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Guide

Understanding the What and Why of Stock Splits

Every investor keeps one eye on the stock market in search of shares that would yield high profits. However, there are situations when investors may not have been able to purchase shares of a highly desired company. The high share price is the cause. These are the moments when businesses choose to split their share. As the name implies, a split stock entails a company’s face value decreasing and a commensurate rise in share capital. The main goal of a split stock is to increase the stock’s liquidity and, as a result, lower the price for investors. [B-01] What is a Stock Split Meaning? A split stock increases the number of shares and decreases each share’s face value, making it simpler for new investors to express interest and invest in the company’s stock. In other words, if more investors buy at lower prices, the number of shareholders may increase. Investors who purchased the split shares at a cheaper price may not gain from a stock split. Even so, split stock signals to an industry that the company’s share price has just been moving north even before the split, and investors believe that the growth will continue. This could be one of the reasons why the share price goes up, if it does. What is a Forward Stock Split? In a forward split, the most common type of split stock, a company increases its shares by giving new shares to investors who already own shares. For example, a 3-for-1 forward split means that if you had 10 shares of company XYZ before the split, you would now have 30 shares. The value of your investment as a whole wouldn’t change, though. So, a forward split makes the number of outstanding shares go up, but the price per share goes down. This doesn’t change the market value of the company as a whole. What is a Reverse Stock Split? A reverse split stock reduces the number of shares that a company has. For example, if a company’s board of directors announced a 2-for-1 reverse stock split and you already owned 10 shares, you would now only own 5. The value of all of your shares would stay the same. Before the reverse split, ten shares were worth INR 306 per share, while five were worth INR 613 per share. In both cases, the total amount you spend is INR 3065. Stock Split Ratios A stock split ratio shows the number of extra shares it will give out after a forward stock split and the amount by which the number of shares will be split after a reverse stock split. For example, a 3-for-1 stock split means that there will be three shares after the split, with two new shares created for each existing share. Also, it’s important to remember that the stock split ratio can show whether a split is forward or backward. When the first number is larger, this is called a forward split (as in “3-for-1”). It’s a reverse split if the smaller number starts. What Can You Anticipate From a Split Stock? Whenever it comes to split stock, there are three important dates that investors should be aware of. Date of announcement The company would publicly declare the split’s plans and any important information investors should know. Most of the time, this data includes the ratio of the split and the dates when it will happen. The date on the file Although this is a significant day for accounting purposes, investors don’t need to be aware of it. To be qualified to receive new shares produced by a stock split, current shareholders must possess the stock as of the record date. The claim to the new shares does transfer, though, if you purchase or sell shares between the record date and the effective date. Although it may seem difficult, doing this is fairly easy. The extra shares will show up in your account the morning of a stock split’s effective date, and the share price should be updated correspondingly. Why Do Businesses Divide Their Stock? Stock splits are often done when a company’s stock price goes up. Even if a company’s stock price goes up, which is good, some investors think the stock price has gone up. So, companies split their shares to lower the price of their stock and make it more attractive to small investors. For example, if a share of stock costs 1000, you might not be able to buy it. Now, you would be more interested in investing your 1,000 if you could buy five shares of that stock for 200 each. Advantages of a Stock Split Let’s look at how the stock split benefits shareholders now that you know what it means. It increases the shares’ accessibility. One of the main reasons firms choose to split shares is high share prices. A huge growth in a company’s share price may reduce investor interest. The general preference of investors, particularly individual investors, is to purchase 10 shares for Rs. 500 per share as opposed to 5 shares for Rs. 1,000 per share. Through share splits, a company can lower the price of its shares and make them more accessible to investors without changing the value of the company. It boosts liquidity The enhanced liquidity of a company’s shares is another one of the key advantages of a stock split. Since shares have become more readily available to individual investors, there will likely be greater demand for them, improving the counter’s liquidity. After a stock split, it’ll be much simpler to buy and sell shares. [B-02] Conclusion In the end, present investors in a company aren’t much impacted by a stock split or even a reverse stock split. Investors who may be keeping an eye on a particular stock and hope to pick up a whole share for a reduced price will be the ones who will be most affected by a stock split. A split stock can be a good reason for such individuals to start trading. If you want more detailed information, then you must visit Piramal Finance, where you’ll get all the necessary information.

