More articles for you

Your one stop place for everything related to finance and lending

Tax Savings

Atal Pension Yojana – Objective, Eligibility & Tax Benefits

The Atal Pension Yojana Scheme is a pension program. Prime Minister Narendra Modi started it on May 9, 2015, to help senior citizens become self-sufficient after retirement. The plan ensures that poor people will have more money later. The Pension Fund Regulatory and Development Authority is in charge of running the APY scheme. Its goal is to give everyone in the country a social security system, especially the poor, the less fortunate, and workers in the unorganised sector. [B-01] What Is Atal Pension Yojana Scheme? The Atal Pension Yojana scheme aims to provide retirement security to all Indian citizens so that they don’t have to worry about getting sick, hurt, or dying in old age. People from the unorganised sector can apply for the scheme. These pension benefits do not apply to the private sector or working people. The Atal Pension Yojana scheme promises beneficiaries a minimum monthly pension. After 60, subscribers can select a pension plan of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000 per month. How much of a pension a person gets depends on how old they were when they joined APY and how much they put in each month. Objectives of the Atal Pension Yojana Scheme This pension programme helps unorganised people save early for retirement. The scheme’s return depends on the monthly payments and the person’s age. Atal Pension Yojana scheme recipients get monthly payments from the money they save. The Atal Pension Yojana is focused upon: Unorganized sectors such as house help, gardeners, delivery boys, etc. Give people a sense of safety and help them during illnesses, accidents, and diseases. Why Was the Atal Pension Yojana Scheme Started? Earlier pension plans could not deal with the country’s unique demographics. The Swavalamban Scheme could not help many people because the benefits were not clear. Swavalamban also did not promise to provide a minimum pension. Also, the unorganised sector, a big part of the workforce, wasn’t discussed. Considering this problem, the Indian government launched the Atal Pension Yojana scheme in 2015–16. Atal Pension Yojana Details Subscribers get a fixed pension of between Rs. 1000 and Rs. 5000. People can join the scheme between the ages of 18 and 40. If subscribers join early, their contributions will be low, but that will go up if they join late. The same pension goes to the spouse after the subscriber dies. After a spouse dies, all of their pension money goes to the people they chose. Like contributions to the National Pension System, contributions to the Atal Pension Yojana scheme (APY) can get tax breaks. The central government will pay into the pension scheme for the next five years. The government contributes 50% of the monthly subscription fee or Rs. 1000, whichever is less. Atal Pension Yojana Scheme Eligibility To take advantage of the many benefits of the Atal Pension Yojana scheme, people must meet the following requirements: The people who sign up for the Atal Pension Yojana should be Indian citizens. To apply for the scheme, a person must be at least 18 years old and no more than 40 years old. If a person joins at age 40 and wants a monthly pension of Rs. 1,000, they have to pay more than someone who joins at age 18. The people who join must make regular payments for at least 20 years, depending on their age when they join and the pension slab they choose. APY applicants should have a valid mobile number and a bank account linked to their Aadhar number. This is a very important step in signing up and getting updates on the APY account. Atal Pension Yojana Benefits Here are a few of the best things about the Atal Pension Yojana scheme: Steady Source of IncomeAfter a person reaches 60, they are given a steady source of income. This makes it possible for them to pay for basic needs like medications, which are common in old age. Government SupportThe Indian government is behind this pension plan. The Pension Funds Regulatory Authority of India (PFRDA) ensures the scheme. So, people don’t have to worry about losing their pensions because the government backs them up. Focus on the Unorganized SectorThe scheme was created primarily to assist people who work in the unorganised sector with their finances in order for them to be financially independent in their later years. Nominee FacilityIf a beneficiary dies, their spouse can benefit from this program. They can either close their account and get the whole fund or get the same pension as the original beneficiary. If both the beneficiary and their spouse die at the same time, the whole corpus amount will go to the nominee. Tax Benefits of the Atal Pension Yojana Scheme Under Section 80CCD of the Income Tax Act of 1961, people who invest in the Atal Pension Yojana can get a tax break. Under Section 80CCD (1), a person can get a tax break of up to 10% of their total gross income, up to a maximum of Rs. 150,000. Section 80CCD (1B) lets you get an extra Rs. 50,000 tax break for the Atal Pension Yojana Scheme. Application Process for the Atal Pension Yojana Scheme To get the perks of the scheme, follow the steps below: The APY scheme is available at all nationalised banks. People can access an APY account at any of these banks. You can also find the account opening forms on the official web portal. You can download the application form. The application form is available in eight different languages: English, Telugu, Tamil, Odia, Marathi, Kannada, Gujarati, and Bangla. To apply, visit the bank and fill out an application. Give a working phone number. You’ll need to provide a photocopy of your Aadhaar card. If your application is accepted, you will get a message letting you know. Atal Pension Yojana Contributions The chart shows how much subscribers can give each month. They can also make contributions every three months and every six months. Entry ageRemaining years of contributionMonthly instalment for Rs. 1,000 monthly pension/ corpus amount Rs. 1.7 lakhMonthly instalment for Rs. 2,000 monthly pension/corpus amount Rs. 3.4 lakhMonthly instalment for Rs. 3,000 monthly pension/corpus amount Rs. 5.1 lakhMonthly instalment for Rs. 4,000 monthly pension/corpus amount Rs. 6.8 lakhMonthly instalment for Rs. 5,000 monthly pension/corpus amount Rs. 8.5 lakh18424284126168210194146921381832282040501001501982482139541081622152692238591171772342922337641271922543182436701392082773462535761512263013762634821642463274092733901782683564462832971942923884852931106212318423529303011623134746257731291262523795046303228138276414551689332715130245360275234261653304956598243525181362543722902362419839659479299037232184366548701,08738222404807209571,19639212645287921,0541,31840202915828731,1641,454 [B-02] Conclusion Atal Pension Yojana scheme mainly focuses on the unorganised sector people. Previously, the unorganised sector wasn’t covered in its genuine essence, but with this strategy, the government is on track to accomplish its slogan of “Sabka Saath, Sabka Vikaas.” It lets investors put in money they can easily afford and then get a pension from that money when they retire. Anyone who wants to save some of their income for retirement can use this plan. If you want to know more about government schemes, visit Piramal Finance.
08-11-2023
Read More
Personal Loan

