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Home Loan

How much home loan can one’s take on a 50k salary

Wall-mounted dressing table Vintage wooden dressers Mirrored Cabinets Wooden table and For many people, a dream is to buy a brand-new house. But buying a house can be expensive, and people on fixed incomes may not always be able to do it. In this case, you may choose a home loan if you meet the requirements. Piramal Financing House will determine if you can get a property loan based on how close your monthly income is to Rs 50,000. Anyone who gets paid can be proud of buying a new house. It gives value but makes you feel like you’ve done something and belong. Even though getting a loan to buy a new house is easy, it’s important to know the eligibility requirements because the amount approved can change depending on the borrower’s qualifications. Most of the time, a salaried person can get a home loan based on age, number of years until retirement, employment status, and monthly income, among other things. Whether or not a borrower can get a mortgage depends on how much money they make every month. Anyone who wants to borrow more money can always ask for a joint application. [B-01] If you made Rs. 50,000 a month, how much of a loan could you get? If you make Rs. 50,000 a month in India, you may wonder how much of a loan you can get. It’s important to consider the type of loan and your credit score when getting approved for a loan in India. Generally speaking, banks will often look at your income and credit history to determine what kind of loan you can receive. Individuals with an income of Rs. 50,000 per month and good credit could likely get a relatively large amount as a loan in India. Banks are willing to offer high amounts because the borrower would be seen as low-risk and able to pay back the money quickly. Loans for homes can sometimes be as much as 60 times a salaried borrower’s net monthly income. If your monthly gross income is 50,000 and your net salary is 40,000 after tax and other deductions, you may qualify for a home loan of up to 24 lakh rupees (60 times Rs 40,000). Consider it in terms of EMIs you feel comfortable making payments on. It’s vital to keep this below 50% of your monthly profits. Therefore, someone generating roughly Rs 50,000 per year would be comfortable paying a monthly payment of Rs 25,000. However, this is the best possible scenario. Numerous additional factors, such as the applicant’s age, employment, income status, fixed commitments, credit score, and property details, play a significant role in determining whether or not they are approved for a home loan. “required mortgage application forms. Provide the following materials throughout the application process: Paystubs from the last six months are stored in the KYC database. Banking records Photos the size of a passport with a white background, supporting paperwork for your Form 16 value, and any other sources of income are required. Mortgage Application Requirements Additional family members’ monthly incomes may be added to your own to reach the maximum allowable monthly salary. Reducing your overall debt is the best way to improve your credit score. If the loan amount is sizable, consider extending the repayment period so that your payments are spread out over a longer period. Mentioning additional income streams in your application might increase your rating and loan eligibility. How do banks decide who gets a house loan and how much they may lend? The criteria for getting a home loan might change from one lending institution to another. The loan amount an applicant is eligible for may be computed using the online home loan eligibility calculator. A few numbers, such as monthly income and total debt, are all needed to start. When deciding whether or not to provide a loan, a lender will look at a borrower’s personal history, income, and credit, among other factors. Some of these variables are: Borrowers’ age is the primary consideration when determining their suitability for a home loan. The typical limit imposed by banks and other lending institutions is the time it takes to retire. Accordingly, it may be difficult for retirees or those near retirement to get a loan with a longer duration unless they can demonstrate a stable revenue stream. Lenders also look at borrowers’ credit scores to see how likely they are to make loan payments. Your CIBIL score is a three-digit number that summarizes your credit history. Since a poor credit score could result in higher interest rates or loan denial, it is suggested to investigate the minimum CIBIL score necessary for a home loan. For instance, loan applications from salaried workers are evaluated based on factors such as the applicant’s income, job history, and stability. Self-employed borrowers have the same opportunity to get a loan as their salaried counterparts, provided they can provide proof of a stable revenue stream. Mortgage companies consider numerous factors before approving a loan, including the age and location of your selected home. It’s the collateral for the loan you took out. The loan application will also be rejected if the tenure is longer than the years left on the property’s remaining term. Therefore, banks often conduct a technical and legal analysis of the property before loan approval. The loan-to-value (LTV) ratio in mortgage financing indicates how much a borrower’s debt exceeds the property’s value. It’s a tool used by financial institutions in risk analysis to lower the frequency and magnitude of defaults. What a bank or other lending organization is prepared to lend toward a home’s purchasing price. The ratio of Debt to Income Financial institutions and lenders see a borrower’s debt-to-income ratio as an indicator of that borrower’s debt-repayment capacity. It is a percentage dividing the net monthly debt payments by the net monthly income. [B-02] Conclusion Commonly, all mortgage providers have the same conditions for qualification. However, certain financial institutions may be subject to additional guidelines and regulations. A successful home loan disbursement relies on the applicant reading and understanding the applicable criteria and qualifying circumstances before applying. To know more, consult with an expert from Piramal Financing House.
08-11-2023
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Tax Savings

