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Tax

What Is The Long-Term Capital Gain Tax Rates In 2022?

Indians primarily used real estate, equities and gold as tax planning vehicles before 2018. In 2018, Long-Term Capital Gain Tax was introduced on equities and equity mutual funds. Today, Long-Term Capital Gains Tax is levied on different capital assets, equities, real estate properties, fixed-income securities, mutual funds, Exchange Traded Funds etc. [B-01] Long-Term Capital Gains Tax Under Budget 2022 Long-term capital gains tax under the Budget 2022 remained the same for various categories of assets. Only the surcharge of capital assets like real estate, artefacts and unlisted shares was capped at 15% p.a. For your easy reference, the analysis of capital gains tax rates of different capital assets is given below. Surcharge on LTCG tax under Budget 2022 If you are a high net worth individual with income ranging from 2 crores to 5 crores holding real estate, unlisted shares or artefacts, your surcharge will come down from the previous 25% – 37% to only 15% p.a. Long-term Capital Gains Tax on equities and equity mutual funds The Financial budget of 2018 introduced Long-Term Capital Gains Tax when you sell equities after one year of holding. This was pegged at 10% p.a. The concept of grandfathering was introduced to value assets at fair market value on 31 January 2018 to value long-term capital gain. A tax exemption on long-term capital gains of up to Rs 1 lakh was given. Finance Minister Nirmala Seetharamanji left the LTCG tax rate unchanged at 10% p.a. Illustration to calculate Long-Term Capital Gains Tax on equities: Suppose you have an equity mutual fund holding bought for Rs 1,50,000. After one year, you sell it for Rs 385,000. The calculation of LTCGtax is as follows:- S.NoParticularsAmount in Rs.1Cost of acquisition of the equity shares/fundRs 1,50,0002Sales value of equity/equity mutual FundRs 385,0003Long-term capital gainsRs 2,35,0004Long-term capital gains after exemption up to Rs 1,00,000 (3-1,00,000)Rs 1,35,0005LTCG Tax rate is 10% after one year of holding after exemption ( 4* 10%)Rs 13,500 Long-Term Capital Gains Tax on fixed-income securities, bonds and bond mutual funds If you hold debt mutual funds, debt securities or debt ETFs and sell them after three years, you pay an LTCG tax of 20%. CPI Index refers to the Cost of Inflation Index. Of course, you get the benefit of indexation. Indexation means that the cost of your debt fund holdings is increased proportionately to reflect the increase in the CPI index up to the date of sale. If the CPI index on your purchase date is 100 and CPI Index on the date of sale is 150, then your cost of debt funds is inflated by 50%. This is then subtracted from the market price of the debt to calculate the long-term capital gains tax on your bond fund. CPI Index refers to the different levels of the Cost Price Index, which indicates the prevailing inflation rates. Illustration to show how to calculate long-term capital gains tax on bonds after indexation: Suppose you purchased a debt fund in April 2014 at Rs. 10 for 10,000 units. The total acquisition cost is Rs. 1,00,000. You redeemed the same in 2022 at Rs. 25 per unit. The CPI Index was 220 in 2014-2015, and in 2022 the CPI Index will be 300. How would you calculate the Long Term Capital Gains Tax for this sale? S.NoParticularsAmount in INR1The purchase cost of debt Fund in 2014Rs 1,00,0002Sale Value of the debt fund in 2022Rs 2,50,0003Purchase cost with indexation in 2022( 1* 300/220)Rs 1,36,3634Profit on sale (2-3)Rs 1136365LTCG Tax (20% after 3 years)(4*20%)Rs 2,727.2 Long-Term Capital gains Tax on Systematic Investment Plans If you are doing Systematic Investment Plans (SIPs), the underlying investment is typically equity or debt, so the tax rates that apply to equity or debt investments are used. Each of your instalment payments is treated as a separate investment. You must pay long-term capital gains on the gains from each instalment separately at the applicable rate. Long-Term Capital Gains Tax on Real estate properties The LTCG tax rate on real estate properties is 20%. Illustration to show the calculation of Long-Term Capital Gains tax with indexation: Suppose you acquired a property in 2005 at Rs. 1 crore. In 2008, you sold the property for 1.75 crores. You also made improvements on the property for Rs 20,00,000 in 2006. Costs relating to the transfer incurred by you are Rs 5 Lakhs. The CPI Index in 2005 stood at 117 and 137 in 2008. The CPI Index in 2006 was 122. Your period of holding is three years. The calculation of long-term capital gain made by you is as follows: Illustration to show the calculation of Long term capital Gain tax on your real estate property: S.NoParticularsAmount in Rs1Cost of acquisition of house property1,00,00,0002Sale Value of house property1,75,00,0003Long term Capital gain without Indexation75,00,0004Cost with Indexation 1* 137/1171,17,09,4015Add the cost of improvement after indexation (20,00,000*137/122)22,45,901.636The total cost of the property after indexation (4+5)1,39,55,3027Capital Gain after indexation (2-6)35,44,6988Fewer expenses of transfer5,00,0009Net long-term capital Gain after expenses (7-8)30,44,69810Long-term Capital Gains tax at 20%6,08,939.6 [B-02] Key takeaways The article covers the Long-Term Capital Gains Tax implications for important capital assets, including equity, debt and real estate. As mentioned earlier, Budget 2022 left the Long- Term capital gain tax rates unchanged except for reducing the surcharge to 15% on specific capital assets. To read more such articles, visit the Piramal Finance website. https://www.piramalfinance.com/

