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Cards

Which is the Best Credit Card Against FD in India?

Most banks issue credit cards without collateral to an individual with a good credit score. Though, if you do not have the required credit score or do not meet the eligibility criteria, you might find getting a standard credit card difficult. In such situations, secured credit cards can be a good option. One such secured credit card category is credit card against FD. These credit cards are most suitable for individuals who do not have any credit history or have a low credit score. Herein, the bank would keep the fixed deposit as a security against the credit card. As it is a secured credit card, the interest charged will be lower than other credit cards, and the credit limit offered varies between 80-90% of the FD. A credit card against FD offers you all the benefits of a credit card while you continue to earn interest on the fixed deposit. Which is the best credit card against FD in India? What are the features offered by these credit cards? If you have such questions, read on to learn more about the best credit cards against FD. [B-01] Best Credit Cards Against FD Listed here are some of the best options to help you choose the best credit card against FD that meets your requirements: Axis Insta Easy Credit Card This credit card against FD from Axis Bank offers a credit limit of up to 80% of the fixed deposit. The minimum fixed deposit amount required is Rs. 20,000. This credit card comes with a 50-day interest-free period. Axis Insta Easy Credit Card offers cash withdrawals up to 100% of the available credit limit. Cardholders get a 1% fuel surcharge waiver across India and 15% off at partner restaurants. The bank charges no annual fees for this credit card. Kotak 811 #DreamDifferent Credit Card Kotak Mahindra Bank issues this credit card against FD against a minimum FD of Rs. 15,000. The bank offers credit limits of up to 90% of the FD amount for this secured credit card. There is no annual fee payable against this credit card. The bank offers interest-free cash withdrawals for up to 48 days. You will get two reward points for every Rs. 100 spent online and one reward point for every other transaction of Rs. 100. Kotak 811 #DreamDifferent Credit Card offers 500 bonus reward points on spending Rs. 5,000 within 45 days of issuance. If the annual spending exceeds Rs. 75,000, the bank offers a cashback of Rs. 750. YES Prosperity Rewards Plus Credit Card YES Bank issues this credit card against FD for salaried and self-employed customers. The minimum FD amount for this credit card is Rs. 30,000. The applicants must be between the age of 21 to 60 years to be eligible. This entry-level credit card comes with a joining fee and renewal fee of Rs. 399 each. The joining fee is waived on spending Rs. 10,000 within 90 days of starting using the card. The renewal fee will be waived if annual spending is above Rs. 50,000. YES bank offers 12,000 bonus reward points if you spend more than Rs. 3,60,000 a year. With this credit card, you can also get a fuel surcharge waiver across India. Moreover, you can be four reward points for every spend of Rs. 200 in some categories. IDFC FIRST WOW Credit Card IDFC Bank issues this secured credit card against FD with no documentation required. The minimum FD required for this credit card is Rs. 2,000. You can get a credit limit of up to 100% of the fixed deposit, earning up to 6% interest per year. IDFC Bank does not charge any annual fee or joining fee for this credit card. You are eligible for up to a 20% discount at partner restaurants. Cash withdrawals of up to 100% of the credit limit are allowed by the bank. You can also enjoy up to 4 times reward points on every spend. If you opt for an EMI payment within 90 days of card set-up, bank offers 5% cashback up to Rs. 1,000. IDFC First Bank also allows payment of other credit card bills with this secured card. SBI Unnati Credit Card The State Bank of India issues this popular credit card against FD. The minimum fixed deposit required for this credit card is Rs. 25,000. SBI offers a credit limit of up to 100% of the FD amount for this credit card. Moreover, the annual fee is waived-off for the first four years. From the fifth year, a yearly fee of Rs. 499 will be levied. Customers get one reward point for every spend of Rs. 100 using this credit card. This credit card is available for salaried as well as self-employed individuals. SBI offers a cashback of Rs. 500 if the annual spending in a year is above Rs. 50,000. This benefit is available for every membership year. Reward points offered can be used for purchases from SBI Rewards Catalogue. SBI Unnati Credit Card also comes with a 1% fuel surcharge waiver across India. This benefit is available for every fuel purchase between Rs. 500 to Rs. 3,000. [B-02] Conclusion A credit card against FD is a great option if you have a low credit score or have no credit history. It is important to use the credit card carefully to avoid spending more than you can afford. A lien will be marked against the fixed deposit until you clear all the credit card dues. While the interest for a secured credit card is lower than others, it is still better to use it only when necessary. Make the most of available offers and reward points to lower the actual cost of the credit card. Read more such informative blogs on personal finance on Piramal Finance. We always suggest what’s financially best for you and help take care of your personal loan and credit card requirements if any.