Tax Saving Schemes other than 80c

As the adage states, “a penny saved equals a penny earned.” One way to do both of these is through tax planning. The tax code allows write-offs for a wide range of taxpayer-initiated purchases, contributions to retirement accounts, and charitable contributions made within a particular fiscal year. Some strategies for lowering your tax saving schemes burden will be covered. [B-01] Options for lowering your tax liability following Code Sections 80C, 80D, and 80EE Investing Rs. 1,500,000 under Section 80C will reduce your taxable income by that amount. Section 80CCD of the Income Tax Act allows a deduction of Rs 50,000 for contributions to the NPS (1b) Regarding medical insurance, Section 80D allows for a maximum deduction of Rs 1,000,000 (Rs 50,000 for the senior citizen’s family and self and Rs 50,000 for the senior citizen’s parent). Under Section 80EE of the Income Tax savers Act, you can deduct interest paid on a home loan up to Rs 50,000. Advantageous Investment Possibilities Under Section 80C Individuals and HUFs in India can deduct up to Rs. 1.5 million in costs and investments under Section 80C of the Income Tax Act. Alternatives to Tax Savings Code Section 80C Section 80 deductions can lower taxable income in addition to Section 80C deductions. Tax saving scheme breaks include, but are not limited to, those for mortgage interest and medical insurance payments. The cost of health insurance premiums is Rs. 50,000. (Rs 250,000 for oneself, one’s spouse and children under 18, and one’s parents under the age of 60 who are financially reliant on oneself and their offspring.) An annual medical insurance premium payout of up to Rs 1,000,000 may be available to eligible seniors who are chosen. Mortgage interest payments up to Rs 2 lakh are deductible under Section 24. Interest paid on home loans more than the maximum set by Section 24 can be deducted up to Rs 50,000 under Section 80EE. The deadline for requesting a two-year extension of the section 80EEA requirement for Rs. 1.5 lakh in additional interest on the acquisition of a new property is March 31, 2022. To lower your taxable income, you can deduct the principal on your house loan up to Rs. 1.5 lakh under Section 80C, and the interest on your real estate income up to Rs. 50,000. Donations to approved charities can be deducted under Section 80G of the Internal Revenue Code. Student loan interest may be deducted following Code Section 80E. Strategies for minimising yearly capital gains taxes When the new fiscal year begins, it’s the perfect opportunity to make tax-advantaged investments. Typically, people only pay their taxes in the last quarter of the year, which forces them to make snap judgments. Instead, you may build your assets and use them to your advantage in the long run if you establish certain goals at the start of the year. Tax saving schemes on taxes is a nice perk, but it should be something other than your priority. Make use of the following methods to prepare for your yearly tax savings: Costs associated with tax avoidance should be evaluated. Expenses like these, together with a mortgage or rent payment, a 401(k) contribution, or child care, may quickly add up. Take this number and deduct it from Rs 1.5 lakh to get the minimum investment sum. You can pay only part of the amount if your expenses exceed the cap. Invest in tax-favoured vehicles that align with your goals and comfort level with risk. Various options, such as the PPF, NPS, ELSS tax saving, and fixed deposits, are widely used. You may use this approach to figure out how to go below 80 degrees Celsius. If you want your wealth to be distributed equally throughout the fiscal year, you should begin investing in the first quarter. If you follow these steps, you may finish the year stress-free and gain the insight you need to make sound financial decisions. We are curious about the structure of India’s taxation system, namely its income tax saving schemes. If we had the option, most of us would choose not to pay income tax. We, nevertheless, are compelled to. As citizens, we benefit from India’s governmental resources, and income tax is a major way the country brings in money. Therefore, it is incumbent upon us to assist in developing and upkeep public facilities. This is guaranteed by submitting and paying income taxes on time. When you say “Chapter VI A 80C deduction,” what exactly do you mean? Sometimes, the income tax saving schemes department may lower taxpayers’ taxable income if they make investments or Chapter VI A qualified expenditures. PPF, EPF, LIC premiums, Equity-Linked Savings Plans, principal payments on house loans, stamp duty and registration fees on property transactions, Sukanya Smriddhi Yojana (SSY), National Savings Certificates (NSC), and Senior Citizen Savings are all eligible for tax deductions under Section 80C. Possible Tax Savings Options Other Than Code Section 80C: In addition to 80C, taxpayers can deduct the following under various rules: 80D- Benefits the individual, their spouse, and their parents, if they qualify, with health insurance. Subsection (a) of Article 80 of the Treaty on the– First-time home buyers can deduct their mortgage interest payments. Division 24– Loans for houses up to Rs. 20,000 have lowered their interest rates. Article 80 EEB– tax saving schemes breaks for people who buy electric cars with their loan interest payments 80G– donations to nonprofits 80GG– It is possible to deduct your rent payments under Section 80GG if your income does not contain an HRA. 80 of the TTA– The interest earned on a savings account is tax-deductible up to Rs 10,000. Titles 54 through 54F of the Code– There are no tax saving schemes on the appreciation of an asset’s value. [B-02] Payments to national pension programs announced by the federal government are eligible for a deduction under subcategory 80CCD of 80C. Charity donations, whether done by a company, an employee or an individual, are tax deductible. Those who make payments to the National Pension System or the Atal Pension Yojana can deduct up to fifty thousand rupees ($7,000) under Section 80CCD (1b) of the Income Tax Act of India, know more about it on Piramal Housing Finance.
08-11-2023
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Tax