08-11-2023

Guide

What Is NFO And How You Can Invest In Them

NFO is New Fund Offer. NFO, or New Fund Offer, is an opportunity for buyers to invest in a new mutual fund scheme. These are just like IPOs, or initial public offerings of public companies, where the first shares of the company are offered to the public for the first time. The funds collected through IPOs are used for business expansion, and the money raised from the subscribers of NFOs is used to purchase bonds, stocks, and securities. NFOs are typically launched by asset management firms at a cost of Rs 10 per unit of the new MFS (mutual fund scheme). NFOs can be subscribed to for a limited time, and then investors can subscribe to units of the new mutual fund scheme. Though NFO units can be purchased after the NFO period has ended, they will be sold at a higher price than the one offered. [B-01] Different types of NFOs: Open-ended NFOs: In an open-ended fund, investors can join and exit the units of the new mutual fund scheme through NFO at any time. The open-ended new fund scheme units can be endorsed by the public at the time when the NFOs are open for subscription. Close-ended NFOs: In the NFO period, only a pre-decided and small number of units of closed-ended funds are offered by asset management companies. The units of closed-ended funds through NFOs cannot be purchased once the offer is over, as happens in the case of open-ended NFOs. Also, you cannot exit at any time; it is only possible after a predetermined maturity period. Things to consider while investing in NFO: Reputation of the fund house: Before investing, it is highly important to do a background check on the fund house. The fund house in which you intend to invest must have a proven track record in this industry. The track record of the fund house in recent years helps in analyzing the performance of NFO as well. Objectives of the fund: The objectives of the fund involve the distribution of assets, risks, and returns. All these factors and others too must be clearly stated in the offer document. The investment process should be crystal clear to the investor before investing. If you want to be an informed investor, you must read the offer document thoroughly. Expected Returns: Before investing, it is highly important to track the previous returns. You can compare the results with the rate of return that you expect from the NFO and invest accordingly. Investment Cost: The cost of an investment is one of the essential factors to consider before investing. If you redeem the units before the fixed tenure, NFOs might charge you with exit loads. Fund houses charge you an annual fee for managing the money, which is also known as the expense ratio. You must compare it with SEBI instructions. Minimum Investment Amount: Generally, NFOs declare a minimum amount for investing in NFOs, which is a crucial factor for you to consider while investing. You need to check if the minimum subscription amount is higher or lower than your capacity to invest. Investment scope: If you are planning to invest in NFOs, you must check the lock-in periods. If the NFO has a lock-in period, you can’t redeem it before maturity or you will be charged an exit load for it. You must evaluate this factor regarding your flexibility during the lock-in period. Benefits of investing in NFOs: A unique idea: You get a chance to invest in a new idea or theme. An asset management company may initiate an NFO with a set theme, and investors can invest in it based on factors such as objectives, the risk involved, and profitability. Investment added to the stock portfolio: Here is another benefit of investing in NFOs. If you need exposure from an investment in your stock portfolio, you can invest in the NFO of a new mutual fund. For example, if you are interested in adding foreign stocks to your stock portfolio, you can invest in NFO index funds with experience in foreign markets. Flexibility: The flexibility factor is beneficial for NFOs in closed-ended mutual fund schemes. As in such schemes, investors are not allowed to exit easily after the NFO period, and the fund manager can keep the funds on hold even in the case of a stock market crash. In that way, the investor makes a better investment decision. However, due to huge inflows and outflows of funds, open-ended mutual funds get affected. This happens more during an unstable stock market. Long-term investment: If you are planning to invest in a specific mutual fund for a long period, NFOs are a great option. Stability: The mutual fund managers in closed-ended funds can use the funds more appropriately as they don’t have recurring or mass redemptions. In closed-ended mutual funds, the fund managers do not get influenced by short-term fluctuations in prices. This results in higher profits. Investors prefer NFOs because they can invest in closed-end mutual funds only during the NFO period. Agility: In the case of an open-ended fund, the fund manager has to invest your funds regardless of the marketing conditions. Your investment might face a risk if the market views it as high. It doesn’t happen with closed-ended funds. In closed-ended funds, you invest during the NFO period, and the fund manager can hold your funds until the market becomes stable. How to invest in NFO? You can invest in NFO through online or offline modes: Online mode: -You can invest in NFO online through your trading or demat account. The other way to invest in NFO is through mutual fund platforms, and you can do that from anywhere. [B-02] Offline mode: -You can also invest in NFOs through mutual fund distributors or brokers. They provide you with all the necessary information and assist you in filling out and submitting all the important documents. Now that you have a fair idea about the NFO, its benefits, and how to apply for it, you can find more information on financing options here:https://www.piramalfinance.com/about-us/company

