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Education

Factors For Converting Surface Area Units

Dealing with surface Area conversions is one of the most basic things in Mathematics that you should know. Conversions are the most useful when you are dealing with so many different surface measurement units. So, first of all, what exactly is the surface area of any object? What you must know is that the surface area of a three-dimensional object is the sum of all of its faces. The best way to understand surface area units is through real-life applications. Some situations where the concept of surface areas becomes relevant are wrapping, painting, and building things to achieve the best potential design. You have a situation. Is your car is going faster or slower 30 miles every hour compared to another car moving at 30 feet per second? So, what would you do to convert miles to kilometres? These questions bug everyone—not just students. However, if you know a little algebra, you can easily solve any doubts about surface measurement units. Any conversion can be completed quickly and accurately. [B-01] What Is Surface Area? An item’s surface area is a part of the entire area that the article’s exterior covers. In comparison to the meaning of the circular segment length of one-dimensional bends or the surface zone for polyhedra, for which the surface area is the entirety of the zones of its countenances, the scientific definition of the surface region within sight of bent surfaces is noticeably more necessary. Using their representation as parametric surfaces, smooth surfaces, like a circle, are consigned to surface space. Conversion Factors A conversion factor is a number that is used to multiply or divide one set of surface measurement units into another. If a conversion is required, it must be done using the correct conversion factor to get an identical value. For instance, 24 inches equals two feet when converting between inches and feet. The correct conversion factor to convert 1 hour to minutes is 1 hour = 60 minutes. In a sense, you need to multiply the original measurement by a carefully chosen form of the number 1 to convert all units. Explaining with proper briefing: Write the result as a fraction with the provided units opposite from the initial measurement after finding the given and desired units. That fraction has a value of 1 since the top and bottom are both equal. Next, increase the conversion fraction to the same power as the specified surface area units. Finally, simplify after multiplying the initial measurement by the conversion fraction. Conversion Factors Converting from Surface Area UnitsUnit SymbolMultiply by ( m^2 / Unit )square inchin^20.00064516square footft^20.09290304square yardyd^20.83612736square milesmi^22589988. 110336acreac4046. 8564224hectareha10000square centimetrecm^20.0001square kilometrekm^21000000 Pressure Measure 1 psi = 2.036 in Hg at 32°F 1 atm = 14.7 psi 1 psi = 2.304 ft of water Weight 1 gallon of water = 8.34 pounds 1 cubic foot of water = 62.4 pounds Volume Measure 1 pint = 2 cups 1 quart = 2 pints 4 quarts = 1 gallon 1 liter = 2.11 pints 1 liter = 0.2642 gallons 1 cubic foot = ft3 = 7.4805 gallons 1 gallon = 0.003485 cubic meters = m3 1 gallon = 0.13346 cubic feet = ft3 1 gallon = 231 cubic inches = in3 1 cubic foot = ft3 = 1,728 cubic inches = in3 Time Measure 1 minute = 60 seconds 1 hour = 60 minutes 1 day = 24 hours 1 week = 7 days 1 year = 12 months Linear Measure 1 foot = 12 inches 1 foot = 0.3048 meter 1 mile = 5,280 feet 1 chain = 66 feet 1 mile = 80 chains Area Measure 1 acre = 10 square chains = ch2 1 acre = 43,560 square feet = ft2 1 acre= 4,046 square meters = m2 1 square mile = 640 acres Force Measure 1 kilogram = 2.205 pounds 1 kg m/s2 = 0.2248 pounds 1 slug ft/ s2 = 1 pound Examples Example 1 How many pints are there in a 10-gallon pail? Also, find out How many cups are in a 10-gallon pail? Step 1. Find the right conversion factors. 1 gallon = 4 quarts, 1 quart = 2 pints, 1 pint = 2 cups Step 2. Make a cancellation table so all units will cancel, except the desired unit, pints. Gallons to Pints There are 80 pints in 5 gallons. Pints to Cups There are 160 cups in 5 gallons. Example 2 Akash fills a backpack pump with 5 gallons of water. How much weight in water has he added to his pack? 42 lbs 50 lbs 10 lbs 100 lbs Step 1. Find the suitable conversion factor. 1 gallon = 8.34 Ibs Step 2: Make a cancellation table so all units will cancel, except the desired unit, chains. Feet to Chains Akash has 42Ibs weight in water that he added to his backpack. [B-02] Conclusion The most important conversion factors and their related numbers have been given here. It’s important to have experience converting units no matter what you are studying. You can ensure you are keeping the units straight by writing your unit cancellation table on paper, the back of an envelope, or whatever else may be handy. Good planning requires the solution of issues in units you are familiar with. With units, errors can be a lot. Check your result using your knowledge of units.

