More articles for you

Your one stop place for everything related to finance and lending

Tax Savings

Reasons why NPS is the Best Tax saving Investment Option

Anyone earning a sufficient amount of money has to pay income tax. Yet, people can lower their tax obligations by making certain investments. The government gives tax advantages for investments in some schemes. One of the choices for this is the National Pension System (NPS). This option under Section 80C offers a wide range of tax benefits. This scheme is a ray of light for people who want financial support after retiring. Before explaining why NPS is the best choice for tax saving, let’s get into its basics. [B-01] What is NPS about? The PFRDA oversees the working of NPS. It was initially designed for government workers. Later, the government made the program available to all. The NPS delivers market-linked returns on investments. This sets it apart from most pension plans. The scheme encourages individuals to make periodic deposits to the account until maturity. Professional fund managers oversee the collected fund in the NPS. Once you are 60 years old, you can withdraw 60% of the corpus. The remaining 40% should be used to purchase an annuity plan. Eligibility for National Pension Scheme The following are the criteria for opening an NPS account: You should be an Indian citizen (resident or not). An Overseas Indian Citizen (OCI) can also apply for NPS. Your age should be between 18 to 70. Follow and submit all the documents mentioned in Know Your Customer (KYC) form. One must be able to sign a contract lawfully. This is followed as per the Indian Contract Act. You must not be of unsound mind. You must not be a part of Hindu Undivided Families (HUFs). Persons of Indian Origin (PIOs) can’t apply for NPS. NPS is an individual pension account. A third party cannot open one on their behalf. Functioning NPS offers two different account types: Tier I and Tier II. Tier I: The funds in the Tier 1 account are restricted until the investor turns 60. It is focused on retirement. Under certain circumstances, one may make partial withdrawals. These cases can include health issues, debts, etc. It is allowed only after three years of service. A Tier I NPS investment comes with several tax advantages. The minimum investment for this account is Rs. 1000 per year. Tier II: NPS Tier II accounts are opened after Tier I. They can be set up online later. You can also open them at a Point of Presence (POP). This add-on account allows you to invest and withdraw money from the NPS schemes. You won’t be charged with an exit load. The Tier II account allows for flexible withdrawals. It works like a standard investment plan. You are allowed to make several donations and withdrawals from it. The account gives tax benefits. It allows you to choose an asset class for investment. Benefits of NPS: Supple: One should plan the growth of investments properly. It’s crucial to keep track of the pension corpus. For this, NPS offers various investment options. It also allows the selection of Pension Funds (PFs). Subscribers have the option of changing their investment options. They can also switch fund managers. This benefit is valid for both accounts. Accessible: You can manage your NPS account online. Users can create an NPS account through the eNPS platform. You can also make further submissions through the eNPS portals of CRAs (Credit Rating Agencies). Returns: A part of the NPS is invested in the stock market. The returns are not always guaranteed in this case. However, the returns gained are pretty high. It offers more than other tax-saving investments. This program has been working for more than ten years. It has produced annualized returns of 9% to 12%. Monitoring: NPS Trust regularly analyzes the performance of fund managers. The account is monitored under PFRDA. Thus, compared to similar pension programs, NPS’s account maintenance costs are low. Cost is crucial when saving cash for retirement. The fees can reduce the corpus during the long investment period. Tax Benefits: The following are the tax deductions offered by NPS: For employees on self-contribution- Under Section 80 CCD(1): Tax deduction up to 10% of salary (Basic + DA). The limit of deduction is Rs. 1.5 lakh. Section 80 CCD (1B): It provides further deductions up to ₹50,000. The limit can exceed Rs. 1.50 lakh. For an employee on Employer’s contribution : Under Section 80 CCD (2): Tax reduction is 10% of the employers’ salary (Basic + DA). The limit is Rs. 1.50 lakh under Section 80 CCE. Tax benefits to self-employed:Under Section 80 CCD (1): The Tax deduced is up to 20% of gross income. This is fixed at Rs. 1.5 lakh.Under Section 80 CCD(1B): Additional Rs. 50,000 is reduced in taxes. The limit can exceed Rs. 1.50 lakh. For partial withdrawal from the account: Tax reduction is up to 25% of the contribution made by you. PFRDA gives the terms and conditions under Section 10(12B). When an Annuity is bought: Section 80 CCD (5) exempts the taxes on annuity purchases. But, the income from these annuities is taxed. It is done according to the income tax slab rate. For Lump-Sum withdrawal: You can avail of tax exemption on lump sum withdrawals. It is eligible for 60% of the collected pension cash. This is allowed when you turn 60 years old. [B-02] Conclusion The National Pension System is the best tax-saving choice. It has developed into one of the top retirement plans. This is due to the abundance of tax advantages. You are also given flexible investment options under it. It provides market-linked returns on deposits. This is very beneficial for your post-retirement period. Piramal Finance will give you excellent guidance while applying for NPS. You can visit our website for further details and queries. It’ll be our sincere pleasure to be at your service.