08-11-2023

Mutual Funds

Top 10 Debt Mutual Funds of 2022

A common way for individuals to build wealth is through mutual funds. Mutual funds have been appealing for reasons such as professional management, diversification, and more. Nevertheless, many people think mutual funds are an unwise investment choice for them because of how risky they are. While some mutual funds have a higher-than-average risk profile, others, like debt funds, are known for their steady returns. In this article, we’ll discuss how these debt funds operate and the top debt mutual funds in India right now. [B-01] What is the Best Debt Mutual Fund? A debt mutual fund is a type of mutual fund scheme that makes investments in fixed-income generating assets such as certificates of deposit, corporate bonds, treasury bills, commercial paper, and government securities that have lower risk and volatility. Bond Funds and Fixed Income Bonds are other common names for debt mutual funds. This fund’s primary goal is to offer consistent and fixed interest returns during the investment period. After the predetermined loan tenure, the debt fund receives its principal returned. Investors receive returns in the form of the fixed interest the fund earns. A debt mutual fund chooses its assets depending on its credit rating. A better credit rating increases the likelihood that the investment will be repaid in full when it matures and that the interest will be paid on time. Top 10 mutual funds to invest this year Debt funds are a smart investment, but to achieve your financial objectives, you still need to pick the best debt fund. In this article, we will give you a sneak peek at the top debt funds for 2022 to assist you in making your decision. S. NoMutual FundAUMExpense Ratio3-Year Return5-Year Return1.Aditya Birla Sun Life Medium Term Direct Plan-GrowthRs. 1,628 crores0.87%10.32%8.42%2.UTI Bond Fund Direct-GrowthRs. 299 crores1.29%10.50%6.49%3.ICICI Prudential Credit Risk Fund Direct Plan-GrowthRs. 8,014 crores0.88%8.14%8.03%4.UTI Banking & PSU Debt Fund Direct-GrowthRs. 465 crores0.24%7.93%6.51%5.Edelweiss Government Securities Fund Direct-GrowthRs. 109 crores0.69%7.08%7.95%6.Edelweiss Banking and PSU Debt Fund Direct-GrowthRs. 379 crores0.28%7.38%7.87%7.SBI Magnum Medium Duration Fund Direct-GrowthRs. 9,245 crores0.68%7.41%7.70%8.Nippon India Ultra Short Duration Fund Direct-GrowthRs. 4,931 crores0.33%6.64%5.93%9.ICICI Prudential Short Term Fund Direct Plan-GrowthRs. 15,615 crores0.37%6.13%7.30%10.ICICI Prudential Ultra Short-Term Fund Direct-GrowthRs. 14,808 crores0.39%5.04%6.06% Advantages of debt mutual funds Debt funds have many significant advantages compared to some other mutual funds. Some of these advantages are: Less affected by market movements The result of debt mutual funds is not much affected by changes in the market. As a result, these funds are less volatile than equity funds. Fixed-income securities make up most of the portfolios of debt funds. Predictable returns Debt mutual fund returns are substantially more stable because the fund invests in fixed-income securities. Top debt funds are known for producing steady returns of 4% to 6%. Risk-averse investors should therefore think about investing in these funds. Funds flexibility When you invest in a debt fund, you might get a lot for the price of one, just as with other mutual funds. A typical debt fund may invest in several bonds, commercial paper, and other securities. Also, debt mutual funds can be converted or transferred to equity mutual funds or any other plan of the investor’s choice. Other investment alternatives do not offer such options. For example, Fixed Deposits can be closed but not transferred. Low-cost investment Debt funds are inexpensive investment vehicles and they make more sense when you consider the instruments they invest in and the consistent returns they produce. Thus, debt funds charge a small investment cost. However, the expense ratio for most debt funds is less than 1%. Who should invest in debt funds Debt funds are best for novice investors to begin their financial adventures. They get the much-needed preview of mutual funds’ potential from this. Also, risk-averse people or those who aren’t ready for equity exposure should choose debt funds. Debt funds increase investors’ wealth and offer consistent income while posing minimal or no risk. Tips to choose the best debt mutual fund Fund history Select investment fund providers with a proven track record of reliable performance. Make sure they have a consistent history going back at least five to ten years. Track record Over a 3-year and 5-year horizon, if the fund consistently beats its peers and the benchmark, it is a sign that a fund is well-managed. Although previous performance cannot predict future results, it is a crucial indicator of the fund’s history and aids in comparison to its competitors. Expense ratio The expense ratio displays the percentage of the money used to manage the fund. Better returns result from a reduced spending ratio. Choose the fund with the lower expense ratio. Asset allocation Also, consider how well-diversified your fund’s portfolio is and where they have made the majority of its investments. For higher returns, some funds may invest in riskier debt instruments, while others may invest in safer sectors like government bonds. Your potential for risk and return depends on the asset allocation strategy you like. Asset under management A larger fund size requires more management effort, and a smaller fund size offers less flexibility. The assets being managed shouldn’t be extremely high or extremely low. It enables the fund manager to quickly manoeuvre through stormy times and liquidate investments. Things to consider before investing Investment period and objective To invest for a longer period, a person should consider investing in short-term bond funds. A holding period of three to twelve months is appropriate for liquid funds. Additionally, an investor must decide on the overall goal of his investment before choosing a debt fund. Fund types Further subcategories of debt funds include liquid funds, monthly income plans (MIPs), fixed maturity plans (FMPs), dynamic bond funds, income funds, etc. These funds have their own set of benefits and goals to pursue. You must determine your needs before investing in a debt fund. Risk Debt funds are ultimately market-linked and subject to credit and interest rate concerns. You must determine as an investor if you can deal with these risks. Cost The expense ratio is a fee charged by the fund houses in exchange for the fund manager’s upkeep of the fund. When compared to other funds in the category, an investor must select the fund with the lowest expense ratio. [B-02] Conclusion Debt investing is a wise choice if you want consistent and secure profits. It is obvious from the information above that investing in debt funds will increase the security of your money. It is important to understand the risk and keep an eye on it, especially if you are investing in debt funds for a long time because debt funds are also market-linked. In case of any doubt, consult a financial expert like Piramal Finance. Get easy and customised mutual fund and personal loan solutions at your fingertips.

