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Personal Loan

5 Reasons Why Gold Loans Are Better Than Personal Loans

At times, you will require access to finances and choose to apply for a loan. Mostly, people opt for personal loans since they do not require any collateral and are granted in a relatively short amount of time. However, another great option to get access to money quickly and easily is through gold loans. Banks promote personal loans as their main product, but it is important to know that their interest rates range from 12% to 28%. While they are easy to apply for and get approved, personal loans have their disadvantages. Gold loans, on the other hand, have multiple benefits such as lower interest rates, flexible repayment options and more. [B-01] What Are Gold Loans Lenders provide customers with loans that are secured by gold. Typically, a percentage of the gold’s value is provided as the loan sum. The maximum credit amount that may be obtained depends on the amount of gold being pledged and other factors. Borrowers must repay the gold loan amount in instalments within the set time frame to get their gold items back from the bank or financial institution. The repayment can be made monthly or according to other predetermined repayment schedules, depending on the terms of the gold loan. What Are Personal Loans A personal loan is an unsecured loan, and this means that the borrower does not have to pledge any of their assets as security. Personal loans allow people to borrow money for multiple purposes. For example, you can use a personal loan to pay for wedding expenses, medical emergencies or house upgrades. Banks and other financial institutions provide personal loans, and the money you borrow from the lender must be repaid in EMIs within a fixed period and with interest. Some banks may even have additional charges or fees to apply for personal loans. 5 Reasons Gold Loans Are Better Than Personal Loans When comparing gold loans and personal loans, there are extra benefits that gold loans offer. These are 5 advantages of applying for gold loans: 1. Easier Eligibility Requirements For personal loans, borrowers are not required to needed to provide assets as security. However, there are many requirements that borrowers have to meet to be eligible to apply. For example, they must be of a certain age, earn a certain amount of money and have a specific CIBIL score to be considered eligible to apply for a personal loan. For gold loans, many of these requirements are not required and the gold loan is granted based on the gold being given as security. 2. Lower Processing Fees For personal loans, lenders are required to carefully review the applicant’s income-related documents. As a result, they charge a small processing fee for personal loans. These personal loan processing fees can be from 0.5% to 1% of the loan amount. For gold loans, gold holdings are used as security. Therefore, people applying for gold loans do not need to produce papers related to their income. Because of this, processing fees are not included in this calculation. 3. Less Time Required For Approval When a borrower applies for a personal loan through a bank or an NBFC, the lender has to verify the borrower’s documents and assess their ability to repay the loan by checking their CIBIL score and other details since no security is provided. This process takes time and may cause the loan approval and disbursement process to be delayed. By contrast, the gold loan borrowing process is straightforward. The borrower pledges their gold assets as security and the gold is inspected. If approved, then the gold loan is granted to the borrower within one or two days. 4. Flexible Repayment Options Gold loans provide more flexible options for repayment than personal loans. This flexibility in repayments is because gold loans are secured loans. Gold loan borrowers may choose from a variety of repayment alternatives. Borrowers may repay gold loans in EMIs. Alternatively, they may also pay the interest up front and repay the principal throughout their loan term, or pay the principal and interest in one single sum at the end of the term. Lenders provide multiple options to repay gold loans depending on your financial situation. 5. Lower Interest Rate Gold loans offer lower interest rates compared to the interest rates of personal loans. A personal loan has interest rates of 16% to 22%, while the interest rates for gold loans are between 11 and 13 per cent. With a gold loan, a borrower will end up paying less than with a personal loan. With lower interest rates for gold loans, borrowers can save more of their money while also being able to get access to much-needed funds. [B-02] Conclusion There are many similarities between gold loans and personal loans. Both types of loans allow people to borrow sums of money for various purposes. Compared to a gold loan, a personal loan allows larger borrowing amounts and longer terms. However, a gold loan offers better interest rates, fewer additional fees and minimum eligibility requirements. For many people in India, gold remains one of the most popular investment options. Additionally, the relatively consistent gold prices provide investors with many opportunities. When there is a situation that places people in financial need, taking a gold loan helps people get access to funds while giving them the chance to save more of their money. Borrowing money against gold assets is a wiser investment than borrowing money personally. For more articles on the advantages of applying for gold loans, visit Piramal Finance and receive more financial information and guidance!
08-11-2023
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Tax Savings

