02] Conclusion Before you buy term insurance, it is important to compare and calculate your coverage using a term plan calculator. This way, you can ensure that the policy offers the right amount of protection for your needs. Additionally, be sure to read the fine print so that you are aware of any exclusions or limitations that may apply to your policy. To read more such articles, visit the Piramal Finance website.
08-11-2023
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Bonds

Benefits of Buying Government Bonds

Long-term investments are a proven way to get wealthy. But they have their advantages and disadvantages. For example, equity provides high returns at high risks, and FDs offer a lower interest rate. Government bonds are better than both of these. They offer low to zero risk and regular returns. Bonds are for regular income and long-term investment. Further, they provide higher fund security and many other benefits. Banks generally can not offer it. Hence they attract investors from all sections to buy government bonds. In this article, we will discuss government bonds and their benefits. We will also mention the types of bonds issued by the government of India. [B-01] What are Government Bonds? Government bonds are investment tools issued by central governments to raise funds. It helps the government with development and administrative costs. Bonds are an excellent investment option for those who want guaranteed returns. There are different types of bonds based on their terms and benefits. See below: Treasury Bills Cash Management Bills Fixed Rate Bonds Inflation-Indexed or Capital Indexed Bonds Floating Rate Bonds Sovereign Gold Bonds (SGB) 7.75% GOI Savings Bond Bonds with Call or Put Option Zero-Coupon Bonds Government bonds provide several benefits based on their types. They include long-time durations and high-interest rates. Further, they are also risk-free. So people prefer them based on their needs. People can also buy government bonds for portfolio diversification. They can invest in equities and other options along with this instrument. Thus they can ensure the safety of their fund and get a good return. Benefits of investing in Government Bonds Here are some benefits retail investors get when they invest in government bonds. Long-term investment with good returns Bonds issued by the government allow long-term investment and returns. They are better than bank deposits, which offer low rates and short maturity periods. Hence many retail investors in India prefer them. The 7.75% GOI Savings Bond is a good example of a government bond. It offers higher interest than an FD. These government bond rates are more attractive than other options. Also, they allow a 7-year maturity period. So retail investors often go for this bond type. Another example is Sovereign Gold Bonds (SGB). It is a long-term bond with an attractive interest rate. The term of SGB is for 8 years. And it offers a 2.5% yearly return. But the investor can sell it after 5 years and get the current market price of gold. So those looking for a better option to own gold can invest in SGB. Lower to zero risk and high stability of funds The investors get a guarantee from the government on their bonds. But it depends on the type of the bond and its terms. It involves very low or no risk compared to the equity market. Investments in stocks have high risks due to market factors. But government bond rates stay fixed. So those who prefer safe funds and fixed interest rates can choose to buy government bonds. Also, it is a good option for investors who want to lower the risk in their portfolios. They can go for Inflation-Indexed bonds, Floating-Rate bonds, or Sovereign Gold bonds. They will have far lower risk than equity or mutual funds. On the other hand, stock prices go up and down based on market conditions. Government bonds provide regular income Government issues bonds with guaranteed returns. And it pays interest every six months or year. So it is a good investment for retail investors expecting a regular income. Also, it provides high safety for their fund. Bank FD or deposits generally pay a low rate of interest. But, government bond rates are higher and allow a long maturity period. So the investors can hold a bond for 7 to 8 years, depending on the type and earn regular income. GOI Savings Bond is such a type that gives a high-interest rate. SGB is another bond that offers around a 2.5% interest rate and the market price of gold on maturity. Both allow long-term and stable income with the safety of the investment. Buying government bonds creates a diversified portfolio Market prices affect investments in stocks, mutual funds, and unit-linked insurance. But government bonds are safe against market-related risks. Hence many investors consider it a balancing tool. They diversify their portfolio by investing their money in different stocks and bonds. It helps balance the risk other investments may pose due to price fluctuations. The market may go down due to many factors. But the government bonds are still safe and ensure a return. By investing in government bonds, they give money to the state. They are contributing to the country’s economic growth. Their funds help develop and improve the economy. Thus they enjoy good returns from the equities in a diversified portfolio. They also get safe and regular income from bonds. Provides liquidity like equity Government-issued bonds provide liquidity. It is because banks are also involved in the market. So retail investors can buy and sell bonds like equity in the market. Hence they can enjoy the liquidity and safety of their funds together. The market may go down at any time due to any situation. In this case, people may need their funds for emergency use. Hence investors diversify their funds in many investments. And they select government bonds to ensure that a part of their fund is free to use. Thus they can sell it out and get their money on hand whenever needed. [B-02] Conclusion Bonds issued by the government provide many advantages. They provide the highest security of funds and surety of returns. We have discussed the main benefits of buying government bonds. So they can invest in them based on their present and future needs. Looking for easy and sustainable banking information for better financial prosperity? Visit Piramal Finance for more informational blogs. Check out our website for other financial services like housing or MSME loans, personal loans, etc. Best wishes for your financial success!