08-11-2023

GST

Easy and Quick Steps to Make GST Payments in India

GST offers a quick and easy way to pay taxes as India moves toward digitization. Under the GST, the indirect tax process has become simple. It was a complex process in the past. Various taxes, including service tax, VAT, and others, had to be paid. The method for paying indirect taxes was also not very defined. The GST has made paying taxes simple. You may now quickly pay it to the government portal online or offline. Taxpayers now need not pay additional taxes. Under the GST, all indirect taxes have been put together into a single indirect tax system. [B-01] What is GST Payment? The complete form of GST is “Goods and Services Tax.” Under the new taxation scheme, “GST payments” were introduced for paying taxes. Accordingly, every registered firm and taxpayer must regularly submit their GST returns. To guarantee accessibility and transparency, the GST payment can now be done online. Additionally, under the GST system, all taxpayers will receive three electronic ledgers through their GST profiles: an E-cash Ledger, an E-credit Ledger, and an E-Liability Ledger. This article will help you understand the step-by-step guide on the ways to clear GST in India. Types of GST Payments Let’s look at the types of challans and GST payments you will need to fill out for your GST return. Regular Taxpayers Regular taxpayers should get the PMT-06 challan while submitting GSTR-3B. You can also make one and pay for it when you file a GSTR-3B return or when you log in. Quarterly Payment If you choose the GST QRMP scheme, you must deposit the tax within the initial two months of each quarter. When submitting GST R-3B for the third month of the quarter, you may directly use the PMT-6 and make a payment. Composition Scheme If you fall under the GST composition scheme, you must use the CMP-08 challan to submit your return. To file your GST return, you must include a summary of your sales for the quarter. Nil Taxpayers You fall under this category if you have nil purchases, sales, or taxes during the relevant tax period. You do not have to use any challan if you are a NIL taxpayer. How to Pay GST in India? Steps for paying the GST include creating a challan, paying online with Net Banking, NEFT, or RTGS transfers, and making an over-the-counter GST payment. Here are the steps for each mode of GST payment: Pay GST Through Net Banking Log on to www.gst.gov.in to access the portal for GST. To generate a challan, click on “Services > Payments > Create challan option” and enter your details. Go to Services > Payments > Saved Challan if you have already generated the challan. Choose Payment Mode and then click on “E-Payment.” Enter all the details and click on the “Generate Challan” button. Select ‘Net Banking’ from the list of E-Payment options. Choose the bank you want to use to pay your GST. Agree to all the terms and conditions. Make your payment for GST. Download the challan for your records upon successful payment. Pay GST Through NEFT/RTGS Log on to www.gst.gov.in to access the portal. To generate a challan, click on “Services > Payments > Create challan option > and enter your details. Go to Services > Payments > Saved Challan if you have already generated the challan. Download the challan by clicking on the relevant challan number (CPIN). Add the beneficiary’s information (Account No. and IFSC Code) from the challan. Transfer the challan amount (through NEFT or RTGS) to the new beneficiary. It takes 2-3 working hours for the payment to be updated on the site. You can download the challan once the payment status is changed to “paid.” Pay GST Over the Counter Choose “Over the Counter” as your payment method from the Payment Modes menu. Choose the name of the bank where you plan to make the deposit. Choose from cash, check, and demand drafts. Click on the “generate challan” button and print the challan. Take the printout of the challan and visit your selected bank. Make the GST payment using cash, a check, or a demand draft within the validity of the challan. How to Obtain GST Challan? You can get your GST challan by signing in to your GSTIN account or without it. Generating GST Challan Without Logging In Go to Services > Payments > Create Challan on the home page of the GST portal. Enter your GSTIN, temporary user ID, or tax preparer ID. Next, enter the captcha. Type the correct sums under the SGST, CGST, IGST, or other figures. After that, choose a suitable payment method. If required, provide bank information. Re-enter your GSTIN or other ID in the section to generate challans, then click on “PROCEED”. Click on “DOWNLOAD” to get the challan. Generating GST Challan by Logging In There is a button to generate the challan on the dashboard if you wish to develop the challan by logging in. The remaining steps to create a challan are the same. Put the correct figures in the sections and select the preferred payment method. Deadline for GST Payment Post Challan Generation The deadline for the GST payment depends on the date of generating the challan. If you are doing it online, you must pay the GST bill as soon as you generate the challan. However, you have 15 days to pay the GST if the mode of payment is offline. Also note: If the transaction is initiated but the payment status is “Awaiting Bank Confirmation” or “Awaiting Bank Clearance,” contact the bank. You can complain if the electronic ledger does not update upon online GST payment. You may file a grievance on the GST portal using form PMT-07. [B-02] Conclusion The GST payment and process are essential for every organization to continue operating. They must be familiar with the forms, schemes, due dates, etc. Remember to follow all the steps mentioned above in the correct order. Your GST payment and return filing will be quick and easy. You can skip going to the bank and save time by paying the GST online. If you need more guidance with the process, visit Piramal Finance. This online platform is what you need for help regarding relevant developments in the world of finance. 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