08-11-2023

Tax Savings

This is How You Can Grow Your Wealth While Saving Taxes

Everyone wants to create wealth in their lifetime. But for wealth creation, you need knowledge and discipline. Knowledge is vital to making the right investment decisions. Also, you need to know the different ways you can save money with tax breaks. Another aspect is having the discipline to invest regularly in your plans. Your wealth creation plan will only be complete with proper tax savings. Thus, it would help if you learned how to grow your wealth while saving taxes. It is the perfect combo for you to become wealthy over the years. [B-01] Factors to Consider in Choosing Tax-Saving Wealth Creation Strategies The options for saving taxes and growing your wealth are plenty. You need to align your financial goals with the correct investment tool. Some of the factors you need to look at are: 1. The lock-in period of the investment: It would be best to look at the liquidity factor, as most tax-saving investments have a lock-in period. How long you stay invested must align with your financial goals. For example, when saving for your child’s education, align the investment duration with the lock-in time. 2. Taxability of the Income or Interest Earned: Since one aspect of wealth creation is tax savings, check the applicable taxes on the interest earned. It would help if you did this because tax exemptions can increase your gains from the investment. A tax benefit is crucial for you to create more wealth. The more you can save, the more money you will have over many years. 3. Expected Returns and Interest Rates: The returns that your investment generates are your profit. When you make more profit, your wealth grows. So factor in the interest rate you will get from every tax-saving investment scheme. The more interest you can get, the better will be the growth of your money. Another important point in your wealth creation strategies is to look for compound interest rates. Regular compounding of the interest amount will give exceptional returns. 4. Security of the Investment: You must balance your investments. It means putting some money into a high-risk, high-rewarding investment plan. At the same time, some of your money should get invested in low-risk investment products for long durations. Your wealth creation plan should include both. This way, you will ensure better security for your investments. Some Wealth Creation Investments with Tax Savings The following are some investments you can make to increase your wealth and save taxes: 1. Invest in a Public Provident Fund (PPF): The government provides this PPF investment scheme, which you can open at the bank or post office. This investment will lock in your investment money for 15 years. But the security provided by PPF is the safest way to invest your money. Also, the returns generated by this wealth creation plan, which are currently 7.1%, are excellent. If you are someone who likes to take no risk, this is the best way to invest. You get the surety of the government to get guaranteed returns from this investment plan. Besides, your returns from PPF are tax-free because of the longer duration of the investment. 2. Take a unit-linked insurance plan (ULIP): A ULIP provides a balanced way of investing. A part of your money is for life insurance premiums, and the remainder goes into market-linked equity investments. The risk levels of ULIPs are moderate because the investment amount gets distributed. Opt for this scheme when you have wealth creation strategies that include long-term investment. This plan’s minimum lock-in period is five years, but it can stretch to 15 or 20 years. The fund value is tax-free if you decide to exit the ULIP after five years. Also, after the scheme matures, the maturity amount is tax-free. But if you take the ULIP after April 1, 2020, there is a cap on the tax-free investment amount. To qualify for tax breaks, your annual investment in the plan should be less than INR 2.5 lakhs. 3. Save taxes with the National Pension System (NPS): NPS is a retirement savings plan and a long-term wealth creation investment. You get the returns once you are 60 years old, and the income is partly tax-free. On maturity, you will get a lump sum amount for which you can claim tax exemption under sections 80C and 80CCD (1B). Another part goes into an annuity plan that will provide monthly income for you. The annuity amount, however, is taxable by the income tax department. The best part of NPS is that your wealth grows much faster. It is because the compounding of the interest amount happens every year. Also, NPS is a market-linked savings plan that gives your money more opportunities to create wealth. This scheme can help you develop a good habit of regular saving. 4. Grow Your Wealth with Equity Linked Savings Schemes (ELSS): The growth of your wealth when you invest in ELSS depends on the stock market’s performance. It is because ELSS is a mutual fund product used to purchase equity. The potential to make great returns is higher than that of other investment instruments. But the risk factor is also higher with ELSS investments. You can save tax on the returns you make in this wealth creation plan under Section 80C of the Income Tax Act. The limit is up to INR 1.5 lakhs of tax exemption allowed with ELSS investments. It even has a lower lock-in period of three years when you compare it to other tax-saving plans. You can continue to invest in ELSS beyond the three-year lock-in period. [B-02] Conclusion As you can see, wealth creation is a lengthy process that takes time. It would help if you made the right informed choices to make it happen. Most importantly, you should start saving early, as time is necessary for growing your money. Keep a balanced investment portfolio in terms of risk-taking. Also, use the strength of compounding your returns to ensure incredible investment growth. Piramal Finance can provide excellent assistance to grow your money and save taxes as you become wealthy.

