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How To?

How to Calculate Land Area or Plot Area?

Let us first understand what “land area” or “plot area” means. Land area implies the size of area-based sections and land-based sections of typical geographic areas. It is measured in km². The plot area is the area that is surrounded by a barrier (like fences). Simply put, it is the total area that belongs to you within a region or city. Calculations of land area are informal. It is very easy to calculate land area. Let us understand the formula behind this calculation and the importance of knowing how to calculate the land area. [B-01] Why is land area calculated? Before buying land, it is crucial to be aware of its exact measurements. Different scales are applied to land in various states of India. A simple and accurate way to accomplish this digitally is with a land surface calculator. For the design and implementation of practically every sort of development, site measurement becomes extremely important. In the current day, this measuring has become common in the domains of construction, navigation, and transportation, as well as in the definition of legal borders for land rights. What are the units of measurement used to calculate land area? Any measure can be used to compute a plot of land’s area. Typically, the area of a property is given in square feet. In contrast, the land area for farmland is defined based on hectares or acres. However, the term used for “unit of measurement” is different in different states. Let’s take a look at some different names for each state. In India, typical land measurements include hectares, acres, square meters, and square yards (gaj). Terms like percent, guntha, and ground are exclusively associated with the South. Bigha and Marla are frequently used in the North. The names of the units and their sizes differ from one state to another. In Maharashtra, the concept of Guntha is more commonly used than in Karnataka and Andhra Pradesh. Dhur and Kattha both refer to various sizes, depending on the state. Dhur is more than 68 square feet in Bihar but only 3.6 square feet in Tripura. Dhur is a language that is frequently spoken in Jharkhand as well as in Bihar and Tripura. In contrast, Assam, West Bengal, and Madhya Pradesh are the main usage areas for Katha. Along with Dhur, it’s also used in several regions of Bihar. Although the size changes from one state to another. This typically falls between 600 and 2,800 square feet. Some of the units used to convert the dimensions are centimetres, meters, kilometres, inches, feet, etc. The basic units used to calculate land area are: Square Feet (sq. ft.) Square Inch Square Centimetre Square Meter (sq. m.) Square Yard (sq. yd.) Square Kilometre (sq. km) Acre Hectare Benefits of an Area Calculator The calculator used to calculate the area has the following advantages: The area calculator tool guarantees quick, blunder-free calculations. It makes it possible to convert quantities into obscure land measurements. It helps you make wise real estate decisions while making you aware of the land’s actual value. How to calculate land area in different ways The way to calculate land area from Google Maps (online) Google Maps and other online services can be used to calculate the area of a piece of land. The only thing one would have to do is zoom into the map and mark the border of the plot of land. The region of that specific piece will then be visible on the display after this is complete. But this will just be a general estimate, not a precise one. Additionally, you have the option of converting the computations into whichever unit you like. The way to calculate the land area of irregularly shaped plots Uneven, undulating land is known as “irregular land.” The land measurements for these plots can be determined with the aid of specific formulas. Divide the space into recognisable forms such as a parallelogram, triangle, rectangle, square, or circle. Then use the appropriate equations to calculate the areas. To determine the size of an irregular land, add the findings. As an alternative, you can get a trouble-free conclusion by using an automated land area calculator. The way to calculate the land area in standard square feet (sq. ft.) Simply take a foot-long measurement of both the length and breadth. After that, to calculate the size of the area, multiply the length by the breadth in feet. 144 square inches equals one square foot. To prevent time-consuming hand calculations and obtain precise answers, you can also use a digital land calculator. Basic formulas to calculate land area Apart from the irregularly shaped land, the plot area can be square, rectangular, or triangular. Based on this, there is a general formula you can use. This is for all the manual calculations. Square plot: Area= Length*length, or, Length square For example, if one side of the square of land is 20, then the area would be 20 * 20, i.e., 400 feet. Rectangular plot: area = length * breadth For example, if the length is 40 and the breadth is 20, then Area = 40*20, i.e., 800 feet Triangular plot: Take a, b, and c as plot dimensions. Take s as half the triangular perimeter. The general formula is, Area of triangular plot= √(s(s-a)(s-b)(s-c)) [B-02] The key takeaway The term “land area” has different names based on the state. The north, east, west, and south have their terminologies. It also has a series of formulas you can use based on the shape of the land. The process to calculate land area can be done either manually or digitally. Manually, by using the formulas, and digitally, through the use of online calculators and even Google Maps. To read more informative blogs on such topics, head to Piramal Finance. Browse through their blogs to learn about relevant matters in the stock market, business, and financing, or go through their products such as personal loans, housing loans, MSME loans, home loan EMI calculators, and more.