Everything You Need to Know about Government Instant Personal Loan Scheme for Women

The government’s instant personal loan scheme for women is an innovative and groundbreaking initiative to empower women financially. This scheme provides instant access to personal loans without the need for collateral. It’s a perfect option for women who may not have access to traditional financing products or are looking for a more convenient, low-cost way to access credit. Read the article and utilize this fantastic opportunity to care for your finances and become more independent. Top 7 Instant Loan Schemes for Women From Government Several instant loan schemes are available for women. Below are the top 7 instant personal loan schemes for women. Mudra Loan The government launched this scheme for women. It provides financial support to women business owners. This exciting initiative offers instant personal loans to help women become economically independent. The best part is that the loan is granted under this plan without any collateral. This loan helps women entrepreneurs start or expand their businesses and make their dreams come true. Features The loan amount can range from Rs. 10,000 to Rs. 10 lakhs. No collateral is required. The loan amount is disbursed within three business days. The repayment period can range from 5 to 7 years. Women can also apply for a Mudra loan online. This makes it even more convenient. With this loan, women can purchase equipment, buy raw materials, and invest in their businesses. This loan will help them become self-sufficient and create a better future. So if you’re a woman looking to start your own business, the Mudra loan scheme is a great option to explore. 2. Annapurna scheme The Annapurna scheme is an incredible loan program exclusively available to women. It provides quick and easy access to credit at low interest rates. The Government of India introduced this scheme as part of its mission to empower women financially. This scheme is available to women of all backgrounds and income levels. It offers loans without collateral and interest. Features The loans are available for up to Rs. 50,000 and are approved instantly. You can quickly access funds. You don’t have to go through a lengthy loan application process. You can use the loan to cover any purpose. This can be debt consolidation, medical bills, business expenses, etc. The application process is easy and transparent. It ensures that you get the funds you need as quickly as possible. Once the loan is approved, you don’t have to pay EMI for the first month. Once approved, You must repay the amount in 36 months. The interest rate charged is decided based on the market rate and the relevant bank. 3. Stree Shakti Yojana The Stree Shakti Yojana is an instant personal loan with several benefits. This makes it suitable for all financial needs. With this new loan scheme, women can access easy and convenient credit with minimal paperwork and competitive interest rates. This loan scheme is a revolutionary new loan program for women in India. Features Using this scheme, women can take advantage of an interest concession of 0.05% on loans worth more than Rs. 2 lakh. It is an excellent opportunity for women looking to start their businesses, upgrade their skills, or manage their finances. The loan is available to all women, regardless of their background or financial history. The application process is simple. You can quickly transfer funds to your bank account. There are no hidden fees or extra charges. The interest rate and repayment schedule are clearly stated upfront. Women in India can now access the capital they need to begin or expand their businesses without the hassle and paperwork of traditional loan applications. 4. Dena Shakti scheme The Dena Shakti scheme loan is an instant personal loan. It has been designed specifically for women. This scheme is an incredible opportunity for women who want to start a business, pay for their children’s education, or make necessary investments. Features In this scheme, women can get a loan of up to Rs. 20 lakhs with no collateral. The program offers a concession of 0.25 percent on the interest rate. Under the microcredit category, women business owners can be eligible for a loan of up to Rs. 50,000. The application process is simple. The loan can be approved within minutes. Moreover, the repayment terms are flexible. They allow you to choose the time frame that works best for you. 6. Bhartiya Mahila Bank Business Loan The Bhartiya Mahila Bank Business scheme loan for women is making it easier than ever for female entrepreneurs to get the financing they need. This instant personal loan can be utilized for various business expenses, from working capital to technology and equipment purchases. Features With this loan, you can get up to Rs. 20 crores in funds. This business loan scheme provides different plans, such as Shringaar, Parvarish, and Annapurna. Self-employed women can utilize this Shringaar plan to start their businesses. They don’t have to provide collateral security for this loan. Also, the Parvarish scheme allows self-employed women or homemakers to set up their businesses. 1 crore is the upper limit for this loan without any collateral security. Annapurna loan is available to food entrepreneurs aged 18 to 60 who want to start or grow small businesses. It also does not require any collateral. 7. Mahila Udyam Nidhi Yojana Punjab National Bank and Small Industries Development Bank of India launched the Mahila Udyam Nidhi Scheme. It supports women entrepreneurs. So they can start their small businesses. Also, they can begin their micro-enterprises like retail trade and beauty parlours under this scheme. Features It offers instant personal loans of up to Rs. 10 lakh, which can be repaid in 10 years at a low interest rate. You can use the loan amount to set up a new business or grow an existing one. The repayment period is flexible. The scheme also provides access to business advisory services and digital marketing tools, helping women entrepreneurs reach their target audience more effectively. Women entrepreneurs can also avail other benefits, such as skill development and mentorship programs. These will help them increase their chances of success. Conclusion It can be tempting to go with the first loan program you come across, but you’re better off comparing loan options to find a loan that can meet your specific needs and goals. This article covered the top 7 Instant Personal Loan Scheme For Women. Piramal Finance is one of India’s leading housing finance companies. The company’s commitment to providing quality services focusing on customer service makes it stand out. Their experienced professionals provide expert advice on every aspect of the loan process, making it easy and hassle-free. With its stellar track record, Piramal Finance has become India's go-to choice for housing finance.
08-11-2023
Read More
Tax Slabs