08-11-2023
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FD

Calculate Fixed Deposit Returns & Interest Online

Using an FD calculator online lets you know how much your fixed deposit will be in value at maturity, given the interest, you will get and how often you compound it. In this piece, we will know the best way for computing FD Returns using FD Interest Rates Calculator. One safe investment option that can be useful in balancing your money is a fixed deposit, often known as an FD or a term deposit. The FD Calculator is a great tool to know how much and for how long to put in an FD. [B-01] What is a Fixed Deposit? Almost all the banks and NBFCs in India treat fixed deposit accounts as a kind of term investment. The rate of interest on these deposits is higher than the average, but only in special cases. These deposits keep your money safe for a set time between 7 days and 10 years. Using an FD calculator, you can know the total amount of interest you will earn and get when the FD matures. Easily usable via the Piramal homepage, it is a user-friendly tool. How is the FD Interest calculated? Interest on deposits with banks is computed using the simple interest method and the no. of days in the term if it is less than six months. The rate of return on FDs for a term of six months or longer is calculated by doing a sum of profits from each quarter to the initial money invested and then dividing the total by four. For the monthly interest payout option, an interest rate is used that is less than the ongoing market rate. If you have picked a quarterly interest payment, then the interest will be calculated and paid to you every three months. The FD maturity amount calculator works with this formula: A = P(1+r/n)^n*t where, A = the principal amount due at maturity P = the initial principal payment. r = interest rate, t = time in years, and n = how often interest is to be compounded. What is the FD Calculator? An FD calculator can help an investor know the value of their fixed deposit at maturity. A Fixed Deposit calculator can also help you to get an idea of your interest profits before you invest. A principal amount, interest rate, and the number of years are to be input into the FD calculator. In the end, you will have more money than you started and also a maturity value. The computed value given by the fixed deposit interest rates calculator is an estimate and the real returns may differ. With Piramal’s easy and quick online FD calculator, you can find out when your FD is likely to mature. To what end does using an FD calculator help you? Knowing the FD maturity amount might be a tricky and time-consuming task. If done manually, there are chances of wrong calculation and thus, errors in results. To avoid such errors, you should use an FD calculator. There are many things to consider when calculating FD maturity. By an easy inputting your details into a fixed deposit calculator, you may quickly and easily get the results you need. It reduces a lot of time spent on these tough computations. Fixed Deposit Interest calculator can check the various FDs available from many banks and compare the money you will get on maturity of the FD and also the interest rates. When you have access to all the data, you can make a good choice for sure. Perks of knowing the FD Interest & Rates using an FD Calculator As per your needs, you may choose a fixed deposit of any term from 7 days to 10 years. You can tweak the settings on the calculator to know which FD term will get you to your chosen goal. This tool is easy to use, accurate, and quick, and the best thing is it can be used free of cost. Also, you can use this tool as many times as you want with different inputs. You can also change the payout time of the FD or the compounding period. The interest on an FD is compounded, so you will need to choose a payout term that fits with the proper compounding period. Once you have chosen a sum to invest, you can calculate your returns on investment and your net worth. When you have a target amount in mind, you are looking at things backwards. The money to be invested is the result of inputting the maturity money at the end of the FD term. [B-02] The Bottom Line In India, an FD is a widely used and safe form of saving and investment. It gives fixed returns for sure and can be held for varying periods. Also, an FD is a great way to grow your wealth with the least risk of loss. Almost all banks and financial companies give this service, which can help you to get a stable and safe financial future. A smart public needs a smart tool! You can know when your FD will mature and how much interest you will earn by using Fixed Deposit Interest Calculator. You can use a fixed deposit calculator to measure the rate of interest given by different banks’ FDs. Piramal gives an easy yet useful online FD calculator to help you to make your investment choice.