Important Tips to Save Your 30% Tax Slab in 2022-23

Paying a 30 per cent tax slab on your total salary might seem overwhelming to many. But there are certain provisions maintained by the Central Government as per the Income Tax Act of 1961 that can help ease this financial burden. Here are a few things that can get you exemptions and waivers on your new tax slab: [B-01] Home Loan A home loan can help you achieve the dream of owning your own home. But did you know it will also help you cut down your tax slab? You can get tax deductions up to INR 150000 on the amount that you spend on the repayment of your principal borrowed amount, under Section 80C. In addition, you are also entitled to a tax exemption up to INR 200000 on the interest section of your home loan, under Section 24(b). This section will also get you tax benefits on home construction, provided the construction is completed within five years. Also, if you are planning to rent out your newly acquired property, the entire interest that you pay on your home loan will be tax exempted. First-time Homeowners are entitled to an additional tax reduction under Section 80EEA. They can claim a waiver of up to INR 150000 if the stamp duty value of their property is under INR 4500000. Health Insurance Policy Purchasing a health insurance policy has become inevitable in today’s world with all the rising medical costs and deteriorating quality of health. Not only does a health insurance policy relieve your financial strain, but it can also get you some exemptions on your income tax slab. You can claim tax deductions on the amount that you spend towards paying the premium of your health insurance under Section 80D. The amount exempted varies depending on your age. Also, these rates keep getting amended over time. Apart from this, you can also get an exemption of up to INR 5,000 on the amount that you spend on health check-ups (under Section 80D). Investments You can accumulate your wealth by investing money in government-mandated schemes and the capital market. Apart from the high returns, you also get to enjoy certain tax-saving benefits. Here is how you can reduce your tax slab by investing in various tax-saving instruments (under Section 80C): Equity Linked Savings Scheme (ELSS) is a great investment tool for those who can handle the risk factor. The lock-in period here is three years, and you can get a tax waiver up to a maximum of INR 150,000. You don’t have to pay any tax on the profits realized if your total capital gains are well within the limit of INR 100,000. 5-year fixed deposits can get you some tax exemption benefits in a risk-free way. You can claim tax waivers up to INR 150,000 (under Section 80C) if you invest in government-mandated schemes. Some such schemes include Senior Citizen Savings Scheme (SCSS), the National Pension Scheme (NPS), the Sukanya Samriddhi Yojana (SSY), and the Public Provident Fund (PPF) Life Insurance Plans Apart from health insurance policies, life insurance policies can also help you enjoy tax waivers of up to INR 150000 on the premiums (under Section 80C) that you pay. However, the annual premium that you pay should be less than 10 percent of your total sum assured if you have taken out the policy after the first day of April 2012. For policies availed before this period, the total premium should be less than 20 percent of the total sum assured. You can also get tax exemptions on the amount that gets disbursed upon the maturity of the life insurance policy or the death of the insured (under Section 10(10D)). The rules are as follows: Tax waivers up to INR 150000 can be claimed on the purchase or renewal of a policy as well as annuity payments made from a yearly salary (under Section 80CCC). You can claim tax waivers up to INR 150000 (under Section 80CCD(1)) on certain pension funds that come under Section 23AAB. If you have invested in ULIPs (Unit Linked Insurance Plans) you can enjoy these tax waivers if you lock in your investments for five years. You can’t withdraw any money from this scheme before this period. Living on Rented Premises You can enjoy tax exemptions on your HRA (House Rent Allowance) under Section 10(13A). The condition, however, is that there should be an HRA component in your salary breakdown. Three things are considered when it comes to calculating the total tax exemption on the rent that you have paid. First is the annual HRA that you have received. Second is 50 per cent of your yearly salary in case you are residing in any of the metro cities (40 per cent for non-metro city residents). And the third component is your total annual rent after deducting 10 percent of your basic salary. If there is no HRA component in your salary break-up or monthly income, you can still claim tax exemptions on your annual rental expenses (under Section 80GG). The components that are considered while calculating these deductions include your rent payment (up to INR 5,000 per month), 25 percent of your gross total income, and the total rent that you have paid after deducting 10 percent of your basic salary. Charity Donations You can claim tax waivers up to INR 2,000 for the cash donations that you make to specific organizations (under Section 80G). Complete tax exemptions can be enjoyed if you make wire or bank transfers. Political Party Donations You can claim tax waivers for the entire amount that you donate to your preferred political party (under Section 80GGC). However, the political party or organization should be registered under Section 29A of the Representation of the People Act of 1951. No tax benefits are available for cash deposits. [B-02] The Conclusion There are more such exemptions and waivers you can claim, to reduce your tax slab in 2022–2023. A consultation with a chartered professional accountant should help you get all the information you need. For more information, visit the Piramal website, which is your go-to destination for personal loans.
08-11-2023
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Personal Loan

Can I Apply for a Personal Loan If I Am Below 21?