Everything you should know about tax deduction for bloggers and social media influencers in 2022

Following the pandemic, there has been a growth in remote working. Similarly, there has been an increase in social media influencers. This job allows you to express yourself and makes you in charge of your destiny. In addition to these, it also comes with tax deduction benefits. Read on to learn the benefits associated with social media influencers. [B-01] What Qualifies As Tax Deductible Charges? Home Office Deduction You are allowed to claim a home office deduction If you work from home. This allows you to write it off. A portion of your rent, mortgage interest, and home insurance can be used for a tax deduction. Few things to keep in mind: Your primary place of business should be your home office. You can only claim the area that you use for work. You can either claim this tax deduction by using the simplified deduction method or an itemized deduction. The latter involves tracking actual expenses and is more time-consuming. Travel Expenses Any flights, whether international or domestic can be used for a tax deduction if they were work-related travel. This also applies to several other modes of transport such as taxis, and hotels amongst others. But, you can only claim if these expenses were done away from your “tax home”. Advertisement and marketing For social media influencers, advertising is very crucial. The good news is that you can claim a tax deduction on it. These comprise Google Adwords and Facebook ads amongst others. Business-Related Education If you are going to go for courses to improve your skills as a social media influencer, you can get a tax deduction on them. These include social media marketing or photography courses. You can get a tax deduction on almost everything involved. Money spent on books, courses, materials and transportation is eligible. Office Supplies Any office supplies you may buy are eligible for a tax deduction. Examples of such supplies can be, Notepad. Printer ink. Stationary. Paper. Whiteboards. This depends largely on which type of social media influencer you are. For example, vloggers can claim a camera and laptop. Business Insurance Business insurance will cover you against unforeseen events. This covers a lot of insurance you take to protect your business. Any insurance premium related to your business can be used for a tax deduction. Website costs Being an influencer, you may need a website. This helps you reach a wider audience. It also lets you promote your services. If you pay for a website, you can write off the following expenses. Hosting fees. Cost of the domain name. Cost of plugins. Cost of themes. App costs Just like the website, any costs involved with an app are deducted. These involve tax accounting software, social media management tools and more. Legal fees Just like any business, social media influencers pay legal fees. You can avail of tax deductions for starting up and also managing your business. Bank fees It is advised to have a different bank account for your business. This allows you to get tax deductions on such bank fees, Transfer costs. Service fees. Overdraft expenses. Giveaway expenses Giveaways are very important if you are a social media influencer. When you do giveaways to fans you can get tax deductions on them. Clothing and Beauty Products If you are an influencer, looking good on camera is very crucial. Hence, buying clothes consumes a good amount of money. The following can be used to get tax reductions: Beauty products such as hair products, tools or even haircuts. Lingerie for only fans content creators or models. Sportswear for working out. Charity Donations If you donate money or items to a charity, you can get tax deductions. You need a written document to prove this from the charity to get the benefits. Tax advice Tax is a hard-to-understand concept. Also, it takes time to figure out. Hence, social media influencers hire tax advisors. This comes at a cost but you can get tax deductions for this. This allows you to save a lot of time and save on the money paid for tax advice Phone bill and internet As an influencer, your phone bill or internet is one of the highest expenses. This is because you talk to many people and upload/download files on a regular basis. You can get a tax write-off on this. If you have a separate business phone it will be fully deductible. But, if you have a personal phone which you use for business-related work, you can get a partial deduction. How to make the most of Tax deductions? Being a social media influencer can get expensive. So, here are some tips and tricks to take full advantage of tax deductions. Keeping track of expenses The best way to not miss out on any tax expense is by tracking all of them. You can use physical or digital journals to do so. Get receipts Another tip would be to get receipts for every single payment. Any tax deduction requires receipts to back up the expense. Hence, collecting receipts for every expense might be a good practice. Tax advisors Tax advisors provide great help. They make sure you get the maximum number of tax deductions. In addition, they ensure you meet the criteria for tax write-offs. This saves you time and effort. [B-02] Conclusion Being a self-employed social media influencer, you need to make the most of tax write-offs. This reduces your taxable income. This exercise requires time and effort but it saves a good chunk of your income from being taxed. This is why financial advisors at Piramal Finance are in high demand. They provide financial advice and help you manage your finances. There are many articles and blogs to help you learn more about the world of finance.
08-11-2023
Read More
Tax Savings

NPS or ELSS: Which one is better for tax saving?