08-11-2023

Credit Score

Everything You Need to Know About CIBIL Score Explained

Whether you want to purchase a new house or car, most people prefer taking a loan rather than shelling out all their savings to fund the purchase. Your lenders assess your creditworthiness before disbursing the loan amount. A credit score is an integral part of your assessment. This three-digit number helps lenders know the following: In the case of a loan, the amount you are eligible for in the case of a credit card, the upper limit for the card Whether or not you should mortgage for the loan you are availing Five pillars help determine the credit score. This article will take you through the advantages of calculating a credit score. We will also discuss the CIBIL score calculation in detail. [B-01] What is the CIBIL Score? CIBIL (Credit Information Bureau India Limited) is an RBI-licensed company. It provides credit information for individuals. It is the most popular credit-scoring company in India. This is a three-digit credit history summary. It includes ratings and reports that detail your creditworthiness The score ranges from 300-900. You are in the good credit bracket if your score is nearly 900. A credit report in CIBIL helps the lenders see the following details: The number of loans you have taken Whether or not you pay them on time The total number of accounts you hold It takes approximately 18-36 months to build a satisfactory CIBIL credit score. Why Should You Worry About CIBIL Score? The CIBIL score is an important part of your loan application. Most lenders have automated systems that help them assess you as the lender. The credit score is part of this algorithm. It helps create the first good impression on the lender. Let’s discuss the advantages of a credit score. Based on the risk determined from your profile, the lenders determine the loan amount along with the interest to be paid. A higher credit score helps you get loans faster. With a good score, you can negotiate better with lenders. Whether you want a shorter repayment term or more loan amount, it is possible with a good credit score. Lenders may think twice before releasing the amount they want if you are on the riskier side of the credit score. However, your chances of getting the deal are higher with a good credit score. A good credit score has its perks with credit cards. You get the best higher limit with the cards as well. Banks also offer you pre-approved loans when you have a higher credit score. The repayment period can also increase if you have a better CIBIL score. How is CIBIL Score Calculated? As discussed, there are five pillars to your credit score. Each pillar is assigned a specific value. Together, they help determine if you are worthy of the loan. The Payment History This accounts for 35% of the score. This element helps the lender understand Do you make your payments on time? Have you skipped your EMIs in the past? If you delay your payments by 30 days, it can impact your credit score. If there are more accounts with delayed payments, it can affect the score. To ensure a positive score, in this case, you should provide timely payments. If possible, it should be Existing Debt This makes up 30% of the score. It accounts for the total credit limit you have utilized and the total loans you have taken. It includes the total loans you have taken for different purposes It also assesses the credit cards you own and how much you owe If you have maxed out your credit card, it can impact your credit score. If you have taken new loans with low repayment history, it can hamper your credit score. If you have loans closing soon, you might notice an increase in your credit score. Credit History Duration This accounts for 15% of the credit score when you opt for a free CIBIL score check. If you have a long and good history of making timely payments, you may notice a slight hike in your score. The score averages the age of your credit to determine your worthiness for getting a loan. While you may want to avoid debts, they can help lenders learn more about your credit score. The Credit Mix This is an essential part of calculating the credit score. You might be considered risky if you have more personal or credit card loans in your history. On the other hand, if you have home or auto loans, it can improve your score. It is a good idea to have a good credit mix for better assessment. Along with the credit mix, the duration of the loan also matters. If you have repaid your loans using a longer term, you might notice an increase in your score. The credit mix accounts for 10% of the credit score. Recent Activity This sums up the final 10% of the CIBIL score. Say you applied for a credit card recently and got rejected. This can impact your credit score negatively. Similarly, if in the recent past you opened a few bank accounts, it can impact your credit score. Your recent activities also affect the score and play a pivotal role in the algorithm. However, it is important to note that the algorithm does understand that a person with new accounts or loans is not necessarily risky. Several sites allow you to conduct a free CIBIL score check to assess your creditworthiness. The ideal CIBIL score for better worthiness is between 750-900. Note: You must pay a nominal amount to check your CIBIL score by PAN card. [B-02] Conclusion Creditworthiness is pivotal in approvals, whether you plan to take home or personal loans. You can get your loans approved and disbursed faster with a higher credit score. It can also act as a catalyst for better interest rates and payment terms. You should follow basic credit rules to ensure a better score. If you want to know more about improving your CIBIL score calculation or enhancing financial planning, visit us at Piramal Finance. We make sure your financial knowledge is up to date on essential services and products, such as personal loan and financial calculators, by reading the informative blogs on their website.