Are you 21 years old and planning to take a personal loan in the near future? Check out all the details related to age for taking a personal loan here. ‍Personal loans are the best option if you need short-term financial help. It could be buying a car, paying for your education, or even moving to a new town. Getting an instant personal loan has never been easier, as several lenders will lend you money based on your financial profile and needs. However, you must understand the personal loan eligibility criteria before applying for any personal loan. One of the most critical requirements for a loan is to meet the minimum age criteria. But before we get to it, let’s first understand a personal loan. [B-01] What Is a Personal Loan? A personal loan is a financial product that allows you to borrow money from a bank or other financial institution. It can be used for various purposes, such as purchasing a car, paying off debt, or starting a business. The loan is often arranged through a financial institution, such as a bank or credit union. The lender will usually require you to submit several documents to qualify for the loan. These documents may include your credit score, income and expenses, and employment history. The lender will also require you to provide documentation of the purpose of the loan. It may include information about the purchase or debt you’re trying to pay off. Once all the required documents have been submitted, the lender will review your application and decide whether or not to approve the loan. Personal Loan Eligibility Before discussing the age requirements, other questions about personal loan eligibility must be answered. The one question most commonly asked is related to the documents required to meet personal loan eligibility. Here are the documents you need to prove your personal loan eligibility: Proof of Identity – Aadhaar/Passport/Driving Licence/Voter ID Address Proof – Aadhaar/Passport/Driving Licence/Voter ID Bank Statement – Passbook updated for the last six months Proof of Income – Salary Slip What Is the Minimum Age for a Personal Loan? To comply with common personal loan eligibility rules, one must be 18 or above to apply. However, even if you meet this personal loan eligibility requirement, some lenders allow you to borrow money only after you are at least 21 years old. If you’re unsure about the age requirement of the lender you’re applying to, you can always ask them what the minimum age is. Like all other criteria, the age requirement can be found in the marketing material supplied with the loan application or on the website of the lender you’re working with. But if you’re looking to get a large loan – to buy a car, your average income and credit score will determine the amount you can get. Moreover, given the greater risks involved in giving large loans to young individuals who lack a regular income source, banks may impose additional terms and conditions, including security guarantees. Can You Get a Personal Loan Without Being 21? Yes, as already stated, one is eligible for a personal loan after the age of 18. Therefore, an individual who is 21 years old can avail of a personal loan without hassle. Regardless of age, lenders usually welcome people who want to take a loan. But all lenders have age limit criteria that applicants must meet to qualify for the process. This age, in most cases, is 18. However, much depends on the kind of loan you want. For example, if you want a small loan to pay for your education, you can get a loan without being 21 years old. However, for a large loan to buy a car, house, or anything else that involves a sizable amount, you’ll have to be 21 years old. Although you may be technically eligible for such loans as you meet the personal loan eligibility requirement, you may not get one due to the lack of a viable income or a recognised proof of one. Once you’re 21 and have something to show for a regular, dependable income, lenders will be more inclined to approve your loan application, including the bank where you have your salary account. Should You Get a Personal Loan if You’re Below 21? One of the common questions when it comes to a personal loan is whether you should get a loan if you are young or, more specifically, if you’re below the age of 21. It is a very important question, especially if you want a loan to help you pay off your debt. Per the country’s laws, you can get a personal loan only when you are 18 or above. You are technically eligible to get a personal loan at 21, given that you meet the personal loan eligibility requirement. But taking a personal loan at a young age has its advantages and, for lack of a better word, even disadvantages. The advantages include developing a strong credit history from an early age. When you’re nearing 30 years of age and planning to start a family, you may need financial assistance in the form of a loan. A good financial history, reflected by a strong credit score of over 800, will ensure that you get a loan at that time without hassle. However, there are potential risks involved too, but none that can’t be mitigated. If you’re looking to take a personal loan, you sure have a way to pay it off. You must pay the EMIs or equated monthly payments scheduled by your lender in consultation with you on time. If you manage to do that, you will not only avoid the risks associated with a loan but also build a flawless credit history which will add to your financial independence later in life. Repayment Schedule for Personal Loan Most lenders will give you a repayment schedule (or option to pay) when you take out a personal loan. The repayment schedule will show you the amount you will have to pay monthly and the interest you will have to pay. Usually, the minimum repayment period is one year, but it could differ from case to case. It is important to repay your loan as it shows that you are serious about paying it off. It is better to repay your loan as soon as possible rather than leave it in a debt pile. So, if you take out a loan and don’t pay the money back, it will stay in a pile of debt, and you’ll have to pay a higher interest rate. So, paying your loan off as soon as possible is important. It’s in your best interest – pun intended. [B-02] Final Remarks Taking a personal loan to start a business or paying off a debt is an attractive proposition for most young individuals. It opens new education and career development possibilities for every individual who meets the personal loan eligibility requirements. But, at the same time, it brings potential risks, which must be understood in advance. However, if you wish to minimise the risks and maximise the advantages of taking a personal loan at a young age, you must look for options with built-in flexibility. Piramal Finance is known for such options, designed from scratch to suit the needs of individuals like you.
08-11-2023
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GST