Investment is probably one of the best ways to provide safety and security to your finances. It is better than saving your money as it gives you high-scale profits. Besides that, investing your money gives you financial leverage. This helps you have a strong financial footing. While investing your money to have higher returns is important, it is equally important to use the right strategy. But, with so many options available, it might get tricky to find the right one. It should suit your investment goals. Before you search more, you need to know about two investment options. Most people across the country prefer widely. They are National Pension Scheme and Equity Linked Savings Scheme. Both NPS and ELSS are taxable and provide tax benefits to the investors. Also, they fulfil different investment goals and requirements. In this article, you will learn about the National Pension Scheme and the Equity Linked scheme and its features. Read more to know which option is the better way to save taxes. [B-01] What is the National Pension Scheme? What is its objective? The Public Fund Regulatory and Development Authority launched the National Pension Scheme. It was then aimed to provide social and financial security to the retired class of the country. It also motivates the working class to invest a specific amount up to retirement. This helps to build a huge corpus and get a regular income through a salary for their entire life. NPS is apt for investors who have long-term investment goals. All working class, whether from the public, private, or unorganised sector, are eligible to invest under the National Pension Scheme. It is a great investment option which helps you get a regular steady income after retirement. This is perfect if you are planning for early retirement. You should be investing under this scheme. What are some of the exclusive features of the National Pension Scheme? Some of the features of the National Pension Scheme are: Easy and convenient access: You can manage all your NPS savings and track your progress from home via the internet. Also, an e-NPS portal helps you open an online NPS account. High portability: Although it’s a pension scheme, the National Pension Scheme allows you to change your job per your preference. Changing your job in search of better opportunities and a preferable environment will not affect your investment portfolio. Versatility: The National Pension Scheme aims to provide you with various investment opportunities and a selection of Pension Funds. It also allows you to switch to a different investment scheme or fund manager. Choose this if you are uncomfortable with the present ones. What is the Equity Linked Savings Scheme? What is its significance? The Equity Linked Savings Scheme, or ELSS, is an investment option that invests mainly in equity and equity-related tools. The returns you will get under this scheme are not guaranteed. This is because they are linked to the market. You get many tax benefits on the ELSS funds you generate from the scheme. ELSS gained high popularity among investors. It offers you a higher ROI as compared to other tax-saving instruments. One can use it to fulfil long-term and short-term investment goals. But, choose ELSS as a long-term investment option for a better return. This is better than a short-term option. Features of the Equity Linked Savings Scheme Some of the features of the ELSS are: Lock-in period: The lock-in period in ELSS is one of the shortest lock-in periods among all the tax-saving options like PPF(15 years) or FD(5 years). The lock-in period probably accounts for a maximum of three years. But other tax-saving instruments offer you a five-year lock-in period on average. Returns: Returns under ELSS are highly promising and more than other tax-saving investment schemes. The return rate accounts for 15% to 20%. This is way more than the average tax savings options return rate, that account for 7% to 10%. The choice of SIP: The option of SIP or Systematic Investment Plan can be opted for while investing under the ELSS. This allows you to regularly make systematic and periodic investments of a fixed amount. Tax savings benefits of NPS and ELSS Under section 80(C) of the Income Tax Act, 1961, the National Pension Scheme and the Equity Linked Savings Scheme are taxable. But it does offer many tax-related benefits to investors. While talking of ELSS, you can claim up to an amount of INR 1,50,000 a year as a tax rebate. Likewise, this will help you save up to a maximum of INR 46,800 yearly in taxes. You should also be aware that ELSS is the only kind of mutual fund that gives you tax benefits under Section 80(C) of the Income Tax Act, 1961. While talking of the National Pension Scheme, you can claim up to a maximum of INR 1,50,000 tax benefits in a fiscal year. Moreover, you can claim up to an additional amount of INR 50,000 as a tax benefit with a tax deduction of up to 10% of your salary, including DA, under section 80(CCD-1). [B-02] Summing it up: From the perspective of choosing an investment option, both NPS and ELSS are decent investment options. It depends more on your investment goals, risk appetite, and requirements. If you want stable returns over a longer period, the National Pension Scheme is ideal. If you want higher returns and a good risk appetite, then ELSS is a good option. But for tax saving, NPS is a better investment scheme than ELSS. If you want to know more about different investment schemes and SIPs, you should visit Piramal Finance.
08-11-2023
Read More
Tips & Advice

