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Tax Savings

What is Income Tax Exemption on Gratuity?

Gratuity is a single-time payment made to the employee. It is a token of appreciation for their time and effort spent with the company. Gratuity is regarded as an appreciation for hard work. It is given to employees who have stayed with the company for over 5 years. It is a gift from the employer given to employees. The best part is that there is a tax exemption on gratuity too. Every employee wants recognition in addition to the base salary for the time and effort they put into the business. But is gratuity subject to taxation? You can learn the answer to this question by learning more about their eligibility, income limit, income taxation, and other details. The Income Tax Act provides for tax exemption on gratuity under Section 10, Subsection 4A. Only statutory gratuity is exempt from income tax. Any other payment in place of gratuity is not exempt from tax. [B-01] Gratuity and Tax Exemption The Income Tax Act offers a tax exemption for gratuity under Section 10, Subsection 4A. The terms “gratuity” and “gratuity” shall have the same meaning as in the Payment of Gratuity Act, 1972 (hereinafter referred to as “the 1972 Act”). The amount of gratuity payable by an employer to an employee shall be such an amount as is paid on termination. It is subject to some conditions laid down in Sections 10(2) and (3) of the Income Tax Act. In other words, it means that if you receive more than Rs. 10 lakhs then it will be taxable. However, if you received less than Rs 10 lakh, the gratuity is not taxable. This limit was recently increased to Rs. 20 lakhs under Section 10 (10). Gratuity in income tax should be read clearly to learn various key points related to it. . Only statutory gratuity is exempt from income tax Gratuity is a payment made to an employee for services given to the company. Tax exemption on gratuity is an added benefit, as it is not taxable as per the IT Act of 1961. In fact, gratuity has been exempt from income tax since 1961. The amount of gratuity that can be given in a year depends on the age at which you retire. Else, if you end your work with your employer under some conditions. If you retire before 5 years of ongoing service, then half of the amount would be exempt from paying taxes. If you retire after 5 years of ongoing service but before 10 years, then one-third of your income will be exempt from taxes. If you have 10 years of service, then two-thirds of the amount will be exempt from taxes. Any other payment instead of gratuity is not exempt from tax If you are a salaried employee, the gratuity that you receive as part of your salary is taxable. However, this does not mean that all other payments in place of gratuity are also taxable. Only those payments that have been made to employees who have retired or left their jobs are subject to tax at source (i.e., on their wages). The following examples should help clarify. A company pays its staff an annual bonus based on performance during the financial year. This payment is exempt from income tax under Section 80C(6)(a)(ii). This means that it does not require any TDS because it falls under Section 80C(6)(a)(ii). Hence, no tax has been deducted from the salary under Section 80C(2) or deducted against his or her income by way of creditable tax under Section 11A. If Gratuity is Taxable It is vital to know whether the tax exemption on gratuity is applicable or not. If it is taxable, you have to pay tax on it. If it isn’t taxable, there will be no need for you to pay any taxes on it. If you are unsure about the provisions, you can seek the assistance of a CA or CFP. Remember that if your income is less than Rs. 15 lakh per annum, it is likely that your gratuity will be exempt. However, if your salary exceeds Rs. 15 lakh per annum, there is no need for further compliance. The provisions of the Income Tax Act will take care of all needs for tax exemption. [B-02] Conclusion Gratuity in income tax is one of those rewards that you get for your hard work and loyalty at a company. If you have spent five years at a particular place, you deserve some recognition. A tax exemption on gratuities is a great way to recognise this. Tax exemption on gratuity is an excellent benefit one should not miss. There are gratuity calculators available on Piramal Finance that will help you calculate your gratuity. You can also read about various other topics that will help you learn about various financial topics.
08-11-2023
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Personal Loan

How can you get a personal loan without any fee?