08-11-2023

Home Loan

Know the important facts of home loan sanction letter

Having a house of your own is one of the most blissful things. To make that happen, you must not only have a lot of responsibility, but also adequate financial support. To get a good financial backup, you need a home loan that gives you the right boost and freedom to move forward with your dream. Having said that, knowing everything about your home loan, from the eligibility criteria to the documentation process, is of utmost importance. Out of all the documents in your home loan pile, the home loan sanction letter is the most important. It is of great significance and is issued by your bank after the approval of your loan. Do you want to know the details about home loan sanction letters? Well, then keep scrolling through this article because it has all the answers to the questions you have got. [B-01] This article will help you navigate through the home loan sanction letter, its significance, and its contents. We will also go over some important facts that you should be aware of. What is a home loan sanction letter and what is its significance? A home loan sanction letter is a piece of documentation that your lender or bank gives you after your loan is sanctioned. It is one of the most important documents in the whole procedure. It shows that you have gotten permission to take the loan from the bank. It also states that you and the bank have reached a mutual agreement on all the terms and conditions regarding the home loan. After you submit all your legal documents, like your ID proof, address proof, income proof, credit score, etc. The bank verifies all these documents. After verification, the bank gives you a home loan sanction letter stating that it agrees to sanction you the loan amount. What are the contents of a home loan sanction letter? A home loan sanction letter contains the following details about the loan: The loan sanction letter for the home loan consists of the loan amount that the bank has agreed upon. Then it shows the loan tenure within which you have to repay the loan. It also shows the type of interest that you have chosen (fixed interest or floating interest). Apart from that, it shows the rate of interest at which you are willing to pay your instalments and the base rate at which the total interest is calculated. Then the home loan sanction letter shows the pre-EMI and the EMI amounts that apply to the loan. Besides all these, there is some other minute information, like the validity of the sanction letter. At the end of the letter, there are a set of terms and conditions on the loan from the bank’s side. What are some of the important things you need to know about a home loan sanction letter? There are some important things that you should know about a home loan sanction letter to avoid confusion. 1. It is not equivalent to a loan agreement letter. Many people confuse a home loan sanction letter with a loan agreement letter. But, they are not the same. It is a precursor to an actual loan agreement. So, getting a sanction letter doesn’t mean that you have been given the loan amount by the bank. It means that you are completely eligible to get the loan and that your request to get the loan is approved. Following a home loan sanction letter, a loan agreement is a final letter that your bank provides you. It is proof that you have agreed to the terms and conditions regarding the loan that is provided by the bank. It also states that you have agreed upon the interest rate, the loan amount, the loan tenure, the estimated EMI, etc. So, getting a home loan sanction letter implies that you have been approved to have the loan. But, the disbursal is yet to happen. 2. You need to show multiple documents to get a home loan sanction letter. You have to show many documents and get them verified by the bank to get a home loan sanction letter. The documents include your KYC details, like your Aadhar Card, Voter ID Card, PAN Card, etc. You also have to show your bank account statements and the IT returns for the financial year, respectively. To get the home loan sanction letter, you also have to show your salary slips, work experience, and credit score. 3. Receiving the home loan sanction letter takes some time. It is also true that it often takes up to 10 days to receive a home loan sanction letter. You should be able to understand that the entire verification process, along with repeated checks, takes some time. For self-employed individuals, this period is even longer because of the additional documents and multiple verifications required. [B-02] Conclusion To sum it up, a home loan sanction letter tells you that you are completely eligible for the loan and have received approval from the bank. But, you should know that a sanction letter is not a loan agreement letter. It means you might be approved by the bank, but the loan amount has yet to be disbursed. A home loan sanction letter is a very crucial document that contains all the terms of the loan and is the only physical proof that says you are sanctioned to get the loan. If you have come this far in scrolling through the entire article, you might be interested in similar topics. You can visit Piramal Finance to read more content on personal loans, mutual funds, ETFs, stock market investments, etc.

08-11-2023

Schemes

How to Open NPS Account Online in India?

The Pension Fund Regulatory and Development Authority launched the National Pension Scheme, also referred to as NPS, as just a retirement-focused saving vehicle in 2004. (PFRDA). Anyone who is a citizen and between the ages of 18 and 60 can open an NPS Account and start saving for their retirement. Subscription fees are gathered together and used in a variety of long-term yielding debt and equity products. The investments were managed by PFRDA-registered fund managers. If investors feel that a fund’s record falls short of the results of the market or another reference, they are free to swap fund companies. [B-01] NPS Account Features 40% of the NPS corpus is tax-free after the term, whereas the remaining 60% is subject to taxes. The purchase of an annuity would require at least 40% of a corpus. Any lump-sum withdrawal would be subject to tax at the time of withdrawal. You won’t have to pay taxes on your corpus if you take 40% and put the other 60% into an annuity. The tax rate on the annual income is determined by the tax bracket of an account owner. The broad tax exemption of NPS has been increased from 1.5 lakh rupees to 2 lakh rupees per year using Section 80(C) of the IT Act. NPS, in the opinion of many, has been the second-best method for reducing taxes following equity-linked savings plans (ELSS). NPS Account Types NPS accounts are available in two types – Tier 1 accounts and Tier 2 accounts. NPS Tier 1 Account: This is the compulsory NPS account, so if you contribute to it, Section 80 of the tax code will give you tax relief. Although the regular accumulated 80C advantage is now only up to Rs. 1.5 lakhs, National Pension System participants who contribute money towards this type of NPS account receive an additional tax break of Rs. 50,000. However, there have been restrictions on how much you can withdraw from the account. NPS Tier 2 Account: Members of NPS who have an NPS Tier 1 account are eligible to open a second account for retirement savings. Investments made in the Tier 2 account are often not eligible for tax incentives. Additionally, you must have an active Tier 1 account to deposit funds into any of these accounts. There aren’t any restrictions on the amount that can be removed from an NPS Tier 2 Account under existing NPS regulations. How to Register for NPS? You have the option of opening an NPS account in person or online. To open the NPS account on the PFRDA webpage, adhere to the steps below: Click the button next to the “Registration” menu and choose “register with Aadhaar.” Once the Aadhaar number has been entered, click “Generate OTP.” Your mobile device’s stored phone number will receive the OTP. Together with your nomination, as well as bank information, the OTP must be submitted. Your PRAN would be sent following the successful submission of your application. The image that appears in the “Photograph and Signature” tab would be your photo. The option “e-signature” should be selected. Once more, an OTP would be generated and sent to your phone number. To validate your signature as well as complete the transaction, enter the OTP. How to Create an Offline NPS Account To obtain the application form to open an NPS account, go to the nearest point listed within PFRDA. POPs are specific banks and financial organisations which the PFRDA has selected to offer people the NPS scheme. All NPS-related services, including registering for the NPS Scheme, switching fund managers, and other corresponding ones, are provided by these POPs. You should complete the basic information on the application form, and present any Know Your Customer (KYC) documents, including an Aadhar card and a PAN card, and also documentation of your address, to join the NPS Scheme. Advantages of Using Aadhaar to Register an NPS Account An NPS account used to be challenging to open. Requesting an NPS form as well as sending one back to the Pension Fund Regulatory and Development Authority’s office was required of applicants (PFRDA). However, once NPS was implemented, the procedure has gotten considerably simpler. Start-up merely requires a few minutes. The following are some advantages of using Aadhar to open an NPS account: The PFRDA portal of the Central Recordkeeping Agency is where the NPS form could be obtained and submitted (CRA). A candidate does not need to provide a paper copy if they can provide their Aadhaar number and verify it digitally. One-Time Passwords (OTPs) given to the applicants’ Aadhaar-registered mobile phone numbers have been used to verify e-signature submissions. Both parties could save a tonne of time, money, effort, and probably paperwork by adopting this strategy. When completing the online NPS form, applicants might receive assistance from the point of presence (POP). Nearly all banks with NPS registrations serve as POPs and are required to assist customers with form completion and other inquiries. Each POP has the right to impose a modest cost for offering E-signature services. A 0.25 per cent POP service fee will be added to the contribution amount (with a minimum of Rs. 20 and a maximum of Rs. 25,000 per transaction). Online Review of NPS Account Statements You can view your NPS Account Statements online after logging into the NPS account. These documents provide you with a thorough accounting of your contributions to and withdrawals from the Tier 1 and Tier 2 National Pension Systems as well as data on your assets. The “Transaction Statement” menu, which also includes links for “Holding Statement” and “Transaction Statement,” allows users to see their NPS account statements. Additionally, you can install your NPS account summary and receive email files with digital copies of Tier 1 and Tier 2 account holdings. Your specified email address will frequently receive the digital NPS statement of account, that displays the withdrawals and deposits for the relevant period. [B-02] Conclusion People can sign up for the NPS, an online social security service if they so choose. The Pension Fund Regulatory and Development Authority oversees its operations (PFRDA). Its objective is to provide pensions to individuals to assist them financially after they retire. A social security programme called the NPS Scheme was launched by the federal government in 2014. The New Pension Scheme is a plan that rewards retirees based on how the stock market does. If you want more details, then you must visit Piramal Finance you’ll get all the necessary information.