NRI Investments In NCDs: Eligibility Rules And Tax Implications

Non-convertible debentures (NCDs) are a reliable and long-term investment option for NRIs. Debentures are the best option for people looking for something other than stocks and mutual funds for NRI because they offer fixed returns, strong liquidity, and low risk. Non-convertible debentures are available to residents, non-residents, and people of Indian descent. Here is all the information you need to know regarding NRI investments in NCDs, eligibility rules, and tax implications. [B-01] Who are NRIs? NRI stands for Non-Resident Indian. An NRI is an individual who resides in a foreign country for more than one hundred and eighty-three days (183 days) in a financial year. The reason for staying abroad may be for employment or business purpose. There are various investment plans for NRIs in India which often allure them. One of the NRI investments in India is NCD. Read on to study it in detail. What are NCDs? NCD stands for Non-Convertible Debentures. NCDs are one of the most popular investment plans for NRIs in India. Businesses in India issue an NCD to raise funds. It helps them get funds without having to dilute their equity. NCDs have fixed interest rates and fixed tenure. But, Non-convertible Debentures, as the name suggests, cannot get converted into equity shares of the company. Types of NCDs. NCDs can be either secured or unsecured: Secured NCDs are secured by the issuing company’s assets. This means that in the event of a default or non-payment, investors may be entitled to compensation through the sale of the company’s assets. Unsecured NCDs are riskier than secured NCDs because any assets do not cover them. Compared to secured NCDs, unsecured NCDs give investors higher yields. Key Facts About NCDs. Listed below are a few key facts about NCDs: The maturity period of NCDs ranges between 90 days to 30 years. It provides greater returns than fixed deposits (FD) in the bank. NCDs are made available through a public offering, or NCD IPO. Before becoming public, they are rated by credit rating companies. NCDs are marketable instruments that are listed on stock markets. The NCD market is tightly controlled. Only NCDs from businesses with strong credit ratings are successful. The entire NCD investment process is done online. Your Demat account receives credit for the allocated NCDs. NRI Investment in NCDs. The Reserve Bank of India (RBI) allows NRIs to invest in various NRI investments in India. The NRI needs to follow certain rules set by Foreign Exchange Management Act (FEMA) for investing in India. The rules are based on investment plans and NRIs who are willing to invest. NRIs can choose to invest in NCDs on a repatriation and non-repatriation basis. If the issuing company’s rules permit it, NRIs and people of Indian descent can invest in companies that sell NCDs. According to the eligibility criteria, applications from the people and organizations listed below are likely to be rejected. NRIs and other foreign nationals who are: Based in the USA, and or Settled in the USA, and/ or Residents/ Nationals of the USA, and/ or Subject to any taxation laws of the USA. NCD Eligibility Rules For NRI NRI investments NCD in India are governed by several rules established by the FEMA regulations of the RBI. A firm with Indian incorporation may raise money from NRIs through an investment in an NCD provided that it meets the requirements listed below: The issuing corporation issues NCDs through a public offering. The NCDs can only be redeemed after three years. Transferable Development Rights (TDRs), Chit Funds, real estate, agriculture, and plantations are not and will not be the focus of the issuing firm. The investment is made using funds from the investor’s NRE or FCNR account or funds obtained via remittance from outside of India. The NRI must give the RBI a statement of receipt of remittances and the issue of NCDs within 30 days of investment. The interest rate on NCDs must not be more than 3% over the benchmark rate. The aggregate holding of an NRI under each series of NCDs for NRI investments on a repatriation basis may not exceed the ceiling established for the issuance of equity shares and convertible debentures for FDI. You must carefully review the terms and conditions and the documentation before applying for investment plans for NRI. Tax Implications on NCD for NRIs. An NRI must abide by local tax regulations when investing in NCDs in India. There are two types of taxes on NRI investments in NCDs. TDS: Tax Deduction at Source @20% on interest earned. LTCG: Long-Term Capital Gains @ 20%. For instance, if you receive interest on an investment of Rs. 20,000, Rs. 4,000 will be subject to TDS at a rate of 20%, and Rs. 16,000 would be credited to your account. However, the NRI investments also have a three-year redemption period. After three years, a 20% long-term capital gains tax will be levied on the money made by selling NCDs. [B-02] Bottomline India offers various NRI investment plans. Non-convertible debentures(NCDs) are more reliable options than stocks and mutual funds for NRI. NCDs have fixed tenure and fixed interest rates. They can earn you higher returns than Fixed deposits. However, you are liable to pay two taxes on NRI investments in NCD. First is TDS @20% on the interest earned and second is the Long-term Capital Gains @20% after the three-year redemption period. To find more such useful and informative blogs head to our website.
08-11-2023
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Business Loan