Top Tips Of Intraday Trading For Beginners To Trade Effectively And Successfully

If you have an interest in financial markets, intraday trading or day trading is a great opportunity to make money. Intraday trading is buying or selling a financial instrument within the same day or multiple times throughout the day. Since the stock market is only operational between 09:00 to 16:00 on weekdays and select working days, intraday trades have high volatility and require the trader to make quick and informed decisions to make a profit. Although intraday traders can make a handsome profit within a day, it is also highly risky and should be conducted with caution. Especially for beginners, it can be difficult to understand the ups and downs of the market and the actions one should take. To make this process simpler, this article presents 10 intraday trading tips to trade effectively and make a steady profit. [B-01] Top 10 Intraday Trading Tips If you want to know how to select intraday stocks for today or later in the week, here are 10 tips that can help you become a successful trader without taking any big financial risks: 1. Do your research The first thing traders need to understand when it comes to intraday trading is to conduct thorough research. This is to avoid falling into traps that are often circulated in the market to catch uninformed traders into making risky decisions and can often be the reason for trades going wrong. Instead, do your own intraday trading research before entering or exiting a trade. 2. Set funds aside To make a handsome profit, intraday trading tips may advise you to invest large amounts in a particular stock or commodity. However, investing all your funds in intraday trades is never an ideal option. Even for seasoned traders, intraday trading is full of risks and it is always recommended to keep funds aside and allocate only a part of the funds for intraday trading. 3. Start with small amounts In addition to setting funds aside for your investments, investing small amounts is always ideal. As a beginner, focus your intraday trading strategies on buying small amounts of a specific stock and learn and earn in the process. For example, if you have Rs. 10,000 to invest in intraday stocks for today, invest Rs. 5,000 in the trade for today and keep Rs. 5,000 for the next day. 4. Allocate time for intraday trading Unlike long-term financial investments, selecting intraday stocks for today and implementing these trades is all about timing. Since trading hours are limited, you need to allocate this time for your trading and be 100% focused on analyzing the markets. One miss can translate to a loss. So keep the trading hours dedicated to buying and selling your chosen stocks. 5. Avoid penny stocks or risky investments Penny stocks have a low price in the market and can often seem lucrative, given the chances of making a profit if the prices rise. However, penny stocks are highly volatile and risky, often leading to losses. As a beginner, it is recommended to avoid penny stocks and make decisions only after conducting a detailed analysis of the stock. 6. Exit when the target is achieved When it comes to losses or gains, it is crucial to exit when the time is right. Often, when the markets are volatile, traders tend to keep waiting for a better profit or for their losses to decrease. Instead, it is recommended to stick to your daily goals and exit once the target is achieved, or cut your losses if it goes beyond a certain threshold. 7. Always set a stop-loss A good way to cut your losses in intraday trading is to use stop-loss for each trade. Stop-loss is a parameter you can set when buying any stock and is an order that will be executed if the markets go down. For example, if you buy a stock at Rs. 50 and set a stop-loss of Rs. 45, there will be no activity if the market is stable or the price goes high. However, if the stock prices start to go down, the order will be automatically sold at the stop-loss price i.e., Rs. 45. This ensures that you do not end up making huge losses and that you trade safely. 8. Do not invest in many instruments simultaneously When it comes to investing, it is advised to never “put all your eggs in one basket”. However, intraday trading strategies do not follow this pattern. As intraday traders have limited time to make decisions on their trades, trying to enter too many trades simultaneously can be risky. Create a list of stocks with priorities like intraday stocks for today, for the week and beyond. This will help you focus on the right stocks at the right time and increase your chances of earning a profit. 9. Time your trades Since the entry and exit for intraday trades happen within the day, traders need to know when to time their trades. For example, since the markets are highly volatile in the morning, it is considered smart to observe patterns during the opening hours and then make decisions later on when there is less volatility. Once movement begins to pick up, traders should take an exit decision towards closing hours, or earlier, since there can be a rush and an opportunity can be missed. 10. Always do a post-trade analysis This might be one of the intraday trading strategies, but analysis is a must if you want to be a full-time intraday trader. After each trade, you need to do a technical analysis of what went right or wrong. These learnings should be used effectively when you take your pick of intraday stocks for today and should help you become a seasoned trader. [B-02] Conclusion These intraday trading strategies will help you become a successful trader, especially in a dynamic financial market. There is no right or wrong in intraday trading and there is always a learning curve, even if you are an experienced trader or investor. The key to success is doing your research, always being on the lookout for movement and having your daily picks. It is advisable to create a list of intraday stocks for today and beyond, using your analysis and instinct to your advantage. Every beginner needs to start small and then take risks as they move on in their journey. To get more information to start your intraday trading journey, read more useful articles like this one on the Piramal Finance website for more suggestions on intraday trading.
08-11-2023
Read More
Personal Loan

Personal Loan in Noida: Easy to Compare and Apply Online

Noida is a major city in Uttar Pradesh. It is a part of India’s National Capital Region and a satellite city of Delhi. In Noida, personal loans are freely accessible. You may apply for one online or offline, depending on your preferences. Numerous banks and non-banking financial institutions (NBFCs) in the city provide personal loans with various terms. You can evaluate interest rates, processing costs, and other costs before choosing the loan that best suits your needs and preferences. A personal loan is reasonably priced and conveniently accessible. [B-01] Qualifications for a Personal Loan in Noida You must meet the requirements to apply for a personal loan in Noida. Personal loans are unsecured loans. They don’t need collateral. You get a personal loan from the lender. This depends on your income, job history, age, employment status, where you live, and CIBIL status. You qualify for a personal loan in Noida if you meet these criteria. You work with the best lenders in Noida. They offer you flexible options. Both salaried and self-employed applicants should meet the required criteria. Salaried people should be between the ages of 21 and 60. Self-employed must be between 25 and 65 years of age. At least three months in the job you already have. Salaries must be paid every month. For the self-employed, the business must have been steady for at least a year. Transfer of Funds Using the balance transfer feature, you can move your loan in Noida from one lender to another. Your loan balance is given to the new lender. Your EMI payments, then, start at a new interest rate. If you change your loan amount, you may save money on your EMI and interest payments. If you can’t pay your EMIs because they are too high, it’s time to find a new lender and transfer your balance. Let’s say you took out a personal loan for INR 10 lakh. And the high interest rate of 18% per year makes it hard for you to pay your EMIs. So, after making payments for two years, you find a lender with an interest rate of 12% per year. How to Compare Different Lenders Efficiently Inflation Rate One of the most crucial things to consider is the interest rate, since it impacts how much your mortgage will ultimately cost over time. The rate is affected by the down payment. Quantity of Loan When Compared to Property Value The loan-to-value (LTV) ratio compares the property’s appraised worth to the loan you request. The likelihood of being approved for a competitive mortgage increases when your LTV ratio decreases. This is because you seem less risky to a lender. Term of Loan The terms outline your responsibilities when taking out a loan. These include the time frame for repayment, the interest rate, any loan fees or penalties, and any other terms that could be included depending on the lender. Requirements for a Down Payment The down payment is one of the largest upfront costs when purchasing a property. This is the sum of the purchase price that was paid at closing. The longer the loan is outstanding, the more fees and interest you will have to pay. Mortgage Protection If a borrower misses payments or cannot uphold the terms of the mortgage, mortgage insurance safeguards the lender. What are the pros of getting a personal loan in Noida? Noida has a lot of different options and extra benefits for a personal loan. You don’t have to go to the bank. You can do everything online. You can enjoy the following perks: Instant approval: Many banks in Noida offer instant approval without paperwork. They will help you get a personal loan at the best possible rate. High eligibility: You can find out if you can get a loan in just a few minutes. The process is run by automated technology. You can get the lowest possible EMI. Personal Loan Balance Transfer: If you reduce your loan amount, it will be easier to pay your EMIs. To save money, move the balance of your loan. Some lenders charge a fee to move a balance to another card. Personal Loan Documents Requirement in Noida You can fully digitalize your process using current technologies. Uploading the necessary papers will take a few minutes. Salaried Proof of identities like voter ID, passport, Aadhaar card, driving license, or PAN card. Leave and License Agreement or Utility Bill as Proof of Residence (no more than three months old) Proof of income for a passport: pay stubs from the last three months as well as a bank statement that shows the salary was deposited, Certificate of employment for the past year Two photos the size of a passport Self-employed The KYC paperwork includes proof of who you are, where you live, and when you were born. Leave, and a license agreement can be used as proof of residence. A bill for service (no more than three months old). And, if you have one, a copy of your passport. Proof of income: ITR for the past year Official Address Proof: Proof of your address, along with your email address and phone number Business Continuity Proof: Testimonials showing that your business has been running for the past year. Application for a Personal Loan in Noida Follow the steps below to get a personal loan. One of two things can be done to get a personal loan: Online Application Go to the website of the bank or NBFC where you want to apply. To apply for a personal loan, go to their goods section. Click on the “Apply Now” link. Fill out the form with information about yourself. Fill out the form and send in the necessary papers. Offline Application Go to a bank or NBFC branch near you. Talk to the representative about getting a personal loan. You will be sent a form to fill out. Fill out the form. Send in the form along with the required documents and passport-size photos. Then you have to wait for the lender to respond. If everything goes as planned, the loan will be transferred to your bank account 7 days after approval. [B-02] Conclusion Personal loans in Noida are a blessing. They can help you in any financial situation, especially if you need money quickly. You won’t have to take important documents to banks and wait for days to get a loan. With online loans, the whole process is quick and safe. You can now compare loans from the comfort of your home without spending too much time. Use Piramal Finance if you want a quick online personal loan from a reputable lender. They are one of the most reputable online loan companies in the country.
08-11-2023
Read More
Income tax return