08-11-2023

Top 10

10 Main Benefits of Trading In The Currency Market

More commonly known as Forex Trading, Currency Trading is all about investing in currency values to make some profit. Many banks, stock brokers, and financial as well as business institutions practice currency trading in India. When compared to equities and stocks, Forex Trading in India is not that rampant. Many investors stay away from currency trading due to the restrictions placed by the Reserve Bank of India. Nevertheless, currency trading in India is not as challenging as you think. All that you need to do is use Indian currency as the base currency while trading. Unlike stock trading, currency trading in India does not require you to open a Demat account. Nevertheless, you will need a Forex trading account with your bank account linked to it. For this, you will have to register with a SEBI-authorized stock-broking website or stockbroker. Currency trading can be quite risky due to fluctuations in currency prices. Nevertheless, it is still beneficial to practice. Here are some of the top benefits of currency trading in India, you should be aware of: [B-01] High liquidity The Forex Market or Currency Market is regarded as the most liquid financial market in the world. Currencies are bought and sold in large volumes here, without causing much price movement. This increases your chances of carrying out successful transactions. The entire currency market runs electronically with a huge network of banks as well as financial institutions operating round the clock. High leverage Leverage is a loan given by a broker to an investor to carry on trading activities. This leverage is quite high when it comes to Forex Trading. So even if you don’t have much money to invest in trading, your chances of generating profit are higher. However, you will have to deposit some amount as a margin, which is usually a certain percentage of the size of your trade. For instance, In case you are investing INR 1,00,000 in a particular currency pair, at a leverage ratio of 100:1, you will have to deposit INR 1000 as a margin. The leverage ratios vary depending on the broker and the currency you are trading in. The margin requirement would be high for volatile currencies as compared to stable ones. High leverage can help you earn substantial profits. But it can also multiply your losses if you are not too careful while trading. Using ‘Stop Loss’ is a good way to minimize your losses. 24×7 market When compared to stock markets that operate between fixed timings, Forex Trading can be carried out at any time of the day or night. If one market closes, you can always try another market since different markets are operating in multiple time zones. Currency trading in India is open from 9 AM to 5 PM. After that, you can trade in any international currency market, depending on what is open. Highly accessible The Forex market is the largest market in the world with daily transactions amounting to $5 trillion. With Forex trading being open 24/7, the market is highly accessible. The low margin requirement as well as the low entry barriers add to this. Decentralized market The forex market is international. Many banks and financial institutions across the world are a part of this. When there are so many players, there can’t be any single entity controlling the market or manipulating the prices. There is no particular physical location that the investors have to visit to carry out Forex trading. They can do it over the internet, from the comfort of their homes, and using their preferred devices. Anyone from any part of the world can do Forex Trading, at any point in time. No special permits Forex Market is one in which anyone can participate. You don’t need any kind of special training to place your trade. Once you have registered your trading account with a stock broking website and deposited some margin amount, you can start your Forex Trading. However, if you are carrying out currency trading in India, your base currency has to be Indian Rupees. You can carry out cross-currency trading in EUR-USD, GBP-USD, and USD-JPY. Advanced Technology It is technological advancements that have made the Forex Market the largest market in the world. Many forex brokers today, have their own proprietary online trading platforms, where people can practice currency trading. By opening a trading account, you can place your Forex orders within just a few seconds, using your smartphone. Most such platforms will supply you with real-time data on worldwide currency movements. More Opportunities to Make Money Unlike stock trading, Forex trading allows you to make money even when the market is falling. All that you need to do is correctly speculate the movement of the currency. You can practice with a demo account till you get the hang of it. Also, make sure you register with a full-service broker who will provide you with timely hints and pointers. Understanding the fundamentals of Forex trading should help. Hedging You can protect your existing position in the Forex market by hedging. You can hedge by buying or selling a particular pair of currencies, at a particular exchange rate. You can either take an opposite position in the same Forex pair or purchase another Forex option. Nevertheless, it is best to restrain from hedging, if you are too new to the Forex market. Arbitrage opportunities Arbitraging is another way to make money in the Forex market. This is all about taking advantage of the minor price differences in the currency rates on different exchanges. Such opportunities may arise when certain news events impact currency exchange rates. [B-02] The Bottom Line Forex trading in India can be very profitable if done the right way. Look up the various Forex Trading websites and compare their features, before registering. If you need any personal loan to carry out currency trading in India, you can try the Piramal Website.

08-11-2023

Know More

First Steps in Your Journey to Wealth Creation

You have probably heard, “It takes money to make money.” You don’t need a lot of money to get started on your journey to wealth creation. There are many wealth creation strategies to get started with little or no money. Herein, we have shared some practical tips for wealth creation. So, let’s get started without further ado. [B-01] Setting Your Wealth Creation Goals So, you’re interested in creating wealth? But before you embark on this journey, you must set some wealth creation goals. What exactly do you want to achieve? Your wealth creation goals may be short-term or long-term, but they should always be specific and measurable. In other words, you should be able to track your progress and know when you’ve reached your goal. Some examples of wealth creation goals include: Saving a specific amount of money within a set period Investing a small part of your income every month Buying a home or car within the next five years Retiring at age 55 Types of Wealth Creation Strategies Many wealth creation strategies are available to you, some of which may be more applicable to your unique situation than others. Here are the most popular ones: 1. Investing in stocks or other securities. 2. Investing in property or other tangible assets. 3. Starting or investing in a business. 4. Creating or investing in digital assets, such as cryptocurrencies. 5. Becoming a high-earner in your field. 6. Creating passive income streams. Developing a Plan for Your Wealth Creation The journey to wealth creation can seem daunting, but if you take it one step at a time and stay focused on your goals, you’ll get there eventually. Below, we list three primary components of any personal wealth creation strategy. 1. Have a plan. It will help you stay on track. Your wealth creation plan should include short-term and long-term goals and the steps you’ll need to take to achieve them. 2. Consistently save. One of the essential aspects of wealth creation is saving money. Make it a habit to set aside a portion of your monthly income. This way, you’ll have something to draw from when investing. 3. Invest wisely. Once you’ve saved up some money, take your time to research. Don’t rush into investments; consult an expert to make wise choices with your money. Top Tips to Help You Save and Invest One of the best ways to start your journey to wealth creation is by understanding how to save and invest wisely. Here are some tips you should follow: First, create an emergency fund. It will provide a cushion in case something unexpected happens. To start an emergency fund, try setting aside a specific amount each month or week; that way, it can add up over time. Second, look into investing in securities like stocks and bonds. These investments provide access to the stock market, which can increase your wealth over time. It’s essential to do research or consult with a financial advisor before investing in any securities. Third, set up automatic deposits. This will help you build up your savings account and make sure you remember to save money each month or week. Finally, review your finances regularly so that you are always on top of things—from spending and saving habits to tracking progress towards achieving goals like retirement or paying off debt. Doing this will help keep you on track for the long-term goal of attaining wealth creation! Is Life Insurance Great for Wealth Creation? There are a few reasons why life insurance should be part of a wealth-building plan. Firstly, life insurance can provide a death benefit that can help beneficiaries pay for expenses such as funeral costs and estate taxes. Secondly, life insurance can provide a substantial cash value after the policy is surrendered. This cash value can help pay for expenses such as college tuition or a down payment on a home. Thirdly, life insurance can provide a tax advantage. Premiums paid for life insurance are tax deductible. Plus, it protects against the financial risks of death or disability. Different Ways to Borrow Money for Wealth Creation A personal loan is the most common, but you could also consider taking out a secured loan (like a mortgage) or even an unsecured loan (like a credit card). Each has unique advantages and disadvantages. With personal loans, the amount you borrow is usually limited, and the terms and conditions are generally quite strict. On the plus side, they tend to have lower interest rates than unsecured loans. Secured loans offer higher borrowing limits and more flexible terms, but they usually require collateral if you default on your payments. Finally, unsecured loans offer relatively high borrowing limits with attractive interest rates—but if you don’t pay them off in time (or at all), you’ll end up with much higher interest rates. [B-02] Key Takeaways Wealth creation requires hard work and dedication. We hope the information we shared will help you get started on the path to wealth creation. Remember to stay focused and stay disciplined, and you will be on your way to success. Are you looking for a wealth creation plan for yourself and your family? We can help you build a solid financial foundation that will provide you and your loved ones with the security you need for the future. With our help, you can achieve your financial goals and create the life you’ve always wanted!