08-11-2023

Calculator

How Is the Fixed Deposit Interest Rate Calculated?

Have you ever wanted to learn more about fixed deposit interest rates? This article breaks down the process of calculating the fixed deposit interest rate. It highlights the various factors that affect the interest you can earn on your fixed deposit and provides tips on maximising your returns. With this guide, you can make informed decisions and get the most out of your fixed deposits. [B-01] What is a fixed deposit? A fixed deposit is a type of investment that provides a regular income and is a great way to save money for short-term and long-term financial goals. A fixed deposit typically has a higher interest rate than a savings account and is less risky as the money is insured. When you invest in a fixed deposit, the bank or financial institution will hold the money for a specified period. The institution will provide you with a pre-determined interest rate. The interest you earn is determined at the start of the investment term and will not change throughout the investment. How are fixed deposit interest rates estimated? Fixed deposit interest rates are calculated based on a few different factors. These factors include the cost of funds, the expected rate of inflation, and the risk associated with the investment. The cost of funds refers to the expenses the bank or financial institution incurs to borrow money. The expected inflation rate refers to the anticipated increase in prices over time. The risk associated with the investment refers to the chance that the institution will not be able to earn enough money on the investment to make a profit. You may have noticed that these factors are similar to the factors that affect savings account interest rates. The main difference between the two is that the interest rate for a fixed deposit is set in advance, while the interest rate for a savings account is unknown until maturity. How is the interest rate decided? There are a handful of factors that affect fixed deposit interest rates. These include the account type, the bank or financial institution, and the interest rate. Let’s take a closer look at each of these factors. Account type: The account you open will affect the interest rate you earn. Different types of accounts have different interest rates. The type of bank or financial institution: The bank or financial institution will also affect the interest rate. Different lenders provide different interest rates based on internal factors. Overall interest rate: The interest rate environment refers to the general level of interest rates in the economy. Fixed deposit interest rates may be higher if interest rates on savings accounts are higher. However, this is not a rule. For better understanding, you may use the fixed deposit interest rate calculator. How do you maximise fixed deposit interest rates? There are a few tips that can help you to maximise your fixed deposit interest rates. These tips include selecting the proper maturity, picking the right bank, and timing your investments. 1. Select the proper maturity. When deciding on the maturity of your FD, consider your financial goals and how quickly you need the money. The shorter the fixed deposit term, the higher the interest rate. However, you will need to be prepared to invest a significant amount because fixed deposits with shorter tenures have a higher minimum deposit amount. 2. Pick the right lender. When picking the lender, you will want to consider the risk associated with the lender and the cost of funds. Borrowers in good financial condition can provide money at a lower rate. They will be able to offer you a higher interest rate. Check the credibility of the lender before you make an offer. 3. Time your investments. You will also want to consider the current interest rate environment when investing. For example, if the interest rates for all financial products are decreasing, you may not want to invest in a fixed deposit. The reason is simple: you will get a lower interest rate. Therefore, consider the current economy before you invest. What is the formula for calculating FD interest rates? To calculate the interest rate for a fixed deposit, you will first have to determine the deposit tenure. The interest rate is calculated based on the following formula: Interest rate = (Simple interest × 100) / (Principal × Time). The calculation using the formula is simple. For example, if you have earned Rs. 1,200 in interest on an initial principal amount of Rs. 12,000 over 3 years. You can apply the formula as follows: Interest rate = (1,200 × 100) / (12,000 x 3) = 3.33% Therefore, the interest rate of your fixed deposit is 3.33%. How do fixed deposit interest rates compare with those of other products? Now that you know more about fixed deposit interest rates, you may wonder how they compare to other investments. For example, are fixed deposits a better investment than shares and bonds? Compared to both stocks and bonds, fixed deposits are less risky. However, the only drawback is that you will get a lower return. It is advisable to understand the risks involved when you are investing in any particular type of product. If you understand the risk, you can invest in any FD of your choice. [B-02] Conclusion A fixed deposit is a great way to earn a safe and steady return on your savings. However, you should research and select the highest interest-rate accounts to get the most out of your fixed deposits. A fixed deposit interest rate is generally set in advance. The best way to find the highest interest rate on a fixed deposit is to shop around and compare rates from different banks. For more information on fixed deposits and articles related to finance, visit Piramal Finance.