08-11-2023

Dream Mobile

Top Upcoming Mobiles In India 2022: Price and Launch Date

With technological advancements, 5G will soon surpass 4G in popularity. Hence, various leading mobile manufacturers have started producing 5G-ready handsets. This technology will have faster upload and download speeds. Continue reading to see some of the best 5G phones. [B-01] 1. OnePlus Nord 3 5G This phone is set to be launched on October 24, 2022, and will be available in different colour variants. It is a full HD+ phone with 409 PPI pixel density. At the top left, there is a punch-hole design. Specifications Screen size: 6.7 inches (17.02 cm) Custom UI: Oxygen OS Processor: MediaTek Dimensity 8100 Internal memory: 128 GB RAM: 8 GB CPU: 2.85GHz, Quad core, Cortex A782GHz, Quad core, Cortex A55 Number of Cores: 8 Graphics: Mali-G610 MC6 Rear camera: Triple (50MP + 8MP + 2MP) Front camera: 16 MP Battery: 4500 mAh Price: INR 27,999 2. Moto S30 Pro This 5G phone is expected to be released by November 3, 2022, in various colour variants. It comes with HD+ resolution, an OLED display, and a 20:9 aspect ratio. Specifications Screen size: 6.55 inches Custom UI: N/A Processor: Qualcomm Snapdragon 888 Plus Internal memory: 128 GB RAM: 8 GB CPU: 3GHz, Single Core, Kryo 6802.42GHz, Tri Core, Kryo 6801.8GHz, Quad Core, Kryo 680 Number of Cores: 8 Graphics: Adreno 660 Rear camera: 50 MP primary and 13 MP secondary Front camera: 32 MP Battery: 4400 mAh Price: INR 25,990 3. Samsung Galaxy F44 Samsung Galaxy F44 is expected to be launched on November 2, 2022, in different colour variants. It comes with full HD+ resolution at 1080 x 2340 pixels. It has a rear-mounted fingerprint sensor and a face unlock feature. Specifications Screen size: 6.4 inches OS: Android12 Processor: Samsung Exynos 9 Octa 980 Internal memory: 128 GB RAM: 8 GB Rear camera: 64 MP Front camera: 32 MP Battery: 6000 mAh Price: INR 11,990 4. Nokia G400 5G This phone is expected to be launched on January 18, 2023, in different colour options. The screen has a full HD+ resolution and a density of 339 pixels per inch. A side-mounted fingerprint sensor and face unlock are its security features. Specifications Screen size: 6.5 inches OS: Android 12 Processor: Qualcomm Snapdragon 480 Plus Internal memory: 64 GB RAM: 4 GB Camera: 48 MP rear camera and 16 MP Battery: 5000 mAh Price: INR 19,990 5. Moto G71s Moto G71s is expected to be launched on October 26, 2022, in Meteorite Grey and White Lily colour options. It has an HD+ AMOLED display with 2400 x 1080 pixels of resolution. Specifications Screen size: 6.6 inches OS: Android 12 Processor: Qualcomm Snapdragon 695 Internal memory: 128 GB RAM: 8 GB Camera: 50 MP front and 16 MP rear Battery: 5000 mAh Price: INR 19,790 6. Xiaomi Redmi Note 13 Pro Max 5G The Xiaomi Redmi Note 13 Pro Max is expected to be released on October 11, 2022, in various colour variants. It has an AMOLED touch screen with a 1080 x 2430 pixel resolution and 399 