08-11-2023

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Hum Kaagaz Se Zyaada, Neeyat Dekhte Hain, Business Loan

Video Transcript – LOHAAR Revised: Piramal executives –Namaste Sir! Lohaar –Namaste Piramal executives –Vo Loan ke liye appne apply ..? Lohaar –“yahi bataane aaye ho na…ki…mujhe kaamkaj ke liye loan nahi mil sakta…” “Kyunki mere paas dhandhey ke, kamaai ke…koi..pakkey kaagaj nahi.” Lohaar: Aurrr mere saare paper tho … Piramal Executive interrupts: Loan… milega Sir.” “kyunki humne pata kiya hai ki aaj tak aapne kisise…ek laakh liya ho ya ek rupaya…humeshalautaya hai” “Loan milega!” Hum Kaagaz Se Zyaada Neeyat Dekhtey Hain. Piramal Finance. Reference link –https://www.piramalfinance.com/neeyathttps://www.piramalfinance.com/business-loan

08-11-2023

Guide

Union Budget 2023: What to Expect from New Income Tax Regime? Explained

As we begin a new year, we have lofty expectations and hopes for the government. We Indians are eager to find out what the government has in store for us in the upcoming Union Budget 2023. Whether you are a salaried employee or an industry shareholder, you will undoubtedly want to know how the new tax regime in Budget 2023 will benefit you. [B-01] About The New Tax Regime This year, Indian taxpayers can take advantage of the new tax regime slabs that will be implemented at the start of the financial year 2023. But there’s sad news: You won’t get to claim any exemptions or deductions. The latest tax regime features a unique set of new tax slabs for Indian citizens depending on factors like income, gender, age, etc. It is expected that, like the current scenario, the taxpayers will get to choose any of the tax regime slabs of their choice in the upcoming financial year. Overview of Union Budget 2023 The central government is expected to make some major modifications to the tax slabs of the old tax regime to introduce new regime tax slabs with increased threshold limits for people with high tax income (ranging between INR 10 lakh – INR 20 lakh). Source: Deloitte India. It is also anticipated that the Indian Government may lower the tax rate from 30% to introduce a new income tax slab rate of around 25%. In a report, Deloitte India said that the current threshold limit of INR 1,50,000 for investments under Section 80C is too low. Given the rising inflation and living expenses, it is fair enough for the government to consider increasing the limit. It will benefit the taxpayers in two ways. They will be inclined towards savings and will get the advantage of a much-reduced tax outgo. Thus, they can easily meet the surging price of multiple commodities with an increased disposable income. Now, let’s take an idea from a detailed report released by EY India to comprehend what we can exactly expect from the Union Budget 2022–23 in detail. Detailed Insight on What to Expect: As per the report from EY, the concessional new income tax regime slabs will be made more reasonable and attractive for taxpayers in the Union Budget 2023. EY says that our respected Finance Minister Nirmala Sitharaman may achieve that in the following ways: EY predicts the Government will introduce a new tax regime with revised and new tax slabs that will go a maximum of INR 5 lakh without any tax. Furthermore, unlike before, when the 30% income tax slab rate was applicable for income above INR 15 lakh will now change. The tax slab will now be applicable for income above INR 20 lakh. Here is a table representing a better overview of the proposed changes: Expected Concessional Income Tax Regime 2023Income (In INR)Tax Slab RateUp to INR 5 LakhNilINR 5 Lakh – INR 7.5 Lakh7.5%INR 7.5 Lakh – INR 10 Lakh12.5%INR 10 Lakh – INR 12.5 Lakh17.5%INR 12.5 Lakh – INR 15 Lakh22.5%INR 15 Lakh – INR 20 Lakh27.5%More than INR 20 Lakh30.0% Source: Fortune India: Business News, Strategy, Finance and Corporate Insight The new tax regime in the Union Budget 2023 is expected to permit a standard deduction valued at INR 50,000. Section 80C/CCC/CCD/D benefit should be available for up to INR 2.5 Lakh. Nevertheless, this benefit should be limited to Mediclaim insurance (currently covered by section 80D), employees / self-contribution to new pension scheme {currently covered by section 80CCD(1)/(1B)}, pension policies (currently covered by Section 80CCC), interest on housing loans (currently covered by Section 80C), qualifying life insurance products, and provident funds (including PPF). Based on the EY report, you can say that Section 80 C’s scope is vast and extensive and comprises a range of expenditures, savings, insurance, etc. Under the concessional tax regime, it can be reduced on housing loan interest, qualifying life insurance products, and PPF/PF. [B-02] Final Thoughts Let’s conclude what needs to be done by considering the past budget. The removal of all deductions, including the standard deduction, made the new tax structure unpopular. When the tax deduction, provident fund contributions, and house rental allowance were removed from the new tax regime, which was intended to benefit regular employees, fewer people chose to opt for it. It is important to keep these three basic deductions in mind.

08-11-2023

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Why Should You Care About Amortization?