08-11-2023

Education

How to Link PAN with EPF Account Online?

How can I link my PAN with my EPF account online? Can it be done online? What is the fastest way to link a PAN card with an EPF account? You must attach practically all your papers to your account to access the EPF account and its functions. EPFO is committed to preserving your privacy and will go to any length to ensure that your personal information does not fall into the wrong hands. As a result, EPFO asks its members to have their KYC paperwork ready to connect their Aadhaar to their EPF account and to link their PAN to their EPF account as confirmation that they are who they claim to be. When you finish reading this blog article, you’ll understand why it’s critical to link your PAN to your EPF account and what you need to do. [B-01] An EPF Account Quick Overview Salaried employees in India are eligible for retirement benefits from the Employees’ Provident Fund (EPF) under Indian government laws. EPFO, which stands for Employees’ Provident Fund Organization, is in charge. Any business with more than twenty employees must join the Employees’ Provident Fund Organization (EPFO). Employees have the option to save away a part of their earnings for future use. Even if the firm no longer employs a worker, they may access the pooled funds in an emergency. To enjoy all the government facilities, one must link pan with EPF. The acronym UAN has no obvious significance. A UAN is an abbreviation for Universal Account Number. The UAN will function as a repository for all associated member IDs distributed by various organizations. The objective is to associate one member with several member IDs issued under a single universal account number. The member will benefit from an M.I.N. (member ID) display that displays all relevant M.I.N.s (member IDs). Members assigned a UAN must provide that number when joining a new company. The firm may now associate the member ID with the UIN assigned to the employee. An employer needs a UAN to assign a UIN to a new member ID, and if the member does not provide their UAN, the employer will be unable to do so. So having an EPF account online is a great advantage. How to link pan with EPF account? To connect your PAN to your EPF account, follow the procedures outlined in this online guide: To utilise EPFO’s online services, enter your UAN and password. To access the “Know Your Customer” page, choose “Manage” from the top menu, then “KYC.” After that, you’ll be sent to the KYC page, where you’ll notice a drop-down box for document type and a list of documents that need to be amended. Now that you know you need to connect your PAN to your EPF account, you may do so by heading to your EPF account‘s main menu and selecting the PAN option. Also, enter your complete name exactly as it appears on your PAN card and click “Save.” After the Income Tax Department confirms that the information you provided regarding your name and PAN is valid, your EPF account will be connected to your PAN. Remember that when you’ve connected your PAN to your EPF account, you may access this information by visiting the EPFO website and hitting the “Manage Profile” button on the main page. How to connect your PAN to your EPF account without going online? Here’s how to connect your EPF account to your PAN without using a computer: Call or visit the EPFO office that is most convenient for you to link PAN with EPF. If you wish to proceed with the request, you must double-check the form to ensure that your PAN, UAN, name, and other details are correct. Include a self-attested copy of your PAN Card and UAN while submitting the EPF-PAN connection form. An administrator will review your application once you submit these papers. Your PAN will be connected to your EPF account if it is authorized. If your EPF-PAN connection changes, you will be alerted through email and text messages. Can I check my PF account number using my PAN? You may get your PF account number using your PAN card. After you activate your UAN, you must complete a few basic steps before you may begin: After logging in to the EPF member site, click the “Activate UAN” button. In the appropriate boxes, enter your name, PAN number, birthdate, mobile phone number, and the captcha code. Please choose “Get Authorization PIN” from the list. The one-time PIN (OTP) required for permission will be sent to your registered phone number. This PIN will be required when you click the “Validate OTP and Activate UAN” button. After you have completed these steps, your UAN will be activated. The UAN and password will be delivered by text message to the cellphone number you provided when signing up. Why opening an EPF account is a smart idea? The following are the advantages of joining the EPF: Workers may find it simpler to raise complaints and obtain answers to issues regarding compliance and perks by utilizing EPFO. Because the EPFO is a government organization, all businesses must follow its established laws and regulations to comply with the Employees’ Provident Fund. You have to do this. So having an EPF account can be beneficial. The Employees Provident Fund Organization (EPFO) has made getting services online simple. Because of EPF’s efforts, the average time it takes to resolve a claim has decreased from twenty to three days. EPF serves as a center for spreading and committing to various sorts of voluntarily enforceable compliance. The Employees’ Provident Fund (EPF) allows employees to save large sums for retirement. So having an EPF account is important. Professionals who contribute to the Employees Provident Fund (EPF) regularly find it simpler and more convenient to save a significant sum for future requirements than to invest a large sum of money from their paychecks every month. Employees may access part or all of their EPF funds in an emergency. The EPF account is an essential tool for reducing taxable income. [B-02] Summing up We hope you take advantage of all EPFO resources through your EPF account. You may also use your PAN card to retrieve your PF account number on the EPFO website. You could do the same. If an employee has difficulty using the online choices, they may travel to the nearest EPF office, fill out the EPF-PAN linking form in person, and bring, a copy of their PAN card and their self-attested UAN with them for EPF account. There are also more in-depth, educational articles on Piramal Finance. Keep reading to know more!

