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Home Loan

Home Loan for Government Employees – Low Interest Rates

If you are a government employee and looking for a home loan to expand your real estate possession, special loans designed for government employees might be beneficial. India has several kinds of loans directed explicitly towards government employees. These loans offer an affordable interest rate and have varying tenures to help you repay the loan in instalments. As a government employee, you can apply for low-interest home loans. Piramal Housing Finance offers the best options. Get to know more about their loan offerings right here. [B-01] Piramal Housing Finance Loans Piramal Finance, one of India’s most well-reputed lending institutes, is known for its various loan schemes at affordable interest rates. The institute also offers a special loan at a low-interest rate under its personal loan scheme. The scheme is available for a wide range of people. Piramal Finance is among the prime lending institutes today. If you are a government employee, then you can get a home loan here. The most interesting part about these loans is their attractive features. These loans are designed to meet your needs. Additionally, they fit into your financial goals, making it easier for you to design your finances accordingly. Benefits of the Loan Government employees enjoy an easy and fast loan application process under this scheme. It ensures the loan applications are reviewed soon, with minimum documentation. Thus, employees looking for a quick financial loan may opt for this. Government employees availing of this loan can repay the amount in multiple payment modes. Such a feature adds to the advantage of the borrower as they can either pay it in cash, card, or other means of payment. Individuals applying for this loan can also apply for a second loan a year after the first loan is disbursed. However, the borrower must ensure paying the instalments on time to get the second loan approved. The loan also has a minimal processing fee that helps government employees with limited income avail of it. The low processing charge does not increase the total amount to be repaid and is thus quite affordable. Most government employees can fulfil the eligibility criteria for this housing loan. Hence, the home loan is quite inclusive in nature and ensures individuals with limited income can also avail of a loan when needed. Government employees looking for immediate financial relief can consider this housing loan because of its quick processing. The loan applications are reviewed instantly, ensuring a direct transfer of the amount to the borrower’s account. The loan applies to all government employees. Thus, individuals working in any government sector are eligible for the loan, irrespective of their annual income. Therefore, employees with meagre wages can also apply for this loan. However, the maximum loan limit is set accordingly. Individuals can also apply for a joint loan. Thus, the loan can have one applicant and a co-applicant. If a government employee avails of the loan for their child’s education, the former becomes the co-applicant. This loan is designed for all kinds of government employees, and there is no bar on the usage of the funds. Thus, government employees can utilise the loan amount for any personal activity, including travel and marriage. The loan requires minimum documents like address proof, identity proof, PAN card, income statement, etc. Eligibility Criteria And Documents Needed As a government employee, you can apply for a home loan. You only need to meet the basic criteria for eligibility. Further, you will need to furnish a few basic documents as well. Let us check them here: You must be an Indian citizen. Most lending institutes prefer to offer low-interest home loans for government employees as long as they are Indian citizens. It can be helpful if you have some work experience. Most lending institutes prefer candidates with a minimum working experience of three years. You should be between the ages of 23 and 70. A good CIBIL score will help you grab this loan. Ideally, a score above 700 is preferred. You will also need to furnish certain documents. Some of them are as follows. Aadhar card Passport Driving license Proof of address Proof of identity A recent salary slip or Form 16 Bank statement for the last 3 months Applicable Interest and Charges The following table illustrates details associated with low-interest loans. It will give you an idea about the different charges that go into processing the loan. Fee TypeCharges ApplicableRate of Interest6.70% onwards for salary-earning employeesProcessing feesUp to 1% of the loan amountLoan statement chargesNILInterest & principal statement chargesNILEMI bounce chargesRs. 3,000 – Rs. 5,000Applicable Penal interest2% / Month or as determined by the instituteSecure feeRs. 3,999 – Rs. 5,000 These charges and rates are likely to change over time. It is recommended that you enquire about them before taking the loan. Based on your CIBIL score and other factors, the exact range of these figures might vary for you. [B-02] Conclusion Selecting the right home loan can take time and effort. However, there are several home loans for government employees that you can avail of and turn your dream of having a new house into reality. It is vital to ensure you select an appropriate home loan for government employees after reading about each of them. Such loans provide several benefits. The best feature of these loans is their flexible and affordable EMIs. Also, there is no processing fee involved in such loans. You can get them at competitive rates of interest. Piramal Finance can help you delve deeper into each loan type and its terms and conditions. Read about different loans and their features right here.
08-11-2023
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Tips & Advice