08-11-2023

Tax Savings

Smart Tax Savings Tips for 2022

Taxpayers in India may save tax in various ways under India’s income tax law. You might invest your funds in long-term plans to lower your taxable income. Certain costs, normally important in family life, may also help you save money on taxes. Taxpayers can select between two tax regimes beginning with the fiscal year 2020–21: the present or old tax system and the new tax concessions. The tax rates due for a specific tax slab vary between these two regimes. Tax-saving investments will lower your taxable income only under the former tax system. Long-term assets help you avoid taxes. They also help you generate long-term wealth. As a result, most of these assets are good for your current and future wealth. Let us look at how to save taxes for firm owners and salaried workers. [B-01] What Exactly Is Tax Saving? People and firms use tax planning to evaluate their financial situations. They also use it to save on taxes on their yearly revenue and earnings. According to official statistics for the fiscal year 2014–2015, barely 1.5 percent of Indians pay their taxes. As a result, proper tax preparation is essential for first-time and seasoned taxpayers. To promote economic growth and personal savings, a proper tax fee is paid to the government. The Income Tax Act of 1961 gives taxpayers tax-saving options for reducing their tax liability. Various sections provide tax breaks, with Section 80C being the most common. The most commonly used exemption is claiming a housing rent allowance (HRA). The best way to avoid taxes is to make a real plan and follow it when your wages change. Also, you must make tax-saving investments in the first half of the fiscal year. This will help you avoid making rushed investment choices at the end of the year. It would also assist if you claimed all the deductions and exemptions to which you are entitled. To do so, you must be aware of and comprehend the numerous exemptions and deductions available. Top 7 Tax Saving Tips for 2022 Save funds by paying off your loan’s interest Tax saving schemes are simple if you’ve got a loan. These could be an education loan, a home loan, a vehicle loan, or a personal loan. People who are paying back debts are eligible for tax breaks from the government. Life insurance premiums paid for oneself, a spouse, or a child; contributions to the statutory provident fund or superannuation fund, and so on, are examples of Section 80C investments. It may be a superior tax saving option if careful planning via loan repayment is done. Investing in tax-free products The Government of India allows limited tax deductions for certain instruments under Section 80C of the Income Tax Act. You may claim tax deductions for investments in these instruments up to a limit of Rs. 1.5 lakh. The following are some tax-saving tools: Public Provident Fund (PPF) Fixed Deposits (FDs) of at least five years Employees’ Provident Fund (EPF) Senior Citizen Savings Scheme (SCSS) Sukanya Samriddhi Yojana (SSY) Equity Linked Savings Scheme (ELSS) National Pension System (NPS) When investing in the listed plans, you may avoid taxes and enhance your wealth over time. Make a donation Donating might help you save money on your taxes. Section 80G of the Income Tax Act helps you deduct donations made to charity groups or non-governmental organizations (NGOs) up to a certain limit. This will both save taxes and impart some virtue. Select the right tax regime For Indian nationals, there are now two tax systems accessible. You may choose one of them when submitting your ITR. However, choosing the appropriate tax regime is critical for optimal tax savings. Lower tax rates are proposed under the new tax framework. It does not, however, provide for tax deductions. As a result, if you want to claim tax deductions under Section 80C of the Income Tax Act, you must use the previous tax system. If not, you may use the new tax structure to decrease your taxable income. Get medical insurance for you and your family Purchasing health insurance packages for yourself and your family can also help you save money on taxes. You may claim a deduction of up to Rs. 25,000 under Section 80D of the Income Tax Act for paying premiums for health insurance for yourself and your spouse. A senior person may claim a tax deduction of up to Rs. 50,000 as an assessee under the same provision. You can get a tax break of up to Rs. 50,000 if you buy health insurance for your parents over 60. Claim tax breaks on your home loan If you get a house loan from any bank or non-banking financial organization, you may deduct the interest and principal amount from your taxable income. This rule allows a maximum deduction of Rs 2 lakh under Section 24 for house loan interest and Rs 1.5 lakh under Section 80c of the Income Tax Act for home loan principal. Keeping medical bills You may save all of your medical receipts. You can use them to save money on taxes at the end of the year. Medical costs for yourself and your dependent family members are non-taxable, up to Rs. 15,000. ITR filing must be completed within the timeframes stated Everyone must submit an income tax return by the 31st of July of each year or by the date designated by the Income Tax Department. If you miss the deadline or don’t send in the ITR, you will be fined. [B-02] Conclusion It should be noted that many people rush to invest in tax-saving schemes towards the end of the calendar year to save money. This defeats the primary goal of having such deductions. The goal is to enable people to invest in the future. As a result, the beginning of each fiscal year may be the best time to make tax-saving investments. You can save taxes and make money by investing regularly in various tax-saving schemes. You must educate yourself about all tax-saving investment choices. And invest only in things that are right for you. To learn more about tax saving schemes, visit Piramal Finance for related blogs and to explore their products and services.