What you need to know about Private Business Loans in India

Do you want to be your boss and start a business in India? If so, you might be thinking about getting a private business loan to start your business. It can be scary to get a loan. But if you know how a private business loan works and what it can do for you, you can make a better decision. Getting a private business loan can be a great way for business owners to get the money they need to help their businesses grow. With the right terms and conditions, a private business loan can offer a lot of benefits, from better cash flow to more freedom in how you pay back the loan. This blog will look at private business loans in India in detail. [B-01] What is a Private Business Loan? Private commercial loans are a way to get money for a business. Usually, it is given to small businesses and business owners in India. Mostly, lenders for business loans like banks, NBFCs (Non-Banking Financial Companies), and other financial institutions offer this type of loan. Different things can be done with private business loans. This includes buying equipment, growing the business, hiring more people, and a lot more. You can easily find private lenders for business loans in the form of NBFCs and FinTech companies. The amount of the loan and how it is paid back will depend on the lender and how good the borrower’s credit is. Eligibility Criteria for Private Business Loans To be eligible for a private business loan in India, the borrower must meet certain criteria. The borrower must be at least 18 years old and have a good credit score. The borrower must have been in business for at least two years and have a steady source of income. The borrower’s business must also have a minimum annual turnover of Rs. 5 lakhs. Documents Required for Private Business Loans When applying for a private commercial loan, the borrower will need to provide a few documents to the lender. Some of these are: Proof of identity (Aadhar Card, Voter ID, Driver’s Licence, Passport, etc.) Proof of address (Utility bills, bank passbook, credit card statement, caste and domicile certificate, etc.) Proof of business Bank statements Income tax returns and other financial statements, like profit and loss Benefits of Taking a Private Business Loan in India Taking out a private business loan in India can provide a wide range of benefits for a business. From improved cash flow to access to capital, a private commercial loan can provide the resources needed to fuel the growth and success of the venture. Additionally, the loan can be tailored to the business’s specific needs and budget, making it a more attractive option. Let’s look at each benefit in detail. Improved Cash Flow Taking out a private commercial loan can provide a business with improved cash flow. The capital can be used to fund operating costs and other expenses. This can help ensure that the business has the resources to stay afloat and remain competitive in the marketplace. Additionally, the loan can be used to invest in new resources and technologies. In the long term, these investments can help improve the business’s efficiency and productivity. Flexible Loan Terms Private business loans are typically offered with flexible terms. These terms allow the business owner to tailor the loan to their specific needs and budget. The loan terms may include repayment schedules tailored to the business’s cash flow and the option to make early payments or extend the loan term. This type of flexibility allows the business to make the most of its financing and ensures that the borrower can repay the loan promptly. Access to Capital Getting a private business loan can provide the business with access to capital that may otherwise not be available. This capital can be used to fund the expansion of the business, purchase new equipment, or invest in additional resources like employees, office buildings, etc. By having access to capital, the business can upscale. This would initially not have been possible without the loan. Increased Opportunities With a private business loan, the business can take advantage of new possibilities that may not have been available without the loan. This can mean going into new markets, putting money into research and development, or putting out new products. Accordingly, the business can profit from new trends and increase its market share. Low-Interest Rates Interest rates on private business loans are usually lower than on other types of loans, which may interest business owners. Furthermore, it means that the business can save money by not taking out a loan and using that money to pay for other parts of the business. A lower interest rate can also make it easier to make payments on time, which can help ensure the loan is paid off in full. How to Apply for Private Business Loans Applying for a private business loan is relatively straightforward. You may follow these easy steps to apply for a loan: Choose a lender for private commercial loans. Learn about their loan requirements and interest rates. You can fill out the application form once you meet the lender’s eligibility criteria and have all the necessary documents. After you send in the form, you need to send in the KYC documents, proof of income, and others. Choose the loan amount and how long you want your repayment term to be. Carefully think before choosing an amount or term; it should be based on your qualifications and repayment capacity. After you have made your choice, the lender will provide you with the loan terms. You must go through them carefully. Do not make any hasty decisions. If your application is approved after document verification, the lender will put the business loan amount into your account. [B-02] Conclusion Taking out a private business loan can be a great way to get your business up and running. It will help you with spending on equipment, salary payment, and other day-to-day expenses that come up at the beginning. Following the steps outlined in this blog, you can easily apply for a private business loan in India and get the funds you need to start or grow your business. Get all the information you want about private commercial loans and more at Piramal Finance. Visit their website for blogs like this one!
08-11-2023
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Personal Loan