GST Calculator – Know How To Calculate Your GST & Its Benefits

Every business that operates in India has to sign up for GST. They must have a GST Identification Code, also called a GSTIN. Customers have to pay this tax on every good and service they buy or use. Due to this, it is vital to know how to calculate GST correctly. You can use the GST calculator to figure out how much it will cost. GST, which is short for the Goods and Services Tax, is a tax that the Government of India has put in place on a national level. Online websites have several GST calculators that can be used to figure out how much GST will cost. [B-01] What is GST? The Goods and Services Tax (GST) is an indirect tax that is put on the sale of goods and services in India. It is a full, multi-step, destination-based tax that is charged on every value-added step. On July 1, 2017, GST took the place of most indirect taxes in the country. Under GST, there are five different tax rates for goods and services: 0%, 5%, 12%, 18%, and 28%. The government charges GST to sellers, manufacturers, and buyers of goods and services. GST is based on the idea of Value-Added Tax (VAT), which means that it is applied at each step of the supply chain. The GST amount is charged by the last dealer or supplier, and the consumer is expected to pay that amount. Some things, like gasoline, alcoholic drinks, and electricity, are not taxed under GST, though. According to the old tax system, each state government has its own tax on these products. Different types of GST GST can be put into four groups: Central Goods and Services Tax (CGST) State Goods and Services Tax (SGST) Union Territory Goods and Services Tax (UTGST) Integrated Goods and Services Tax (IGST) IGST is charged on interstate sales when the place of sale is in a different state than where the seller is located. Intrastate sales are taxed at the same rate as CGST and SGST, which is about half of the GST rate for IGST. This is because the place of sale is in the same state as the supplier. What is a GST Calculator? The GST calculator is a handy online calculator that you can use to figure out how much GST you have to pay for a month or quarter. This calculator can be used by buyers, manufacturers, and wholesalers, among others. How to use the GST Calculator? You can easily figure out your GST with the help of a professional GST calculator. Even taxpayers who want to use the differential GST rate to figure out GST can use the tool. Here are the steps to take when using a GST calculation tool to figure out GST: Step 1: Choose “GST Inclusive” or “GST Exclusive” based on what you need. Step 2: Type in the amount. Step 3: Choose the GST rate from the list of options in the drop-down menu. Step 4: Click “Calculate”. The result will show you the total GST amount as well as the amount before and after GST. Overall, the GST calculation process shows how easy it has become to figure out tax bills since the regime in question was put in place. It’s also clear that people now pay a lot less tax on the goods and services that manufacturers sell. The subsumption of the different indirect taxes, which made it hard for everyone to figure out how much tax they owed in total, is another example. Benefits of using a GST Calculator Here are some of the most important reasons why you should use a GST calculator: It lets users figure out the net or gross price of a product based on GST rates. You will be able to tell the difference between SGST, CGST, and IGST and accurately calculate each tax. It saves time because you get results right away. The GST calculator makes it easier to avoid calculation mistakes. It is easy to use and helps you figure out GST without much trouble. Filing GST Returns All businesses that have a registered GSTIN must file GST returns monthly, quarterly, or annually. Different businesses have different types of tax returns they need to file. Businesses that are required to file a GST return must detail their purchases, sales, taxes paid, and input tax credits (ITCs). It is mandatory to file the return with the tax authorities. And, the same data is used by the authorities when determining a company’s tax due. In this case, it’s important to know that to file GST returns, a business needs to have sales and purchase invoices that meet GST requirements. Depending on the kind of registration, a business must submit a variety of returns either monthly or quarterly. For example, a regular taxpayer has to file a form called GSTR-1 every month with information about what goods or services were sent out of the country. On the other hand, a business that is registered under the composition scheme must file a GSTR-4 return every three months. Advantages of GST Here are some of the advantages of adding GST on products: It helps keep a standard around the world. GST also helps ensure that the manufacturer and consumer are on the same page. The main goal of putting GST in place is to stop commercial goods from being taxed twice. It encourages makers and sellers to compete to make and sell high-quality goods, which helps the country’s GDP. After GST goes into effect, inflation, which is the most important problem in the market, is likely to go down. [B-02] Conclusion The Goods and Services Tax (GST) applies to all transactions that take place within the country. A GST calculator streamlines the process of estimating payable taxes. You only have to enter the amount and select relevant options to find the amount you have to pay. You can check out more blogs related to GST on the Piramal Finance blog. They also offer different products and services to cater to your financial needs.
08-11-2023
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GST

Online GST Calculator: Understand the Formula to Calculate GST

The Goods and Services Tax, known as GST, is a kind of tax charged at the national level by the Indian Government. It is collected on sellers, makers, and buyers of services and goods. GST evolved from the Value Added Tax (VAT), which suggests that it is imposed at each level of the supply chain. You are expected to pay the GST sum charged by the final dealer or provider in the supply chain. There are many online GST calculators that you may use to calculate the GST expense. [B-01] What Exactly is GST? The GST is thought to be the same as or comparable to the Value Added Tax or VAT. GST is the tax levied on services and commodities at each stage of the distribution chain. For example, suppose the company or maker includes GST while selling the goods to a merchant. The wholesaler would include it when selling to a retailer, however, the initial money may be returned. As a result, at this level, the tax will only apply to the difference in net prices between the wholesaler as well as the maker. A similar rule is followed in each of the following stages of the deal. There would be just one excuse in which the tax would not be refunded to the end user. This is because you would be the last in this supply chain. GST Benefits in India Here are some of the many advantages of GST that you should be aware of: GST merged a flurry of indirect taxes into a single tax. As a consequence, taxing diverse services and goods has become less difficult. GST has removed the rising tax burden. Companies with less than Rs. 20 lakhs in turnover are excluded from paying GST. Small firms have a turnover of Rs. 20 to Rs. 75 lakhs and may benefit from GST. This is because the composition plan enables them to reduce their taxes. GST has brought clarity and regulation to unorganised sectors like the textile and construction sectors by requiring payments and compliances to be done online. What Exactly is an Online GST Calculator? An online GST calculator is a fast and simple method to calculate the total GST due for a time or against a product/service. This online tool has three modes of operation, one for the customer, one for the manufacturer, and one for the retailer/wholesaler. Every one of these versions has a unique set of input choices. Buyers must enter the cost of the product and GST rate into the calculator. Manufacturers must submit their product cost, profit percentage, and GST rate. Retailers and wholesalers must enter the entire cost of products, profit ratio, and GST rate. Each of these clients will get the final price, which includes tax, total tax, and the split of this tax into CGST & SGST/IGST. If you are new to this useful online tool, now is the time to learn how to utilise it. The formula for Calculating GST You can use the following formula to determine the net cost of an item after applying and removing GST. The GST computing formula is as follows: Include GST: (Original Price x GST%)/100 = GST Amount Original Price + GST Amount = Net Price Eliminate GST: Original Cost – [Original Cost x 100/(100+GST%)] = GST Amount Original Price – GST Amount = Net Price Example of GST Calculation: Assume an item is offered for Rs. 2,000, and the relevant GST rate is 12%. The product’s net price is thus Rs. 2,000 + 12 per cent of Rs. 2,000. This is Rs. 2,000 + Rs. 240 = Rs. 2,240. How to Compute GST Online To compute GST easily, you can utilise an online GST calculator. However, it just computes the overall GST sum and does not provide a breakdown of CGST as well as SGST. In the event of intrastate sales, you must split the whole GST amount into SGST and CGST at the same time. If it is interstate, it may be treated as IGST without extra division. The fast steps are as follows: Fill out the amount and relevant fields This is the assessable price after any discounts have been applied. If you wish to add a cost to this number, such as freight, you should do so by grouping it. This is just for Indian taxpayers. Enter the relevant GST rate (6%, 12%, 18%, or 28%). To calculate, click the +Add GST button. That’s all, the process only required 2 minutes of your time to calculate the total GST due. Online GST Calculator Benefits Employing an online GST Calculator may provide you with several advantages. Calculate Tax Correctly An online GST calculator determines the taxes you’d have to pay if you made the purchases simultaneously. Effective Taxation You may save time and resources by using an online GST calculator to determine the tax amount quickly. It accurately calculates all tax amounts and offers you an estimate of your ultimate spending on a purchase that demands significant taxes in India. Simple to Use Online GST calculators are simple to use and accessible to anybody, regardless of technical experience. The interface is straightforward, allowing anybody to utilise it without difficulty. Free to Use The calculator is completely free to use and requires no investment. No Need For Expertise You do not need the training to use an online GST calculator. To comprehend and use the online GST calculator, one does not need to be an IT or money expert. Intelligent These calculators enable you to calculate the taxes charged on your purchase before you make it. [B-02] Conclusion An online GST calculator can assist you in determining the exact value of your goods and services once GST has been applied to them. So, when submitting a return, the computation is simple, but the taxpayer must be aware of the appropriate costs. GST payment calculators online find a product’s gross or net price based on GST rates. Compared to human computation, it takes no time and produces no errors. If you want to know more about online GST calculators, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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Tax Slabs