08-11-2023

Tax

Everything You Should Know About Income Tax

You are not allowed to take your full salary when you start earning money at any kind of job. Instead, you receive your salary minus any taxes paid to the government. You still have your “net” salary. The term “income tax” refers to this payment paid to the government. You’ve probably heard this phrase before in a few financial discussions. But did you know that you can quickly reduce your tax payments with the right information? So, if you’re also interested in learning more about income tax and income tax filing, keep reading. [B-01] Types of taxes collected by the government Every government uses two different approaches to collecting taxes from the common people. They are: Indirect tax: it is placed on producers first before being gradually transferred to the customer through a network of intermediaries. It is imposed on products and services, not on specific purchasers. It is gathered by the seller or producer. Examples include value-added taxes and sales taxes (VATs). Direct tax: A tax that is paid upfront by the organization or individual that has been charged for it. Examples include taxes on assets, real estate, and income that are all paid by the individual taxpayer directly to the government. About income tax Income tax is part of your income. You pay this to the government for the money you produce. These tax payments provide the government with the money it needs to carry out its day-to-day functions. Many individuals consider filing taxes with the income tax department to be a rather difficult chore. And if you are paying taxes for the first time, then it could even feel impossible to you. So if you are a first-time taxpayer, we have included the key terms to help you quickly understand the fundamentals of income tax. Financial year vs. assessment year For income tax filing, it is important to know the difference between the financial year and the assessment year. Financial year – Also known as the previous year, is a 12-month period that runs from April through March of the following year. For instance, suppose you begin to make money in November 2022. Although your first tax year would run from April 2022 to March 2023, you would be subject to tax on any income earned from November 2022 through March 2023. Assessment Year – It is the year that follows the financial year. Simply put, it is the year in which you will submit your prior-year return. Therefore, according to the above example, your financial year is 2022–2023. The assessment year in this situation would be after March 31, 2023. This is because you will be filing your income tax return anywhere between April and September 2023. Sources of income that fall under the purview of Income Tax Salary income – The government’s most evident source of income tax is your monthly wage. This is true since it is considered to be your main source of income for tax purposes. Income from business – Next is income from business and profession. This is the pay you receive for operating your firm or carrying out your line of work. You must pay taxes on your company profits. The costs might be subtracted from the taxable amount. Income from capital gains – Capital gains tax is another type of tax. When you get a profit or gain from selling a capital asset, you must pay this tax. Apartments or flats, stocks, real estate, mutual funds, gold, and other items are examples of assets in this situation. Income from house property – The second line is your rental property revenue. Income from house property is any sort of rental income that results from a piece of real estate, such as a home, business, or building. This income is also taxed. Income from other sources – Finally, revenue from other sources refers to all other income that does not fit into one of the above categories. These include any dividends received, interest on bonds and deposits, winnings from lotteries, monetary gifts, etc. that are subject to taxation under this category. Tax deductions on income tax The idea of a deduction is to lower taxable income. We spend our money on several things. There is no tax break for purchasing luxuries, but there are several tax regulations that lower your tax burden. These encourage the practice of saving money. This is accomplished by deducting specific expenses from your income. This lowers your overall income and your income tax. It may be computed as follows: Taxable Income = Gross Income (Sum of All Income) – Deductions Therefore, if your deduction is higher, your tax burden will be smaller. Under Section 80 (Sections 80C to 80U) of the Income Tax Act, an individual is entitled to several deductions. These deductions are as follows: 80C – Investments 80CCC – Insurance Premium 80CCD – Pension Contribution 80E – Interest on Education Loan 80EE – Interest on Home Loan 80D – Medical Insurance 80DD – Disabled Dependant 80DDB – Medical Expenditure 80U – Physical Disability 80G – Donations 80GG – House Rent Paid 80GGB – Company Contribution 80GGC – Contribution to Political Parties 80RRB – Royalty of a Patent 80TTA – Interest on Savings Account 80TTB – Interest Income Finally, determining the tax amount to be paid Determining the appropriate tax payment amount is still unclear, even after accounting for all permitted deductions. Tax slabs come into play in this situation. Income tax slabs are different income categories and the associated tax rates. It helps to charge people according to their income. Your ultimate income determines which tax bracket you are in. And you must pay taxes in accordance with that bracket. The different tax slabs in India are as follows: Rs 3.00 lakh – Rs 5.00 lakh 5% Rs 5.00 lakh – Rs 7.5 lakh 10% Rs 7.50 lakh – Rs 10.00 lakh 15% Rs 10.00 lakh – Rs 12.50 lakh 20% [B-02] Now that you are well versed in income tax and the various terms related to it, start your Income Tax Return filing journey today! Visit Piramal Finance now!