Personal Loan

Complete Guide on How to Earn and Redeem RBL Reward Points

RBL is one of the leading credit card issuers in India. RBL issues several co-branded and non-co-branded credit cards for its customers. But what makes the credit cards issued by this bank so popular? The answer is RBL reward points that are awarded on various transactions. Be it a welcome bonus, spending bonus, or regular purchases, you can earn handsome reward points with your RBL credit card. RBL allows credit card users to redeem these reward points for excellent RBL rewards. The bank has an extensive catalog of offers under its rewards program. RBL credit card holders can redeem their accumulated points against the offers in the catalog. Some options available include airline tickets, hotel stays, electronics, gift vouchers, dining offers, and several others. Read on to learn more about earning and redeeming RBL reward points. [B-01] RBL Reward Points: Important Facts All RBL customers are directly enrolled in the RBL reward program that comes with the credit card. Credit card holders need to activate the rewards program to earn RBL reward points. You can complete the process in a few simple steps through the RBL website or mobile app. One key fact you must note is that most reward points have validity, and you can redeem them within the given period. Most reward points have a validity of two years only. Please update your mobile number with the bank to ensure hassle-free redemption of reward points. There is no upper limit on the number of reward points that any RBL credit card holder can generate. The points are added based on the specified rewards program by the bank. You can check details related to reward points in the monthly statement. Steps to Redeem RBL Reward Points Every time you use your RBL credit card, you earn reward points. The RBL reward points are added to your account based on the applicable program. Some of the most popular RBL credit cards with applicable points are listed here: – Credit CardReward PointsRBL Bank Insignia Preferred Banking World Credit Card5 reward points for every spend of Rs. 100.RBL MoneyTap Black Credit Card2 reward points for every spend of Rs. 100 spent on travel, dining, and groceries.10 reward points for every spend of Rs. 100 for online transactions.RBL Bank Platinum Maxima Credit Card5 reward points for every spend of Rs. 100.8,000 reward points on using the card within two months of issuance.10,000 reward points on annual spending of Rs. 2 lakhs or above.RBL Bank Icon Credit Card2 reward points for every spend of Rs. 100.20 reward points for every spend of Rs. 100 on dining during the weekends.20 reward points for every spend of Rs. 100 on international transactions.RBL Shoprite Credit Card1 reward point for every spends of Rs. 100.20 reward points for every spend of Rs. 100 on grocery shopping.RBL Platinum Delight Credit Card2 reward points for every spend of Rs. 100.On weekends, 4 reward points for every spend of Rs. 100.RBL Bank Monthly Treats Credit CardWaiver of Rs. 50 on a monthly fee if spending during a month is above Rs. 3,000.10% cashback on certain online transactions on Swiggy and BMS.2x reward points on online transactions. RBL Reward Points: How to Redeem While the reward points are automatically added to your credit card, you must spend them manually. You can manually redeem all RBL reward points through the website or mobile app. Here are the steps you need to follow for RBL rewards: – Visit the RBL rewards website Use your login ID and password to access your credit card rewards program Select the category of gifts you are interested in, such as travel, electronics, etc. Select the products or services that you desire to redeem Click on the option for ‘redeem points’. On the next page, enter the exact number of reward points to use An OTP will be sent to the phone number that you have registered initially Enter the OTP on the page and then click on the next button You must make the payment, if any, using any available options. This option is required when reward points are lesser than required RBL Reward Points: Key Points Before you proceed to redeem your RBL reward points, here are some points you must note: – You can only use those reward points mentioned in the monthly statement or mobile app Reward points are available only for completed transactions You cannot club RBL reward points or transfer them to another card If reward points are used for gift vouchers, then you must use the vouchers before the last date RBL forfeits any unused reward points Reward points are unavailable on cash withdrawals, fuel payments, and credit card EMIs You cannot redeem RBL reward points for cash or against credit card bill payments Prevailing guidelines are applicable at the time of redemption RBL Reward Points: Popular Options Customers can use RBL reward points against various options included in the rewards catalog, such as: – Flight bookings Hotel stays Gift vouchers Online shopping Purchase of electronics Mobile recharges Several others [B-02] RBL has established itself as a leading name in the credit card market. Its vast range of credit cards enables users to maximize the benefits of RBL reward points. You must understand your usage pattern to determine your best RBL credit card. But use your credit card carefully. You must not use a credit card to earn reward points. Earning reward points is a benefit of using credit cards and should not be the only motivation for having a credit card. If you need help with finances, you can always take the help of a financial expert like Piramal Finance. They will suggest what’s best for you and take care of your personal loans

08-11-2023

Know More

What is meant by working capital, and what is its example?