In simple terms, a personal loan means a loan that is facilitated by the bank to give you instant cash flow when you are in financial need. It is a kind of personal loan without a processing fee. Usually, when you require immediate finance for trips, weddings, education, family problems, or health issues; you can go for online loans without processing fees. These loans will not require you to furnish any collateral, such as gold, bonds, shares, or property deeds. Plus, the banks will not ask any questions as to why you require the personal loan. Personal loans without processing fees grant you an unsecured line of credit and thus require very little time to get processed. Since you don’t need to show any personal guarantee for these kinds of loans, the grant of this loan depends on several other factors, which we will discuss further in this article. The advent of fintech and the availability of the internet everywhere enables you to apply for a loan online and receive this amount without the hassle of going to the lenders physically. These loans are instant loans without any processing fees. These tech-oriented loans help in getting your loan processed without ever going to file your physical documents. [B-01] But, getting a personal loan depends on several factors. The below-mentioned factors are some crucial ones that you need to remember in case you want a personal loan without processing fees. 1. Maintain high credit score – Personal loans without processing fees are a form of loan that is given without guarantee. Thus, the lenders of these loans emphasise the credit score of the borrower. This means that they will look at how high your credit score is and establish your credibility accordingly. Maintaining a high CIBIL score is an indicator of your responsibility as a lender. The fact is simple: the higher your credit score, the faster and easier your instant loan without processing fees will be granted. You should always keep an eye on your CIBIL score. The best part is that if you keep a good credit score, you may not even need to provide your profit or salary details, and your loan will be approved. A CIBIL score of 750 and above is good for getting your loan processed easily. 2. Pay your debts on time – You should always pay back your dues on time. It means that you should always keep an eye on the deadlines by which you have to pay back the money. Always keep a record of your credit card bill, EMIs, and other borrowings. This will enable you to pay back these bills on time. When you maintain a good track record for paying back the money, it establishes a rapport with the lender. When you default on your payments, it establishes a negative image in front of the lender. It means that they will ask for additional documents and take a lot of time to process your personal loan without charging a processing fee. 3. Maintain a good relationship with the lender – You should always maintain a good relationship with your lender. Whenever you want to take an instant loan without paying a processing fee, you should always choose one lender. A long-standing relationship with the lender will help you get your loan processed easily and without wasting any time. The long-term relationship establishes your moral credibility with the lender and thus enables you to get cash immediately. 4. Debt-income ratio – This is a highly deciding factor regarding the grant of your online loan without a processing fee. The loan that you are asking for should be at least 50% of or less than your total income. Only then can it be considered a favourable debt-income ratio. The lower this ratio, the better your ability to repay the loan will be. An ideal debt-to-income ratio should be below 50% to get your loan approved smoothly. 5. Avail a pre-approved instant loan without a processing fee – There are several lenders like Piramal in the market that grant a pre-approved online loan without any processing fees. It means that there will be minimal documentation and a waiting period involved in getting your loan approved. Usually, these pre-approved loans are specifically designed to cater to your needs and thus require no documentation at all. Although there are some crucial things that you need to keep in mind before getting your personal loan without a processing fee, they are: Always check the EMI that you will have to pay for repaying the loan. You can check this using an online personal loan EMI calculator. Checking the EMI amount ahead of time will help you understand whether you will be able to repay the amount on time. If you can’t repay the EMI in time, then you will default on your payments, which will negatively impact your CIBIL score. You should always go for the lender that grants you online loans and approval. You must check that the whole process will be done online. Nobody wants to get stuck in the hassle of getting the loan physically approved. Go for the lenders that have the best and easiest mechanism to approve the loans. [B-02] Conclusion The need for financial help can arise at any time. There can be any sort of emergency where you may require a loan. But, in today’s day and age, it’s impossible to resort to physical loan mechanisms. You should select lenders who can process an instant loan with no processing fee using online mechanisms. The documentation, credit score check, and repayment capacity should all be checked through the internet so that the borrowers are never subjected to unnecessary struggle. This is why it becomes crucial that you choose lenders like Piramal because we are the best in the market in terms of processing personal loans, and we understand that the need for money may arise anytime.
08-11-2023
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Tax Savings