08-11-2023

How To?

How to Open an Employee Provident Fund (EPF) Account

Employee Provident Fund (EPF) is a popular retirement fund in India. If you are a salaried employee, you can open an Employee Provident Fund (EPF) account in your name. However, this requires that you become an EPF member. You must contribute 10% of your earnings from all sources, from 16 to 59 years old. Here is a step-by-step guide to opening an EPF account. [B-01] What is EPF Account? EPF means Employee Provident Fund. It is a mandatory savings plan for Indian workers that gives them a lot of benefits. It is one of the safest ways to invest, so you should learn how to create an EPF account. Employees put some of their income into an EPF account to save for retirement. This helps them build up their retirement funds. Every salaried worker can join the EPF scheme. Benefits of an EPF Account The EPF gives employees many benefits, some of which are: Tax exemption on EPF investments under 80C. Interest earned on investments is not taxed. One-time payment at retirement. Selective withdrawal for things like college, marriage, and house purchases. There is no tax on partial withdrawals either. A monthly pension when you retire. EPF offers many benefits and is one of the safest SIPs for workers. EPF is one of the best schemes and is a risk-free option. It’s always a good idea to open an account and start investing money in an EPF account. Eligibility of an EPF Account The Employee Provident Fund is open to all workers in India, whether for the government or a private company. Every company in India with 20 or more employees can apply for EPF accounts. Employees who join the EPF get several benefits, such as a lump sum, insurance coverage, and a pension when they retire. Documents Required to Open an EPF Account Here are the documents that employers need to attach to the “Registration Form for EPFO” for an EPF account: The PAN Card of the Owner, Partner, or Director of the Business. Address proof, like the registered office’s electric, water, or phone bill (not older than 2 months). The Aadhar card of the owner, partner, or director. GST Certificate, Shop and Establishment Certificate, or any licence the government has given to the shop. The owner’s, partner’s, or director’s digital signature. A cancelled check or bank statement of the entity. Any hired, rented or leased agreement. Proof of licence from the identifier or licencing authority Types of EPF Forms FormPurposeForm 2EPF Nomination and Employees’ Pension Scheme (EPS)Form 5New employee registration form for EPS and EPFForm 5(IF)Employees’ Deposit Linked Insurance (EDLI) scheme claim formForm 10CEPS withdrawalForm 10DPension application formForm 11Automatic transfer of EPFForm 14LIC PolicyForm 15GEPF tax saving formForm 19EPF settlement formForm 20EPF settlement in case of employee’s deathForm 31Withdrawal of EPF How to Apply for an EPF account? For EPF account registration, the employer must do the following: Step 1: The organisation must sign up with EPFO. Visit the EPFO website and register your business through a single portal called “Establishment Registration.” Step 2: Get the user guide and read it. After clicking “Establishment Registration,” you’ll see an option for “Instructions/User Manual,” which you must download and read before moving on. Step 3: After reading this user guide carefully, sign up for the Unified Shram Suvidha Portal (USSP) of EPFO. When you click on the “Establishment Registration” tab on the main website, the USSP sign-up page will open. Then, click on the “Sign Up” tab. Step 4: When you click “Sign Up,” you need to fill in your name, phone number, and email address. After that, enter the verification code. Step 5: Sign in to USSP and look for a section on the left side of the screen displaying “Registration for EPFO-ESIC v1.1.” Then, choose one of the “Apply for New Registration” options on the right side of the screen. Step 6: When you click, you’ll see two options: “Employees’ Provident Fund and Miscellaneous Provision Act 1952” and “Employees’ State Insurance Act 1948.” As an employer, you should choose the option that says “Employees’ Provident Fund and Miscellaneous Provision Act 1952” and then tap “Submit.” Step 7: After clicking the “Submit” button, a “Registration Form for EPFO” page is shown. You must enter information about your job, branch, or division, contact details, business activities, and identifiers here. Step 8: After finishing the registration form and providing all essential papers, the employer’s DSC must be uploaded. When you upload the DSC, the Unified Shram Suvidha Platform will send you an email to let you know that the EPF registration was successful. If the employer has already signed up, they can log in with their Universal Account Number (UAN) and password. UAN Number Activation A UAN number is a universal account number given to all members of EPF. To enter the EPF website, every member needs a UAN. Follow these steps to activate or open your UAN: Step 1: Go to the EPF Members Portal or EPF e-SEWA. Step 2: In the right corner, you’ll find a button that says “Activate UAN.” Just click on it. Step 3: The home dashboard will open. According to EPFO records, you must fill out your basic information and mobile number. Step 5: Type in the “captcha” to get the credential PIN on the phone number you gave to EPFO. Step 6: Use the one-time password (OTP) to verify and activate the UAN online. Step 7: An additional message will be sent to your mobile to verify the UAN activation. Step 8: Once the UAN is set up, you can sign in to the website. You can find out about your provident fund online. How to Find Out the EPF Balance? There are four ways to find out how much money you have in your EPF: Using the EPFO portal: The EPFO member portal makes it easy to check your EPF balance. You should use your UAN and password to log in to EPF. After logging in, you can see the member ID to see the EPF balance. Using the UMANG app: You can check your EPF balance on your phone by downloading the Unified Mobile Application for New-Age Governance (UMANG) app. This app can also be used to file and track claims. Using the missed call service: You can check your EPF balance by making a missed call from your registered mobile number to 011-22901406. Using an SMS service: If your UAN is active, you can review your EPF balance by sending an SMS to 7738299899. [B-02] Summing Up EPF is a long-term financial scheme. It works best if you plan for retirement. Since this instrument is meant to build a retirement corpus. If you have short-term goals, it’s best to put as little as possible into the EPF account and use the rest of the money for other liquid investments. You should know your risk tolerance and how long you have to reach your goals. Piramal Finance is a great option for you for such finance-related content. Visit their website to learn more about the products and services they offer.