Financial calculations can often be quite complex. Therefore, many financial professionals use different tools to overcome these complex processes. Amortization is a crucial concept. It will require the borrowers to dive their loans into uniform payments until they pay off the full loan. Amortization is a better loan payment method than traditional high-interest/low principal. It offers uniform payments. These can be calculated using a mortgage amortization calculator. Read on for more information. [B-01] What Is Amortization? Amortization is an accounting process. Through this, the monetary value of an intangible property will reduce over time. When amortizing a loan, there’s an option to repay debts in a consistent manner. The focus should be on the principal payment. It’s important to make the payments in full and on time. This ensures that the loan is fully paid off by the maturity date. A structured approach to loan repayment helps keep you on track towards achieving financial goals. This meets and surpasses performance and sales goals. With amortization, most interest is paid early. It decreases as the loan is paid off. It is fully paid by maturity. This applies to personal, home, and vehicle loans. What Are Amortization Schedules? When using a loan amortization calculator, you must be familiar with the schedule. The schedule plays an important role in determining the loan payment’s interest and principal. A table will be created in an amortization schedule. This will provide a complete loan breakdown. The table will contain the total amount to be paid, principal and interest. At the end of the table, you will find information on the total interest and principal amount you will be paying. How To Calculate The Amortization Of A Loan? An amortization calculator can play an important role in understanding the calculation process. Individuals must enter the interest rate, principal amount, duration and periodic payment to determine the calculation. When using a loan amortization calculator, there are other details that you will need for smoother and faster calculation. The other details you will need for the calculation include the following: The initial loan balance the company is borrowing. The accountant will use a simple formula for calculating the loan. Next, the monthly interest rate will be calculated. To understand how much interest is paid on a particular principal, subtract the interest amount from monthly payments. Calculate the remaining balance and pay off the balance. It will help to reduce the principal for the next payment. The above-mentioned steps will help you calculate the amortization schedule for the first month. For the calculation of further months, follow the steps above to understand the remaining amount to be paid for the rest of the time. If you’re finding it difficult to calculate the schedule manually, use the loan amortization calculator. Why Is It Important To Understand Amortization? Awareness of the benefits of amortization in our daily life is crucial. Using a mortgage amortization loan calculator will help to understand the real value of the loans and assets. Furthermore, it can also help you make better decisions regarding financial health. Numerous collaborative economy apps are coming up. When we tend to buy and sell on these apps, we get to understand the product’s actual price because of annual amortization. The loan amortization calculator will consider the time of use and its original cost. If you’re using technology devices, try understanding the amortization cost for the same. This will help to get an idea about the duration when it needs replacement. Based on the calculations, a budget can be a certain amount for payment to prevent the wallet. While taking a loan, being familiar with the amortization schedule will help to avoid any unnecessary debts. Moreover, it will prevent the purchase of any products that will lose their value by the time the loan amount is paid off. Importance of Amortization in Accounting The concept of amortization in accounting applies to businesses with intangible assets that take loans. Both types of assets- tangible and intangible ones tend to have a finite life. Amortization allocates a specific value to the intangible and tangible assets. This is because both tend to lose their value or wear out after some time. When a business purchases a fixed asset, the cost will be spread out for specific years. It is mostly because the asset might help produce some income over the years. Depending on the product’s lifetime, the amount can be amortized after a certain period. It helps to understand the cost of the property or asset for a specific time each year. As per the amortization concept, intangible assets can be written down or amortized after some time. It helps in understanding the cost of the asset for a longer period. Therefore, the companies will get to reflect upon the true cost of the business. The benefits will continue to flourish until a limited or initial cost is reported. Amortization Gives More Buying Power The mortgage amortization loan calculator can help in understanding complex processes easily. As a result, it will help in understanding the concepts and financing the dreams. Over time, amortization will play an important role in making the monthly payments smaller. This will be quite useful. This is because you will have more borrowing or buying power than when you paid off the loan or principal amount equally. If you wish to buy a bigger asset later on, you can switch to better borrowing without any limited amount. [B-02] Conclusion Amortization refers to the process of writing off the original cost of the asset. As a result, you will be able to pay off the loan within that time. The loan that you pay off will also include the interest payments on the principal amount. Amortization can also provide reduced interest payments and increased loan life. Amortization can be quite a complex process. This is why it is advisable to reach out to professionals at Piramal Finance. They are experts in their field. So they will understand the entire requirements. They will use the amortization calculator. You can then make the payments accordingly. You can schedule a meeting with the experts at Piramal Finance for further clarification.

08-11-2023

Stocks Markets

Why Indians Should Invest in US Stocks and Why?