Working capital may not be a topic you discuss often. It is an accounting concept that is vital to your firm’s success. This helps pay traders and workers who are planning for long-term, better growth. Working capital gives you a summary of the budget that you need to pay for your quick and short-term debts. Here are some points about the meaning of “working capital.” [B-01] What is Working Capital? A firm’s working capital is cash on hand for everyday operations. Working capital is a good sign of a firm’s working energy. Working capital is a monetary thing. It helps plan for future needs. It assures the firm of enough funds and cash equivalents to fulfill short-term obligations. It includes unpaid taxes and short-term debt. It can also fund a company’s growth without taking on debt. If any firm needs money, having a positive working capital position can simplify the loan approval process. This includes even other types of credit. How to Count the Working Capital? There is a method to count the working capital of a firm. The method is to subtract assets from drawbacks. In short, Working capital is equal to current assets minus current drawbacks There is a graphic balance sheet for summing up working capital. It will help you figure out what working capital is and what it means. Selling more of a firm’s goods will make for better working capital. The product costs $1,000 per unit, and the list costs $600. Thus, every team sold will result in a $400 increase in the firm’s working capital. It’s due to a gain in either cash on hand or accounts that you accept. You can select a firm’s role. You can compare its working capital to rivals in the same industry. For example, “A” has $40,000 in working capital, compared to “B” and “C,” which have $15,000 and $10,000, respectively. Thus, firm “A” can invest more money to expand faster than its two rivals. What Do Current Assets Mean? You can convert a firm’s liquid cash and other assets into cash in a year or less. They are often known as current assets. For example, some current assets are money in bank accounts, supplies, equipment, and short-term firms. What Do Current Liabilities Mean? It’s all the expenses and debts that a business pays within a year. That is a current liability. It includes things like accounts payable and unpaid taxes. What is a Working Capital Loan? The types of loans available on the market usually cover long-term expenses. Working capital is a type of loan that you use to pay daily operational costs. This line of credit covers expenses. It includes rent, payroll, and working capital loans. A firm can withdraw the money to cover its expenses. You can either borrow from the bank or from money lenders. These types of loans are usually not secured, which means they are not backed by collateral. To get approved for the loans, you need to provide documentation. For example, revenue proof and other legal proofs. But working capital loans have some different requirements. You do need to submit monthly revenue and income evidence. Difference Between Working Capital and Cash Flow There’s only a significant difference between the working capital and cash flow. The working capital shows the financial situation of a firm. At the same time, cash flow represents a company’s use of cash. You can calculate it over a specific time period, like monthly, quarterly, or yearly. Fixed Capital v/s Working Capital Every business needs capital to succeed. Without money, no business can function, and none can even exist. Working capital and fixed capital are the two types of capital that can be distinguished. Fixed capital indirectly helps the firm. Working capital directly benefits the firm. Long-term assets are purchased with fixed capital. But working capital is used to purchase current assets. Before the start of the business, fixed capital is needed. After the business is launched, working capital is needed. Fixed capital can’t be converted into cash instantly. Working capital can be converted into cash instantly. Fixed capital helps the firm for a very long period. Working capital helps the firm for a brief period. The use of fixed capital is strategic. The use of working capital is operational. Examples of How Working Capital Can Impact Cash Flow The cash flow statement of a company shows changes in working capital. Here are some instances where working capital and cash flow may be affected. There would be no change in working capital if a transaction increased current liabilities and current assets by an equal amount. For instance, a company’s cash flow statement would improve if it received money from short-term debt that needed to be repaid in 60 days. The amount payable would be a current liability because it is a short-term loan, and the loan proceeds would be a current asset, or cash, so there would not be an increase in working capital. A company’s cash flow would be reduced if it bought a fixed asset, like a building. While current liabilities would not change because they would be long-term debt, the firm’s working capital would decrease as the cash portion of current assets decreased. On the other hand, selling a fixed asset would increase working capital and cash flow. Because cash and inventory are current assets, working capital would remain unchanged if a company paid for inventory with cash. However, inventory purchases would reduce cash flow. [B-02] Conclusion: You can get the best read on your working capital needs from your small business lender. You also might need to be ready to take the steps for any event. A stable sense of working capital and its meaning may help you run your firm. It will also help you place it for its long-term growth. To learn more about working capital, visit the Piramal Finance website. It will help you know their products and services, especially credit cards and personal loans.