Why is it important to file tax returns?

A tax return is a form that is filed with a tax authority reporting income, expenses, and other tax information. They allow taxpayers to calculate their taxable income, plan their tax payments, and request refunds for overpayments. The income tax return is used to report income and taxes to the Income Tax Department. Individuals and businesses are required to file tax returns by a specific deadline. A taxpayer who fails to meet the deadline must pay the penalty. [B-01] Importance of Filing Tax Returns Your capital losses and gains will be altered If price and supply market speculation were the most crucial factors, having a handy record of the ITR at this point would be extremely beneficial. Furthermore, doing so guarantees that you will have bad luck for the next eight years in a row, depending on whether you recorded earnings for that fiscal year. Your credit card company may check your repayment status The IT department records regular tax returns, serving as standard income proof. This comes in handy when applying for a credit card or a loan (mortgage, education loan, car loan). Banks and other credit agencies will need to assess your financial situation, and the ITR is a reliable document. Loans are simple to obtain if your tax returns have been appropriately filed Income tax returns are important business documents that serve as proof of income because they show all your earnings for the year. In turn, NBFCs and other financial institutions actively require this document when disbursing loans. Assistance in claiming deductions States allow certain deductions to help ease taxpayers and encourage more people to pay their taxes. These deductions and exemptions may be used on certain investments to reduce the amount of tax you ultimately pay. TDS and rebates can also be collected. However, you must file an income tax return to claim these tax benefits. If you do not file a tax return, you cannot claim the deduction. Losses can be transferred Sections 70 and 71 of the Income Tax Act 1961 contain rules for carrying forward losses from one year to the next. This means that the loss can be deferred until the next appraisal year. Useful if you are planning a trip abroad There are a number of procedures that must be followed when traveling abroad. Not submitting an ITR can ruin your plans for international travel. The ITR form is one of the documents required by the country you visit. Important loan application document When you apply for a loan to buy something, the bank requires specific documents to be submitted for a car or a new home for an individual or business. An important document is your income certificate. Banks typically request ITRs for the previous three years. This is done to assess your past and current financial situation and determine if you can repay the loan. ITR can help you get credit cards and bank loans. Filing tax returns is required Even if your income level is not subject to compulsory declaration, we recommend that you file a voluntary declaration. Most states require one to file tax returns for the past three years as evidence for real estate registration. Submitting a declaration will facilitate registration. Different forms of Income Tax Returns ITR-1 FORM Individual taxpayers must complete ITR-1 Form. Individuals who are not authorized to use this form include: Income from more than one residential property. Lottery or racehorse winnings. Profits/losses are reported under the heading “Capital Gains.” Agriculture income/exempt income over INR 5,000. Earnings from a business or profession. ITR-2 FORM This form may be used by an individual or a Hindu Undivided Family (HUF) if their total income does not include income from a proprietary business or profession or a partnership firm. This form is also useful for those who live outside of India. In most cases, an individual or a HUF can use this form to submit their IT Declaration. ITR-3 FORM This applies to natural persons who do not earn a living from the company’s operations. People who earn money from the accompanying sources are eligible to file ITR-3: A component of a business or a particular profession. If they were interested in unlisted value shares at any time during the fiscal year. ITR-4 FORM This ITR form is useful for anyone who owns a business or works for a living. This form applies to all types of businesses, companies, and occupations, and no income restrictions exist. It is available to taxpayers who have chosen the income scheme under Sections 44AD, 44ADA, and 44AE of the Income Tax Act. Form ITR-4 should only be filed if the taxpayer has the following incomes: Income from more than one residential property. Lottery or racehorse winnings Income is classified as “Capital Gains.” Section 115BBDA income is taxable. [B-02] Conclusion Income tax return filing is an important legal obligation for taxpayers. It is important that the taxpayer reports income and assets to his/her ITR and pays all applicable taxes on time. Filing income tax provides many financial and non-financial benefits. It is also the social responsibility of every taxpayer to facilitate access to credit, avoid interest and penalties, claim tax refunds, hassle-free visa processing, and many more. Filing tax returns is a periodic exertion that’s considered a moral and social duty of every responsible citizen of the country. It offers a base for governments to determine the quantum and nature of expenditure by their citizens. Moreover, it forms the base of assessments on which to apply for compensation and other remedies from time to time. You can read more about income tax returns, investment strategy, and other parameters from Piramal Finance’s personal loan page https://www.piramalfinance.com/personal-loan to have deep dive into finances.
08-11-2023
Read More
Tax Savings