All You Need to Know About Tax Deductions Under Section 80C

Whether an individual is salaried or owns a business, filing income tax is undoubtedly one of the most important tasks as an Indian citizen. For the same reason, to motivate taxpayers to save and develop a habit of investing, the Income Tax Department has granted different deductions from taxable income under Chapter VI A deductions, one of the most popular being tax deductions under Section 80C. [B-01] Understanding Section 80C of the Income Tax Act Section 80C of the Income Tax Act permits deductions of up to Rs. 1.5 lakh every year. By making investments in different savings schemes, individuals can reduce their tax liability under this clause. By effectively planning your investments with different assets such as PPF, NSC, and so on, you may claim deductions of up to Rs. 1.5 lakh. Tax Deductions Under Section 80C in the Union Budget 2022 Finance Minister Nirmala Sitharaman did not propose any modifications to the existing Section 80C of the Income Tax laws in the recently concluded Union Budget 2022. Therefore, if you followed the previous tax regime, you may claim deductions of up to Rs. 1.5 lakh. If you choose the new tax regime, the deduction rules do not apply to you. Major Tax Deductions Under Section 80C of the Income Tax Act To help you make a better decision, here is a list of different investment options you can choose from to reduce your tax liability and enjoy deductions under Section 80C of the Income Tax Act: Investment TypeLock-In Period (Minimum)Rate of InterestNational Pension SystemTill 60 years of age8-10%Equity Linked Saving Scheme3 years12-15% depending on market fluctuationsPublic Provident Fund15 years7.1%National Savings Certificate5 years6.8%Senior Citizen Savings Scheme5 years7.40%Fixed Deposit5 yearsUp to 8.40%Sukanya Samriddhi Yojana21 years7.6%Unit Linked Insurance Plan 5 years8-10% depending on market fluctuations Now let’s discuss the same in detail: National Pension Scheme (NPS) The National Pension Scheme (NPS) is a pension program established by the Indian government to provide a pension to the informal sector and working professionals upon retirement. Section 80C of the Income Tax Act allows for tax deductions on investments of up to Rs 1.5 lakh. In the case of NPS contributions that exceed the Section 80C threshold of Rs 1.5 lakh, there is an allowance for an additional Rs 50,000 deduction. Equity Linked Savings Scheme (ELSS) Some mutual fund strategies have been specifically intended to save taxes, such as the Equity Linked Savings Schemes, which allow investors to receive tax deductions up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. Public Provident Fund (PPF) The Public Provident Fund is a common investment option because it provides guaranteed profits. With PPF, the interest is compounded annually, and the program has a 15-year maturity time. The minimum contribution to a public provident fund is Rs. 500, and the highest contribution is Rs. 1.5 lakh. The amount you give to your PPF is tax-deductible under Section 80C of the Income Tax Act. National Savings Certificate (NSC) The National Savings Certificate is one of the most popular tax-saving vehicles offered to Indian residents. The scheme has two maturity terms, namely, a five-year term and a ten-year term. NSC offers interest rates that are compounded semi-annually. The best part about the National Savings Certificate is that you can invest as little as Rs. 100, and you don’t have an upper limit when it comes to investing. The amount invested in a National Savings Certificate is eligible for a tax deduction up to a maximum of Rs. 1.5 lakh every fiscal year, under Section 80C of the Income Tax Act. Senior Citizen Savings Scheme The Senior Citizen Savings Scheme is one of the finest investing options for seniors. Compared to other programs, the returns are rather attractive, and interest is paid weekly. Individuals over the age of 60 can participate in this plan and receive tax savings of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. Fixed Deposits Section 80C of the Income Tax Act, 1961 allows for tax savings on fixed deposits with deductions up to Rs. 1.5 lakhs from the investment. However, to be eligible for the deductions, you must opt for a lock-in term of a minimum of five years. Furthermore, you must register your PAN card with the respective banking institution. Sukanya Samriddhi Scheme Individuals can start a Sukanya Samriddhi fund for a girl child at any point between her birth and the age of ten. The best part about this scheme is that you can start with an investment amount of as little as Rs. 1,000 and invest up to a maximum of Rs. 1.5 lakh every fiscal year. The interest earned through this plan is estimated and compounded every year, and this program is tax deductible under Section 80C of the Income Tax Act. Unit Linked Insurance Plans (ULIPs) ULIPs provide insurance coverage to policyholders while also offering considerable long-term profits. One of the primary reasons for the rise in popularity of ULIPs is that they enable both money savings and tax deductions under Section 80C of the Income Tax Act, 1961. Some other eligible deductions under Section 80 C of the Income Tax Act include: Premium payments made toward life and health insurance policies EMI repayments of the home loan principal amount Registration charges and stamp duty for a home/property Post office time deposit scheme for five years [B-02] Enjoy The Tax Deduction Benefits Under Section 80C of the Income Tax Act While it’s a common habit for most people to begin investing in tax-saving instruments at the end of a fiscal year to obtain tax deductions, tax experts advise doing so at the start of a fiscal year to ensure that you not only make educated judgments, but also enjoy the collection of interests from April to March. If you need help deciding on the finest tax-saving investments, you can always turn to professionals like Piramal Finance. They can advise you on the finest tax-saving techniques and tools, allowing you to make educated decisions about how to invest your hard-earned money.
08-11-2023
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GST