08-11-2023

GST

Complete Guide on How to File GST Return Online in India

GST stands for Goods and Services Tax. It is an indirect tax. It came into effect on July 1st, 2017, for all registered firms in India. If your firm is registered under the GST Act, you must file your returns online. The amount of filing may vary based on whether it is a monthly, quarterly, or annual activity. The Indian Government decides that. The approved return must be filed in several steps. Also, you must correctly provide the required documents, or your application will be rejected. Before you start completing GST returns, you should know what it is, how many various kinds of GST returns exist when they are due, and so on. [B-01] What is a GST Return? A GST return document or form holds data about your income and costs. It is filed with the tax authorities by every person who has a GSTIN. Tax authorities primarily use such returns to decide net tax bills. A registered trader needs to file returns that broadly include: Sales Purchase Input Tax Credit: GST paid on assets Output GST: on sales If you do not want to file taxes on your own for any reason, you can contact market consultants and specialists. Why is a GST Return Obliged? All registered dealers must file GST returns. Under the GST regime, even passive firms must file the GST return. Every GST Return form is created to ensure that all events among buyers and sellers are made known. GST returns are needed by law for all businesses, large and small. These returns are filed to pay taxes. They also provide information to the government about the firm’s bills. It is also vital to keep the GST status updated. Who Can File a GST Return? If you fall into the below-given areas, you can file returns in India: All firms that have a GST registration are subject to taxation under the Goods and Services Act 2017. These firms need to file these returns as per the nature of their tasks Every firm with a yearly revenue of more than ₹40 lakh Firms in the hilly and North-Eastern states with an income of more than ₹20 lakh An entity must submit a NIL return to the agency if there have been no transactions for a specific time A company must submit a monthly return if its annual revenue exceeds ₹1.5 crore A person subject to the GST regime must submit annual and 3-month returns Documents Needed to File a GST Return To avoid getting filed for a GST return denied, you must provide the given documents to the legal authorities: Type of Invoice Person GSTIN Place of Supply GST Rate Invoice Number Taxable Value Invoices List (B2B Services and B2C Services) The amount of SGST, CGST, IGST, and GST Cess applies HSN-wise summary details Combined intra-state & inter-state sales Summary of required documents Debit and credit notes How to File a GST Return Online? Every seller must file a GST return with the Goods and Services Tax department each year. As per the recent GST regime, tax returns are filed online and digitally. You can file returns online using the GSTN (Goods and Service Tax Network) app. It will fill out all your information directly on each GSTR form. Given below are the steps to file a GST Return online: Step 1: Go to the GST Portal To file Goods and Services Tax returns online, go to the GST official website. The website is www.gst.gov.in. Then, log in with your username and password. Step 2: Issue of GSTIN Second, you will be given a 15-digit id number. It centres on the state code and PAN number. Step 3: Send Invoices Send invoices to the GST portal or whatever app you use. Each invoice will be given an invoice reference number. Step 4: Select the Return Filing Time Tap on the ‘Return Dashboard’. Select the return filing time and fiscal year. Step 5: Get Ready to File the GST Return Online Select the returns to file. Then, click ‘Prepare Online.’ Check to see if your docs are up to date and even to the point. Check them all. Be set to file the returns online. Step 6: Fill in the Correct Amount Fill in the correct amount and any late fees, if any. Step 7: Save all the Details When you have done all the above steps, click the ‘Save’ button. You will see a success message on your screen as a result of doing so. Step 8: Send the Data After saving all the details, click the ‘Submit’ button. Step 9: Get Rid of Your Debts Go to the ‘Payment of tax’ block. Then, check your balance to see your credit and cash balance. It is vital to be aware of such data before paying taxes. To clear the debts, specify how much credit you want to use from your credit balance. Then, select ‘Offset liability’ to begin the payment. When the proof screen appears, click ‘OK.’ Step 10: Submit the Return to Legal Authority Finally, check the box next to the declaration. Then, from the selection list, select an authorised signatory. Later, select ‘File form with DSC’. Then, select the ‘Proceed’ option. Pay your GST in the next step. Fines for Late Filing GST Returns If you don’t file the GST Tax returns on time, you will be charged a late fee as an interest. It will result in fines of ₹100 per day for each SGST and CGST. So, you will have to pay ₹100 for the late fee. Even though there is a ₹5,000 limit on late fees. For IGST, there is no late fee. Also, an 18% annual interest rate will be applied to the tax rate for that time. Interest is charged from the day after the return is filed until the date of payment. [B-02] Conclusion Filing GST returns has become easier to access now. People can file many returns online. The method may be greatly eased after knowing which GST return forms you must file and how to do a GST check. To avoid delays, you should file GST returns right away! Visit the Piramal Finance website to learn more about filing a GST return online. This online platform is what you need to learn everything about relevant developments in the world of finance. 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

Cards

Step By Step Guide on How to Close a Credit Card Account

Possessing a credit card has become a necessity instead of a luxury in modern times. They offer you the option of making a purchase and paying later. Moreover, you also earn reward points and cashback on various transactions. As a result, having multiple credit cards has become quite common. Many credit card users like to have multiple cards to maximize the benefits of their purchases, online and offline. If you also have several credit cards but have not been using them for over a year, closing unused credit card accounts is ideal. You need to know which credit card account you must close and how. Read on to know all about closing a credit card. [B-01] Closing a Credit Card: Important Points Do you have a credit card or multiple credit cards you do not use? Are you thinking of closing your credit card(s)? Then there are some points you must consider before moving ahead: – Choose the credit cards with maximum annual fees and interest charges Compare the benefits of closing the credit card or opting for a balance transfer Do not close a credit card with a long credit history, as this can affect your credit score Follow the procedure stated by the credit card issuer properly as the procedure for ‘how to close SBI credit card’ would differ from ‘how to close RBL credit card’ Closing a Credit Card: Steps to Follow Are you looking for steps to close a credit card? Here are some common steps you must follow to close a credit card: – Settle The Dues Your credit card issuer needs you to clear all the dues before closing the account. So, make sure you pay all the dues against your credit card before applying for closure. If you cannot clear all the dues, transfer them to the credit card, and you will continue to use them. Moreover, ensure you use all your reward points before closing a credit card, as reward points will be forfeited on closing a credit card account. After completing this step, you need to contact the customer care team for credit card closure. Contact the Customer Care You must contact the customer care team to close the credit card. You can get in touch with them through a phone call, email, mobile app, or through post. You should use the phone call option as it will deliver quicker results. During the call, the customer care team will ask you the reason behind this step. You are at liberty to state the reason you want, and they might also offer you some benefits for not closing the card. If you still decide to close the credit card, they will ask you to pay any outstanding amount first. Thereafter, they will process the request and share a reference number with you. Note down this reference number carefully. During this process, keep your credit card details handy for verification purposes. The customer care team will also tell you the expected time frame for this process. Get a confirmation To avoid any issues later on, insist on a confirmation message or email. You will most likely receive an SMS on your registered number with the reference number for the account closure request. But it is advisable to ask for confirmation by email. You can write an email to the customer care team from your official mail id. Include all details related to the call for cancellation and your reference number. You shall receive a reply from the credit card issuer in a few days detailing the status update for the account closing request. Take a printout of this mail for reference and save it as ‘important’ in your correspondence. The credit card issuer will contact you if there are some issues. You must provide clarification or submit the documents immediately. This is important to speed up the procedure for closing the credit card account quickly. Ask for an NOC After you have paid the dues and applied to close the credit card account, ask the bank for an NOC or NDC. The credit card issuer will issue a ‘No Objection Certificate’ or a ‘No Dues Certificate’. Check this document carefully and ensure every detail is included correctly. This certificate is essential in case of any issues in the future. You must store this document very carefully. It is advisable to take a printout and put it in a file. Also, save the PDF on your phone or computer for ready reference in the future. Check your credit report After a few months, make sure that you check your credit report for this credit card account closure. You must check if the credit card issuer has updated the credit card status as closed. You need to ensure that it is mentioned in the credit report that the credit card has been closed on your request and no dues are outstanding. If not, it will seem that the bank has closed the credit card, and it will reflect poorly on your credit history. If there are any issues, use the NOC or NDC to correct the error as soon as possible. As soon as the credit card is closed, it will likely impact your credit score positively. [B-02] Closing a credit card properly is extremely important for your credit score. Any discrepancy at your end can severely affect your credit rating in the future. Hence, do not go for any shortcuts to complete this process. Follow the specified process completely to avoid any hassles in the future. In case of any doubt, consult a financial expert like Piramal Finance and get easy and customised personal loan solutions.