08-11-2023

Personal Loan

What To Know About Personal Loans

Personal Loan:- Personal loans are unsecured loans that are advanced depending on your credit score and your capacity to repay them from your income. Also known as a consumer or multipurpose loan. Personal loans require no guarantor or security and can be obtained with minimal paperwork. However, it must be paid back in monthly installments, as do most loans. It can be used for any expense, such as education, marriage, travel, house repairs, hospital bills, or even the purchase of a gadget. You can even use the money to aid with ongoing expenses in the event of a cash flow problem. Since a personal loan may be used for many different things, there is no set application period. Instead, you can select a personal loan to meet any need. [B-01] A few reasons for applying for a personal loan include: Family Vacation or Holiday Financing Money for seasonal festivities or needs Money for wedding ceremonies Create or renovate a home. Hospital and medical bills Mortgage Refinancing Purchasing of vehicles such as cars, bicycles, and so on. Education Starting a business or expanding a business Personal loans are among the most popular choices for funding your urgent requirements. Loan approval is simple and quick. Furthermore, the required documents are minimal. Advantages Of Personal Loan There is no need for a guarantee or security. Requires minimal documentation. Faster disbursement of loans The fixed interest rate for the duration Flexible loan durations of 1–5 years are available. There is an EMI option available. It’s a loan with multiple uses. Personal Loan Eligibility Criteria Personal loans are considered unsecured loans, and banks perform extensive careful consideration. Most importantly, they examine your financial security. Eligibility for a loan is determined by several factors, including your credit or Cbill score history, monthly salary, and other current EMIs. These terms differ from lender to lender. The following are the eligibility requirements for getting a personal loan: Age Criteria: For salaried employees, the age criteria are 21–58 years. A self-employed business person and professional must be between the ages of 25 and 65. Monthly Salary: Your gross monthly income is essential for loan approval. A few financial institutions require a minimum net monthly income. While some banks’ eligibility criteria are 25, 000 rupees per month. Employment Nature:- Some of the most common employment types are salaried employees, professionals, self-employed individuals, and professionals. Employment Term: If you have recently changed jobs, getting approval may be difficult. Many financial institutions, for example, grant loans to people employed with a minimum of two years of job experience including one year with their present employer. Likewise, self-employed professionals must have at least 3 years of experience. Some people consider your overall work history. Credit Score: A credit reporting agency assigns you a credit or CIBIL score. (E.g., companies such as CIBIL, Equifax, or High Mark, etc.) It provides data on your borrowing history to a potential lending institution. A good credit or CIBIL score also gives you the negotiating power to get the best loan terms. Some banks require a minimum credit, or CIBIL, score of 700, while others require 750. Generally, a score in the 700–900 range is preferable. Requirement of Documents for Personal Loan Some of the basic documentation needed for getting a Personal Loan are as follows: Income proof or statement Payment Receipt Bank account statements Form No. 16 or the most recent IT return documents Credit history report Proof of age (PAN card, birth certificate, passport, Aadhaar card, voter ID, etc.) Proof of address (electricity bill, passport, Aadhaar card, ration card, telephone bill, etc.) Photo ID proof (election ID, PAN card, Aadhaar card, driving license, passport, etc.) The above documents, as well as the application form for getting a personal loan with a few photos, must be given to your lender. Many banks and financial finance companies now provide online facilities for applying for personal and other loans. You must examine these and select the best option for you. A signed loan agreement document will be mailed to you once the personal loan has been approved. A standing instruction request or ECS mandate form, as well as a security deposit or cheques, are also required. Interest Rates on Personal Loans Among the other loan categories, personal loans have some of the highest interest rates. Personal loans are currently issued at rates ranging from 10% to 18% per year. The interest rates differ from one bank to another. It’s also determined by the applicant’s economic status, credit report, current EMIs and loans, loan tenure, credit or CBIL score, and other factors. In addition to the interest rate on a personal loan, there are some processing fees and/or other charges to consider. [B-02] Conclusion: Personal loans are unsecured loans that are advanced depending on your credit or CIBIL score and your ability to repay them from your income. It does not require collateral or security and can be received with little paperwork. However, like most loans, they must be paid back in installments. It can be used for any expense, such as education, marriage, travel, house repairs, hospital bills, or even the purchase of a gadget. In the event of a cash flow crisis, you can even use the funds to help with day-to-day expenses. Taking out a personal loan to meet unexpected financial needs is a wise decision. However, before deciding on a personal loan, it is important to know the benefits, eligibility criteria, service fees, foreclosure charges, hidden fees, etc. This allows us to compare the benefits and drawbacks of various lenders and choose the most suitable and affordable scheme. For specialised loan alternatives for business owners and professionals, seek the advice of a financial specialist like Piramal Finance if you have any questions.