GST Calculator – Guide (How to Calculate GST Online in India)

Indirectly, the provision of goods and services in India is taxed at a rate known as the Goods and Services Tax (GST). The Goods and Services Tax (GST) applies to all forms of value creation. It is calculated based on where the final product will be used. On July 1, 2017, GST was implemented in place of most indirect taxes. For GST, there are five different tax brackets for goods and services: 0%, 5%, 12%, 18%, and 28%. However, GST does not apply to a few categories of goods and services. These goods continue to be taxed independently by each state’s government. Read on to learn more about the concept and calculating GST online. [B-01] Different Tax Heads Under GST The Goods and Services Tax (GST) structure can be broken down into four distinct taxation types: GST at Central Level (CGST), GST at State Level (SGST), GST at Union Territory (UTGST), and Integrated GST When the location of the supplier and the location of the recipient are in different states, the IGST is due on the supply. When the location of the supplier and the location of the recipient are both in the same state, intrastate supplies are subject to a combined rate of 5% (half the GST rate applicable for IGST). Instructions for using GST Online Calculator: Follow these instructions if you plan on using a GST calculator found online: Choose the total number of items you’d like to tax, using the corresponding drop-down menu. This will reveal the total amount of tax that would be due if all the items were purchased at once from the same vendor. Choose the items for which you want to calculate taxes. If you’re buying multiple things, you can add them all to your cart at once. Choose ‘None’ if there is no item to be added. When you’ve finished making your selections, click the “Calculate” button to see the results. GST on Services – This choice is available for services only and applies the GST rate. Click this link to get a free value-added tax calculator. You can use this to determine the applicable tax rate for any given service. The final tally is the GST due on this service. This can be paid using official government websites. Select all that apply and click “Review” Once you’ve filled out the required fields and clicked the “Calculate” button, a new page will load displaying your chosen taxable items. To see how the numbers in the graphs were derived, click on the “View details” link. The value-added tax on notes and gold can be calculated with the help of the calculator. Inputs – one of the crucial sections of the online GST calculator, where you can enter the amount that needs to be paid at each location to calculate the value-added tax at multiple locations when purchasing goods (i.e., each state or each location). GST method With the unified system of taxation, it is now possible for taxpayers to know the tax levied at different points for various taxable items under the GST regime. For calculating GST, the taxpayer should know the GST rate applicable to various categories. The GST process can be explained by a simple illustration : If the selling price of taxable items is Rs. 2,000 and the GST rate applicable is 18%, then the net price calculated will be = 2,000+ (2,000X(18/100)) = 2,000+180 = Rs. 2,180. Method to calculate GST To calculate GST, the below-given method is used : Base amount Inclusive of GST, Add GST (Original Cost * GST% ) / 100 will give the GST Amount Next, adding the GST Amount to the original cost will give the Net amount. Base amount exclusive of GST Remove GST Original Cost – (Original Cost * (100 / (100 + GST% ) ) ) will give the GST to be applied Next, Subtracting GST from the Original cost will give the Net amount The benefits of an online GST calculator: Utilizing a GST calculator allows you to reap various perks. To begin, this calculator does a good job of estimating the total amount of tax you’d owe if you and your partner made all of the transactions. You may save time and effort by using our tax calculator. This helps you determine the tax owed in a matter of seconds. The app reliably estimates the total cost of an expensive purchase in India by factoring in all applicable taxes. It’s user-friendly. Anyone can use this online GST calculator without any prior knowledge of taxation or accounting. The user-friendliness of the interface ensures that it may be put to good use by virtually anyone. There is no cost associated with using this calculator. The online GST calculator does not need any special knowledge or skills to use. There’s no rocket science in using the GST calculator. Being an accessible resource, the GST calculator may be utilized by anyone, regardless of background or experience. Conveniently, you can use a smart calculator to figure out the total amount of tax. This tax is payable by you on a taxable item. Following are the taxes which will be a set-off with the same or different tax input credits: CGST CGST SGST IGST IGST, CGST and SGST [B-02] Conclusion To sum up, to bring all the taxable items under one umbrella, GST was born. Under GST policy, a store or business owner is required to register for a unique ID number to use GST. To make it more simple and calculate GST online, a GST calculator surfaced. All the taxable items sold in the same state are subject to sales tax. This is done at both the central and state levels. It was launched with an aim of “one tax for all”. For further details visit the Piramal Finance website and get more information.
08-11-2023
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What Are the Top Benefits of Investing in the Stock Market?