08-11-2023
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Home

Top 5 Best Dressing Table Design Ideas In 2022

The market offers a wide range of options for dressing tables. There are so many alternatives to choose from that it might be challenging to choose one. If you are looking to buy a modern dressing table, the options can overwhelm you. When a place to sleep has all the necessary furniture, it is called a bedroom. Before, dressing tables were part of the women’s room for jewellery and the like. Yet, the same furniture is not far behind in tidying up men’s rooms. People should be careful when buying a table since it is a personal choice for cosmetic needs and necessary furniture for the house. Let’s do a deep dive into them! [B-01] Dressing Table Design Ideas Minimal design Wooden Dressing Table Modern dressing tables should not be extra, especially if people have a small collection. Consider this ultra-simple and excellent dressing table new design. It accompanies a large mirror that may be placed in the centre of the room. The modern grey drawer and chair enhance the beauty of this modern dressing table. Buy an elegant makeup vanity that is classy in design to conserve space in the dressing room. Elegant Dressers with a Golden Flair A functional dresser isn’t complete until it has a long, elegant mirror. Consider buying a basic dresser with a framed mirror as an option. An Instagram-worthy dressing table is something a little different than the usual new wooden dressing table style, combining this with a beautiful Victorian-style chair. Wooden Dressing Table with Compartments If you are looking for something unique, dressing tables made from wood might add charm to the room. A robust wood dressing table new design is a timeless piece of furniture. The most frequent wooden table designs for bedrooms are wood cabinets with circular mirrors. People might use oak frames with an entire mirror for a more distinctive look. Use studio-style lights or white bathroom lights to illuminate the dresser. Entranceway Style Wooden Dressing Tables Make the most of the room’s nooks. Install a built-in shelf in the bathroom to organise the cosmetics. So that folks can enjoy the sunshine! Use a soft-focus light while putting on makeup in the evening. A small stool beneath the table provides more care and enough space. They can turn the modern dressing table ideas for the bedroom into a pleasant setting with more space. This mirror has a lush backdrop that pairs well with cushioned walls. Beautiful Personal Dressing Table Having a dresser in one’s room isn’t for everyone because many have limited space or a small bedroom. Add a dresser to the bathroom for more storage. Place cabinets on either side of the mirror to keep the makeup tidy. A wooden cupboard can also be a dressing table, and people can hang anything in front of the cabinet. Tips For Choosing A Modern Dressing Table That You Should Know Here are some buying recommendations for dressing tables: Table with a mirror of appropriate size: While many designs have a table and storage, the modern dressing table with mirrors is gaining popularity due to its appearance. Determine the corner where the furniture unit will sit, and then look for something that is the right size. This first step must be completed for furniture to fit in the room. Measure the length of the table without including the mirror height to ensure it is neither too tiny nor too tall. Choose storage over appearance: In an overcrowded bedroom, the necessity for storage is obvious. A makeup table with more space would be better than one with an eye-catching style. There must be ample room for people to deal with accessories, cosmetics, and other items. Buy a dressing table with plenty of storage space to keep items separately. Drawers and cabinets may store accessories and valuables. Examine the locker: Make a provision on the dressing table to protect jewellery. Look for a layout with cupboards with lockable doors where you can keep valuables, such as jewellery, papers, and other vital items. Check for several keys so that if one is lost, you may use the alternative key instead of breaking the lock. Remember to include the budget: Budgeting is vital whether purchasing something significant or little. Sort the dressing table new design by the price willing to pay. Online, you can find a wide range of low-cost dressing tables. People choose a material from wood, plastic, or metal that fits their budget. The Benefits Of Having A Dressing Table For A Bedroom The right type of dressing table can assist you in getting rid of all those purse searches. Reduces stress: Many people struggle to find things because they are unorganised, so dressing tables can help people become more organized. Interiors are better: A vanity in the room or a modern dressing table design gives style to a home and creates a location where people can relax and recharge. There’s no doubt that a vanity table adds a fashionable touch to a house. Uses other furniture pieces: If there is a place in the room for furniture, like the dressing table new design in wood and a cabinet, this is an alternative. Makeup, hairstyles, skincare products, and jewellery may all be in the cabinet, which helps keep a room neat. [B-02] Conclusion Every woman desires a lovely makeup vanity in her room, which is very understandable. Piramal Finance is a fantastic personal loan choice for purchasers seeking a loan. This not only organises make-up, accessories, and jewellery but also provides the courage to confront problems. With a stylish modern dressing table, people may combine grace and function in the home. If you are wondering how to finance this new purchase within your budget, a financial expert like Piramal Finance can help. Know how you can apply for easy financial solutions like personal loans and manage your personal finances swiftly.
08-11-2023
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Tax

What Is The Long-Term Capital Gain Tax Rates In 2022?