08-11-2023

How To?

Learn How To Make More Money With Share Market

What are some ways to make money on the stock market? What is share trading? The best approach to improve your chances of long-term financial success is to buy equities, as any seasoned investor will tell you. Even if share trading‘s values may increase significantly over time, it is challenging to predict how they will behave daily. For investors, things do not seem good. Here are some share trading options that can make more money. [B-01] Ownership must first be acquired and maintained. The saying says, “Time in the market beats timing the market.” Long-term investors widely use this statement. What does it seem like? The goal of buy-and-hold investing, sometimes known as the “long-term investment approach,” is to preserve share trading and other assets for a long period rather than acquiring and selling them frequently. This is essential because traders of share trading who frequently enter and leave the market risk missing out on chances to generate substantial profits year after year. Do you have any reservations? According to many share trading experts, people who invested in the stock market between 2002 and 2017 received an average yearly return of 9.9%. However, if you repeatedly join and quit the market, your prospects of success drop. Your returns would be substantially lower if you did not invest when the market was performing well. Saving money for days like that is the easiest thing to do, but you never know when they’ll arrive, and sometimes, tremendous gains are followed by catastrophic losses. As a consequence, establishing which technique is the simplest is challenging. To make things easier, share tradingis a profitable option. So, if you want to gain money when the share trading for the stock market is at its top, you must stick to your approach for a lengthy period. A buy-and-hold technique may aid you in accomplishing your objectives. (It permits you to pay less capital gains tax when submitting your taxes.) Instead of acquiring individual stocks, invest in mutual funds. The most fundamental thing experienced investors can do to decrease risk while boosting long-term gains is to diversify. This is not to suggest that you limit your investment to one thing. Instead, it tells you not to concentrate on a single project. Apart from investment, the trader also prefers share trading, share market trading as a good source of return. Most investors prefer to share trading, but most financial experts will encourage you to diversify your portfolio by investing in stock funds (such as mutual funds, exchange-traded funds, or ETFs). Share trading may give the same degree of diversity as mutual funds, but doing it right may involve a substantial amount of time, expertise and money. For example, one share in a given firm may cost anything from tens to hundreds of dollars. On the other hand, mutual funds enable investors to acquire a single share and access a portfolio of hundreds or thousands of assets. Everyone wants to invest in the next Apple (AAPL) or Tesla. Even so, most investors and experts aren’t very great at judging which businesses will offer them large returns. Share trading is a very profitable option when done in the right way. Most investors should invest in index funds, which track prominent market benchmarks such as the NSE Nifty or the BSE Sensex. This will put you in a position to benefit from the share trading by generating returns of around 10% per year while putting in the least amount of time, effort and money. Earn more income from your dividends. A dividend is a regular payment from a company’s profits to its shareholders. Dividends are commonly offered to shareholders of publicly listed firms. Small dividend payments may not appear important initially, but they have helped the stock market expand swiftly over time. The Nifty 50 index had achieved an average annual return of more than 16% since its establishment, up from roughly 12% when it originally launched. This is because reinvesting dividends enables you to purchase new shares, which helps your earnings climb faster. Share trading is an important option for those who want to earn more for the stock market. Many financial counsellors urge their long-term investor customers to reinvest their money rather than spend it immediately to take advantage of compounding. Your monthly payments may be automatically reinvested in the share trading if you sign up for a DRIP (dividend reinvestment plan) with your broker. Choose the kind of investment account that is best for you. While the location of your money is vital, the assets you hold will have a far higher influence on your long-term success as an investor. This is because some investment accounts, such as those provided by the National Pension Scheme, enable you to pay less tax (NPS). You won’t have to pay taxes on any income or growth during that time if you leave the money in the account. If you can postpone paying taxes on these substantial returns for a lengthy period, they may considerably influence your retirement savings. A majority of the population all across the world is showing their interest towards share trading. The National Pension System (NPS) investment in Tier I is always tax-free, even when it pays out. There are no taxes on the initial investment, profits, or final payout after the programmers. When you reach retirement age, you may take up to 60% of your savings. This 60% investment will be free from capital gains tax. For example, suppose you have a lot of medical expenditures or are striving to get your finances back on order after the COVID-19 pandemic. In that case, you may be able to collect your money sooner than you imagined with share trading. There will be no costs for this. Please do not touch the money in your tax-deferred retirement plan until retirement age. Finally, if you want to get the most out of your money, ensure it’s in the “correct” account. Taxable accounts are the ideal location to hold money that you may need in the next few years or decades or that is unlikely to lose value due to tax losses. Share trading that experiences less inflation-related value loss may be advantageous for taxable accounts. On the other hand, tax-advantaged accounts are a better alternative for long-term investments or assets where a bigger portion of the return is expected to be taxed. [B-02] Summing up You don’t have to estimate whether the price of a company’s shares will rise or fall shortly if you want to earn money on the share trading. Instead, you may concentrate on assembling and maintaining a portfolio of equities. Warren Buffett and other excellent investors advise buying low-cost index funds and holding them until the time comes to draw a payout. The least fun approach to generating money in the stock market is the most dependable. Focusing on long-term returns on a range of assets, like index funds, is preferable to looking for the next “IT” firm. A team of knowledgeable advisers of Piramal Finance is available to assist you at every stage of the application process. This boosts your chances of being accepted and receiving your funds soon. Piramal Finance is one of India’s top non-bank finance organizations. Piramal Finance’s specialised staff of professionals is accessible 24 hours a day, 7 days a week, to assist existing and new clients.