Globally, many of the top wealth-creating companies are based in the US. During the years of their existence, these companies have made excellent hubs of investment. As such, there are not many links between the US and Indian equity markets. This is why investment in US firms is attractive for investors. This is true, especially for Indian citizens. At present, the US controls many of the stock markets globally. Among the largest stock exchanges in the world is the US stock market. They also include the NY stock exchange and NASDAQ. [B-01] Advantages Of A Developing US Economy Today, many leading blue-chip companies are listed on stock exchanges in the US. This has given access to investors worldwide to benefit from their profits. Interestingly, blue-chip companies of Indian origin are also listed on these exchanges. But, due to their smaller scale of business, they are not so attractive. Here are some reasons why Indians can benefit from investments in the US markets. Better capitalization Better capitalisation is the leading benefit of this prospect. Companies in the US are rich in their corpus. Notably, the NASDAQ and NY stock exchanges are the largest markets. Incidentally, the US stock indexes have a huge impact on the global markets. The free market forces also favour the markets in the US. This is a valid reason for any investor to put their money in the markets here. Profits due to the US Dollar’s appreciation In recent years, the Indian Rupee has weakened. Compared to the US dollar, the Rupee has shown only depreciation. It is predicted that this trend will continue. Due to this, any earnings from equity outside India are suffering. This happens due to the rupee-to-dollar exchange rates. But the depreciation of the Indian Rupee helps to enhance profitability. It will happen if the US equity gains. It will impact the assets governed in dollars. So, it is not a question of the global markets falling or remaining steady. If there is a decline in the Indian Rupee against the dollar, you will benefit. So, investing in US markets will preserve your wealth even if the Rupee falls. Portfolio diversification The US is a popular investment destination. Most companies worldwide have a presence on the US stock markets. So if you invest in these companies, you will be able to diversify your financial portfolio. You will also gain international exposure. But Indian companies mostly dominate the Indian indices. If any event occurs in the country, it will have an impact on each of those companies. In contrast, the markets in the US are very varied. Even during tough times, companies tend to show strength. Indian indices and companies are in stark contrast. Exposure to innovation India lacks the presence of influential firms. This is even though it is a fast-developing economy. Thus, it is hard to find opportunities to create wealth through investment in firms. In contrast, the US stock markets are marked by the presence of some of the leading companies. These include some of the best names in technology and consumer products. Investors can find many investment opportunities in the US. There is ample scope to invest in emerging industries. Some of them are biomedical, artificial learning, robotics and more. How to invest in the US Stock Market from India? There are two routes to investing in the US markets. You can do this from India. Direct Investment Investment Apps In recent years, there has been a heavy influx of apps in this segment. Now, many start-ups have introduced mobile apps. They allow Indian investors to put their money in US firms. But these apps follow the applicable regulatory limits. Due to this, you may not be able to perform intraday trading. So, you can buy stocks in the US from India for the long term. You can benefit by using fractional investing. So, you do not need bulk money to buy shares of prominent companies like Amazon, Apple, Netflix and more. For as low as $1, you can buy a fractional unit of the shares of these companies. These apps have made it possible to invest in many of these dream firms. US-related brokerage accounts You can open a trading account with a broker abroad or in India. Using this Demat account, you will be able to invest in equities in the US. Usually, this will be done via direct investing or LRS. As such, you do not require a US address or citizenship to open such an account. These days, many local brokers are collaborating with brokers in the US. They act as a link and help you perform the trading transaction. So, you will be opening an international trading account. It could be with any of the foreign brokers. All you need are a few documents. After furnishing them, you will be ready to operate the account. It is also possible to establish an offshore trading account. But be wary of the applicable fees for such accounts. ETF ETFs are expanded as Exchange Traded Funds. They give you instant access to multiple stocks in the US. An ETF allows you access to focused industries in the US markets. They track specific sectors and not individual firms. The expense ratio of an ETF is lower than mutual funds. Stacks Stacks are ETF baskets. You can invest using them in just one click. Stacks are created by financial experts and professionals. They do so after rigorous studies. Also, these ensure a regular rebalancing of the stack. It is done following the state of the markets. US-Focused-Indian Mutual Funds It is possible to invest in Indian mutual funds. Many of them consist of US stocks. There are many benefits of mutual funds. They give you several benefits like the diversity of portfolio. Moreover, you can get a geographical advantage this way as well. At the same time, they carry their risks and rewards. Overall, a fund such as this could be impacted by national events. At the same time, exchange sectors can also impact such funds. These funds also carry their fees and expenses. [B-02] These are several reasons Indians should also invest in the US stock market. You can learn more about such stocks and other financial concepts visit the Piramal Finance website. It is the premier destination for all financial knowledge and information about such funds. You can benefit immensely by spending your time on their website.

08-11-2023

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How Your EPF Can Help You Buy Your Dream Property In India