Stock markets are a complex environment that most people are scared to traverse. There is an innate fear of losing hard-earned money if invested in stocks. Fear of uncertainty keeps the average salaried middle class at bay. Our human psychology is to fear the unknown, which is in play when we think of investing in the stock market. This article aims to bust all such myths and elucidate how investments in the stock market can benefit you. [B-01] What is the Stock Market Let us first understand the basics of how a stock market works. A stock is a unit of ownership in a publicly held company. These units are traded in an organized marketplace called the stock exchange. The first stock exchange, the London stock exchange, was founded in 1773, while in the US it started in 1793. In India, the first one was established in 1875 as the Bombay Stock Exchange, which is now worth Rs 266 trillion and houses approximately 6000 companies. To eliminate the monopoly, the National Stock Exchange was established in 1992 in Mumbai. The estimated market capitalization of the National Stock Exchange with 2002 listings is Rs. 199 trillion. Investing in the stock market Investing in the stock market has become much easier over the years, making it accessible to the general public. At the same time, the process has been made very secure and safe for consumers. The Securities and Exchange Board of India (SEBI) is the regulatory authority established under Section 3 of the SEBI Act 1992 to protect the interests of investors and promote the development of the stock market. An investor cannot directly buy or sell shares on a stock exchange. Registered members of a stock exchange, called stockbrokers, trade on an investor’s behalf. If you want to invest in stocks, you have to approach a broker, who will then take you through the process. Benefits of Investing in the Stock Market There are several benefits to investing in the stock market. We are listing some of the top reasons for you to consider: Returns: Predominantly, the stock market has given generous returns over time. Among all other investment options available in the market, stocks have been the best option in terms of returns. If you focus on companies with a consistent growth rate and increased quarterly earnings or on growing industries that contribute to the country’s economic growth, that will help you steadily develop your wealth over time. Since the 1980s, the Indian stock market has always given lucrative returns to investors. Even in crises during the 2008 recession and the 2020 pandemic, stock markets have stood their ground and have continued to grow by leaps and bounds. Diversification benefits: There are a variety of financial products that can be traded in the stock market, like equities, commodities, bonds, mutual funds, and derivatives. This gives investors a wide array of options to choose from when it comes to investing their money. Hence, investors can diversify their financial portfolios and mitigate the risks associated with investing. The benefit of diversification can be seen in the overall growth rate of your portfolio. As a diversified portfolio contains individual stocks from different sectors of the economy, the ultimate return is positive even if some sectors are not performing well. Inflation hedging: We must consider the returns on our investments in relation to inflation. Stock markets have always beaten inflation by a considerable margin. Due to inflation, companies benefit from the rising prices, which boost share prices. It can be seen that growth stocks such as technology or FMCG outperform the overall market and provide a solid safeguard against inflation. Liquidity: Stocks are highly liquid assets, which means you can convert them to cash at any time. For most investments, there is a lock-in period and a high penalty if you want to withdraw prematurely. Thus, stocks are favored in this case. Capitalizing on the booming economy: The stock market reacts to all the economic growth parameters such as GDP, inflation, and corporate earnings. As the economy grows, investors see a handsome return on their investment. With the price increase, corporations make more money, which leads to higher profits that directly benefit stock investors. Dividend income: A dividend is an amount distributed by the company from its profits. It is a way for companies to distribute a portion of their profits to shareholders, even if the stock has fallen in value. Periodic dividend payouts help retired investors pay for their lifestyle. Transparency: With the presence of a regulatory body like SEBI, investment in the stock market has become very safe, secure, and transparent. SEBI considers it a priority to protect the interests of investors. Hence, investors are protected from fraudulent brokers and companies. Ownership: As a shareholder, you will own a portion of the company in which you invest. This ownership in the company ensures that you can drive the management’s decisions. You will receive periodic updates about the company’s performance and are also invited to vote on important board decisions. This gives shareholders a sense of responsibility and companies a sense of accountability. [B-02] Through the years, investing in the stock market has become more popular. The salaried class is now more interested and confident in investing in the stock market to increase their wealth. Investing in the stock market also comes with a certain amount of risk and uncertainty. But if you can navigate carefully and make informed decisions with the help of your broker, you will be able to reap high benefits. Do visit https://www.piramalfinance.com/ for more details and guidance.
08-11-2023
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Personal Loan

Why Using a Personal Loan for Job Relocation Is a Good Idea?