Falling Short of Money? Don’t Worry, Consider a Personal Loan

Of course, careful financial planning can help you prepare for your financial goals. But occasionally, you run out of money despite making wise financial decisions. This might be for your ideal vacation, a wedding, a holiday, a house improvement, or even to pay for certain medical needs. You can benefit from a personal loan in this situation. You can spend some of the money you’ve already saved or borrowed for specific financial objectives. Choose a personal loan instead, which acts as an enabler. A personal loan can be obtained by salaried people between the ages of 21 and 60 within 48 hours, often on the same day. Could we talk about the advantages of personal loans? [B-01] Benefits No collateral required A personal loan is an unsecured loan. This indicates that you are not required to pledge or mortgage your current assets as collateral. However, the bank will check your financial stability and repayment capacity before approving and disbursing the personal loan. With a bank, the minimum net monthly income requirement is Rs 15,000. To determine your credit score, your personal financial records and your credit report (obtained from credit information businesses such as CIBIL, Experian, Equifax, Highmark, etc.) are thoroughly investigated (which reflects your creditworthiness). Requires minimal documentation A personal loan requires less documentation than other loans do. Your age proof, address proof, photo ID proof, pay stub, Form 16, bank statements, income tax returns, and qualification proof or registration proof are typically needed. Along with a completed and signed loan application form, these documents and one photograph must be sent. Competitive rate of interest The interest rate you pay depends upon the following factors: income stability, work experience (in the current job, business, or profession and total), your credit score, existing EMIs (if any), your repayment capacity, and loan tenure, among other things. If you are young, have a steady source of income with sufficient work experience, a good number of years before retirement, and have low or no EMIs. If your credit score is decent (750 or more), you can qualify for a personal loan with an extremely low interest rate. Comfortable loan repayment You may opt for the EMI (Equated Monthly Installment) facility to ease your burden. Furthermore, the loan’s term could range from 12 to 60 months. You can choose the length of time and monthly repayment amount that suit you best (for the chosen tenure). To know how much the EMI on your personal loan will be, click here to know how much the EMI on your personal loan. Also, you can choose to prepay your loan partially. There are no fees associated with partial personal loan prepayments at the bank. There are no foreclosure fees. Say you have enough money saved up or receive a windfall one day and want to foreclose on your debt. It is doable. For the foreclosure to proceed, all unpaid debts must be settled, and you will need to send the bank a letter asking for the foreclosure. Currently, no fees are associated with pre-closing a personal loan account with the bank. According to the American Psychological Association, money is the main source of stress in the United States. To be more precise, 54% of workers mention money. More than their employment (18%), relationships (12%), and health worries (11%), matters are the main source of their stress. All that financial stress has a significant impact on physical and emotional health. Ailments and complaints connected to stress account for 75–90% of all doctor visits, including chest discomfort, headaches, high blood pressure, sleeplessness, and depression. You’re putting off doing something that you know is crucial in the long run. It’s easy to feel like we’re falling behind when we know something is crucial in the long run but don’t prioritize it in the present. The distressing statement, “I’m not where I should be,” can lead us to assume that we are not on track for a bright future. This is a perfect illustration, but more is needed to take charge of your financial situation. Avoidance might be the simpler option right now, but it can quickly lead to regret in the future. Could you connect with the future you as a solution? What kind of lifestyle do you envision for the next ten years? Two or three decades, perhaps? Imagine yourself in your prime when you’re older. You will be inspired to start preparing today if you feel more connected to your future self and clearly define your desire. [B-02] Conclusion A personal loan can be quite helpful and used for practically any circumstance. To ensure a pleasant and trouble-free experience when you need it most, please make sure you’re borrowing for the right reason(s) and read the fine print carefully. We hope that now you have understood the trends of taxation of gold in India, the security threats related to it, and the remedies to deal with it. Now you can easily avail yourself of gold loans without hesitation because knowledge gives you the confidence to perform. You may always seek the advice of professionals like Piramal Finance if you need financial assistance. They can guide you on when to apply for a business loan. They can even suggest which is better between a personal loan and a business loan. You might have to wait until maturity to redeem these personal loans. You can consult financial experts at Piramal Finance. They provide guidance and solutions to people’s financial problems.
08-11-2023
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Tax Slabs

Income Tax Slab Rates for AY 2022-23

Paying income tax is one of the fundamental duties of every working individual out there. Paying taxes has its benefits. These help you with all types of approvals during loans and visas. In addition, the tax you pay to the government is used for infrastructure development, different welfare schemes, scientific research, defence, etc. This provision of paying tax was introduced in the Income Tax Act, of 1961. This helps the government to generate revenue and serve its citizens for their goods. There is another subject that is associated with income tax and it is known as the income tax slab. The income tax slab is the division of different working classes according to which individuals pay their taxes. The whole calculation of income tax is done through an income tax slab rate, where different categories of taxpayers pay different interest rates. These slab rates are subjected to periodic changes and change every financial year. [B-01] This article is a dedication to income tax slabs and the income tax slab rates for the financial year 2022-2023. In this article, you will know about income tax slabs, their advantages, and the tax slab rates for the Assessment Year 2022-2023. What is an income tax slab and what is its significance? The income tax slab is the mere categorisation of different income groups and accordingly, the taxpayers pay their income tax. In simple language, it refers to paying your income tax based on your income amount. The Government of India charges income to these individual categories of taxpayers: Body of Individuals, BOI Hindu Undivided Families, HUF Companies Corporate Firms Local Authorities Associations of Persons, AOPs Now, it is important to know that the calculation of income tax is done according to the income tax slab rates, different rates are charged to different types of taxpayers and the incomes they generate. There are four tiers under which different taxpayers are categorised and pay their taxes accordingly. What are the different tax-paying categories under the Income Tax slabs? There are seven different types of taxpayers according to which their income tax slab rates are decided. For people whose income is up to 2.5 lakhs per annum: For people whose income is up to 2.5 lakh rupees per annum belong to the first category of taxpayers. However, the Government of India doesn’t charge any tax to this category. For people whose income ranges between 2.5 lakhs per annum to 5 lakhs per annum: If your income is between 2.5 lakh rupees per annum to 5 lakh rupees per annum, then you belong to the second category in the income tax slab. Your income tax is calculated according to the income tax slab rate under this category. The income tax slab rate for this category in 2022-23 is 5% of your total income. For people whose income ranges between 5 lakhs per annum to 7.5 lakhs per annum: If your income is around 5 lakh rupees per annum to 7.5 lakh rupees per annum, you belong to the third category of income taxpayers. So according to the income tax slab rate that applies to this category, you pay your income tax. The income tax slab rate for this category in 2022-23 is 10% of your total income with an additional charge of 12,500 rupees. For people whose income ranges between 7.5 lakhs per annum to 10 lakhs per annum: If your income is around 7.5 lakh rupees per annum to 10 lakh rupees per annum, you belong to the fourth category in the income tax slab. Your income tax is charged based on the income tax slab rate of this category. The income tax slab rate for this category in 2022-23 is 15% of your total income with an additional charge of 37,500 rupees. For people whose income ranges between 10 lakhs per annum to 12.5 lakhs per annum: The people whose income ranges between 10 lakh rupees per annum to 12.5 lakh rupees per annum, belong to the fifth category of the income tax slab. The Government charges a specific income tax slab rate to the taxpayers who belong to this category. The income tax slab rate for this category in 2022-23 is 20% of your total income with an additional charge of 75,000 rupees. For people whose income ranges between 12.5 lakhs per annum to 15 lakhs per annum: The people whose income ranges between 12.5 lakh rupees per annum to 15 lakh rupees per annum, belong to the sixth category of the income tax slab. They are charged according to the income tax slab rate that applies to this category. The income tax slab rate for this category in 2022-23 is 25% of your total income with an additional charge of 1,25,000 rupees. For people whose income is more than 15 lakhs per annum: If your annual income is more than 15 lakhs, you belong to the last category of the income tax slab. The income tax slab rate for this category in 2022-23 is 30% of your total income with an additional charge of 1,87,500 rupees. [B-02] Summing it up: Income tax slab rates are subjected to changes every year and are released by the Income Tax Department of India. There are seven different categories of taxpayers and likewise, they are advised to pay their income tax. You can go through the list above and choose your category from the income tax slab. If you have reached this far, it is evident that you like reading topics based on finance and for that, what is a better place to go than Piramal Finance?
08-11-2023
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Tax Slabs