Buying your own property is the dream of every person. Have you ever considered using your EPFO money to pay for the house of your dreams? The Employees’ Provident Fund (EPF) in India is a government-backed retirement savings scheme for salaried individuals. It offers a convenient and tax-efficient way to save a portion of your income for the future. Along with providing financial security in old age, the EPF can also be used to purchase a dream property. By strategically using your EPF savings, you can turn your housing aspirations into a reality. However, it’s essential to keep in mind the guidelines and rules set by the EPFO regarding the use of EPF funds for property purchases. With careful planning and proper utilization of EPF savings, it’s possible to make your dream of owning a home a reality. [B-01] The lock-in period for the Provident Fund (PF) scheme is 15 years. It is a closed-ended investment. As a result, when you are encouraged to invest in PF, the image of money locked away in a closet hangs over your head. Nevertheless, there are some procedures in place for investors so they can take advantage of their provident fund savings before the 16-year period has run its course. Not many people are aware that provident fund savings can be utilised to acquire real estate. Let’s examine how this functions. One way to realise your desire for a home is to use your provident fund to buy a property. Firstly, let’s understand the various types of provident funds. When you first began working, you must have heard the word EPF. Employees’ Provident Fund Organization (EPFO), based in India, manages the EPF account. A portion of the pay (now 12%) is contributed to this account by the employee, and the company also contributes the same amount. It is very different from PPF (Public Provident Fund). PPF, or public provident fund, is a savings account that may be opened at any State Bank of India branch. Here are some of the key distinctions between EPF and PPF: EPF is only intended for salaried employees, but a PPF account can be owned by a child. The tenure of your employment and the tenure of the EPF coincide. When you leave your company, you can request that the EPF money be withdrawn and the account closed. On the other hand, money held in a PPF cannot be withdrawn early. Based on the amount deposited in PPF, the depositor may request a loan from the bank (more about it in the next section). PPF interest is tax-free, however, employee provident fund profits in the form of interest constitute taxable income. Using the Public Provident Fund to Buy a Property Even though there is a 15-year lock-in term when investing in a public provident fund plan, you can still utilise the money by taking out a loan after five years of contributions. The money can be used to build the property or to purchase an already-built property. If you and your spouse jointly or alone own the plot, you may also borrow money from the provident fund. The amount of a loan you can obtain through the provident fund plan depends on its use. For instance, if a loan is used to purchase real estate, the maximum amount that can be borrowed is equal to the number of accumulated pension funds up to the maximum amount of two years’ worth of basic pay plus dearness allowance. The maximum amount of accumulated PF is the only limit on loans for the purchase of a built-in house or construction. The loan amount is equal to the salary for three years plus the cost of living. Home loans are provided up to the lesser of the property’s cost and the amount of accumulated PF. One can withdraw money from PF for upgrading an existing property in addition to building a new home or purchasing a property that has already been built. It is not required that this property match the one for which the loan for development or acquisition was obtained. The property that will be built may be owned jointly by the husband and wife or by either spouse. Provident fund scheme’s conditions for money withdrawal If house construction is to begin right away or within six months of the withdrawal, you may take money out of your provident fund. The completion must be completed within a year as well. Similar requirements apply for using the money for purchases: the property must be bought within a year following the money’s withdrawal. There should be a ten-year gap between any two provident fund withdrawals. As a result, after taking out a home loan from your provident fund to buy a property, you can only withdraw again for improvements ten years after the first time, provided there is still money in your PF account. If funds are to be withdrawn to enhance a built-in property, five years must have passed after the building was finished. The PF amount may also be applied to the repayment of a mortgage! You can certainly check your provident fund account if you have a home loan and need assistance paying it back. If you wish to use the money from your provident fund plan to pay off a home loan that you or your spouse took out jointly is also an option. The maximum amount that can be taken for the payment is the whole amount accrued in PF (less what is necessary to maintain the account), up to the equivalent of three years’ salary and dearness allowance. The entity does not have to be an individual to use this service. Publicly recognised organisations like municipal corporations, state and federal governments, registered non-cooperative societies, and any other development authority may also make withdrawals, but only for residential use. Key PPF withdrawal guidelines What amount can be taken out of a PPF account?The maximum withdrawal amount is, in fact, subject to several conditions. The PPF account cannot be tapped until five years of contributions have been made, as was previously stated. 50% of the closing sum at the beginning of the fifth year of contributions is available for withdrawal. By way of example, if the PPF balance is 1 lakh at the end of the fourth year, only 50,000 can be withdrawn at the end of the fifth year. The closing balance utilised for computation in years longer than five years will also be the total accumulated after the previous year. Only loans that are within the PPF account’s maximum withdrawal amount are permitted. In a given fiscal year, you are only permitted one withdrawal from your PPF account. Only once the initial loan has been fully repaid is a second loan from a PPF account authorised. Regulations regarding EPF account withdrawals If you work for a salary, you can join the EPF plan and put aside a portion of your pay as long as you continue to work for the same company. The employee provident fund organisation (EPFO) has policies in place to support its members who desire to buy real estate. The following regulations apply: * A home purchase may require a withdrawal of 90% of the EPF account‘s value. If the building cost turns out to be less than the amount taken or if the property is not allocated for any reason, there is a provision for re-depositing the withdrawn cash back into the account within a month. Additionally, the EPF money may be withheld for loan repayment. For this reason, a specific form called Annexure I is supplied, in which the loan applicant is required to fill out all pertinent information. *Following repayment, Annexure II is released with information on the balance of the EPF and the subsequent payments to be made into this account. To allow the EPF account manager to pay the home loan EMIs with the money that has accumulated in the account. *Annexure III must be completed. This Annexure must be completed in conjunction with Annexure I. Once a member leaves the company and closes the account, the EPFO is not responsible for paying any EMI or associated fees. Forms needed to take money out of your PPF account SBI offers Form C for submitting requests for partial withdrawals from PPF accounts. To withdraw the allowed amount, one must include their account number and PPF enrolment start date. In addition to SBI, 22 other banks also provide PPF account options. You can open a PPF account at any of their PPF branches and follow the necessary procedures to withdraw funds to purchase property following the conditions set forth. [B-02] Conclusion This programme is definitely for you if you are conscious of your monthly or daily expenses and have the financial means to purchase a home. However, the programme also has several provisions to build your value property if you are unable to pay a lump sum for your dream home. For more consultancy services visit Piramal Finance Website. In either case, the EPF housing programme is only offered to ensure that you can still purchase your ideal home even if you do not have sufficient cash flow.

08-11-2023

Guide

New Revised Income Tax Slabs: Rates for New Tax Regime Announced in Union Budget 2023