A job move may often be the starting point for career growth. You may need to move for a better job with a higher status, and other times you get promoted to another level by the same firm. Whatever the cause of the move, it goes without saying that it is a hard process. Moving may be costly, either within the nation or across the country. There are several methods to transfer from one location to another, but moving with your family & assets would need a large sum of money. Yet, moving is vital in people’s lives, and everyone does their best to prepare. Let’s know how a personal loan can assist you in meeting job relocation costs. [B-01] 6 Relocation Charges You May Incur Moving Items If you decide to do it yourself, you will need to buy moving and packing goods such as boxes, plastic wrap, tape, labels, markers, and insurance. You will also need to buy food and drinks and tip your family and friends to help you with the transfer. Packers and Movers If you believe that packing and unpacking your family’s household things will be too much for you, you may hire a trained mover and packer to make the transfer much simpler. Movers and packers may simplify the job, but their fees are never low. One must check with many movers and packers to get the best deal. Also, there is a greater chance that the sum will grow from the first quotation. Admission of Kids to School If you are a parent of a school-aged child, you must factor in the costs of enrolling your child in a new school. Currently, the cost of entry to any school is quite high. One must set up money for their child’s school entry. These are the costs that may be expected. When you begin the moving process, you may discover several more fees that were not on the list. It is not unusual for costs to rise to the occasion. Emergency funds may certainly cover sudden costs. Yet, if you are moving with your family, living without enough emergency funds might be a risky job. In such cases, using an online user is the best option for getting instant liquid funds. Transfer Fees Moving your cars to your new address may result in transfer and service charges. Travel Costs Long-distance travel prices may include air or bus tickets, hotel stay, gas and toll tax, and car maintenance if you are moving across the nation. Long-distance moves might also raise your costs in the form of utility & security deposits, as well as a slew of other charges associated with relocation. Rent & Down Payment for Your Home You must deposit the flat you want to rent and, if needed, furnish it. You may be asked to pay application fees, a deposit, a pet deposit (if any), the first month’s rent, and a utility deposit. Why Choose a Personal Loan for Job Relocation? Personal loans are mainly meant to meet your short-term finances. These are unsecured loans, and there is no need to put up any proof to acquire them. As a result, people who have a steady income may apply for such loans and receive them soon. Here is a list of the perks of taking out a personal loan for moving expenses: Money Is Available Right Now Most banks in the market grant personal loans in a day or two after receiving all the proper paperwork. The lender can verify your KYC papers online and approve you within a few hours. As a result, even if you haven’t scheduled your costs, you may have access to cash at the last minute. Process Without Hassle The online filing of a personal loan is simple. Every stage of a personal loan is done digitally, making the lending process much simpler and less stressful. A personal loan may be obtained with a few mouse clicks on your screen. So, while planning your move, applying for a personal loan would take a few minutes. Check your monthly breakups with an online personal loan EMI calculator before taking out a personal loan. Options for Flexible Repayment When it relates to personal loan repayment, lenders provide various simple solutions. When asking for a loan, you may choose the term. You may also choose the manner of payment that best meets your needs. A Diverse Variety of Loans When you apply for a bank loan, you may pick any amount that meets your needs. Many lenders provide loans starting at Rs.50,000. Consider all of the above fees and apply for the precise amount you will need for your move. Fair Interest Rates Personal loans have higher interest rates than most other secured loans but are substantially lower than credit card rates. Most lenders in the industry charge between 11% to 18% p.a. for lines of credit. These rates are relatively affordable for unsecured loans. Loan with Multiple Purposes Since a personal loan is versatile, it may also be utilised as a job relocation loan. A personal loan may be used for any purpose the borrower desires. As a result, a personal loan allows you to utilise the bank loans as you see fit. Minimal Paper and Processing This is another strong reason to use personal loans while migrating. The paperwork required here is simple. Personal loans would not add to the stress of moving for those already stressed. They are also quite simple to get. Things to Consider When Applying for a Personal Loan As said before, personal loans have several perks and may be hugely helpful during your transfer. Personal loans, on the other hand, should be approached with prudence. When you apply for a bank loan to cover your relocation costs, consider the following: You must ensure that the credit EMI amount is within your monthly spending. The monthly revenue from your new work should be enough to cover the loan. Ensure you have a plan in place to repay the debt promptly. If you have any high costs, you should consider them before taking a personal loan. When seeking a personal loan, consider your previous debts and repayments. If you already have other loan obligations, taking out a loan for relocation may add to your debt load. Among the most vital things to consider is the lending amount. If you borrow a large sum, you will pay interest on the money you will never use. If the loan balance is low, you may be able to meet its current required costs. Make sure you strike the correct balance when deciding on a loan amount. [B-02] Conclusion Relocating is a major life event for all. A new location to live, a new job, a new climate, your child’s new school, and much more all arrive at once. It requires a large amount of cash and time to settle down. People who are planning to move might benefit greatly from a personal loan. A personal loan protects your emergency money from unusual costs that may arise while you are in a new location. To learn more about personal loans, visit Piramal Finance for related blogs and explore their products and services.
08-11-2023
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