08-11-2023

GST

All You Need to Know About GST Along With Its Types

It has been half a decade now since GST was formally introduced. Initially, it created quite an uproar in the Indian economy. Everyone was clueless about it. But that was because it broke an age-old tradition. There were numerous state taxes earlier because of varying state legislation. The simple meaning of GST was to introduce one single indirect tax for the whole nation. This was an alien concept for the country. Now the nation is thriving on the One Country – One Tax model. It is a globally accepted model that already exists in 160 countries around the world. Businesses now appreciate the simplicity that it brought to the economy. [B-01] What is the meaning of GST? GST stands for Goods and Service Tax. Its official introduction was on 1st July 2017. GST is primarily an indirect tax. Just like excise duty. This means that the government doesn’t levy it directly. The business owner who makes a sale of goods or services does. It brings together 17 taxes at various levels under one umbrella. GST brings India at par with the global economy with unified tax standards. Inside the country, too, the tax standards are uniform. As of now, India has five slabs for GST collection. They are 0%, 5%, 12%, 18%, and 28%. Some goods, like alcohol, petroleum, etc., are exempt from GST. Salient Features of GST Multi-Staged: GST is levied at every stage of the supply chain. Right from the procurement of raw materials to retail sales. Destination Based: The place of final consumption levies the tax. Suppose the goods were manufactured in Bihar. They were finally sold in the state of West Bengal. The tax revenue will go to the state of West Bengal. This structure makes the nature of GST destination based. The benefits of GST The initial reaction wasn’t positive, because people were unable to understand the dynamics of this new form of tax. But all critics now heap praise on this major tax reform. There is no doubt that GST simplifies the tax structure. Let us look at the benefits that GST has to offer. It cuts down on the tax cascading effect. This brings down the net cost of goods. Thanks to the Digital India Campaign, you can register for GST with ease. The online process of tax filing is much simpler. So, there is ease of compliance as well. Revenue collection also becomes more efficient. It improves the efficiency of the supply chain w.r.t logistics. This leads to an increase in demand for Indian products in the global market. Even unorganized sectors can be regulated. The introduction of GST was a monumental event. Handling several indirect taxes was cumbersome. Hence, it had a massive positive impact on the Indian economy. Who needs to register for GST? The GST Act, 2017 mentions the businesses that fall under its purview. The following businesses have to register for GST: Any business with an annual income of not less than ₹40 lacs (for goods) Any business with an annual income of not less than ₹20 lacs (for services) For the North Eastern States, the slab is not less than ₹10 lacs. Any business registered under the previous VAT regime. Types of GST In India, there are 3 types of GST. These are: CGST: Central Goods and Service Tax SGST: State Goods and Service Tax IGST: Integrated Goods and Service Tax The difference is the levying authority and the place of sale. So let us begin with each type of GST. Central Goods and Service Tax: This tax is levied on the intrastate movement of goods. This means that the transaction is taking place within the same state. Its value is half of the total GST collected on movement within the state. For instance, goods produced in Haryana are sold within the state. The seller will collect both CGST and SGST. The CGST will be paid to the central government. SGST, on the other hand, will be paid to the state government. For example, the total GST on medicines within the state is 5%. Then the central government will collect 2.5% CGST from the seller. Central excise duty is the best example of such a tax. State Goods and Service Tax: This tax is also levied on the intrastate movement of goods. The state government where the transaction took place collects the tax. SGST clubs together previous taxes like purchase tax, VAT, etc. In the above example, the total GST on medicines was 5%. So, the Haryana government will also collect a 2.5% SGST on the transaction. For the Union Territories, Union Territory GST (UTGST) replaces SGST. However, there is a difference between SGST and UTGST. Unlike SGST, the central government is responsible for collecting UTGST. Integrated Goods and Service Tax: This type of GST is levied on the interstate movement of goods. This means that the transaction is taking place between two states. IGST is also levied on the import/export of goods. As per the IGST Act of 2017, the central government collects IGST. For example, a seller in Rajasthan sells goods to a buyer in Goa. On this transaction, IGST will be collected. Initially, the central government will collect the tax. It will later allocate half of the tax to the Goan government. This is because GST is a destination-based tax. Hence, the consumer state, i.e., Goa, will get half of the tax revenue. Who is liable to pay the different types of GST? All businesses are registered with a valid GST Identification Number (GSTIN). E-commerce operators are registered with a valid GSTIN. Individuals registered under GST with the liability to deduct tax at source (TDS). [B-02] Conclusion GST is a transparent and corruption-free taxation system. It removed the confusion of the previous tax structure. Thanks to GST, Indian businesses can freely trade with foreign markets. The types and amounts of GST applicable are explained above.The Indian Government’s GST portal makes it easy to register and pay GST. Register your new eligible business now to take benefits of GST. To know more about GST, visit Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. Check out the website to read blogs with useful information about money and to learn more about personal loans, credit cards, and managing money.