The Union Budget of 2023 has brought several changes to the Indian income tax norms. For the fiscal year of 2023-24, taxpayers can look forward to a beneficial tax regime with reduced income slabs from six down to five. In the recently revised tax slab, exempting average citizens from paying taxes has been made easier- with a raise in basic exemption limit to INR 3 lakh compared to previously at INR 2.5 lakh and an increase in rebate under Section 87A for those earning up to a taxable income of INR 7 lakh per annum! This new tax regime tries to strike a balance between taxpayers and the government, providing tax relief, while at the same time, contributing towards the country’s development. That is, those who select the revised income tax slab for FY 2023-24 and have a yearly salary of no more than INR 7 lakh will not be subjected to any taxes whatsoever! Moreover, this freshly designed tax system is set as the default choice, although citizens are given leeway to remain with their already planned payment procedure. In a major win for taxpayers, the government has slashed the highest rate surcharge from 37% to an impressive 25%, breathing life into the new tax regime. [B-01] What is an Income Tax Slab? The income tax slab is a set of income brackets for which income tax needs to be paid in India. Each income level within the bracket has its own income tax rate, which the taxpayer must pay based on their income in that financial year. This system ensures that those with a higher income are taxed at a higher rate. Individuals who fall into one income bracket are subject to paying only the amount applicable to them, while those who exceed it will have to pay more income tax according to the rates applicable to their respective income levels. The Income Tax Act determines these slabs every year. For FY 2023-24, five new income tax slabs were introduced with reduced rates and enhanced basic exemption limits, which will help taxpayers save on taxes! Revised Income Tax Slab FY 2023-24 Under New Tax Regime No matter what age you are, everyone is subject to the same tax slabs under this new income tax regime – no longer will individuals be distinguished from one another by their age. The old-fashioned system of taxation has been replaced with a more equitable and fairer alternative! SlabOld Income Tax Regime Slab Rates New Income Tax Regime Before Budget 2023 (Until 31st March 2023)New Income Tax Regime After Budget 2023 (From 1st April 2023 – March 2024)₹0-₹2,50,000NilNilNil₹2,50,000 -₹3,00,0005%5%–₹3,00,000-₹5,00,0005%5%5%₹5,00,000-₹6,00,00020%10%5%₹6,00,000-₹7,50,00020%10%10%₹7,50,000-₹9,00,00020%15%10%₹9,00,000-₹10,00,00020%15%15%₹10,00,000-₹12,00,00030%20%15%₹12,00,000-₹12,50,00030%20%20%₹12,50,000-₹15,00,00030%25%20%>₹15,00,00030%30%30% The revised income divisions have drastically reduced the total tax expenses for middle-income earners, providing much-needed financial relief. The income tax changes have been created to make life easier for everyone and encourage more people to come forward and pay taxes. As the new regime tax slab takes effect, taxpayers will be able to save money on their income tax bills with the help of these revised slabs. With the government’s initiative towards simplifying income taxation, India’s taxpayers can now look forward to a simpler and more efficient income tax system. Factors to Keep in Mind before Opting for New Income Tax Slab There are numerous factors that need to be taken into consideration when it comes to Indian income tax slabs. If you have income from sources other than salary income, then income from these sources needs to be considered while calculating the total income, based on which income tax slab can be decided. Taxpayers must determine whether they will gain more benefits by choosing the old regime or the new one before making a decision. Any deductions available under Chapter VI-A, such as HRA and Standard Deduction, should also be taken into account. Moreover, taxpayers should always review their income and taxes paid at the end of each financial year and pay any outstanding dues promptly to avoid any penalties and notices. If you, as an individual or a member of a Hindu Undivided Family (HUF), do not have any business income for the given year, then this option can be exercised on or before its due date. Finally, as a taxpayer, you have the choice to pick either of the two tax regimes. However, once you’ve chosen your preferred option and submitted it for processing, you cannot revert back or make any changes until the end of that financial year. If you choose to revoke your decision for the subsequent tax regime and revert back to the previous one, it is possible for you to select the new tax slab again during this financial year. How the Income Tax will be Calculated for FY 2023-24 Under the New Regime? To better understand the new income tax slab 2023 calculation, let’s take an example of an individual earning income of Rs.12 Lakhs, which falls in the income tax slab of Rs.9 lakh to Rs.12 lakh. The income tax payable by the individual will be calculated as follows: Total Income (Gross)Rs.12 Lakh Travel and Medical AllowanceNILHRANILDeductions (80C, 80CCD)NILIncome that is TaxableRs.12 lakhUp to Rs.3 lakhNILRs.3 lakh – Rs.6 lakhRs.15,000Rs.6 lakh – Rs.9 lakhRs.30,000Rs.9 lakh – Rs.12 lakhRs.45,000Rs.12 lakh – Rs.15 lakhNILTotal Tax to be PaidRs.90,000 Major Highlights of India’s Income Tax Announcement Introduce a state-of-the-art IT return form to ensure maximum efficiency. The presumptive taxation turnover limit has been raised to 75 lakhs for professionals, with a cash receipt limit of no more than 5 percent. Place precedence on technology-based tax governance for maximum efficiency and efficacy. The finance minister proudly announced that the amount of time taken to process returns has drastically decreased from 93 days down to a mere 16. 45% of filed returns are processed within 24 hours. For those earning 15 lakhs, their tax responsibility is a mere 1.5 lakhs – an incredible bargain! [B-02] Conclusion The new income tax slab announced in Union Budget 2023 has further simplified income tax deduction and improved the ease of filing income tax returns. Individuals can now save more on taxes thanks to this income tax new regime’s lower income tax rates, increased basic exemption limits, and a variety of other benefits. To ensure maximum efficiency and accuracy, taxpayers should thoroughly review their income sources before opting for a particular income tax slab for FY 2023-24.