Indians primarily used real estate, equities and gold as tax planning vehicles before 2018. In 2018, Long-Term Capital Gain Tax was introduced on equities and equity mutual funds. Today, Long-Term Capital Gains Tax is levied on different capital assets, equities, real estate properties, fixed-income securities, mutual funds, Exchange Traded Funds etc. [B-01] Long-Term Capital Gains Tax Under Budget 2022 Long-term capital gains tax under the Budget 2022 remained the same for various categories of assets. Only the surcharge of capital assets like real estate, artefacts and unlisted shares was capped at 15% p.a. For your easy reference, the analysis of capital gains tax rates of different capital assets is given below. Surcharge on LTCG tax under Budget 2022 If you are a high net worth individual with income ranging from 2 crores to 5 crores holding real estate, unlisted shares or artefacts, your surcharge will come down from the previous 25% – 37% to only 15% p.a. Long-term Capital Gains Tax on equities and equity mutual funds The Financial budget of 2018 introduced Long-Term Capital Gains Tax when you sell equities after one year of holding. This was pegged at 10% p.a. The concept of grandfathering was introduced to value assets at fair market value on 31 January 2018 to value long-term capital gain. A tax exemption on long-term capital gains of up to Rs 1 lakh was given. Finance Minister Nirmala Seetharamanji left the LTCG tax rate unchanged at 10% p.a. Illustration to calculate Long-Term Capital Gains Tax on equities: Suppose you have an equity mutual fund holding bought for Rs 1,50,000. After one year, you sell it for Rs 385,000. The calculation of LTCGtax is as follows:- S.NoParticularsAmount in Rs.1Cost of acquisition of the equity shares/fundRs 1,50,0002Sales value of equity/equity mutual FundRs 385,0003Long-term capital gainsRs 2,35,0004Long-term capital gains after exemption up to Rs 1,00,000 (3-1,00,000)Rs 1,35,0005LTCG Tax rate is 10% after one year of holding after exemption ( 4* 10%)Rs 13,500 Long-Term Capital Gains Tax on fixed-income securities, bonds and bond mutual funds If you hold debt mutual funds, debt securities or debt ETFs and sell them after three years, you pay an LTCG tax of 20%. CPI Index refers to the Cost of Inflation Index. Of course, you get the benefit of indexation. Indexation means that the cost of your debt fund holdings is increased proportionately to reflect the increase in the CPI index up to the date of sale. If the CPI index on your purchase date is 100 and CPI Index on the date of sale is 150, then your cost of debt funds is inflated by 50%. This is then subtracted from the market price of the debt to calculate the long-term capital gains tax on your bond fund. CPI Index refers to the different levels of the Cost Price Index, which indicates the prevailing inflation rates. Illustration to show how to calculate long-term capital gains tax on bonds after indexation: Suppose you purchased a debt fund in April 2014 at Rs. 10 for 10,000 units. The total acquisition cost is Rs. 1,00,000. You redeemed the same in 2022 at Rs. 25 per unit. The CPI Index was 220 in 2014-2015, and in 2022 the CPI Index will be 300. How would you calculate the Long Term Capital Gains Tax for this sale? S.NoParticularsAmount in INR1The purchase cost of debt Fund in 2014Rs 1,00,0002Sale Value of the debt fund in 2022Rs 2,50,0003Purchase cost with indexation in 2022( 1* 300/220)Rs 1,36,3634Profit on sale (2-3)Rs 1136365LTCG Tax (20% after 3 years)(4*20%)Rs 2,727.2 Long-Term Capital gains Tax on Systematic Investment Plans If you are doing Systematic Investment Plans (SIPs), the underlying investment is typically equity or debt, so the tax rates that apply to equity or debt investments are used. Each of your instalment payments is treated as a separate investment. You must pay long-term capital gains on the gains from each instalment separately at the applicable rate. Long-Term Capital Gains Tax on Real estate properties The LTCG tax rate on real estate properties is 20%. Illustration to show the calculation of Long-Term Capital Gains tax with indexation: Suppose you acquired a property in 2005 at Rs. 1 crore. In 2008, you sold the property for 1.75 crores. You also made improvements on the property for Rs 20,00,000 in 2006. Costs relating to the transfer incurred by you are Rs 5 Lakhs. The CPI Index in 2005 stood at 117 and 137 in 2008. The CPI Index in 2006 was 122. Your period of holding is three years. The calculation of long-term capital gain made by you is as follows: Illustration to show the calculation of Long term capital Gain tax on your real estate property: S.NoParticularsAmount in Rs1Cost of acquisition of house property1,00,00,0002Sale Value of house property1,75,00,0003Long term Capital gain without Indexation75,00,0004Cost with Indexation 1* 137/1171,17,09,4015Add the cost of improvement after indexation (20,00,000*137/122)22,45,901.636The total cost of the property after indexation (4+5)1,39,55,3027Capital Gain after indexation (2-6)35,44,6988Fewer expenses of transfer5,00,0009Net long-term capital Gain after expenses (7-8)30,44,69810Long-term Capital Gains tax at 20%6,08,939.6 [B-02] Key takeaways The article covers the Long-Term Capital Gains Tax implications for important capital assets, including equity, debt and real estate. As mentioned earlier, Budget 2022 left the Long- Term capital gain tax rates unchanged except for reducing the surcharge to 15% on specific capital assets. To read more such articles, visit the Piramal Finance website. https://www.piramalfinance.com/