08-11-2023

GST

All you need to know about goods and services tax (GST) in India

Goods and Services Tax or GST is a comprehensive indirect tax that is imposed on the sale of goods and services in India. It is a multi-stage taxation system that curbs the cascading effect of all other indirect taxes such as service tax, purchase tax, value-added tax, and excise duty. The good service tax is the only tax that is currently imposed across India. While there are quite a few products and services that don’t attract GST, there are many that come at 5 per cent, 12 per cent, 18 per cent, and even 28 per cent GST. Since the implementation of GST in July 2017, the GST rates have been changed for several goods and services. [B-01] How Goods and Services Tax is Paid The manufacturer of a product first pays the Goods and Services Tax on the purchase of raw material and the value that it adds to make the product. The service provider would be responsible to pay this. The retailer will then pay GST on the product that he purchases from the distributor as well as on the margin that he adds. Finally, the consumer pays GST on the product that he purchases. However, the manufacturer’s tax payment as well as the retailer’s tax payment would be deducted from the total GST that is finally paid. Types of Goods and Services Tax in India After the implementation of a one-nation, one-tax regime, there has been a three-fold breakup of GST. This is mainly to allow the Central Government as well as the State Governments to levy taxes. The three types of GST implemented in India are: SGST or State Goods and Service Tax: This is the tax levied by the State Government on intra-state goods and service transactions. In Union Territories like Chandigarh or Andaman and Nicobar Islands SGST gets replaced by UGST or Union Territory Goods and Service Tax. CGST or Central Goods and Service Tax: This is levied by the Central Government on intra-state goods and service transactions, along with the SGST or UGST. The revenues generated by CGST would be shared between the central government and the state government. IGST or Integrated Goods and Service Tax: This is also levied by the Central Government but on inter-state goods and service transactions. IGST is applicable to import and export transactions too. Like CGST, IGST’s revenues also will be shared between the central government and the state government. Who is supposed to register for Goods and Services Tax? As per the Goods and Services Tax Act of 2017, any business that has a turnover of INR 20 Lakhs (10 Lakhs in North-eastern and Hill states) or above has to register for Goods and Services Tax. Apart from this, the following individuals and entities also are required to register for GST and acquire their 15-digit GSTIN: Individuals who supply taxable goods and services to other states. Individuals who are paying tax under the reverse charge mechanism. NRIs or Non-Resident individuals who are paying tax. Individuals who are eligible for tax deductions under Section 37. E-commerce aggregators. Individuals who have been supplying taxable goods and services via e-commerce aggregators. Agents who have been supplying goods and services on behalf of other registered taxpayers. Individuals who were registered before the introduction of the GST law. Registration of GST GST registrations should be done on the official GST portal that has been created by the Government of India. Once registered, the applicant will get GSTIN, which is a unique 15-digit registration number. The GSTIN can be used to avail loans, claim refunds, make corrections, and get verifications. Apart from GSTIN, the registered taxpayer will also get a GST Certificate that can be downloaded from the GST portal. How to File GST Returns Every registered taxpayer will have to submit a document called GST Returns. This will include information about their income, which will be used to compute their tax liability. It should contain details about their purchases, sales, input tax credit, as well as output GST. The GST Returns have to be filed twice a month and also two additional times a year. How is Goods and Services Tax calculated? Calculating GST while filing your returns is quite a tedious process. There are several things you need to consider, including the ITC, reverse charge, as well as exempted supplies. If you don’t pay the full GST amount that is due, you will be required to pay an 18 per cent interest on the outstanding amount. Luckily, there is a GST calculator that you can use to calculate the Goods and Services tax you have to pay. Many GST services websites have this feature. Once you enter all the required details, the tool will calculate the amount of GST that you have to pay in that month. You have to file GSTR-1 and GSTR-3B. For refunds, you will have to submit the relevant forms. You can pay GST either online or offline. However, a challan needs to be generated once you have made the payment. Advantages of GST GST curbs the cascading impact of tax. Only businesses with more than Rs. 20 Lakh turnover will have to register for GST. Small businesses can reduce taxes by using the Composition Scheme. Easy and simple online payment procedure. Fewer number of compliances. No more differential treatments for eCommerce organizations. Higher efficiency in logistics with lesser restrictions on inter-state goods movement. Regulation of unorganized sectors. [B-02] The Conclusion The implementation of Goods and Services Tax has changed the way businesses have been operating in India. With the processes being streamlined, many businesses are experiencing higher efficiency in their operations. You can try taking the help of one of the GST services to get GST-compliant. Need a loan to file your good service tax returns? Visit the Piramal Website for an easy and quick personal loan. They also have many articles and blogs to help improve your skills on the subject.