pixels per inch (PPI). The bezel-less design includes a punch hole design at the centre top of the screen, which houses the selfie camera. It has a side-mounted fingerprint sensor. Specifications Screen size: 6.67 inches OS: Android 12 Processor: Qualcomm Snapdragon 720G Internal memory: 128 GB RAM: 6 GB Camera: 108 MP rear camera and 32 MP front camera Battery: 5200 mAh Price: INR 18,499 7. iQOO Neo 6 SE 5G This 5G phone is expected to be released on October 23, 2022, and will be available in Gradient Blue, Orange and Blue colour options. It has in-screen unlock with a fingerprint and face unlock will be its security features. It has a full HD+ AMOLED display. Specifications Screen size: 6.62 inch OS: Android 11 Processor: Qualcomm Snapdragon 870 Internal memory: RAM: 8 GB Camera: 64 MP rear and 16 MP front camera Battery: 4700 mAh Price: INR 23,090 8. Xiaomi Redmi Note 12 Pro This phone is expected to be launched on October 27, 2022. It comes with an AMOLED display that supports a 1080 x 2400 pixel resolution and provides 395 PPI pixel density to the screen. The fingerprint sensor is side-mounted, and the face unlock feature is enabled with the selfie camera. Specifications Screen size: 6.67 inches OS: Android 11 Processor: MediaTek Dimensity 720 MT6853V Internal memory: 128 GB RAM: 6 GB Camera: 108 MP rear and 16 MP front camera. Battery: 4300 mAh Price: INR 16,990 9. Honor 70 5G This 5G phone is expected to be launched on October 17, 2022, in different colour options. It comes with an OLED screen with a 1080 x 2400 pixel resolution. Their fingerprint sensor and facial unlock features are for safety. Specifications Screen size: 6.67 inches OS: Android 12 Processor: Qualcomm Snapdragon 778G Plus Internal memory: 256 GB RAM: 8 GB Camera: 50 MP rear and 32 MP front camera Battery: 4800 mAh Price: INR 31,390 10. POCO M5 Pro 5G POCO M5 Pro is expected to be launched soon, but the date is yet unknown. There will be multiple colour options to choose from. Its screen comes with Corning Gorilla Glass 5 and is a full HD+ display with a 1080 x 2400 pixel resolution. There is a waterdrop notch at the top. Specifications Screen size: 6.67 inches OS: Android 11 Processor: Qualcomm Snapdragon 720G Internal memory: RAM: 6 GB Camera: 48 MP rear and 16 MF front Battery: 6000 mAh Price: INR 14,490 Overall best mobile under INR 35,000 Based on the prices and features, the Xiaomi Redmi Note 13 Pro Max 5G is among the best upcoming phones under INR 35,000. It has a powerful camera, an amazing battery life that would keep you going even with heavy usage, and a smooth user experience. [B-02] Conclusion The upcoming mobiles are available at different price ranges and come with various features. You can check the specifications to ensure that it matches your requirements and is within your budget. Visit Piramal Finance’s website to learn more about the easy financial solutions they have to offer on personal loans, credit cards, EMIs, etc.