08-11-2023

Investment

Top 5 High Growth Stocks to Invest in 2022

A lot has happened in the housing finance industry in the last 6–9 months. The “Non-Banking Financial Company” crisis in India has brought to light the problems of the housing finance sector, particularly in terms of financing and low equity capitalisation. Which are the finest high-growth stocks to invest in the housing finance sector? You should know the most recent outlook for the housing finance sector in India, and which companies can benefit from this and take up the market share to benefit investors in India in 2022? First, let’s look at some statistics related to the Indian housing finance sector. [B-01] Statistics Related to the Indian Housing Finance Sector At the end of FY-21, India’s outstanding home loans amounted to a huge 22.4 lakh crore, 12.1% more than they were worth in FY-20. In addition, between FY-17 and FY-21, the Indian home loan market grew at a 32% CAGR. Experts think the market will grow quickly, with a CAGR of close to 22% between 2021 and 2026. And the affordable housing market could be part of what drives this growth. The central government has put out programs like the credit-linked subsidy schemes (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) that have helped move towards the goal of housing for all. Last week, Anarock and PropTiger presented information about the housing market. From January to March, sales of homes in seven cities rose by 71% year over year, to 99,550 units, according to Anarock. Sales in eight major cities rose by 7% year over year, to 70,623 units, according to PropTiger. Reasons for the Popularity of Housing Stocks in the Stock Market Why buy housing-related stocks? Consider three long-term developments that should promote industrial growth: Spending More Time at Home Most of us spent much more time at home because of the COVID-19 pandemic, and many workers are likely to work at least partly from home after the pandemic ends. Therefore, after a pandemic, people will probably want to buy homes more because they will spend more time at home. More People Want to Buy Homes Some millennials have become adults without wanting or being able to buy a home. However, as this new generation ages, the number of families and the desire to own a home will increase. Any help from the national government to make paying off student loans easier should increase the demand for housing by easing the process for the youth to buy their own homes. Low Mortgage Rates Mortgage rates have gone up from all-time lows, yet they are still low compared to the past. Low rates make it easier for people who want to buy a home to do so and let them pay more for their homes. Top 5 High Growth Stocks in 2022: Stock Market Today Company NameLast Price(Rs.)Change% ChangeNet Profit(Rs. cr)HDFC2,504.851.950.0813,742.18LIC Housing Fin383.353.901.032,287.28HUDCO40.65-1.20-2.871,716.60PNB Housing Fin421.20-5.95-1.39821.92Indiabulls Hsg130.00-2.25-1.70696.11 (Data as of 10th Nov. 2022) Detailed Information About Stocks to Invest HDFC (Market Cap* – INR 4,54,969 Cr.) Housing Development Finance Corporation Limited was created to provide long-term loans to homebuyers. The company’s chief business is giving loans to corporations, individuals, developers, and cooperative societies. HDFC helps build, improve, buy, and fix houses, apartments, and commercial property in India. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares1814469764100%Promoters00%Foreign Institutions122926011667.75%NBanksMutualFunds21243999311.71%CentralGovt24916320.14%Others381384472.1%General Public1630740018.99%Financial Institutions1690655759.32% LIC Housing Fin (Market Cap* – INR 20,864 Cr.) LIC Housing Finance Ltd. is one of India’s biggest companies that provides housing loans. The company gives long-term loans so consumers can repair, buy, build, or modify homes. The company helps professionals create or buy nursing homes, clinics, office space, diagnostic centers, and equipment. The loans can be used for either personal or business needs. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares550063000100%Promoters24884249545.24%Foreign Institutions11370643420.67%NBanksMutualFunds7122561412.95%Others137892152.51%General Public6803422412.37%Financial Institutions344650186.27% HUDCO (Market Cap* – INR 8,378 Cr.) Housing and Urban Development Corporation, Ltd. is an organization in India that works on utility and housing infrastructure. It was started in 1970, and its headquarters are in New Delhi, India. HUDCO offers infrastructure financing services for utility, commercial, social, and industrial infrastructures. In addition, HUDCO has many financial services for projects in the information, communication, entertainment, and telecommunications (ICT) sectors. It gives loans and other financial help for rural housing, urban housing, cooperative housing, slum upgrading, repairs, and renovations, etc. It helps NGOs and private builders secure home loans, collects money for the state, public agencies, and private agencies, buys land, and collaborates with agencies that undertake the work. It offers design development, consulting, disaster mitigation, research and training, and other services. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares2001900000100%Promoters163767747981.81%Foreign Institutions43685730.22%NBanksMutualFunds321766141.61%Others253134831.26%General Public1781943808.9%Financial Institutions1241694716.2% PNB Housing Fin (Market Cap* – INR 7,204 Cr.) PNB Housing Finance Ltd. is registered with the National Housing Bank as a housing finance company (NHB). They give loans to companies and people so that they can buy, build, repair, or improve their homes. It also gives loans for commercial space, against property, and buying residential plots. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares168615638100%Promoters5491484032.57%Foreign Institutions00%NBanksMutualFunds32037741.9%Others9927270.59%Financial Institutions23361891.39% Indiabulls Hsg (Market Cap* – INR 5,933 Cr.) Indiabulls Housing Finance Ltd. is in the business of giving home loans. The company helps pay for building and maintenance work on apartments, houses, flats, bungalows, townships, rooms, etc. They give plot loans and loans against residential, commercial, and rental property. The company also provides financial advisory and consulting services. Shareholding Pattern Holder’s NameNo of Shares% Share HoldingNoOfShares471596630100%Promoters451948079.58%Foreign Institutions11793251525.01%NBanksMutualFunds46812380.99%Others348315177.39%General Public20377843043.21%Financial Institutions416106188.82%GDR235675055% (*Data as of 10th Nov. 2022) [B-02] Conclusion Before the ILFS and DHFL crises in the stock market, the housing finance market was steadily expanding. Since then, a lack of cash and the spread of the coronavirus have hit the sector hard. Hopefully, with the help of this blog, you got an idea of the best housing stocks to invest in during these tough times. Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.