5 Financial Planning Tips For Young Professionals

As a young professional, you may be under the impression that your financial life is still in the future. But the truth is, it’s never too early to start your financial planning. The sooner you start thinking about how much money you need and how much debt is too much, the better off you’ll be when it comes time for retirement. Here are five tips for saving money as a young professional: [B-01] Create a budget and stick to it Whether it’s monthly or biweekly, make sure that each paycheck goes toward paying down debt or building savings. And don’t forget about living expenses like rent, utilities, and groceries! But don’t stop there. Create separate budgets for each of your financial goals (like buying a home). If possible, add more categories as time goes on so that they stay updated with all of the changes that occur throughout life’s journey (such as getting married). Don’t forget to reserve some money for the emergency fund. To make sure you have enough money in case something goes wrong, it’s important to start saving money as soon as possible. Follow further steps in financial planning if you don’t already have a plan and strategy for your finances. Even if you don’t know how much money is enough for you, we suggest that this article serves as a quick reference guide on what steps need to be taken before moving forward with setting up an emergency fund. The first step in creating an emergency savings plan should involve figuring out how much income needs to be saved each month from all sources (including monthly bills). So that when unforeseen circumstances arise (i.e., job loss), there will be enough funds available without any other workarounds necessary. Think long-term It’s easy to get caught up in the moment and focus on what you want right now. But if you’re not saving money, then there will be no money left when your goals are met! If you’re going to start a family or buy a house someday, it makes sense to save up some cash while you can so that those things happen sooner rather than later. You’ll also need money for retirement and college tuition later on. And who knows when those big purchases might come along? A good financial plan should include all three areas: short-term needs (like buying houses), long-term savings goals (like retirement), and early stages of business ventures. These could be starting an online shop or creating an app on top of social media platforms like Facebook or Instagram. Invest Investing is the process of committing money to earn a profit. There are many different types of investments. These include stocks, bonds, and mutual funds. You can also choose to invest in real estate or other property. It’s important to remember that investing carries some risk. You could lose your entire investment if an investor doesn’t do well or if the market changes unexpectedly. However, there are ways to reduce these risks by buying low-risk investments that pay off over time—like Treasury bills—and avoiding high-risk ones like stocks when possible. This isn’t always possible, though. One of the easiest ways to save money is by putting your money in a high-interest account. High-interest accounts are great for short-term savings. This is because they offer relatively low rates. If you’re going to be saving for a specific purpose, like buying a car or paying off debt, then it makes sense not to put all of your money in one place. Have a good life insurance plan Life insurance is an important part of financial planning. It helps you protect your family and assets. It can also help pay for expenses in the event of your death. What’s a good amount? We recommend that you get enough life insurance to cover at least three times your annual income (or two times if you have limited savings). You also need some sort of disability coverage. Most employers offer this through their plans. If possible, add additional term life coverage so that if something happens within the first 10 years after getting it, there’s still money available for additional funds during those years as well! Start saving for retirement early, even if it’s just a little bit Start saving for retirement early, even if it’s just a little bit. Starting to save for your future is one of the most important financial planning tips for young professionals. You’ll want to start building up some money to fund your lifestyle after you leave school, or if you’re already out of college and working full-time (or even part-time), then start planning on how much money will be necessary so that you can retire someday. The best way to do this is by saving every month with an automatic payroll deduction from each paycheck. Ensure that it goes directly into an account where it can grow over time without any interference from other people or outside forces like taxes! Once this has been established, we’d recommend doing the following: Contribute as much as possible each month; Diversify investments across different types of accounts (i.e., stocks vs. bonds); Investing should always be done carefully. This is because there are no guarantees when investing in stocks, bonds, mutual funds, etc., but at least try not to make bad decisions; Do not make withdrawals unless necessary. [B-02] Conclusion Whether you’re a young professional or someone who has been in the workforce for years, financial planning can be a complex process. It’s important to take it seriously and get started early on! Start by creating a budget, keeping track of your income and expenditures, and making sure that your money is invested wisely. And don’t forget about life insurance. It’s one of the best ways to protect yourself from unexpected events like job loss or disability. And lastly, retirement planning needs to start earlier than ever before.
08-11-2023
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Tax