Income Tax Deduction Section List

Taxes are the basic income source for the government. Infrastructure, scientific research, and defense are funded through these different welfare schemes. Paying taxes is the duty of every individual with a standard income source. When you pay taxes regularly, you take one step towards becoming a dutiful citizen. Paying taxes enables you to get approvals for loans and visas. You also get benefits from the investments made by the government through the taxes you pay. But sometimes, tax planning is equally important to help you save more and reduce your financial distress. And for more income tax deductions, the Government of India came up with different sections of the Income Tax Act, of 1961. For example, section 80(C) is one such provision that allows you to save tax on the income you generate through investments. [B-01] Want to know more about the different tax deduction provisions to save more? Well, then this article is the right place for you to find out the answer to this question. In this article, you will find out about different income tax deduction sections of the Income Tax Act. Income Tax Deduction Section List: In action, there are several sections of the 1961 Income Tax Act that enable you to save tax, mainly under Section 80. These sections touch upon different subjects like investments, health insurance, education, etc. The first one is Section 80(C). This is subject to the income tax deduction under the investment category. The second one is Section 80(D), subject to a tax deduction on the premium of your health insurance. The third one is Section 80(E). Under this, there is a tax deduction under the education category. Under the fourth section, there is a significant tax deduction on all types of donations. This is Section 80(G). Then comes Section 80(IA). It covers income tax deductions on all types of industrial activities. Section 80(TTA) permits the deduction of tax only to individual taxpayers and Hindu Undivided Families (HUF). The section stressing income tax deductions of the category that entails persons with disabilities is Section 80(U). Similarly, there are different other sections like Section 80(RRB), Section 80(QQB), Section 80(P), Section 80(LA), and Section 80(J). However, in this article, we will be discussing all the sections and subsections of Section 80(C). Section 80(C): Aim, Provisions, and Significance Section 80(C) of the Income Tax Act, 1961, provides certain tax exemptions to both individual taxpayers and Hindu Undivided Families (HUF). The taxpayers who fall under this eligibility criteria are allowed to claim a deduction of up to 1.5 lakh rupees. That means the income you generate from the different investment schemes is subject to an income tax deduction of the aforementioned limit. The different investment schemes that fall under the eligibility of this section are: Life Insurance Policies Superannuation or Provident Funds Education fees for a maximum of two of your children Payment made for construction purposes Equity Linked Savings (ELS), National Pension Scheme (NPS), Public Provident Fund (PPF), Employee Provident Fund (EPF), Fixed Deposits, Unit Linked Insurance Plan (ULIP), etc. What are the different subsections of Section 80(C) and what is their significance? There are four subsections under Section 80(C), and they are Sections 80(CCC), 80(CCD), 80(CCF), and 80(CCG). Different sections focus on different subjects related to income tax deductions. Section 80(CCC): This subsection of Section 80(C) focuses on tax deductions related to all categories of pension funds. So, as said earlier, you can claim a deduction of up to Rs. 1.5 lakh under this subsection. However, the provisions of this section are only applicable to individual taxpayers. Section 80(CCD): This subsection of Section 80(C) also encourages individuals to invest regularly under different pension schemes to increase their worth and ensure their social security. According to this section, contributions made by an individual taxpayer are eligible for an income tax deduction of up to 10% of the person’s salary, including the Dearness Allowance. The other subcategory of this section is Section 80 (CCD)-1. This section is specially designed for those individuals who invest under the National Pension System. According to this section, the investors in NPS are subject to an additional income tax deduction of up to 50,000 rupees. Section 80(CCF): Unlike sections 80(CCC) and 80(CCD), this subsection applies to both individual taxpayers and the Hindu Undivided Families (HUF). According to section 80(CCG), taxpayers can claim a maximum tax deduction of up to 20,000 rupees on only subscriptions to long-term infrastructure bonds. Section 80(CCG): This subsection of Section 80(C) allows individual taxpayers to claim an income tax deduction of up to 25,000 rupees per year on investments made in equity saving schemes, provided the limit is 50 percent of the invested amount. [B-02] Summing it up: Saving taxes decreases the financial burden on your expenses and encourages you to make more investments. However, knowing about these income tax deduction sections is mandatory, and claiming them is your right. You must be aware of all your tax-related rights and devise a smart tax planning strategy to open doors for a better future. If you like reading about these topics and want to learn more about taxation and different investment schemes, you should probably visit Piramal Finance.
08-11-2023
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Personal Loan