Know more about Best Section 80C Tax Saving Investments in India

There are a lot of schemes to reduce taxes. But, tax planning is usually not the priority for many people. Investing in the first quarter of the fiscal year is best. This gives you the time to make wise plans. You also get the advantage of the best returns from most tax-saving investments. Most experts agree that the 80C investment scheme is an ideal way for it. This article will discuss the best income tax saving options under this section. But before we get into that, let’s briefly discuss Section 80C. [B-01] Section 80C Section 80C is a clause in the Income Tax Act of India about various investments and expenditures that are exempted from Income Tax. With these deductions, you can save income tax up to ₹1.5 lakh per year. Section 80C investment exemptions for Fixed Income products are: Public Provident Fund Provident Fund National Saving Certificate NHB deposit scheme Tax Saver Bank Fixed Deposits for 5 years Post Office Time Deposit for 5 years Senior Citizen Saving Scheme Save Income tax on these market-linked products LIC premium New Pension Scheme Atal Pension Yojana Sukanya Samriddhi Yojna Equity Linked Savings Scheme Unit Linked Insurance Plan Pension Plans from Insurance Companies Exempted expenditures are: Tuition fee for 2 children Home Loan Principal Payment Stamp duty and registration cost of the House Understand Some Tax Saving Options Under 80C Public Provident Fund: Every three months, the interest rate on the PPF balance is reset. Despite this, its risk factor is fairly low. You are allowed partial withdrawals after seven financial years. But you can make only one withdrawal per year Interest Rate: It changes every three months. Currently, it’s set at 7.10%. Limit for Investment: You can invest in a range of Rs. 500 to Rs. 1.5 lakh annually. Maturity Period: PPF has a maturity period of 15 years. It can be extended by 5 years. Tax Benefits: The interests and returns are tax-free. Eligibility: Resident Indians, salaried and non-salaried people can open the account. HUFs (Hindu United Families) are not eligible for PPF accounts. Unit Linked Insurance Plans: Besides tax savings, ULIP enables people to earn substantial returns on their capital over long periods. To put it simply, this 80c investment exemption provides insurance as well as tax benefits. The current ULIPs by insurance firms come with no premium allocation or administration fees. This improves returns for investors. Return Rate: It ranges from 12% – 14%. Returns are tax-exempted under Section 10(10D) of the IT Act. Interest Rates: Due to the connection with the market, the interest rates of ULIPs vary a lot. Investment Limits: There are no such defined limits for ULIP investments. Eligibility: You can obtain ULIPs for yourself, your life partner, or your children. Taxes: If you pay an insurance premium of ₹ 2.5 lakh or more in any year, then the maturity amount will be taxable. This also applies if you buy multiple ULIP plans and pay more than ₹ 2.5 lakh. Maturity Period: ULIPs have a 5-year lock-in period. ELSS (Equity – Linked Saving Scheme) Mutual Funds: The ELSS is an excellent 80C investment option. You can benefit from tax advantages on the amount given to the fund. Since the money is put in equity funds, it gives better returns. Remember that equity investments are subject to market dangers. It is advised to choose your investments wisely. This will prevent losses that can’t be recovered. Despite some risks, ELSS is still the most popular tax-saving investment. Maturity Period: ELSSs have the lowest lock-in period of them. It is fixed at a maximum of 3 years. Interest Rate: They don’t have fixed interest rates due to market changes. Tax Deduction and Return Rates: You can avail of tax deductions up to Rs. 1.5 lakh. The return rate for ELSS is the highest among all schemes under 80C. Over a decade, it has provided a return of nearly 12%. Investment Limit: There is no upper limit on ELSS investment. Eligibility: Salaried individuals and HUFs can invest in ELSS. Tax Saving Fixed Deposits (FDs): They provide tax-free income as an investing strategy. This plan is ideal if you prefer low risks and wish to save money over the long term. Individuals who invest in bank FDs receive a guaranteed return on their money. They also get investment security. Their money is locked in for the entire term. Maturity Period: The lock-in period for Tax-Saving FDs is 5 years. Premature withdrawal isn’t allowed in this case. Interest Rate: It usually varies from 6.5- 7.65%. Tax Reduction: Only the interest earned on them is taxable. You can get income tax deductions up to ₹ 1,50,000 annually under Section 80C of the IT Act, 1961. Eligibility: Only resident Indians can avail of them. Sukanya Samriddhi Yojana: The Indian government launched it under the “Beti Bachao Beti Padhao” campaign. Its goal is to give financial support for the well-being of girls. It is focused on their education, employment, and overall betterment. Investment Limit: Maximum limit for investment is ₹ 1.5 lakh per year. The least amount you can pay annually is ₹ 250. Eligibility: The SSY account can be set up by the parents of the girl. It must be done before she turns 10 years old. Maturity Period: The lock-in period for an SSY account is 21 years. Premature withdrawal of up to 50% is allowed. But, it can be done only after the girl becomes an adult. Tax benefits: Under 80C, there is no tax on the annually compounded interest. The same goes for the sum received when the account expires. Interest Rate: The interest rate for the SSY scheme is 7.60% [B-02] Conclusion: The article above has explained the best tax saving schemes under Section 80C. All of them differ from each other in terms of: Reward Risks Cost-effectiveness Liquidity You need to be thorough with the policy terms of these instruments. This way, you can make an informed choice for a tax deduction. It is prudent to seek help from a financial advisor for this. Piramal Finance will provide you with some of the best financial tips and guides. It’ll be our sincere pleasure to help you out.
08-11-2023
Read More
Tax