Investments to save tax under Section 80C

Investments are the best way to multiply the value of your assets, increase your worth, and improve your financial security. But, when it comes to tax saving, you might get confused about the options that you should opt for. Saving tax on the investments you make will reduce financial distress and encourage you to invest more profoundly. Then a question might pop up in your mind – “What are the best tax-saving investment options that one should opt for under section 80(c) of the Income Tax Act, 1961?” While tax saving might seem like a lucrative scheme, you also need to keep in mind the security, safety, and returns. A smart approach towards tax planning is to start investing in the early quarters of the financial year. This will provide you enough time to plan your tax and help you reap the maximum out of the investment plan. This article will let you know about section 80(c) of the Income Tax Act, the best tax-saving investment options, and the right approach to avail maximum out of different schemes. [B-01] Understanding the provisions under Section 80(C) of the Income Tax Act, 1961: Out of all the sections that are based on tax-saving investments, most plans function under the parameters of section 80(c). There are other sections related to tax saving as well, but the most prominent is this section. According to section 80(c), an investor is allowed tax exemption up to 1.5 lakh rupees for the investment he or she makes. If you invest in some specific schemes, you will be exempted from paying tax, up to the aforementioned maximum limit. The different investment schemes are Equity Linked Saving Schemes or ELSS, Public Provident Funds or PPF, Fixed Deposits, Life Insurance, National Savings Schemes, National Pension Schemes, etc. We will be discussing all of these tax-saving investment schemes in detail in the coming part of the article. What are the different tax-saving investment schemes that you should invest in? There are many to name, but here we are going to mention the 5 best tax-saving investment schemes to help you reap the maximum benefits. Equity Linked Saving Scheme or ELSS: This is considered one of the best tax-saving investment options to help you save more tax and reap bigger benefits. They help you get dual tax benefits and receive higher returns on investment. You can save up to 46 thousand rupees by investing in ELSS for the lowest locking period. The locking period is about 3 years only. In addition, ELSS delivers more returns than Public Provident Funds, and Fixed Deposits and the interest you earn is partially taxed. Fixed Deposits or FD: Besides being one of the safest options for investment to yield higher returns, Fixed Deposits are eligible for a tax break of up to 1.5 lakhs. Any individual resident can open up a fixed deposit account and the lock-in period is about 5 years. It has a low rate of interest which is about 5 per cent to 7 per cent per annum. On top of that, it is a risk-free, tax-saving investment option where the minimum investment amount is as low as 1000 rupees. Public Provident Fund or PPF: Public Provident Funds are a government-approved investment scheme where you invest money for a long tenure and break it after maturity. You get some tax benefits by investing in PPF under section 80(c), like the interest you earn from the corpus is tax-free. The lock-in period is about 15 years, which you can extend to 5 more years and partial withdrawals are allowed after 7 years. The best part is the minimum investment limit in this tax-saving investment option is only 500 and the interest rate is around 7.1 per cent per annum. Employee Provident Fund or EPF: EPF is a very good, retirement benefit, and tax-saving option for salaried individuals whose monthly salary is 15 thousand or above. The most significant advantage is that the entire PF including the interest you earn is exempted from tax provided that you withdraw after continuous service of 5 years. The interest rate is 8.1 per cent for the year 2022 and you only have to contribute a minimum of 12 per cent of your basic pay and your dearness allowance. National Pension Scheme or NPS: It is a tax-saving investment scheme that ensures the financial security of both the employees of the unorganised sector and working professionals post-retirement. There are two tax benefits of investing in NPS: Investments up to 1.5 lakh rupees can be used rightly to avail tax benefits, which comes under section 80(c). An additional deduction of about 50 thousand rupees is also applicable on investments made under the provisions mentioned in section 80(c). With that, the return rate is quite promising, which is around 9 per cent to 12 per cent per annum. There is no maximum investment limit, and all employer contributions are exempted from tax, provided that you put 10 per cent of your salary including your Dearness allowance. [B-02] In a nutshell: Section 80(c) under the Income Tax Act of 1961, exempts investors from taxes and promotes them to invest more to reap maximum returns. The provisions help you in tax saving, but most importantly, the whole mechanism works better when you are efficient at tax planning. There are several tax-saving investment schemes mentioned above with different outcomes. You should compare different options and see what suits your investment criteria.
08-11-2023
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Know More