08-11-2023
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Mutual Funds

Top 10 Debt Mutual Funds of 2022

A common way for individuals to build wealth is through mutual funds. Mutual funds have been appealing for reasons such as professional management, diversification, and more. Nevertheless, many people think mutual funds are an unwise investment choice for them because of how risky they are. While some mutual funds have a higher-than-average risk profile, others, like debt funds, are known for their steady returns. In this article, we’ll discuss how these debt funds operate and the top debt mutual funds in India right now. [B-01] What is the Best Debt Mutual Fund? A debt mutual fund is a type of mutual fund scheme that makes investments in fixed-income generating assets such as certificates of deposit, corporate bonds, treasury bills, commercial paper, and government securities that have lower risk and volatility. Bond Funds and Fixed Income Bonds are other common names for debt mutual funds. This fund’s primary goal is to offer consistent and fixed interest returns during the investment period. After the predetermined loan tenure, the debt fund receives its principal returned. Investors receive returns in the form of the fixed interest the fund earns. A debt mutual fund chooses its assets depending on its credit rating. A better credit rating increases the likelihood that the investment will be repaid in full when it matures and that the interest will be paid on time. Top 10 mutual funds to invest this year Debt funds are a smart investment, but to achieve your financial objectives, you still need to pick the best debt fund. In this article, we will give you a sneak peek at the top debt funds for 2022 to assist you in making your decision. S. NoMutual FundAUMExpense Ratio3-Year Return5-Year Return1.Aditya Birla Sun Life Medium Term Direct Plan-GrowthRs. 1,628 crores0.87%10.32%8.42%2.UTI Bond Fund Direct-GrowthRs. 299 crores1.29%10.50%6.49%3.ICICI Prudential Credit Risk Fund Direct Plan-GrowthRs. 8,014 crores0.88%8.14%8.03%4.UTI Banking & PSU Debt Fund Direct-GrowthRs. 465 crores0.24%7.93%6.51%5.Edelweiss Government Securities Fund Direct-GrowthRs. 109 crores0.69%7.08%7.95%6.Edelweiss Banking and PSU Debt Fund Direct-GrowthRs. 379 crores0.28%7.38%7.87%7.SBI Magnum Medium Duration Fund Direct-GrowthRs. 9,245 crores0.68%7.41%7.70%8.Nippon India Ultra Short Duration Fund Direct-GrowthRs. 4,931 crores0.33%6.64%5.93%9.ICICI Prudential Short Term Fund Direct Plan-GrowthRs. 15,615 crores0.37%6.13%7.30%10.ICICI Prudential Ultra Short-Term Fund Direct-GrowthRs. 14,808 crores0.39%5.04%6.06% Advantages of debt mutual funds Debt funds have many significant advantages compared to some other mutual funds. Some of these advantages are: Less affected by market movements The result of debt mutual funds is not much affected by changes in the market. As a result, these funds are less volatile than equity funds. Fixed-income securities make up most of the portfolios of debt funds. Predictable returns Debt mutual fund returns are substantially more stable because the fund invests in fixed-income securities. Top debt funds are known for producing steady returns of 4% to 6%. Risk-averse investors should therefore think about investing in these funds. Funds flexibility When you invest in a debt fund, you might get a lot for the price of one, just as with other mutual funds. A typical debt fund may invest in several bonds, commercial paper, and other securities. Also, debt mutual funds can be converted or transferred to equity mutual funds or any other plan of the investor’s choice. Other investment alternatives do not offer such options. For example, Fixed Deposits can be closed but not transferred. Low-cost investment Debt funds are inexpensive investment vehicles and they make more sense when you consider the instruments they invest in and the consistent returns they produce. Thus, debt funds charge a small investment cost. However, the expense ratio for most debt funds is less than 1%. Who should invest in debt funds Debt funds are best for novice investors to begin their financial adventures. They get the much-needed preview of mutual funds’ potential from this. Also, risk-averse people or those who aren’t ready for equity exposure should choose debt funds. Debt funds increase investors’ wealth and offer consistent income while posing minimal