08-11-2023

Cards

How Can You Avail the Benefits of a Free Credit Card in 2022

There are no annual or membership fees with a lifetime free credit card. Free credit cards are designed for people who are just starting their careers or have never had a credit card before. Those who would prefer not to pay any card fees at any point in time also benefit from lifetime free credit cards. There are a few quality credit cards in this category, but the majority merely offer the bare minimum. [B-01] How to Get a Free Credit Card? Knowing which credit card you need When choosing a credit card, it’s important to consider how you want to use it. For frequent fliers, a “travel credit card” may be a good choice because it offers perks like lower hotel rates and access to airport lounges. Credit cards can be broken down into categories based on their intended use. For example, an “entertainment” credit card might give discounts on movie tickets, while a “business” credit card might provide the option of advance credit to the cardholder’s business. With no annual fees, a free credit card for life might be a great perk for individuals who keep their finances in order and carry a little debt. There are a wide variety of shopping credit cards to pick from if you are interested in perks like cashback and rewards. Since there are many alternatives, the first order of business in applying for a free credit card is settling on the type of card you intend to use. Make sure you qualify for a credit card before applying for one Getting a free credit card today is simpler than ever, and most financial institutions have enticing promotions to draw in new cardholders. Before applying for a credit card, you should make sure you are of legal age and have sufficient income to cover the annual fee. People in India can get a credit card from most banks if they are between the ages of 21 and 65. You need to be earning a regular wage to qualify for a free credit card, and the type of card you can get depends on your income bracket. You can get a credit card even if you don’t have a regular paycheck, and many financial institutions actively seek out self-employed people who can benefit from their services. Several financial institutions will issue credit cards secured by your fixed deposit balances. One can also get a supplementary credit card that can be linked to an existing credit card in the family. No minimum age requirement or proof of income is required for an additional cardholder. You only need to be 18 years old and an Indian citizen or a non-resident Indian (NRI). Prepare the necessary paperwork Before applying for a free credit card, you should first make sure you meet the criteria for receiving one. Every credit card application will require these files. Tax filings Bank statements Payslip Some more acceptable forms of identification are voter ID cards, driver’s licenses, and pension books. A valid driver’s license, ration card, or passport is acceptable identification for proving residency. You may also require a passport photo and a photocopy of your PAN card. Keep in mind that you might not always be asked to provide documents such as a PAN card, a copy of your passport, a passport photo, or proof of your current address. This varies across financial institutions and depends on whether or not the bank has received your Know Your Customer (KYC) paperwork in connection with your savings account. Completing the application form Selecting a bank is the next step after settling on a card type and gathering the necessary documentation. You can apply for a credit card at the majority of the major Indian banks even if you don’t have an account there. A ‘credit cards’ section will be on the bank’s official website. By entering their existing customer ID and password into the site, clients can apply for a credit card online. Most financial institutions need new customers to provide personal information after they visit the “credit cards” page. A bank representative will contact the consumer when they enter those details to submit KYC and obtain help with the credit card application procedure. You can always stroll up to the nearest branch if you do not wish to apply for a credit card online. However, given that you live in a technological society, you can also conduct credit card bill payments online. Credit cards come in many varieties, from those designed specifically for travellers to those targeted towards students. Pick a mode of payment When applying for a free credit card, it’s important to consider how you’d like to pay your bills. Most financial institutions still permit consumers to physically visit a branch and pay with cash for credit card bills. A nominal service charge might be tacked on in such a scenario. The ATMs typically have drop boxes where you can deposit a check along with your credit card information. A payment made by check will be cleared in three business days, so be sure to send your money at least that much time in advance. You may usually pay most lenders with your credit card through the NEFT function of any bank. When making an online NEFT payment, the payee account number is where you digitally enter your credit card information. Unlike other payment methods, which may take up to two business days to be paid, payments made through this method are credited the same business day they are received if they are made during regular business hours. While applying for a free credit card, knowing exactly how you’ll pay your bills might save you time and hassle later on. Benefits of a Free Credit Card Convenience If you can spend with a tap of your card, there’s no reason to lug about a big wad of cash. Presenting plastic in the form of a credit card instead of fiddling with cash or checks is a huge time saver. If you have a digital wallet, you can attach your card to it and use it to make payments without ever taking it out of your wallet. Interest-Free Credit Interest fees are waived when using a credit card for the first few billing cycles after making a transaction (perhaps as long as 50 days). The term “buy now, pay later” could not be more appropriate. Rewards To accumulate rewards, use your free credit card for all of your purchases. These points can be redeemed for intriguing merchandise, gift cards, and even free airline tickets. Discounts and Cashbacks Your fee credit card grants you access to a wide variety of cashback offers and reward points, particularly at a curated collection of offline and online retailers, including waiving fuel surcharge fees and exclusive online discounts. [B-02] Conclusion Keep in mind that different credit cards from different banks provide different perks. The credit card comes with a selection of promotions from which you may pick to gain cashback or instant discounts. There is little time between completing the application and receiving your credit card in the mail. Looking for an instant personal loan? Apply for a personal loan with Piramal Finance and get instant funds!