08-11-2023

Personal Loan

Financial Planning With A Personal Loan EMI Calculator

Whether it’s a luxury vacation, the latest gadgets, university fees or dream weddings, personal loans can help you a lot. Today’s FinTech has eased the loan application process. It’s digital and paperless. So, you can apply for such loans in just a few hours. But before you apply for a loan, check some facts and figures. Be responsible with your money. Many factors can help you get good deals on the repayment process. Use a personal loan EMI calculator. You now know how much you can afford. You can select tenure and principal amount. This tool helps you make good borrowing decisions. But using such a calculator can seem tricky. So, read to learn how to use a personal loan calculator. Also, we discuss financial planning. [B-01] Concept of EMI Equated Monthly Instalment or EMI is a type of loan repayment. It includes both interest and principal. There are three factors. They are loan amount, interest rate, and tenure. This tool helps you plan your finances. You need to know the EMI amount in advance. So that it doesn’t affect your monthly budget and expenses. The formula used for arriving at the EMI is:EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]Here, P= Principal loan amount, R= Rate of interest, and n= Number of monthly instalments. Who can apply? Anyone can apply for a personal loan. But banks prefer salaried individuals between the age of 21 to 60 age. They need to work in: Government Institution Private sector Public sector MNCs or related companies Partnership Firms Proprietorship concern.These salaried individuals should have a minimum income of INR 25,000 monthly. Also, they need 6 months of work experience in the current organization. But if you are a freelance or contractual worker, submit bank statements for 6 months and more. Do you want to find out if you are eligible for a Personal loan? Check out Personal Loan Eligibility Calculator by Piramal Finance. Financial Planning with Personal Loan EMI Calculator Saves you from performing complex calculations A personal loan EMI calculator gives you results in a moment. You can manually calculate a loan’s EMI. But many find the process lengthy and messy. Also, the chances of errors are high. So, a personal loan EMI calculator makes the whole process easy. You need to input the data like interest rate, tenure and principal amount. You get the result in the next moment. It saves a lot of time and energy. Also, the chance of error is almost negligible. Aids in selecting the most affordable interest rate One important issue that impacts your EMIs is the interest rate on your loan. The interest rates differ depending on the lender. The total amount of the loan amount depends on interest rates. Also, your loan amount and loan term impact your EMI. Based on these limits, calculate your EMIs using a Personal loan EMI calculator. You can also change values in inputs. This helps you identify better terms for your loans. For example, if you increase the tenure of the loan, the EMI decreases. Evaluate EMI options depending on the tenure or interest costs. This helps you be in a better position for loans. A precise picture of your monthly expenditure Tracking your EMIs and credit payments is stressful. Many times, due to unfortunate incidents, you may not be able to fulfil your obligations. So, a personal loan can help you in these situations. Use a personal loan EMI calculator to receive a full breakdown of your EMIs. It enables you to pre-estimate your monthly outlay. Make effective plans according to this. An EMI calculator gives you an amortization schedule. This explains the principal and interest payments due for the specified year. It also displays the remaining principal and interest due once a given year’s EMI has been paid. This information may be helpful when creating a budget and considering a partial pre-payment. Helps you decide on the tenure of the loan As was already mentioned, the duration of your loan influences the amount of your EMI. You may use the EMI calculator to estimate your expenses for various loan terms. If you want fewer EMIs, choose a longer term. It’s important to remember that doing so can have an impact on your interest outflow. A short tenor is the best choice to reduce your interest charges. The EMI is much higher here if you can manage the payments smoothly. A reasonable loan term gives you the financial breathing room to make payments easily. Try several periods in an EMI calculator to see which tenor is ideal for your loan. [B-02] Conclusion Reduce the chances of default on EMI payments. Plan carefully your personal loan EMIs. Hence, always calculate your EMI in advance. A simple little tool like the EMI calculator is immensely useful and free. Such a tool can prove to be a saviour for you. Piramal Financial is the ideal destination if you’re looking for a dependable finance partner to meet your financial requirements. We offer an easy-to-use personal loan EMI calculator for budgeting your payments. The service is free, simple, and always produces accurate results. Piramal Finance’s services also feature 0% pre-payment and foreclosure fees, minimal documentation requirements, quick sanction times, immediate payments, etc. In addition, we offer you flexible loan terms and affordable loan interest rates. Additionally, there are absolutely no additional prices or hidden fees. In every loan transaction, we take care to maintain full transparency. Go to our website right away!