or no risk. Tips to choose the best debt mutual fund Fund history Select investment fund providers with a proven track record of reliable performance. Make sure they have a consistent history going back at least five to ten years. Track record Over a 3-year and 5-year horizon, if the fund consistently beats its peers and the benchmark, it is a sign that a fund is well-managed. Although previous performance cannot predict future results, it is a crucial indicator of the fund’s history and aids in comparison to its competitors. Expense ratio The expense ratio displays the percentage of the money used to manage the fund. Better returns result from a reduced spending ratio. Choose the fund with the lower expense ratio. Asset allocation Also, consider how well-diversified your fund’s portfolio is and where they have made the majority of its investments. For higher returns, some funds may invest in riskier debt instruments, while others may invest in safer sectors like government bonds. Your potential for risk and return depends on the asset allocation strategy you like. Asset under management A larger fund size requires more management effort, and a smaller fund size offers less flexibility. The assets being managed shouldn’t be extremely high or extremely low. It enables the fund manager to quickly manoeuvre through stormy times and liquidate investments. Things to consider before investing Investment period and objective To invest for a longer period, a person should consider investing in short-term bond funds. A holding period of three to twelve months is appropriate for liquid funds. Additionally, an investor must decide on the overall goal of his investment before choosing a debt fund. Fund types Further subcategories of debt funds include liquid funds, monthly income plans (MIPs), fixed maturity plans (FMPs), dynamic bond funds, income funds, etc. These funds have their own set of benefits and goals to pursue. You must determine your needs before investing in a debt fund. Risk Debt funds are ultimately market-linked and subject to credit and interest rate concerns. You must determine as an investor if you can deal with these risks. Cost The expense ratio is a fee charged by the fund houses in exchange for the fund manager’s upkeep of the fund. When compared to other funds in the category, an investor must select the fund with the lowest expense ratio. [B-02] Conclusion Debt investing is a wise choice if you want consistent and secure profits. It is obvious from the information above that investing in debt funds will increase the security of your money. It is important to understand the risk and keep an eye on it, especially if you are investing in debt funds for a long time because debt funds are also market-linked. In case of any doubt, consult a financial expert like Piramal Finance. Get easy and customised mutual fund and personal loan solutions at your fingertips.
08-11-2023
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Credit Score

Everything You Need to Know About CIBIL Score Explained

Whether you want to purchase a new house or car, most people prefer taking a loan rather than shelling out all their savings to fund the purchase. Your lenders assess your creditworthiness before disbursing the loan amount. A credit score is an integral part of your assessment. This three-digit number helps lenders know the following: In the case of a loan, the amount you are eligible for in the case of a credit card, the upper limit for the card Whether or not you should mortgage for the loan you are availing Five pillars help determine the credit score. This article will take you through the advantages of calculating a credit score. We will also discuss the CIBIL score calculation in detail. [B-01] What is the CIBIL Score? CIBIL (Credit Information Bureau India Limited) is an RBI-licensed company. It provides credit information for individuals. It is the most popular credit-scoring company in India. This is a three-digit credit history summary. It includes ratings and reports that detail your creditworthiness The score ranges from 300-900. You are in the good credit bracket if your score is nearly 900. A credit report in CIBIL helps the lenders see the following details: The number of loans you have taken Whether or not you pay them on time The total number of accounts you hold It takes approximately 18-36 months to build a satisfactory CIBIL credit score. Why Should You Worry About CIBIL Score? The CIBIL score is an important part of your loan application. Most lenders have automated systems that help them assess you as the lender. The credit score is part of this algorithm. It helps create the first good impression on the lender. Let’s discuss the advantages of a credit score. Based on the risk determined from your profile, the lenders determine the loan amount along with the interest to be paid. A higher credit score helps you get loans faster. With a good score, you can negotiate better with lenders. Whether you