08-11-2023

How To?

How to Analyse an IPO

Is investing in Initial Public Offering a good choice? How to analyze IPO? What is the significance of IPO monitoring? All businesses require steady cash flow if they wish to grow or maintain operations over an extended period. The money will be used to maintain business operations as usual and to meet the company’s needs for growth and increasing profits. The company’s earnings may be used to finance its operations. Focusing on the expansion and development of the business isn’t more important. A firm must spend a lot of money on things like new employees, office space, and even buying other businesses to grow. A corporation will initially look for a loan from a bank when it needs money. However, since bank loans need collateral and have borrowing limits, businesses loathe them. An initial public offering (IPO) is the second-most common way for a firm to generate capital. [B-01] Initial Public Offerings: All that you need to know When a business first sells shares to the public, it does so through an “initial public offering” (IPO). Shares formerly owned by the company’s management are being offered to the general public to raise money for growth or debt repayment. After a firm completes its initial public offering, its stock is regarded as public and is eligible for trading on a stock market. It is typical for a company to sell a portion of its shares to new investors when it first goes public. The following are some of the most common causes for a company to go public: So that the company might profit more from the stock market. assisting in the sale and acquisition of its assets To help with several financial commitments. It must bring in money so its private owners may profit or break even. What exactly is an “offer to purchase” in an IPO? The process by which a business sells the shares that its existing promoters and investors presently own is known as an offer for sale. Let’s say ABC owns 70% of XYZ, a different company. It plans to sell 20% of the company to the general public, giving it just a 50% ownership stake. The company has the option to put in a bid to reclaim the 20% shareholding. The investor or promoter who sells the company’s shares in an offer for sale (OFS) uses the funds for things unrelated to the business. It is very important to understand all the aspects of initial public offerings in order to get the maximum profit out of them. Features of an initial public offering (IPO) The two essential elements of an IPO are the Fresh Issue and the Offer for Sale. A “fresh issue” is the process through which a company issues new shares and then offers those shares for sale to the public for the first time. An initial public offering includes this. When existing shareholders or the individuals who formed the company want to sell their shares, an offer for sale is issued. Having a solid understanding of these ideas while doing an IPO study is essential since their differences may significantly affect the results. How to analyze IPO? should be one’s first question before investing in it. Large investors, known as “anchor investors,” buy a significant amount of stock before a company goes public for the first time. Smaller retail investors gain confidence as a result of IPO watch. Investors may buy shares using this approach but cannot sell them for 30 days. How should an initial public offering (IPO) be analysed? Every company will not be eligible for an initial public offering. Some could immediately charge a large entry price, while others might provide early signup discounts. Professional investors look for a range of signs to decide if a company is reliable and worth investing in. Keep the following in consideration while filing for initial public offerings: Financials: The company’s finances need to be looked at as soon as possible. To determine if a firm has made money, look at its performance over the last five years. Additionally, the organisation shouldn’t have a high debt load. How to analyze IPO is a very important factor that should not be overlooked. Red heading You should review the IPO’s Red Herring Prospectus while completing this exam. The RHP goes into great detail on how the firm plans to use the initial public offerings (IPO) revenues. Invest the money in growing your business rather than using it to pay off debt. Demand: Every initial public offering (IPO) updates the public daily on the number of people who have registered to buy shares. It shows how many prospective investors have shown interest in the IPO. A minimal number of participants in the initial public offering (IPO) suggests that investors do not think the company is worthwhile. Long-term projections comprise: The company’s goals should be one of the most important aspects to consider when considering an initial public offering (IPO). Find out whether the company wants to reinvest its profits and if its plans for creating new products and services are viable. When is the best time to make an IPO investment? Initial public offerings, or IPOs, are a favourite among individual investors. This does not mean that you have to participate in every IPO made available to the public. Consider the following before you spend your hard-earned money on one. Here are a few things to think about while choosing whether or not to invest in IPO stocks. Find out the predicted figures A long prospectus chock full of jargon has been issued on the website of the Securities and Exchange Board of India (SEBI). Don’t let that stop you, however. You may find a lot of knowledge on this topic about initial public offerings. Reasons why this information may have been supplied At all costs, safeguard the company’s founding shareholders and employees. The likelihood that early investors would try to recover their investment after the initial public offerings must be considered. This is concerning since it shows that the company’s early investors had little faith in its ability to grow. Be cautious when investing at market peaks or as they approach Investors feel enthusiastic about the future when the economy and the stock market are performing well. Everyone wants to take part in the development process. Recent initial public offerings are superior to earlier ones. Unfortunately, this is not the case. People were excited when the Internet first became usable in the late 1990s. This serves as an example of this way of thinking. It would help if you took considerable care when making new investments during a bull market. Only companies with solid foundations and bright futures should be taken into consideration. Use the Resources wisely It’s a clear sign that everything isn’t right on the inside when a company has to issue new shares only to cover its debts. Don’t spend too much time with these kinds of businesses. The Results of the Industry Consider the stock only if you’re considering investing in an initial public offering. When seeking to understand a subject, starting by learning as much as possible about how the sector as a whole is doing is crucial. [B-02] Summing up After deciding what to look for in an IPO and how to analyse it, you must open trading and Demat accounts. Applying for initial public offerings requires having these two accounts. Once your accounts are set up, you may apply for IPOs online using a unique trading tool, Trader Terminal (IPOs). Thanks to our straightforward online platform, you are in charge of the bidding process, which relieves you of the tiresome paperwork load. A team of knowledgeable advisers from Piramal Finance is available to assist you at every stage of the application process. This boosts your chances of being accepted and receiving your funds soon. Piramal Finance is one of India’s top non-bank finance organizations. Piramal Finance’s specialised staff of professionals is accessible 24 hours a day, 7 days a week, to assist existing and new clients.