Everything You Need to Know About Taxes on Gold in India

Many people purchase gold to save money for long-term goals. Most investors consider gold to be one of the safest forms of investment. In India, gold is extremely popular — not only as jewellery but also as an investment option. In FY2021-22, India imported $ 46.14 billion of gold. Investments in gold are popular because the process is straightforward. However, in recent times, you can invest in different types of gold, and each gold type has a different tax rate. This article first discusses the different types of gold you can invest in and then the tax rates on gold. [B-01] What are the types of gold? The following are the types of gold you can invest in. Physical gold includes coins, bars, and jewellery. Physical gold is any item of gold you can hold and touch. Paper gold consists of gold ETFs and gold bonds. This gold is purchased on the stock market and is deposited as units in your Demat account. Derivative gold contracts are gold bought on the commodities market. Digital gold is purchased from mobile wallets such as Google Pay and PayTm. While there are many options to choose from, as an investor, you must make an informed decision based on the tax rates on gold. What are the tax rates on gold? 1. Tax on physical gold Physical gold is one of the most prominent choices among investors in India. Since physical gold is imported, all physical gold is subject to import duty. The taxes rates on gold are as follows: The import duty tax on gold is applicable. The import duty tax on gold has been increased from 7.5% to 12.5%. Physical gold is also subject to a 2.5% Agriculture Infrastructure Development Cess tax. When investing in gold, consider the Goods and Service Tax (GST). Currently, 3% GST is charged upon the purchase of physical gold. Physical gold is also subject to labour charges. The labour charges range from 8% to 35% on gold jewellery. All these charges are applicable if you are purchasing gold. If you are selling physical gold, you will have to pay the tax deducted at source (TDS). TDS is applicable for all sales of gold. If you earn more than Rs 1 lakh from the sale of gold items, the total amount is subject to a TDS of 1%. 2. Tax on Digital Gold The RBI issues the Sovereign Gold Bonds on behalf of the Government of India. Each bond represents 1 gram of gold. Since these are government-backed, they are relatively safer. If you sell the bond within three years, you have to pay short-term capital gain taxes. The bonds are eligible for long-term capital gain taxes three years after the date of purchase. The amount will be subject to a 20% tax when the indexation benefit is in effect and a 10% tax otherwise. Sovereign gold bonds have a long maturity. However, only individuals will be subject to long-term capital gains, not trusts or HUFS. There is no TDS applicable to this type of gold. However, a 2.5% per annum tax rate applies to sovereign gold bonds. 3. Gold Exchange Traded Funds (Gold ETFs) Gold ETFs are mutual funds that are traded on the stock exchange as units. These often represent the underlying value of gold. Therefore, different mutual fund houses will issue different types of ETFs. If you are investing in gold ETFs, remember the tax rates on gold are different. The tax rates on gold ETFs are as follows: GST: GST is applicable on brokerage and STT. 18% GST is applicable on gold ETFs. Short-term and long-term capital gains: Short-term and long-term capital gains on gold ETFs have the same tax rates as sovereign gold bonds. The amount will be subject to a 20% tax when the indexation benefit is in effect and a 10% tax otherwise. No TDS applies to gold ETFs. 3. Taxes on Gold Derivatives The taxes on gold derivatives are significantly different. The returns you get from gold derivatives can be claimed as business income. The tax rates on gold derivatives are 6%. However, you can only use this advantage if the total turnover of the business in that financial year is less than Rs 2 crore. 4. Gold as a Gift Gold received from any close family members, including parents, siblings, spouses and children, is tax-free. However, if you get gold as a gift from people who are not your immediate family members, you will need to pay taxes on gold as per the IT slab. The taxation payment will be applicable only if the amount is Rs 50,000 or more. The price of this item will be considered as ‘income’, and you will have to include this when you file your income tax at the end of the financial year. If you receive gold with a market value below Rs 50,000, it will be considered tax-free. [B-02] Conclusion The tax rate on gold is lower than the tax on most of the other commodities in India. As the article has highlighted, different types of gold have different tax rates. While many people purchase physical gold as an investment, remember it is also subject to tax. Tax rates on gold are not complicated. This article has highlighted all the taxes you have to pay and situations where your gold is tax-free. If you need more information on the tax rates on gold in India, reach out to the professionals at Piramal Finance. You can also visit Piramal Finance to read more articles on personal finance, business finance, taxes, investment and more.
08-11-2023
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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
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Tax Savings

How Much Tax Can You Save Under Sections 80C, 80D, and 80G?