want a shorter repayment term or more loan amount, it is possible with a good credit score. Lenders may think twice before releasing the amount they want if you are on the riskier side of the credit score. However, your chances of getting the deal are higher with a good credit score. A good credit score has its perks with credit cards. You get the best higher limit with the cards as well. Banks also offer you pre-approved loans when you have a higher credit score. The repayment period can also increase if you have a better CIBIL score. How is CIBIL Score Calculated? As discussed, there are five pillars to your credit score. Each pillar is assigned a specific value. Together, they help determine if you are worthy of the loan. The Payment History This accounts for 35% of the score. This element helps the lender understand Do you make your payments on time? Have you skipped your EMIs in the past? If you delay your payments by 30 days, it can impact your credit score. If there are more accounts with delayed payments, it can affect the score. To ensure a positive score, in this case, you should provide timely payments. If possible, it should be Existing Debt This makes up 30% of the score. It accounts for the total credit limit you have utilized and the total loans you have taken. It includes the total loans you have taken for different purposes It also assesses the credit cards you own and how much you owe If you have maxed out your credit card, it can impact your credit score. If you have taken new loans with low repayment history, it can hamper your credit score. If you have loans closing soon, you might notice an increase in your credit score. Credit History Duration This accounts for 15% of the credit score when you opt for a free CIBIL score check. If you have a long and good history of making timely payments, you may notice a slight hike in your score. The score averages the age of your credit to determine your worthiness for getting a loan. While you may want to avoid debts, they can help lenders learn more about your credit score. The Credit Mix This is an essential part of calculating the credit score. You might be considered risky if you have more personal or credit card loans in your history. On the other hand, if you have home or auto loans, it can improve your score. It is a good idea to have a good credit mix for better assessment. Along with the credit mix, the duration of the loan also matters. If you have repaid your loans using a longer term, you might notice an increase in your score. The credit mix accounts for 10% of the credit score. Recent Activity This sums up the final 10% of the CIBIL score. Say you applied for a credit card recently and got rejected. This can impact your credit score negatively. Similarly, if in the recent past you opened a few bank accounts, it can impact your credit score. Your recent activities also affect the score and play a pivotal role in the algorithm. However, it is important to note that the algorithm does understand that a person with new accounts or loans is not necessarily risky. Several sites allow you to conduct a free CIBIL score check to assess your creditworthiness. The ideal CIBIL score for better worthiness is between 750-900. Note: You must pay a nominal amount to check your CIBIL score by PAN card. [B-02] Conclusion Creditworthiness is pivotal in approvals, whether you plan to take home or personal loans. You can get your loans approved and disbursed faster with a higher credit score. It can also act as a catalyst for better interest rates and payment terms. You should follow basic credit rules to ensure a better score. If you want to know more about improving your CIBIL score calculation or enhancing financial planning, visit us at Piramal Finance. We make sure your financial knowledge is up to date on essential services and products, such as personal loan and financial calculators, by reading the informative blogs on their website.
08-11-2023
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Dream Mobile

Top Upcoming Mobiles In India 2022: Price and Launch Date

With technological advancements, 5G will soon surpass 4G in popularity. Hence, various leading mobile manufacturers have started producing 5G-ready handsets. This technology will have faster upload and download speeds. Continue reading to see some of the best 5G phones. [B-01] 1. OnePlus Nord 3 5G This phone is set to be launched on October 24, 2022, and will be available in different colour variants. It is a full HD+ phone with 409 PPI pixel density. At the top left, there is a punch-hole design. Specifications Screen size: 6.7 inches (17.02 cm) Custom UI: Oxygen OS Processor: MediaTek Dimensity 8100 Internal memory: 128 GB RAM: 8 GB CPU: 2.85GHz, Quad core, Cortex A782GHz, Quad core, Cortex A55 Number of Cores: 8 Graphics: Mali-G610 MC6 Rear camera: Triple (50MP + 8MP + 2MP) Front camera: 16 MP Battery: 4500 mAh Price: INR 27,999 2. Moto S30 Pro This 5G phone is expected to be released by