08-11-2023

Know More

List of all housing Scheme in India

The Indian Government and its subordinates make it easy for you to own a house. A government housing scheme saves you a lot of money while purchasing real estate and provides you with a house for a lower rate. You may visit the Indian banks or HFCs and register for the housing schemes provided by the government. Look into a few of the government housing programs to find out how much less you can pay than the going rate for a property in India. PMAY, or Pradhan Mantri Awas Yojana The PMAY was created to help economically disadvantaged members of society. This comprises economically disadvantaged, middle-income, and low-income people (LIG). It aims to make homeownership more accessible to them. This approach may save INR 2.67 lakh on your home loan interest. You must first qualify as a creditor to take advantage of the program’s benefits. What is the difference between receiving benefits in an urban or rural setting? Urban: Individuals who fall under the Low Income Group, or LIG, with annual household incomes ranging from 3 lakh to 6 lakh INR EWS (Economically Weaker Section) with an annual income of up to 3 lakh INR Under the Middle Income Group, or MIG 1, a person who earns up to Rs 12 lakh annually is qualified for a 4% loan subsidy for loans up to INR 9 lakh. The maximum subsidy offered by CLSS is INR 2.35 lakh. According to the Middle Income Group, or MIG 1, a person earning up to INR 18 lakh can get a 3% subsidy. This subsidy is applied to a loan of up to INR 12 lakh. CLSS provides a maximum subsidy of INR 2.30 lakh. For different sections, the interest subsidy on the PMAY scheme is: 6.40% for the Economically Weaker Section 6.40% for low-income groups 4.00% for Middle Income Group 1 3.00% for Middle Income Group 2 Rural: The Gram Sabha itself will decide who gets what. They decide who is qualified based on data gathered at the federal level. They compile a list of the socially and economically marginalised groups in the country. The recipients’ list is then divided into groups according to the PMAY rural program. If the applicant’s name appears on the Gram Sabha’s publicly accessible list, they are eligible to apply for a house loan via the PMAY rural program. The Scheme of the Maharashtra Housing and Area Development Authority A fixed number of residences have been reserved for the scheme. They are distributed based on each applicant’s income. You can apply for a house loan under the program if you are a Maharashtra resident with a valid domicile certificate. You must be at least 18 years old, possess a PAN card, and have a consistent source of income. The income categories for flats are: Lower Income Groups (LIG), for people earning between INR 25,001 and 50,000 per month .Middle-Income Groups (MIG), for people who earn between INR 50,001 and 75,000 per month. High-Income Groups (HIG), for people who make more than INR 75,000 per month. How Do You Apply? Go to the Maharashtra Housing and Area Development Authority’s website. Fill out the application and choose your income level and lottery scheme. Then, print your application acknowledgment form and submit your online lottery registration payment. You can apply for the PMAY scheme if you wish to boost your property's affordability. The following documents must be submitted: ID card, Aadhaar certificate of domicile the voter ID card birth registration a driving licence a diploma from a school Card PAN Passport The DDA Housing Scheme Residents of Delhi are provided with schemes to afford a house of their own based on their income, like in other states. The DDA programme was initiated in March 2019. It offers five thousand flats in some parts of South Delhi. These parts include Vasant Kunj, Rohini Sector 34, and Kalkaji. If you are of Indian origin and over the age of 18, you may apply for this scheme. You should belong to one of the categories among LIG, EWS, MIG, and HIG. There are different banks listed on the DDA website. You can submit your application for this scheme at one of those banks. Enter the DDA website, complete the application form, and then make payment. Different registration fees apply depending on your category. For different categories of flats, the registration fee is listed below: For HIG flats, the fee is INR 2 lakh. For MIG flats, the fee is INR 2 lakh. For LIG flats, the fee is INR 1 lakh. For 1 BHK Flats, the fee is INR 15,000 For Janta Flats, the fee is INR 10,000. For EWS-reserved flats, the fee is INR 25,000. If you prevail at the draw, you can quickly take ownership of the apartment. To complete the necessary formalities, you can submit documents like your PAN card, Aadhaar card, voter’s ID card, bank statements, and ITR report. NTR Urban Housing Scheme The NTR Housing Scheme was initiated in 2016. It aims to assist underprivileged sections of Andhra Pradesh. They can take advantage of this by purchasing affordable housing. In 2018–19, the Andhra Pradesh government distributed 15,091 houses through the Pradhan Mantri Awas Yojana (PMAY) and NTR (Urban) Nagar schemes. Any resident of Andhra Pradesh not availing of a government-funded housing scheme can take advantage of this scheme. They are eligible to apply for this housing scheme. You must hold a valid BPL or white ration card if you wish to apply for this housing plan. Under this program, you’ll get a subsidy of INR 2.5 lakh. In addition, if you are an SC or ST beneficiary, you will receive an additional INR 50,000. Haryana Housing Board Housing Scheme This scheme aims to help the sections of society that are weak economically. This plan offers freehold residential and commercial building lots for allotment and construction within the state. You must enter a lottery according to the conditions and deadlines to benefit from the housing program. You must pay a participation fee. Your family’s annual income cannot exceed INR 3 lakh. You will have access to a freehold plot if you win the drawing. Kerala Housing Board housing scheme The Kerala State Housing Board was established in 1971. The board implemented various housing construction and home loan schemes designed to assist the economically disadvantaged in meeting their housing needs. Go to their official website to learn more about the Kerala Housing Board housing scheme. [B-02] Summing Up The government implements various government housing schemes to assist citizens. These schemes provide many subsidies and financial assistance to citizens, which can aid them in purchasing their first home. Different states have different criteria for selecting the beneficiaries of the scheme. To read in-depth, you should go to their official website. Take advice from professionals like Piramal Finance to better understand the eligibility criteria and compare the different home loan offers so that you can make an informed decision.

08-11-2023