08-11-2023

Business Loan

Tips to Get a Fast Secured Business Loan Online

If you need a fast, secured business loan, then it is a great idea to look for the best option. It can be hard to get your hands on a good business loan, and this is why we have come up with this article, where we will provide some tips to help you find the right lender for your needs. [B-01] Secure Personal loan A secured personal loan is also known as a personal loan without security (collateral). If you’re trying to get a secured loan, you must know how much money the lender will lend you and what kind of collateral they want from you. The lender will give you the money and then take your property as collateral until they receive their payment back from the borrower. This means that when taking out this type of loan, there is only one party involved, which makes it easier for both parties involved, including verifying identity documents such as a passport or driver’s license, etc., faster processing times compared with traditional methods used before this invention came into existence today; even better customer service experiences, including online chat support with 24/7 availability anytime, anywhere, at any time. Tips to Get Fast Secured Business Loan Online? When it comes to getting a business loan, there are many things that you need to consider. Some of these include: Look for a business loan based on your need for money and not just on your credit score. If the lender does not understand your business and how it functions, then they will not be able to offer you the best solution for making sure that you can get back on track with paying back the debt in time. Find a lender who offers flexible repayment options so that if there are any delays in payments or if something happens with your company (such as an unexpected expense), then they can work with them as well and help them find other solutions too instead of just throwing them out into default right away. Look for a lender who offers competitive rates and fees to get the best possible solution for what you need. If they offer you a lower interest rate, this will reduce how much money you end up paying back over time. Look for a lender with a good reputation so that you know they will be able to get the job done right. Look at their reviews and see what other people have said about them. If they have many bad reviews, this may indicate that they do not provide good service or quality solutions! Ensure that you have a strong credit score It is important to have a good credit score. We often hear that having a good credit score can get you cheaper loans and better rates on insurance. It also means that you are more likely to be approved for new lines of credit or loans. Poor credit will mean you pay higher interest rates on your existing debts and find it more difficult to get approved for new loans or lines of credit. Know about your business and loan requirements in advance Know about your business and loan requirements in advance. Know the time frame for repayment, interest rates, and collateral requirements. Make sure the lender is reputable, and check their rates and terms before you apply. You can also ask friends or colleagues for recommendations. Finally, read the fine print of your contract before signing anything. And remember that it’s a good idea to have a plan B in place so you can get the money you need if your first loan application is denied. Things to consider before applying for a secured business loan online Before applying for a secured business loan online, you should consider the following factors: The amount of the loan you need: This is one of the most important aspects of your application because it will determine how much money you can afford to borrow. Look for one that suits your business needs and does not exceed them. For example, if you have a small restaurant with only two tables, then an unsecured loan might be too big for your budget; therefore, it would be better if taken out through an instalment plan rather than as a lump sum payment upfront (which is usually more expensive). The type of business: whether it’s manufacturing or retailing, etc. The purpose of the loan: whether you need it for working capital or other reasons. The reputation of the lender: how trustworthy is the company you apply to? Reputable lenders usually have more experience in this field and offer better customer service; therefore, they are likely to offer lower interest rates as well. [B-02] Conclusion In conclusion, you have learned that to get a secured business loan online, it is important to have a good credit score and prove that you can pay back the money in time. You should also ensure that you can get an approval letter from your bank or financial institution before applying for this type of loan. If you are interested in getting a secured business loan online, you should consider applying to a bank or financial institution with a good reputation. You should also ensure that the lender can provide you with all the information about their rates and fees before agreeing to any type of agreement. You should also ensure that you can get a loan application form and an approval letter from your bank or financial institution before applying for this type of loan. If you are interested in getting a secured business loan online, you should consider applying to a bank or financial institution with a good reputation. You should also ensure that the lender can provide you with all the information about their rates and fees before agreeing to any type of agreement. To learn more about secure business loans, visit Piramal Finance.

08-11-2023

How To?

How Do Sovereign Gold Bonds Score Over Physical Gold?