All you need to know about how mutual funds are taxed?

Nowadays, mutual funds are one of the most popular investment options. They suit all kinds of investors, irrespective of their income. This is due to the benefits they offer, like liquidity and low risk, amongst other advantages. If you are going to invest in them, knowing how they are taxed is very important. You can then make the most of your investment. This article will try to portray the types of tax on mutual funds. [B-01] Types of Mutual Funds Taxation Mutual funds are classified into three types: Equity funds Debt funds Hybrid funds Each of them is different, and the taxation is also different. Knowing what type of tax and how much you must pay on your returns is important. This gives you a clear idea of your gains from mutual fund investments. These are the various types of taxes: Capital Gains Tax The first type of tax on mutual funds is capital gains tax. Capital gain is the amount you earn when you sell your mutual fund assets at a profit. Let’s take an example to make it easier to grasp. Let’s say you buy a few mutual fund units at Rs 500. This is your capital amount. Over time, the investment grows by 10% and is now worth Rs 550. The capital gain is Rs. 50. Capital gain = Total income – Capital invested. The tax applies only to the gain and not the capital. In addition, you only pay the tax when you sell your asset. Tax on equity mutual funds If equity investments are sold within a year, the mutual fund returns come under STCG. This stands for short-term capital gains. They are subjected to a 15% tax. If investments are sold after one year, they are now part of LTCG. This stands for long-term capital gains. The first 1 lakh made is tax-free. However, if your payments exceed Rs 1 lakh, you must pay a 10% tax. One of the best equity schemes is the ELSS. It stands for “Equity Linked Savings Scheme.” It is a scheme that greatly reduces tax on mutual funds. They have a 3-year lock-in period. You are allowed to claim deductions for your investment in ELSS funds. The amount you can claim is up to Rs. 1.5 lakh. Tax on Debt Mutual Funds Mutual fund taxation of debt mutual funds is very different from equity mutual fund taxation. If you sell debt investments before the end of three years, they will be categorised as STCG. This short-term capital gain is added to your income and taxed accordingly. On the other hand, if it is sold after 3 years, you will be subjected to a tax of 20% with indenture benefits. The indentation minimises the tax paid. It does so by adjusting capital gains to the Cost Inflation Index. Indexation only applies to non-equity mutual funds. This is one of the advantages of choosing debt mutual funds. Tax on hybrid mutual funds A hybrid mutual fund invests in both debt and equity asset classes. They are designed to meet your investment goals better than equity or debt mutual funds. The tax on mutual funds, in this case, varies. If the hybrid mutual fund allocates more than 65% in equity, equity mutual funds tax rules apply. Otherwise, debt mutual fund taxation applies to it. Tax on Dividend If you invest in a mutual fund that pays dividends. You will receive payouts on a timely basis. The profit made by the fund is equally distributed among investors. In this case, the tax on mutual funds is also different. Before 2020, mutual funds had to pay DDT. This stands for Dividend Distribution Tax. Fund houses had to pay around 12% on the base rate. However, after 2020, this was scrapped by the government. Now, income received as dividends counts as regular income. So, the amount you make from dividends is added to your income. You are then taxed according to the normal tax slabs. This lowers the burden on small investors. Furthermore, dividends worth more than Rs 5,000 are subject to a 10% TDS. If your PAN is not connected to your Aadhar card, this value becomes 20%. Factors that determine the tax on mutual funds in India 1. Type of mutual fund The type of mutual fund you choose affects the amount of income tax you have to pay. As mentioned above, there are two main types: debt and equity mutual funds. Equity mutual funds invest in equity stocks and shares on the market. They carry high risks due to high market volatility. Also, equity funds are classified as small-cap, mid-cap, and large-cap. This plays a role in the tax on mutual funds you have to pay. On the other hand, debt funds invest in government bonds, corporate bonds, etc. These are safer options. They offer fixed returns and are low-risk. Debt funds are categorised as short-duration funds, liquidity funds, and income funds. 2. Time Frame of Investment The amount of time your investment lasts affects the tax on mutual funds you pay. This can be separated into two parts: short-term and long-term investments. For equity funds, a holding period of fewer than 12 months is categorised as “short-term.” And any investment lasting over a year is considered long-term. When it comes to debt funds, a holding period of fewer than 3 years is considered short-term. Any tenure of more than three years is considered long-term. [B-02] Concluding Remarks Understanding how mutual fund taxation works is very important. It can take time and seem intimidating at first. But you learn more the more you invest. For a faster and more in-depth guide on mutual funds and your finances in general, financial advice helps a lot. This is why financial advisors like Piramal Finance are in high demand.
08-11-2023
Read More