Everyone has the same goal of becoming stable. Although it necessitates careful preparation and a diverse portfolio, different ways to invest include fixed deposits, savings plans, and life insurance. There are many tax schemes to reduce taxes for an individual. Granting gifts and aiding medical causes also increased the advantages. Knowing all the potential tax deductions, saving taxes might be a wise financial move. We shall now discuss tax deductions under the three sections. [B-01] Tax Under Section 80C Deduction for investments Deduction Limit: – ₹1,50,000 It is one of the most favored and well-liked areas for taxpayers. This is because you can reduce your annual tax liability by a maximum of Rs. 150,000. Investments Eligible for Deductions and Tax Savings Under Section 80C Life insurance: It consists of tax-deductible premium payments. The taxpayer makes the deposits for all the needed life insurance plans. This safeguards your life and also reduces taxes in certain areas. Sukanya Samriddhi Yojana: It is a welfare program for girls that qualifies for a tax deduction. Equity Linked Savings Scheme: It’s a mutual fund investment. The plan has a fixed lock-in period and offers market-linked returns. Public Provident Fund (PPF) Employees’ Provident Fund (EPF) 5-year tax-saving Fixed Deposits (FDs) Senior Citizen Savings Scheme (SCSS) National Savings Certificates (NSC) Tuition fees were paid for two dependent children. Repayment of the principal balance of a mortgage, etc. This reduction for real estate purchases is available for individuals and HUFs. Corporations, partnership businesses, and LLPs are not eligible for this deduction. The total greatest deduction allowed under sections: Each 80CCE, 80CCE-1, 80CCE-2, and 80CCE-3 costs Rs. 150,000. Tax Under Section 80D Deduction for: health insurance policy premiums paid Deduction Limit: Subject to Specific Conditions Health insurance coverage for: For family (spouse and dependent children), an amount of ₹25,000. For a family including parents, the amount is ₹50,000. For a family (below 60 years of age), parents (above 60 years of age), and oneself, an amount of ₹25,000 + ₹50,000 = ₹75,000 For a family (with members above 60 years), senior citizen parents, and oneself, an amount of ₹50,000 + ₹50,000 = ₹1,00,000 For health checkup costs under Section 80D, a tax credit of 5,000 is also available. The exemption for physicals includes the 25,000 rebate on health insurance. A premium rate of 20,000 reimbursements may be available to people who paid 5,000 for medical exams. Tax Under Section 80G Deduction for: money given to charitable organizations Deduction Limit: As stated in the section, either up to 100% or 50% with or without restrictions. The Government of India offers tax deductions under Section 80G. This way, it expresses gratitude to the ones who pay taxes. Individuals, corporations, and firms can all deduct it. Section 80GGA permits tax deductions for certain contributions. The contributions made in support of Rural development Scientific research projects. Donations with a tax 100% deduction Fund set up by a State Government for the poor for medical relief. National Illness Help Fund National Blood Donor Council or State Blood Donor Council The Army Central Welfare Fund. The National Trust for the Welfare of Persons with Many Disabilities National Sports Fund National Cultural Fund Fund for Technology Development and Application National Children’s Fund Chief Minister’s Relief Fund about any state or union territory. National Defense Fund by the Central Government Prime Minister’s National Relief Fund National Foundation for Communal Harmony An approved university or educational institution of national eminence October 1, 1993, and October 6, 1993. Maharashtra’s Chief Minister’s Relief Fund Swachh Bharat Abhiyan (applicable from the financial year 2014-15) Funds to Clean Ganga (applicable from the financial year 2014-15) National Fund for Controlling Drug Abuse (applicable from the financial year 2015-16) Chief Minister’s Earthquake Relief Fund, Maharashtra Any fund established by the state government that aids earthquake victims The Prime Minister’s Armenia Earthquake Relief Fund Africa (Public Contributions—India) Fund Donations with a 50% tax deduction Prime Minister’s Drought Relief Fund Jawaharlal Nehru Memorial Fund The Rajiv Gandhi Foundation Indira Gandhi Memorial Trust On adjusted gross income, the following charities are eligible for 100% tax deductions. Donations result in a 10% reduction in the tax amount. The government or any approved local authority, institution, or association promotes family planning. Donations to the following organizations are eligible for a 50% deduction. For adjusted gross income, they are subject to a 10% reduction. The government or any local authority for any philanthropic endeavours. But this doesn’t include family planning. Any other institution or fund that complies with Section 80 G’s requirements Any company listed in Section 10 (26 BB) for the interests of the minority community. Any organization established in India with the mandate to address the need for a residential area in the city or village or to repair or renovate any public building. [B-02] Conclusion A tax deduction is a beneficial provision made on the taxpayer’s total gross income. The Income Tax Act of 1961 contains many clauses that include tax deduction schemes. The one that offers tax deductions for investments is Section 80C, and it is the most well-known of them all. Then two other parts provide tax advantages for medical bills. They also provide gifts to charities. The two significant parts are sections 80D and 80G. To make greater use of these tax benefits while submitting your ITR, be sure you understand them! As a result, Section 80’s coverage of these sections allows you to reduce your tax liability. You can deduct taxes from your taxable income if you have these. The tax obligation decreases as the income decreases. Use these areas for your needs to avoid paying taxes with your hard-earned money. For further details, you can visit Piramal Finance. Piramal Finance provides excellent financial services and advice.
08-11-2023
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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
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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
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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
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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
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