Top Benefits of Funding This Festive Season With a Personal Loan

Let us first learn what a personal loan is. A personal loan has no security or collateral. It has a minimum amount of documentation and a fixed duration to repay the loan. It is not a secured form of a loan, and payments have to be made every month. The most awaited festive season is here. From October to December, it is all about the rush and celebrations. This article helps us understand how the festive season affects loan criteria. How to apply for a personal loan, and what the benefits are. Financial firms, as well as online retailers, frequently create alluring incentives to entice customers. The market is swamped with sales and promotions on durable goods, Zero Charge EMIs, bank card EMIs, software loans, rewards, lines of credit, home mortgages, personal loans, etc. Although many discounts and deals appear pretty tempting, it is important to be sure they help customers spare money before taking advantage of them. [B-01] BENEFITS OF FESTIVE LOAN Here is a list of key benefits you can get while taking a festive loan or personal loan. Goods at a Reduced Rate Between Ganesh Chaturthi till the closing of Diwali, practically all internal and external retailers offer special discounts and deals. Most banks and Other financial institutions provide similar reductions in operational costs and mortgage rates. Suppose you had been considering an expensive brand or perhaps a sizable credit, much like a home or auto loan. Now might be the ideal time to take those advantages. Cashback Promotions On transactions made using payment cards, many retailers provide rewards. Founder credit cards come with enticing cashback bonuses from online retailers. Reduced Tax Rates Lower rates of interest are available on individual, auto, and house loans from several top banks and financial institutions. This is due to the strong need for these mortgages during the festivals when it is lucky to purchase pricey and significant items. Financial firms attempt to take the largest possible stake in the market by exploiting the demand growth and establishing attractive interest rates. Processing fee reductions Another annoying price that bankers and NBFCs charge customers over the holiday season is the service charge. Due to the type of loan, the processing charge could be anywhere from 0.25 to 6 per cent of the total loan balance. No collateral required: The best thing about a personal loan is the lack of collateral. With no security asked, it saves one from all the hassle of extra paperwork and proofs. Immediate Renewals Since customers prefer to receive product deliveries on religious holidays such as Diwali Puja, Durga puja, etc., financial firms strive to hasten the personal loan procedure. Aids in Improving Credit Scores Taking out mortgages and bank card EMIs and promptly returning them will aid in enhancing your credit rating. So, you can utilise it to create your creditworthiness if you’re attempting to raise your overall credit record plus receive favourable offers for lines of credit. HOW TO APPLY FOR A PERSONAL LOAN? The following process can be helpful to apply for a personal loan: Check the online website Fill in the necessary criteria needed in the form: Name Email address Phone number Loan Amount State/ City Submit the form After submitting the form, the lender/ loan company will get in touch with you for further processing. (The process varies) The lender starts a verification process as soon as the needs and documentation steps are finished. A Small Personal Loan is paid faster to your registered bank account after completion. OFFERS YOU CAN’T RESIST Let’s understand how Piramal Finance helps in these festivities. The main features of the festive loan in Piramal Finance are given below. Easy and flexible repayment plans with periods ranging from 12 to 60 months. The Loan amount ranges from Rs 1 lac to Rs 10 lakh. The loan is sanctioned quickly and immediately disbursed to its user. They have no advance fees for loans. EMIs for personal loans are pocket-friendly. There will not be minimum documentation for personal loans. It becomes easy for users to apply. A low-interest rate on loans for people applying for personal loans. They have zero foreclosure charges. [B-02] THE KEY TAKEAWAY The most awaited time of year is from October through December. Applying for a bank loan over the holiday season is a positive step toward achieving your goals. It has many merits for a person or family. As far as you are accepting a loan after evaluating your needs and ability to return it on time, it is not necessarily a “negative idea.” Determining the precise amount you preserve is critical and looking for additional fees is critical. If you’re financially stable enough to pay back the loan effortlessly and are confident of your capacity to maintain your financial discipline. Reaping the benefits of the festival deals and lending to purchase something you genuinely require during the holiday may sound right. Be wise with your money and make the best out of these festivities. Get in touch with Piramal Finance to examine your finances. For any queries, You can also visit https://www.piramalfinance.com/personal-loan.
08-11-2023
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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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