08-11-2023

Personal Loan

Personal Loan Balance Transfer: Everything About Interest Rate and Fees

In times of financial hardship, your finances take a hit. Your immediate financial needs force you to take out a personal loan. In that case, you may want to ease your financial stress by decreasing your interest payments and EMI. So, can you do a personal loan balance transfer? Keep reading to find out! [B-01] What is a Personal Loan Balance Transfer? A balance transfer is a procedure by which a lender transfers the total amount owed on a personal loan. The lender transfers the amount from one lender to another lender. This often occurs when people switch banks for lesser interest rates on the current loan. A decrease in total debt is the major goal of a personal loan transfer. Suppose you want to reduce the interest you’ll pay on your loan. In that case, you must check each balance transfer offer before deciding which one to use. Also, you don’t need to submit collateral when transferring loans. How does Personal Loan Balance Transfer work? Suppose you transfer your personal loan from one lender to the other. Then, the newer bank will pay off the old loan. And, if your existing loan has a foreclosure fee, you may have to pay it. But if you could reduce your interest rate, your funds will be more than these costs. Personal Loan Balance Transfer Interest Rates The interest rates by your current lender are always higher than those given by new lenders. Yet, the interest rate on a new personal loan will depend on various factors. These factors are: The money you owe How long you’ve had the loan Your creditworthiness, your salary The lender’s risk assessment Balance Transfer Processing Fees and Charges Suppose you took out a personal loan with a set interest rate. In that case, your loan provider can levy a foreclosure fee. A fee of up to 5% of the remaining loan balance if you switch lenders. Suppose you take the example of unsecured loans with variable interest rates. In that case, lenders will not impose a prepayment penalty. But when transferring a personal loan balance, expect to pay a service charge of between Rs. 500 and 4% of the principal amount. Benefits of a Personal Loan Balance Transfer Here are some benefits of a personal loan balance transfer: Better Rate of Interest Lowering the interest rate is the primary benefit of transferring a personal loan. That’s because it reduces the total amount of interest paid over the life of the loan. Hence, if the borrower transfers their loan to a different lender, they can get a better interest rate. Yes, your new financial institution will raise your interest rate. But institutions like Piramal Finance decrease interest rates after reviewing your financial history. Extended Duration on the Loan When switching personal loans, you can renegotiate the loan’s repayment terms. Depending on the talks, there is some negotiation room in the EMIs and lending rates. Also, it is not necessary to have collateral to transfer a personal loan amount. Yet, banks can charge small fees, such as foreclosure fees and administrative costs. They can also charge credit agreement stamp duties. Added Features Income, credit, and payment history are all considered when determining eligibility for features. Some lenders give more attractive terms. Terms like: No initial costs Cheaper interest rate Cancelled last EMI Also, you can lower your personal loan interest. And, you can use the balance transfer option and qualify for enhanced loan terms. Increase in Credit Line When transferring a personal loan, several banks also have the option to add funds. Also, the interest rates on newer personal loans are among the lowest. Plus, several lenders and banks offer top-ups among the lowest in the industry. Transferring your personal loan can help your economic situation. Also, it can help you make better repayment decisions. Things to Consider When Opting for a Personal Loan Balance Transfer Here are some things to think about before deciding on a balance transfer for your personal loan: Check the New Offer It’s important to figure out how much payment you’ll have to make. Also, to figure out how much the balance transfer would save you. You must use a personal loan balance transfer calculator to find your cost savings. As with the previous, this is accessible over the internet. Cost Involved Transferring a personal loan from one institution to another often has fees. Personal loan foreclosure fees and balance transfer fees are possible. Thus, when calculating the balance transfer facility’s worth, include these expenses. Terms and Conditions Before saying yes to a balance transfer on a loan, it is vital to understand all terms and conditions. So, read the terms to ensure you understand all important points and fees. Offer vs. Need If a balance transfer option is available, you should only use it if it meets your individual needs. For example, some clients don’t need a balance transfer facility’s top-up loan options. To make the best decision, you must weigh the balance transfer offer’s future benefits. [B-02] Conclusion You should find a personal loan balance transfer and go with a new lender. But do this only if you find that the interest rates on your current loan are too high. There’s tough rivalry in the lending industry. Hence, you can shop for the most vital interest rates and policies to your advantage. Personal loans can be quite helpful when money is tight. Plus, by transferring your loan, you can get lower rates and better terms in the future.