Gold is a valuable asset. It adds value to a portfolio. It also helps to diversify it. Economic experts suggest that at least 10%–20% of a portfolio’s assets should be invested in gold. The primary reason is that gold is a good guard against inflation and currency risk. Buying gold coins, gold bars, or even sovereign gold bonds and gold ETFs (exchange-traded funds) are all ways to invest in gold. This article discusses how sovereign gold bonds compare to actual gold. [B-01] What Exactly Are Sovereign Gold Bonds? Sovereign gold bonds are government securities issued by the RBI on the government’s behalf. They are priced in gold, with one gram of gold being one unit. These bank loans pay a set rate of return on investment. Also, they may be sold in the secondary market to profit from capital gains. Individuals and HUF (Hindu United Family) may invest as little as one gram and as much as four kilograms in these bonds. Yet, the maximum restriction for trusts and companies is 20 kg, as the government regularly determines. The sovereign gold bond scheme might be held separately or jointly. The limit also applies to the first bidder in the event of a joint application. SGBs may be applied for at the banks, scheduled private and foreign banks, Stock Holding Corporation of India Ltd. (SHCIL), authorized stock exchanges, and specified post offices. These bonds can also be purchased online through the websites of well-known financial institutions. Sovereign gold bonds are kept on certificates. As a result, there is no chance of theft or extra storage costs. Perks of Investing in SGB Versus Actual Gold Storage Fees Physical gold buyers must spend money on things like renting lockers and buying insurance. This is to keep their gold secure and recoup losses from theft, burglary, or other incidents. In the case of SGB, however, the gold is stored securely in the custody of the Government of India. No fees are charged to the investors. SGBs Provide Better Returns Real gold is accessible at current market values. But SGBs pay the value of gold plus interest. SGBs receive a basic interest rate of 2.5 percent per year. This is paid semi-annually. The interest is taxable in the hands of the buyers. Also, when you sell real gold, the dealer normally deducts the production fee. This does not apply to the sovereign gold bond scheme. Making costs may vary from 5% to 10%, based on where you acquire your actual gold and in what form. Jewelry, for example, has a greater price than bars of gold or coins. Goods and Services Tax (GST) In the case of investing in jewelry, investors must pay GST and making costs. But there is no GST in the case of investing in sovereign gold bonds. There is no problem with storage or theft. Storage is one of the key obstacles that limit investments in real gold. You must either keep actual gold in your house or in an official locker supplied by banks. Also, actual gold is more vulnerable to theft or loss. When purchasing gold in SGBs, you won’t have to worry about such concerns since the RBI is in charge of storage. Also, when you redeem the bonds, you get cash. Gold Purity Is Guaranteed You don’t have to worry about gold’s purity. This is because the RBI issues SGBs on the government’s behalf. It has often been noticed that when selling real gold purchased from a jeweler or store, the purity of the metal is becoming an issue. Few jewelers and dealers guarantee the purity and grade of gold when they sell it. Guaranteed interest Unlike when storing actual gold, SGB buyers do not need to pay any money to secure the safety of their gold. They also get a fixed interest rate of 2.5 percent per year, paid on a semi-annual basis. Capital Gains Tax Unlike real gold, where buyers must pay capital gains tax on the sale of gold or gold jewelry, SGB investors do not have to pay any tax on maturity gains. Who can Purchase SGB? Sovereign gold bond investments are available to Indians, including Hindu Undivided Families (HUFs), individuals, institutions, charities, and trusts. The founder of a Sovereign Gold Bond is also permitted. Real gold lacks well-defined ownership papers. So purchasing SGBs jointly is more appealing than buying actual gold. Where Can You Purchase SGB? Sovereign gold bond investments are as easy to obtain and purchase as physical gold. This is because their form is available from issuing bank offices, National Stock Exchange of India Ltd., and Bombay Stock Exchange Ltd. designated post offices directly or through agents. The form is also accessible on the RBI’s website, as well as on the web page of the issuing bank. The bond may also be donated or transferred to someone who meets the qualifying conditions mentioned above. SGB payments may be made in cash (up to Rs. 20,000), cheques, demand drafts, or electronic funds transfers. How Do You Redeem SGB? The investor is notified one month before the bond’s maturity date, and the sovereign gold bonds may be redeemed. The redemption amount will be given to you in INR. The India Bullion & Jewelers Association Limited has declared that the redemption price would be based on the simple average of the closing price of gold of “999 purity” over the previous three working days. The interest and redemption amount will be deposited into your bank account. (This is the account you provided at the time you bought the bond.) If the investor’s bank account or contact details have changed, the investor should notify the bank, SHCIL, or post office ahead of time. [B-02] Conclusion Gold is the most viewed asset, with both social and emotional worth. It has long been a popular asset in India. Buying gold has shifted radically as the times have changed. Buying gold coins and gold items is not the only choice. The Indian government has issued digital gold certificates or mutual funds that may be stored in a demat account. Buying sovereign gold bonds reduces the need to worry about theft, storage costs, or even gold purity. Sovereign gold bonds have a five-year lock-in period and mature after eight years. As a result, before investing, one must analyze both options in terms of liquidity, and storage, among other things. Also, compared to other assets, gold is more stable amid market instability. It serves as a buffer against this risk. It stabilizes the value of a buyer’s portfolio. To learn more about sovereign gold bond investment, visit Piramal Finance for related blogs and to explore their products and services.

08-11-2023