08-11-2023

Tax Slabs

What is the Professional Tax Slab in India?

Many salaried employees know the term ‘professional tax‘. You can find this term appearing on the pay slips. Yet, you may not realize what it is or why it appears as a deduction from your monthly salary. Professional tax isn’t like income tax, yet it’s a crucial component of your taxes. Also, the amount of this tax might differ depending on the state. So let’s check what professional tax is, why it is crucial, who must pay it, and the maximum cap for such taxes. [B-01] What is Professional Tax? Professional tax is a direct tax imposed by the State Government. It is levied on people who earn: through the practice of a profession, job, or trade, by any profession or through the operation of a freelance business or freelancers. Per Section 16 (III) of the Income Tax Act of 1961, the state government deducts professional tax. This professional tax is deductible from a taxpayer’s income when filing tax returns. The general public may believe that this tax applies only to professionals. Yet, this tax applies to all people who generate income. The professional tax will appear in the deduction column of your paycheck. Depending on where you live, the amount deducted could be Rs 200. The highest limit is set at Rs 2,500 per person each year. Further, it is also the highest limit that the State Government may impose. Note that not all states impose a professional tax. Haryana is among the states that do not impose this tax. Maharashtra does deduct professional tax of Rs 2500 annually. Who Collects Professional Tax? The professional tax is submitted to the state governments. For employees, employers deduct a monthly professional tax from their salary. This tax is then paid to the state government. Companies failing to pay taxes will get penalized. It might be for failing to collect the professional tax or to deposit it with the government. Self-employed people have to pay this tax on their own. They have to register themselves with the state government and fill out a form. Once the concerned authority receives the form, it generates a registration number. Through this, the person can pay professional taxes. Please note that several states offer a professional tax rebate if the tax paid is in a lump sum for a few years. So, you should know your state-specific regulations. Professional Tax Slab in Various States Check the professional tax slabs of different states: Andhra Pradesh Monthly salaries or wages in INR for wage earnersTax rate in INR per monthUp to 15,0000From 15,001 to 20,000150Above 20,000 200 Assam Per month wages of wage earners in INRTax rate in INR per monthUp to 10,000NILFrom 10,001 to 15,000150From 15,000 to 25,00018025,000 and above208 Bihar Yearly Salary in INRAnnual Tax Rate in INRUp to 3,00,000NilFrom 3,00,001 to 5,00,0001000From 5,00,001 to 10,00,0002000Above 10,00,0002500 West Bengal Monthly salary (in Rs.)Tax (per month in Rs.)Up to Rs. 10,000NilRs. 10,001 to Rs. 15,000Rs.110Rs. 15,001 to Rs. 25,000Rs.130Rs. 25,001 to Rs. 40,000Rs.150More than Rs. 40,000Rs.200 Odisha Monthly salary (in Rs.)Tax (per month in Rs.)Up to Rs. 1.6 lacNilRs. 1.6 lacs to Rs. 3 lacsRs.1253 lacs and aboveRs. 200 for 12 months and Rs. 300 for December How to Calculate Professional Tax? In India, each state operates tax services differently. They use a special formula and rates to determine the professional tax payment. Based on income levels established by the government, the tax is collected. Under Clause (2) of Article 276, the states are given the authority to apply this tax. Any state may impose a tax with a maximum annual value of Rs. 2,500. The lowest slab rate, however, is Rs. 110 per year. The professional tax must be determined by: Step 1: Find out whether the professional tax is applicable in the state where you are residing. Step 2: Based on the income, calculate the tax amount. Step 3: Review your salary-based