08-11-2023

Tax Savings

Here are some best Income Tax Saving Schemes in India

Several tax-saving schemes available in India can benefit you in various ways. From insurance plans that help you save on health expenses to loan repayment schemes that can provide tax savings, there is something for everyone on this list. Read on to learn more. [B-01] Unit Linked Insurance Plan (ULIP) Unit-linked insurance plans (ULIPs) are a tax-saving investment option. They protect you and your family from issues caused due to significant accidents or health problems. They are insurance plans linked to a particular investment. The premiums you pay are based on the return on that investment. This means you can choose the policy that best suits your needs and budget. There is no need to qualify for a particular plan. All you need is enough money saved up to cover the premiums. ULIPs are flexible, so you can choose the best policy that fits your needs. In addition, ULIPs are tax-saving options. This means you don’t need to pay income tax on your premiums. ELSS Mutual Funds There are some excellent income tax saving schemes available in India. One of the most popular options is ELSS. ELSS stands for equity-linked savings scheme. These mutual funds offer tax savings and investment exposure to Indian stocks and bonds. There are several different types of ELSS mutual funds available. So choosing the one that best suits your financial needs is essential. Many of these funds offer instant tax deductions for investments up to Rs. 1.50 lakhs in a year. So you can start saving immediately. Make sure to consult with a Registered Financial Advisor (RFA) before investing in an ELSS Mutual Fund. They will be able to help you make the most informed decision for your specific situation. In the long run, ELSS mutual funds can offer you a healthy return on your investment while also helping you save on your taxes. Public Provident Fund (PPF) If you’re looking for a tax saving investment scheme, the public provident fund (PPF) is a great option. A public provident fund is a savings account that allows you to save on your taxes and earn interest on your money. The government provides a fixed interest per annum for this scheme. The interest is usually high compared to other banks and savings accounts. Additionally, you can use the PPF for insurance purposes or to purchase assets such as mutual funds or stocks. There are several benefits to opening a PPF account. So it’s worth considering if you’re looking for an income-generating scheme. Sukanya Samridhi Yojana (SSY) The tax season is almost here, so it’s time to start thinking about income tax savings schemes. One of the best options for low-income families is the Sukanya Samridhi Yojana (SSY). SSY helps families save money on their income tax bill, and the benefits are maximum for those living in rural or semi-rural areas. Eligible families can receive up to Rs 4,000 per month in savings, which can help reduce their tax burden. Other schemes like the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Rupay Card Scheme for Urban Residents offer similar opportunities. Make sure you research all available options and choose the best income tax savings scheme for your financial situation. National Savings Certificate The National Savings Certificate (NSCC) is a government tax savings scheme. It offers tax-free interest and a minimum deposit of Rs 10,000. NSCC certificates can be used to purchase items like cars and property, making them versatile investment vehicles. You can also get some interest in your savings account. This makes it a good option for retirement planning. Plus, there’s no need to open an account in person. You can do it online easily. Tax-savings fixed deposit When it comes to income tax saving schemes, a fixed deposit is always a good option. Many types of fixed deposits are available, with interest rates usually meagre. This makes them a great investment for beginners and long-term investors. You can also take advantage of tax rebates and bonuses to increase your return. Senior Citizen Savings Scheme The senior citizen savings scheme (SCSS) is a great way to save for your future. The program offers high-interest rates on deposits made into designated accounts. Thereby encouraging people of all ages to get involved. Your funds are FDIC-insured, so you can be sure they’re safe and will earn you good returns. In addition, you don’t have to be a resident of India to participate – anyone over 60 years of age can join. Repayment of an education loan If you’re one of the many Indians who have an education loan, it’s time to get organized and start repayment. Several options are available, depending on your financial situation and repayment plans. You can repay the loan over time through various methods, like monthly payments or lump sums. Remember that repaying your education loan is a process that takes some time, but it’s definitely worth it in the long run. Interest paid on home loan There are many tax-saving schemes available in India that can help you save tax on your income. The Interest Paid on Home Loan (IPH) limit is an important option. As per Section 24 of the Income Tax Act, 1961, you can claim an income tax deduction of up to Rs. 2 lakhs against the interest paid on your home loan every year. Health Insurance premium under section 80D If you’re in the tax bracket of 10-15%, health insurance premiums can amount to a hefty sum of your income. But fret not. Under section 80D of the Income Tax Act, you can deduct your health insurance premium from your taxable income. This allows you to reduce the tax you owe each year. The maximum deduction you can claim is Rs 2 lakhs per year. Additionally, you must file a Form 15G if you claim this deduction – it’s free and easy to do online. [B-02] Conclusion It would help if you understood all the tax saving schemes correctly. These tax-saving investments can be efficient sources for saving a significant sum of money. If you need clarification about the tax-saving plans, you may reach out to professionals at Piramal Finance. With a team of experts, they can assist you with all types of financial advice, thereby helping you in the long run.

08-11-2023

Tips & Advice

Tips To Earn Maximum Interest From Your Public Provident Fund

The Public Provident Fund (PPF) scheme was made to help Indians save money over time. Those who have invested under this plan will get money from the PPF account after a minimum of five years. They can then choose to extend their lock-in period in blocks of five years for an indefinite period. Every year, a person can invest up to Rs. 1.50 lakhs in the scheme. This programme is open to all Indian citizens who work in the private or public sector, except those covered by the EPF plan and Indians who don’t live in India. [B-01] How to Figure Out Interest in a PPF The Public Provident Fund’s interest rate changes over time. This rate of return changes depending on the type of government bond bought. The PPF’s interest rate changes every three months. Because of this, the account’s interest is added every month. The principal and interest of PPF are invested for future growth. At the end of each fiscal year, this account’s value is changed to account for the interest earned. It is then put back into the account. When this happens, people take money out of their PPF accounts. You can take it out as needed or wait until the end of the investment period to get the most out of your money. For the third quarter of the current fiscal year 2022–23, October through December, the PPF interest rate is 7.1%. Strategies for Making the Most of Your PPF Putting money into a PPF earns more than putting money into a fixed deposit at a bank. One way to increase one’s income is to put money into the PPF. In the following sections, we’ll talk about several ways to make more money from the interest on your PPF. When to put money away each month. The PPF account’s monthly interest is calculated on the 5th of the following month. Before the 5th of the month, you must put money into the PPF. When money is invested before the 5th of the month, it earns interest for the whole month. If a person invests after the 5th of the month, they won’t get any interest. The right time to put away money. The minimum balance in the PPF account is used each year to figure out the investment period’s interest rate. So the investor doesn’t have to put away the same amount every month. Instead, the investor can save all the profits at the start of the fiscal year. Since the fiscal year goes from April to March, the best time to invest is from April 1 to April 5. The minimum amount in the PPF account will increase, earning them more interest. Digital PPF account. You can get the best returns by using digital banking to regularly put money into a PPF account. People need to plan a trip to the bank around the time their monthly PPF payments are due. Because of this, investments are often put off or never made at all. You can make the most of your investment by opening a PPF account with a bank that works with online service providers. PPF Account in the Name of the Spouse You can open a PPF account in your spouse’s name so she can get the money from your investments. According to the law, gifts of money or property are not taxed. So this saves the investor money on taxes in two ways: there is no need to pay taxes on the property or the money in the PPF account. Set aside money for children. The Income Tax Act lets you invest up to a certain amount of money tax-free for your children’s education. A child can put the most into a PPF account each year is Rs 70,000. This investment could pay for the child’s education until they are eighteen. Take out only what you need. If you take too much money out of your PPF account, the level above which you have to pay a fee may go down. The investor’s monthly investment return might be less than expected. Investors are only allowed to use PPF in case of an emergency. So, you have a better chance of making as much money as possible during the month or fiscal year used to figure out interest. How to get the most out of PFF The PPF has a lock-in period of 15 years. Most people have trouble with this because they need more patience, but the high rate of return on investment that comes from saving early for retirement may be very helpful. Currently, the most you can earn on an annual savings account is 7.9%, while the most you can make on a PPF is 7.1%. (FY 2019-2020). PPF account holders can make a tax-free withdrawal of part of their savings after seven years if needed. Withdrawals made after the 15-year lock-in period are also not taxed. In addition, three years after the account is opened, you can borrow against the PPF balance. This makes the total interest rate on loans go down. Lastly, it’s essential to know that the PPF has two tax benefits. Under section 80C of the Income Tax Act, both withdrawals and interest added to the money in the PPF account are tax-free. [B-02] Conclusion When you retire, the PPF could help you save money on taxes. People who join this plan can choose to invest some of their monthly or annual income for the near or distant future. Every three months, the interest rate that these funds earn is changed. Always consult experts like Piramal Finance, who can guide you professionally to better gains.