08-11-2023

GST

What Is Form 16 All About?

The employer issues a document of TDS to its worker. The certificate states that the tax has been deducted by the employer, on behalf of the employee. This document is known as Form 16. Every worker needs to understand what Form16 means. They should include Form 16 in their income tax return. The form is given yearly. The employer should issue it before 15th June every year. Form 16 should be mandatorily issued to taxpayers. Form 16 is divided into two parts – Part A and Part B. If a worker loses the form, their employer can issue a duplicate one. [B-01] Parts of Form 16 Form 16 is divided into two parts, Part A and B. Part A of Form 16 This form contains the quarterly tax deduction details of salary, in each financial year. The following are the contents of Form 16A: Employer name and address Employees name and address Employer’s TAN & PAN Employee’s PAN TDS made Part B of Form 16 Part B of Form 16 has the details of the employee’s salary. It also includes the address and the name of the employee and employer. Part B components are: Salary breakup Mention exempted allowances (Section 10) Income Tax deduction Relief as per Section 89 Where to Get Form 16 In Case of More than One Employer If you have worked with more than one employer, then ask each employer to give you Form 16 for the tenure you spend in their office. If in case, the employer delays your Form 16 or refuses to issue you one, then a penalty of Rs. 100 per day will be levied on them. It will continue till they issue your Form 16. Importance of Form16 After knowing about Form16 and its meaning, let’s see why it is important. It serves as proof that the government has received the tax. The employer deducts this from the employee’s source salary. The form helps in the process of filing for an ITR. Form 16 is required, when an employee applies for a loan. It helps in verifying the credentials. Process of Filing Tax Return Through Form16 As you must know that employers provide Form 16. If you have left the organization then get in touch with your HR to get Form 16. It carries important information required to file tax returns. It is suggested to take the CA’s help to file your tax returns. You can also refer to online portals where you can upload your Form 16 and all the important details required to file your tax returns. Eligibility of Form16 As per the Income Tax Act of 1961, employers should give Form 16 to employees getting salaries and taxable income. Any individual earning more than Rs. 2,50,000 annually should get Form 16. You can ask your employer to share the same with you. Benefits of Form16 An employee can enjoy benefits with their Form16, such as: It is your salary proof and the proof of tax paid on your behalf While filing income tax it is needed to give the exact income account Form 16 also helps in visa processing Using Form 16 you can verify the correctness of the tax paid It helps in applying for loans because it is your income proof How to Download Form16? Form 16 can’t be downloaded online by an employee, the employer has to share it with them. Employers can download it by following these steps: Go to the tdscpc.gov.in/app/login.xhtml Use your employer ID and password to log in Now find the ‘Download’ button Search Form 16 A Add the employee’s PAN, address and name Then fill in your details Download the form and share it with the employees Information Form16 Requires While Filing an IT Return After receiving Form 16 from the employer, check that all the details are correct. Verify the following components: Correct personal information and PAN details The TDS deducted should be the same as the TDS mentioned Check the employer’s details and TAN and PAN details Verify Part B of Form 16 to ensure that all components and break-ups are correct Form 16A: Is It the Same as Form 16? Form 16A is issued on income other than salary. Whereas Form 16 is limited to salary income. Employees who have TDS cut from their bank’s interest on fixed deposits, insurance commission, or rental income, among other sources, will be issued Form16A. TDS is also deducted from other sources of income if they meet the criteria for the deduction. Form 16 is issued by the employees. You can ask for Form 16A from the client or the bank, keeping the purpose in mind. The employee must know the Form 16 meaning and the amount of salary deducted to make the process easier. Is Form 16 Required if the Income is not Taxable Though it is not required to ask for Form 16 if your income is not taxable, you should still ask your employer to share it with you, as it is your proof of income and you may require it at any time. [B-02] Conclusion Form 16 is introduced in favour of employees. It will let them know the benefit of tax deductions. Those who receive an income through a pension and is taxable, then they should ask their bank to give them Form 16. If by any chance you have lost your Form 16, you can get the duplicate one issued by your employer. The employee needs to know the importance and what Form 16 means. Hope this article has helped you in understanding the meaning of Form 16 and other important details. To know more about other finance and tax-related aspects, do visit the official website of Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. 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

GST

How are Form 16 and Form 16A different?