The Highest Amount Individual Can Avail For Personal Loan

Even with perfect financial planning, unexpected expenses can rise anytime. Fortunately, a personal loan can help you manage any last-minute costs. Even though getting personal is simple, the process has specific challenges. Be it an emergency medical bill or a fancy vacation, a personal loan can be the best aid. You need to know the loan amount you are eligible for to determine how to obtain a higher personal loan. But, evaluating the amount might be challenging for you. This article will discuss how to avail the highest amount on a personal loan. [B-01] Personal Loan Limit As Per Different Income Brackets A personal loan is different for everyone. The essential contributing factor in availing of a personal loan is your earnings as an employee and a self-employed individual. Depending on the various income brackets, you can avail of the highest reasonable amount. Monthly Income Approximate personal loan amount Rs. 20,000Rs. 5.40 Lakhs Rs. 30,000Rs. 8.10 Lakhs Rs. 40,000Rs. 10.80 Lakhs Rs. 50,000Rs. 13.50 Lakhs Factors Considered by Lenders When Approving a Personal Loan Here are some vital factors that every financial lender will consider before approving a personal loan. Repayment Capacity Since personal loans are unsecured, banks or lenders carefully sanction any requests. There are several ways to determine a person’s repayment capacity. The lender will investigate your past debts and loans and check whether you cleared them on time. If the bank finds that you have an ongoing debt, they will check your salary. While comparing your salary to the total debt ratio, the lender determines if it is safe to approve the loan. Collateral or Security Most personal loans do not need collateral. But when the stakes are higher, the lender might ask you to submit collateral. Since you are borrowing a loan higher than your income bracket, the lender might be sceptical. This is because sometimes, even the most financially stable people might fall short of money. So, the lender must ensure they have backed the personal loan amount with collateral. The collateral asked by your lender includes available assets. These assets may include real estate property, business assets, vehicles, fixed deposits, etc. The valuables represented as collateral will be under the bank’s hold until your loan is cleared. If you fail to pay the personal loan, the lender will sell those assets and recover their loss. Age Both lenders and banks consider the borrower’s age before sanctioning a personal loan. They usually prefer the age group of 30-50 years. This is because the people in this age group are well-settled. Because they have enough years ahead of them to generate income. It ensures that they have enough time to pay the personal loan. Older people do not have a stable source of income. So, people above the age of 50 might find it challenging to get approved. And, the lender might need collateral to approve a personal loan for them. Repayment Tenure & Loan Amount Most of the time, banks and lenders prefer short repayment tenures. For instance, the lender will choose someone ready to pay the loan in 2-3 years instead of a person who opts for a ten years tenure for a personal loan. But, if your loan amount is higher, the bank or lender might understand and give you a bit of an extension. The best thing is to opt for a shorter price if you want a higher personal loan amount. Tips to Increase The Amount of a Personal Loan You can avail of a higher amount on a personal loan by following these tips. Focus On Improving Your Credit Score The credit score is a vital aspect of loan approval. Most lenders or banks check your credit score when you apply for a personal loan. Your credit score possesses detailed information about your spending habits. Lenders may investigate that to approve your loan application. The credit score criteria to boost the personal loan amount can differ for lenders. Hence, you must check the parameters before starting to plan for a personal loan. Keep a check on your credit score regularly. A better credit score increases your chances of getting a better loan, irrespective of your income bracket. Practice Money Management Efficient money management is the key to a good credit score. You must keep a thorough track of all your existing credits. If you have any ongoing debts or loans, make timely payments and keep a check on all the credits. Avoid taking unnecessary debts or loans if you do not need them. Increasing your debt repayments will increase your financial responsibility. In addition, you might even disrupt your credit score due to the number of repayments. Apply to One Place at a Time Most people think applying to many lenders increases their chance of getting a higher and better personal loan. But in reality, it might just make things more complicated. Lenders investigate your movement by an intra-institutional check. In this search, the lender tries to find whether you have applied for a personal loan elsewhere. If it comes to notice that you applied for multiple loans, the lender will most probably reject the personal loan application. The significant reason for rejection is that you might come off as desperate. Most reputed lenders reject personal loan applications in similar situations. This is because the person comes off as hasty while trying to increase their credit. [B-02] Conclusion People go for personal loans because of their simple and convenient nature. But when you want the best personal loan possible for yourself, you need to put in some extra effort. It is possible to get a higher personal loan amount. So, make sure you practice all the proper steps to avail of the highest personal loan amount. If you want to know about personal loans, visit Piramal Finance for similar blogs. You may also take a look at the products and services they offer for your needs.
08-11-2023
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Personal Loan