08-11-2023

Personal Loan

Finance Your Leh Ladakh Road Trip Travel With Personal Loan

These last two years have been challenging for humans due to the COVID-19 outbreak. The pandemic destroyed communities and economies. During this time, many people have switched to working from home. Due to health concerns and international travel restrictions, people had to postpone their road trips. But now that the restrictions are over get an instant personal loan and start planning your road trip. So, if you can apply for a personal loan at lower interest rates, why don’t you pack your bags and set for a Leh Ladakh trip to embark on an adventure of a lifetime? There are many monetary considerations when planning a trip. The expenses associated with travel, such as airfare, food, lodging, and others, may add up. Those figures will rise if you intend to bring everyone in the family along. Depending on the destination and the level of comfort desired, a trip overseas might cost considerable money. To cover that amount, you can apply for a personal loan and get the money to enjoy a wholesome road trip with your loved ones. [B-01] Why Choose an Instant Personal Loan? The following factors may make a personal loan the best option for financing your next trip: – Freedom to Use You should budget for a wide range of expenses that might come up as you plan your trip. One example is to apply for a personal loan to pay for lodging and travel rather than saving up for those expenses. You should have enough money to meet your basic costs while travelling. This amount should also cover other expenses incurred due to an urgent situation. It is possible that you or a loved one could take ill or that you might lose some expensive goodies. So you also need to have some extra money by your side during the trip. You might get a personal loan to cover the full price of your next vacation. Unlike other types of loans, personal loans can be used for anything. Personal loan providers aren’t concerned about how the money will be used. Reduce your burden with EMIs An Instant personal loan can be repaid in EMIs. The stress of saving up for a vacation may now be put to rest, and you can enjoy it to its fullest. Refrain from spending all your savings. With a personal loan, all your issues can be taken care of. Your income will determine whether you can afford to make your EMI payments. How much you have to put toward your loan each month depends on several factors. This includes the amount you borrow, loan tenure, and the interest rate. This is why looking for the best instant personal loan is vital to make your EMIs affordable. If you decide that you no longer desire the personal loan after paying the EMIs for a few months, you can close the account by paying off the sum. Your lender may charge a nominal foreclosure fee. Flexible Loan Terms To what extent and how long you opt to pay EMIs for a personal loan is up to you. In most cases, the duration of a personal loan is between 12 and 60 months. If your lender provides you the chance, you may be able to extend the time to repay your Instant personal loan. When settling on a loan term, you need to be prudent. A loan with a longer tenure may have lower EMIs, but it will cost more in the long run. No need for a security Unlike secured loans, personal loans do not need security. This means that you might get a personal loan without giving any collateral. As a result, you may spend the money on vacation. If you have a good credit score and meet the rules, you can apply for a personal loan at a nominal interest rate and use it for a holiday. Simple eligibility Age, monthly income, and credit score needed for a personal loan could differ across lenders. Some lenders may base their choice to lend to you on your credit history, making it work to get pre-approved for an instant personal loan. No need to show your eligibility while applying for one of these personal loans because they are pre-approved. Easy paperwork Only the following documents are necessary for a loan: – Age proof. Income proof. ID Proof. Work-ex proof. Quick disbursal Instant Personal loans may be used to get fast cash in an urgent situation. Personal loans are available since they involve little in the form of paperwork and collateral. So, go ahead and start preparing for your perfect getaway. Lenders often approve personal loans in as little as two or three days. Another possibility is receiving a travel loan that can be applied for online. Large savings Every loan application must analyse the interest rate. Compared to other unsecured loans, including credit cards, the interest rates on personal loans are much lower. Thus, an instant personal loan is a way to go if you want to avoid adding to your financial issues by employing a high-interest credit card to finance your vacation. [B-02] Conclusion Using a personal loan is an excellent option to finance travel needs. But to get the best deal, you must contact Piramal Finance and learn more about their personal loans. The benefits of their loans include low-interest rates, flexible payback schedules, pocket-friendly EMI options, and a range of borrowing amounts.