Filing taxes is easy. But that happens when you know which form is required. For many people, their salary is their sole source of income. Salaried employees also file tax returns, and TDS is deducted from their salaries. However, some people have other sources of income, such as investments, savings, etc. Although both categories of people will file taxes, the forms issued to them will be different. This article will help you understand the differences between Form 16 and Form 16a. [B-01] Understanding Form 16 and Form 16a How are Form 16 and Form 16a similar? Form 16 and Form 16a can be used to calculate the amount of tax to be paid. Both of them can be verified online on the Income Tax Department portal. Do Form 16 and Form 16a differ from each other? Yes. The two forms have different functions, components, eligibility criteria, issuers, and frequencies. What is Form 16? Form 16 is a certificate issued to the employees of a company. It is proof that TDS was deducted from their salaries. Form 16 is given out by the employer and has all of the information about the employee’s income and TDS. Form 16 is divided into two parts: Part A and Part B. Information about the TDS and the employee’s PAN and TAN details are included in Part A. Part B contains the details of the employee’s salary structure. This is done by the employer. The components of Part A are as follows: Employer details that include TAN, PAN, name, and address Employee details that include PAN Information about TDS is verified by the employer The components of Part B are as follows: A detailed breakup of the employee’s salary. List of exempted allowances as mentioned under Section 10. Who is eligible for Form 16? The Finance Ministry of India laid down regulations specifying the eligibility for Form 16. The rule says that all people’s incomes falling under taxable brackets become eligible for Form 16. But there are times when TDS is not deducted. If an employee’s annual salary is less than Rs 2.5 lakh, no deductions are made. In these situations, the employer is not required to give the worker a Form 16. Only salaried people don’t qualify as “professionals.” Freelancers, businesspeople, interns, and remote workers are professionals too. Do they also get Form 16? Or is there another certificate for them? There is another proof of funds known as Form 16a. Important: There is no connection between Form 16a and Part A of Form 16. What is Form 16a? Form 16a is a certificate issued quarterly. It is primarily used to give information about the TDS deducted from sources of income other than salary. These include rent, commission, etc. The components of Form 16a are also found in Form 26AS. Unlike Form 16, Form 16a is issued by the deductor. The form reflects the earnings and income tax deduction for the particular financial year. One can also download the form from the Income Tax Department website. When is Form 16a applicable? Form 16a is given when TDS is deducted from other sources of income. For instance, a person wins a certain amount of money in a lottery. The prize money is eligible for taxation. If the amount is more than Rs. 10,000, then a TDS of 30% will be charged. Therefore, the person receives the prize money after a deduction of 30%. The deducted amount is shown in Form 16a. Understanding the difference between Form 16 and Form 16a SpecificationsForm 16Form 16aDescriptionWhen TDS is taken out of an employee’s pay, the employer gives the worker a certificate.It is a certificate given by the person doing the tax withholding when tax is taken out of income other than a salary.EligibilityPeople with salaries and regular sources of income.Self-employed individuals and other professionals.IssuerEmployerDeductors such as banks, etc.Issued toSalaried employeesNon-Salaried employeesHow frequently is it issued?AnnuallyQuarterly Constituents/ componentsName, address, and PAN of the employee; TAN, PAN, and name of the employerEmployee’s PAN and TANTax detailsAmount of TDS paid. In accordance with which law?Section 203 of the Income Tax Act takes into account the TDS on chargeable or salaried income.Section 203 of the Income Tax Act takes into account the TDS of non-salaried sources of income. Relationship with Form 26ASOnly the TDS amount and related details of Form 16 are mentioned in Form 26AS.All information mentioned in Form 16a is present in Form 26AS. What are the recent changes in Form 16a? The Central Board of Direct Taxes (CBDT) listed a few changes to the form. All information related to salary is much more detailed. Things to remember Form 16 will be issued to employees whose annual salary exceeds 2.5 lakh rupees.If they decide to change jobs, they are eligible to get a Form 16 from their employers. When financial institutions deduct TDS, they will issue Form 16a. Form 16 and Form 16a can be verified online through a portal. These forms can help one calculate income tax return amounts and get refunds. These forms also act as proof of income. Check for discrepancies and errors. [B-02] Conclusion Filing taxes when one has access to the appropriate resources is always a good idea. Many forms are issued for various purposes. Form 16 and Form 16a make the calculation of taxes easier for individuals. People who earn a regular income receive Form 16 from their employers when TDS is deducted from their salaries. People with other sources of income get Form 16a issued by financial institutions. Both forms have certain similarities and differences. People must check all the information mentioned on the form. The issuing party should correct all errors. If you have more doubts about Form 16 and Form 16a, visit Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. 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