Personal loan Interest rates, Charges and Fees in 2022

In today’s modern world, money is a necessity. People tend to take loans for their needs. Banks and different financial institutions provide personal loans. This loan comes with an interest. Interest is an extra amount to be paid above the principal amount. Personal loan interest rates are different for different financial institutions. Piramal is one of the leading providers with the best facilities, friendly environment and best offers. It provides you with many features and benefits while availing of a personal loan. Some of them are- There are zero prepayments when you apply for the loan. You can apply for loans ranging anywhere between 1 lakh and 10 lakhs. PIRAMAL provides you with a quick sanction of the amount with minimum documentation required. Customers can have flexible repayment schedules with friendly EMIs. The feature of clubbing is available in case of a higher loan amount. [B-01] Some detailed charges related to Personal Loan at PIRAMAL are- Processing fees4% loan amount + Taxes (applicable)Default Interest2% per month on default EMIDocumentation chargesUp to 0.5% of loan amount + Taxes (applicable)Prepayment charges Up to 5% of the prepayment amount + Taxes (applicable)Charges in case of Check Bounce500 INR + Taxes (applicable)Any Legal chargesAt actuals + Taxes (applicable)Charges related to recoveryAt actuals + Taxes (applicable)Stamp Duty chargesAt actuals + Taxes (applicable)Statutory charges At actuals + Taxes (applicable)Charges for Physical copy of Loan Repayment schedule (if required)500 INR + Taxes (applicable)Charges for change in Loan repayment mode (if required)500 INR + Taxes (applicable)Charges for issuing Duplicate NOC (charges are just for a physical copy) 500 INR + Taxes (applicable)Charges for Account statement (charges are just for a physical copy)500 INR + Taxes (applicable) What is the Personal Loan Principle Amount? This is the total amount of the loan. The interest is calculated on this amount. The time period is also decided by taking it in the term. The more the principal amount, the more is interest. The same goes for time. For example- you take a personal loan for 2 lakhs. What is the Personal loan Interest Amount? This is the extra money paid. The interest may vary. It can be different for different banks. It can also differ for states. The banks usually give offers to people for loans. They give loans and earn a lot. It is like a long-term investment for them. The amount they give, they get back. They also get a lot of money in form of interest. They can even take the property of the person if he or she fails to return the money within a given time. To save yourself from interest, the best option is to reduce the period. Prepayment of loans can be useful too. The amount for prepayment can be calculated easily. It is calculated by a home loan prepayment calculator. What is EMI? EMI: Its full form is equated to a monthly instalment. It is payable when you take a loan. You have to pay EMI every month. You have to continue paying until the principal amount dissolves. The EMI has 2 sections of money. One is the principal amount and the other is interest. The breakup of the amount gives EMI to be paid. The time period is also fixed. Even the date on which the EMI is to be paid is fixed. The documents which are required for a Personal Loan are- Any one of the Documents for identity proof Copy of aadhaar card Copy of passport Copy of voter Id Copy of the driving license Any one Document for address proof Copy of aadhaar card Copy of passport Copy of voter Id Copy of driving license Any one of the Documents to the process of KYC Copy of aadhaar card Copy of passport Copy of voter Id Copy of driving license Bank statement for at least the last 3 months Passbook with records of at least the last 6 months Id card of the employee Proof of salary Latest salary slips Details of Co-applicant in case of clubbing Factors which affect the personal loan interest rates- The factors that affect the interest rates for personal loans are as follows- CIBIL SCORE This is one of the major factors which decides whether you are eligible for a personal loan or not. It decides the personal loan interest rates for you. You should always aim to have a good CIBIL score. Anything higher than 750 is a good score. You can have a good CIBIL score by paying your EMIs on time. Just don’t let the check bounce. Always have enough money in the bank before the due date of the EMI. This will help you maintain a good CIBIL score. INCOME Your income is a major deciding factor. The more the income, the more are your chances to get the loan. Higher income allows you to avail of the loan of your choice. It also provides a wide variety of options. EXISTING RELATION The relationship you have with the financial institutions can also affect the rates. People tend to have close relations with some NBFCs. In simple words, being a regular customer. This can also affect the rates and concessions that you can avail. A previous banking or lending relationship can affect this to a great extent. [B-02] Conclusion Thus, it is important to know all the charges related to personal loans beforehand. The interest rates differ as per the financial institutions. So you need to choose carefully. Piramal provides with best facilities. The friendly officials can help you with all your financial needs. You can avail of a personal loan with ultimate ease. Piramal is a one-stop solution for you. Check out https://www.piramalfinance.com/
08-11-2023
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