08-11-2023

Tax

Things to Know About Section 80D of the Income Tax

Tax planning is always challenging. Figuring out how to save on income tax can get complicated. Various laws allow for a deduction in the income tax amount. Medical emergencies and bills are unexpected expenditures that can put your financial plans on hold. At unforeseen times like these, it helps to have health insurance that can cover such expenses. However, most people do not invest in health insurance. This way, they bear substantial medical costs that do not align with their financial goals. To prevent this from happening, the government of India introduced Section 80D. [B-01] Section 80D of the Income Tax Act allows for tax deductions on medical insurance. With this, you can be prepared for those unexpected medical bills and save on income tax. Let us look closely at some things you need about the section. Type of investment under SEC 80D When planning for taxes, knowing the types of investments that allow for deductions is essential. Section 80D has been specifically created to cover expenses incurred for your health. You can claim benefits under Section 80D if you have medical insurance and are paying the premium. Section 80D of the Income Tax also allows for deductions in the case of critical illness plans or top-up health plans. Eligibility of Deduction Under 80D of Income Tax Act Exemptions offered by Section 80D can be claimed by individuals and the Hindu United Family (HUF). If you have a health insurance policy, you can claim a tax deduction for: Money spent on insurance premiums for yourself Money spent on insurance premiums for your family These deductions are separate from those you can claim under Section 80C of the Income Tax. You can claim an exemption with the help of both of these sections. Deductions under Section 80D Only when you pay for medical insurance premiums can you claim the tax benefits offered by Section 80D. Deductions under the section are classified based on age. The following are the deductions allowed under this section: You, above the age of 60 years + Parents, above the age of 60 years- If the premium paid for both is Rs. 25,000 each, you can get an exemption of Rs.50,000. You and your family, below 60, and your parents, above 60, can get a deduction of Rs. 75,000 if the premium paid for you and your family is Rs. 25,000, and for your parents, it is Rs. 50,000. You and your family, above the age of 60, plus your parents above the age of 60, can get a deduction of Rs. 1 lakh if Rs. 50,000 is paid toward the premiums of all parties individually. Non-resident Individuals: If you have paid Rs. 25,000 for yourself, your family, and your children and Rs. 25,000 for your parents, you can get a deduction of Rs. 25,000. Hindu Undivided Family (HUF): If Rs. 25,000 has been paid for yourself, your family, your children, and your parents, you can get a deduction of Rs. 25,000. Generally, people over 80 are not eligible for health insurance. In this case, you can claim tax benefits without any medical insurance. Any money spent on their treatment can be deducted under Section 80D. You can claim deductions of Rs. 80,000. Exclusions When tax planning, it is important to take note of the exclusions under Section 80D. Even though you might have medical insurance, you cannot claim benefits under this section if: The insurance premium was paid in cash. However, you may pay for other medical expenses with cash and still avail yourself of tax benefits. The insurance premium was paid for siblings, grandparents, working children, or other family members. You can only claim benefits under Section 80D if the premium was paid for yourself, your spouse, your non-working children, and your parents. Your company paid for group health insurance on your behalf. Maximum limit You can claim deductions under Section 80D on medical insurance premiums and health check-ups. While it is important to remember the exclusions under the section, it is equally important to take note of the maximum limit of deductions you can avail. The maximum limit on these deductions is as follows: You can claim a maximum benefit of Rs. 25,000 for yourself and your family. For health check-ups, Rs. 5,000 is the maximum deduction. For yourself, your family, and your parents, the exemption limit for medical insurance premiums is Rs. 25,000 for yourself and your family and Rs. 25,000 for your parents. Whereas, the limit for health check-ups is Rs. 5,000. For yourself, your family, and your parents above 60, you can claim a maximum of Rs. 25,000 for yourself and your family’s insurance premium. You can claim a maximum of Rs. 50,000 for insurance premiums for your parents. A total exemption of Rs. 5,000 is given for health check-ups. For (above the age of 60) yourself, your family, and your parents above 60, the exemption limit for medical insurance is Rs. 50,000 for yourself and your family. For your parents, too, the limit is Rs. 50,000. The overall exemption for health check-ups is Rs. 5,000. [B-02] The bottom line Careful financial planning is a necessary step. But medical emergencies may come when you least expect them to. Medical bills are often a huge expenditure. It is financially wise to get medical insurance for you and your family. With insurance, you can plan well ahead of time. Section 80D of the Income Tax Act can help reduce your burden. You can claim deductions on your health insurance premium and for health check-ups. Reading more about Section 80D is essential to make the most of this. The points mentioned here helped you gain clarity about Section 80D. Tax planning can be tricky, but you can count on reliable sources like Piramal Finance to help you through the process. With expert financial advisors, you can rest assured. Make sure you check out their free credit report tool. If you want to learn more about finance, you can browse their articles and blogs.

08-11-2023