November 3, 2022, in various colour variants. It comes with HD+ resolution, an OLED display, and a 20:9 aspect ratio. Specifications Screen size: 6.55 inches Custom UI: N/A Processor: Qualcomm Snapdragon 888 Plus Internal memory: 128 GB RAM: 8 GB CPU: 3GHz, Single Core, Kryo 6802.42GHz, Tri Core, Kryo 6801.8GHz, Quad Core, Kryo 680 Number of Cores: 8 Graphics: Adreno 660 Rear camera: 50 MP primary and 13 MP secondary Front camera: 32 MP Battery: 4400 mAh Price: INR 25,990 3. Samsung Galaxy F44 Samsung Galaxy F44 is expected to be launched on November 2, 2022, in different colour variants. It comes with full HD+ resolution at 1080 x 2340 pixels. It has a rear-mounted fingerprint sensor and a face unlock feature. Specifications Screen size: 6.4 inches OS: Android12 Processor: Samsung Exynos 9 Octa 980 Internal memory: 128 GB RAM: 8 GB Rear camera: 64 MP Front camera: 32 MP Battery: 6000 mAh Price: INR 11,990 4. Nokia G400 5G This phone is expected to be launched on January 18, 2023, in different colour options. The screen has a full HD+ resolution and a density of 339 pixels per inch. A side-mounted fingerprint sensor and face unlock are its security features. Specifications Screen size: 6.5 inches OS: Android 12 Processor: Qualcomm Snapdragon 480 Plus Internal memory: 64 GB RAM: 4 GB Camera: 48 MP rear camera and 16 MP Battery: 5000 mAh Price: INR 19,990 5. Moto G71s Moto G71s is expected to be launched on October 26, 2022, in Meteorite Grey and White Lily colour options. It has an HD+ AMOLED display with 2400 x 1080 pixels of resolution. Specifications Screen size: 6.6 inches OS: Android 12 Processor: Qualcomm Snapdragon 695 Internal memory: 128 GB RAM: 8 GB Camera: 50 MP front and 16 MP rear Battery: 5000 mAh Price: INR 19,790 6. Xiaomi Redmi Note 13 Pro Max 5G The Xiaomi Redmi Note 13 Pro Max is expected to be released on October 11, 2022, in various colour variants. It has an AMOLED touch screen with a 1080 x 2430 pixel resolution and 399 pixels per inch (PPI). The bezel-less design includes a punch hole design at the centre top of the screen, which houses the selfie camera. It has a side-mounted fingerprint sensor. Specifications Screen size: 6.67 inches OS: Android 12 Processor: Qualcomm Snapdragon 720G Internal memory: 128 GB RAM: 6 GB Camera: 108 MP rear camera and 32 MP front camera Battery: 5200 mAh Price: INR 18,499 7. iQOO Neo 6 SE 5G This 5G phone is expected to be released on October 23, 2022, and will be available in Gradient Blue, Orange and Blue colour options. It has in-screen unlock with a fingerprint and face unlock will be its security features. It has a full HD+ AMOLED display. Specifications Screen size: 6.62 inch OS: Android 11 Processor: Qualcomm Snapdragon 870 Internal memory: RAM: 8 GB Camera: 64 MP rear and 16 MP front camera Battery: 4700 mAh Price: INR 23,090 8. Xiaomi Redmi Note 12 Pro This phone is expected to be launched on October 27, 2022. It comes with an AMOLED display that supports a 1080 x 2400 pixel resolution and provides 395 PPI pixel density to the screen. The fingerprint sensor is side-mounted, and the face unlock feature is enabled with the selfie camera. Specifications Screen size: 6.67 inches OS: Android 11 Processor: MediaTek Dimensity 720 MT6853V Internal memory: 128 GB RAM: 6 GB Camera: 108 MP rear and 16 MP front camera. Battery: 4300 mAh Price: INR 16,990 9. Honor 70 5G This 5G phone is expected to be launched on October 17, 2022, in different colour options. It comes with an OLED screen with a 1080 x 2400 pixel resolution. Their fingerprint sensor and facial unlock features are for safety. Specifications Screen size: 6.67 inches OS: Android 12 Processor: Qualcomm Snapdragon 778G Plus Internal memory: 256 GB RAM: 8 GB Camera: 50 MP rear and 32 MP front camera Battery: 4800 mAh Price: INR 31,390 10. POCO M5 Pro 5G POCO M5 Pro is expected to be launched soon, but the date is yet unknown. There will be multiple colour options to choose from. Its screen comes with Corning Gorilla Glass 5 and is a full HD+ display with a 1080 x 2400 pixel resolution. There is a waterdrop notch at the top. Specifications Screen size: 6.67 inches OS: Android 11 Processor: Qualcomm Snapdragon 720G Internal memory: RAM: 6 GB Camera: 48 MP rear and 16 MF front Battery: 6000 mAh Price: INR 14,490 Overall best mobile under INR 35,000 Based on the prices and features, the Xiaomi Redmi Note 13 Pro Max 5G is among the best upcoming phones under INR 35,000. It has a powerful camera, an amazing battery life that would keep you going even with heavy usage, and a smooth user experience. [B-02] Conclusion The upcoming mobiles are available at different price ranges and come with various features. You can check the specifications to ensure that it matches your requirements and is within your budget. Visit Piramal Finance’s website to learn more about the easy financial solutions they have to offer on personal loans, credit cards, EMIs, etc.
08-11-2023
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