08-11-2023

How To?

What are retirement mutual funds, and how to invest in them in 2022?

Retirement is one of the most terrifying stages of life because you will no longer be able to work. With no work, there will be worries about finances. Given the fact that the inflation rate is relatively high, your fears are entirely justified. However, there are ways to improve your savings. These savings will help you during your retirement, ensuring you have no shortage of funds. Although most working people can withdraw pension from their PF account, the yield is somewhat low. This is where retirement mutual funds come into play. Retirement mutual funds help you save a specific part of your income for retirement. Since it involves the stock market, the returns are higher than those of general savings plans. Besides, you will also have the option to invest in retirement mutual funds according to your expected return. This article discusses everything you need to know about retirement mutual funds and the investment process. [B-01] What are retirement mutual funds? A retirement mutual fund is a pool of money where deposits come from multiple investors. Usually, a financial organisation manages mutual funds. Therefore, the risks are considerably low. Besides, you can invest in numerous mutual funds to increase your returns after retirement. Once the fund matures, you will get the total deposit plus interest for financing your needs after retirement. There are three important things to know about retirement mutual funds. 1. They can have a lock-in period. Most retirement mutual funds have a specific lock-in period. It means that you cannot withdraw the invested money during this time. For instance, a retirement mutual fund with a 5-year lock-in period will freeze the money during this time. You can only withdraw your money after five years. Therefore, consider the lock-in period before you invest in a mutual fund. 2. You can avail yourself of tax benefits by investing in retirement mutual funds. You can get benefits under Section 80C of the Income Tax Act if you invest in retirement mutual funds. Under the Income Tax Act, you are eligible for an exemption of up to INR 1.5 lakh. In addition, you can claim an exemption of up to INR 1 lakh on capital gains. 3. SIPs are the best way to manage retirement mutual funds. Several securities also offer retirement savings funds through SIP. Systematic investment plans allow you to invest a specific amount per month. You need not make purchases manually every month. The minimum SIP amount is as low as INR 500 per month. What are the advantages of retirement mutual funds? Before you invest in retirement mutual funds, understand their benefits. Here are some benefits of retirement mutual funds. 1. You are eligible for tax exemptions. If you invest in mutual funds, you can enjoy tax exemptions under Section 80C of the Income Tax Act. Tax exemptions are provided according to your capital gains and income per year. Therefore, as given above, you can get up to INR 2.5 lakh exempt from your retirement mutual funds. 2. Retirement mutual funds have higher yields. Most retirement mutual funds offer higher interest rates than the National Pension Scheme. Therefore, this will help you accumulate more money for your retirement. With higher interest rates, you can also decrease your SIP amount if needed. 3. They are not as risky. Mutual funds diversify investment in the capital markets. Therefore, not all money is invested in equity or debt. Most retirement mutual funds have a specific debt-to-equity ratio. Therefore, the mutual fund’s value is not affected as much by markets. For instance, if the market price falls, your investment will not be as exposed as other investment options like shares. 4. There are many investment options. There are many mutual funds. Therefore, you can invest in multiple mutual funds with different lock-in periods and return rates. You can select a retirement mutual fund based on your risk appetite, lock-in periods, desired rate of return, etc. 5. There are two types of instalments. You will get two options for investing in retirement mutual funds. First, you can opt for the SIP or systematic investment plan. Here, you have to deposit a certain fixed amount every month. The second is the regular or Flexi mutual fund. From the name itself, you can understand that monthly investments can be different according to your convenience. You can make lump-sum investments based on your finances. 6. Mutual funds have a lower lock-in period. Compared to the NPS, retirement mutual funds have a lower lock-in period. The National Pension Scheme has a lock-in period of 8 to 10 years, but retirement mutual funds have a lock-in period of 5 to 6 years. How to invest in retirement mutual funds? Connect with a professional advisor to learn more about the pros and cons of different retirement plans. Decide on the type of retirement mutual fund you want to invest in. Old funds offer tax exemption under Section 80C of the Income Tax Act. On the other hand, the newer funds do not have any such provision. Once decided, check the expense ratio, return interest, and minimum SIP amount of the concerned mutual fund. Study the 1-year, 5-year, 7-year, and 10-year returns to understand the performance of the SIP. See the debt-to-equity ratio and the rating of the mutual fund on the risk meter. Consult a professional if you are not sure you are making the right choice. [B-02] Conclusion Mutual funds are subject to risk. However, they can help you save money for retirement. There are many types of mutual funds, and retirement mutual funds are the ideal way to save money for retirement. With many scheme options, flexible SIP amounts, short lock-in periods, and other benefits, retirement mutual funds are beneficial for financial planning. If you want more information about personal finance, visit Piramal Finance.

08-11-2023