tax slab rates. This gives an estimate of the monthly professional tax deduction. Who Is Liable to Pay Professional Tax? Employees who are getting their monthly income have to pay professional tax. Individuals who are involved in trade employment, calling, or any kind of profession are also liable to pay the professional tax. Private, public, or government sector employers who give wages or salaries to their employees are liable to pay this tax. Individuals Exempted From Professional Tax The individuals exempted from paying professional tax are as follows: Participants in the Central Paramilitary Force (CPMF) Ex-servicemen Individuals with a 40% disability. They must present the appropriate certification. A salary-earning deaf, stupid, or blind person Noncombatant or combatant personnel of the Armed Forces who are civilians. The Process of Filling Out Professional Tax So this is state-specific. Yet, one may pay professional tax either online or offline. Individuals may need to file professional taxes at specified intervals. Yet, it relies on the state’s rules and regulations. Effects of Not Filling Professional Tax Individuals who fail to pay their professional taxes will have to pay penalties. The amount of the fine or the penal interest rate varies from state to state. Also, the State Government can impose penalties for non-registration and late tax filing. [B-02] Conclusion If you are an employee, the employer must file professional taxes. If you are self-employed or an individual, get your tax value computed from a CA and file the taxes on time. Further, individuals must know the respective state’s rules and laws. To avoid penalties, make sure to file taxes on time. To know more about tax slabs, financial solutions like personal loans, and other finance-related information, visit the official website of Piramal Finance.

08-11-2023

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Best Performing Mutual Funds To Invest In 2023

If you are one of those who are seeking top mutual funds online, you probably would have come across sites that have compiled a long list of mutual funds schemes. Sometimes, it can prove daunting for the investors, which ends their pursuit right then and there. So, to tackle this problem, the Piramal group has released a ranking of the best mutual fund schemes. One of the most common ways for people to put money to work is through mutual funds, which allows for diversified portfolios across a variety of asset classes without requiring the investor to take on the responsibility of managing their assets. Another benefit of mutual funds is the potential to gain exposure to a broader range of investments than a person would normally have access to. Investing via the best mutual funds in India has expanded over time. The top-performing funds in the market, as a result, are always shifting. [B-01] No matter how long or short your investment career has been, some mutual funds should be on your radar. In 2023, the following mutual funds are among the most promising ones you can invest in: Axis Bluechip Fund This fund is best suited to achieve long-term capital growth. It does that through a diversified portfolio made up of large-cap company share and equity-related securities, including derivatives. In domestic equities, the fund has an investment of 87.14%, of which 85.53% are large-cap stocks and 1.61% are mid-cap stocks. Government securities make up 0.82% of the fund’s investment in debt. It is suitable for those who want to make large gains and want to hold their investments for at least three to four years. Additionally, these investors need to be ready for the possibility of suffering slight asset losses at the same time. Mirae Asset Large-Cap fund It is an open ended equity scheme which predominantly invests across large-cap stocks. It can place up to 80% of its total assets in large cap stocks. It aims to combine consistency of large caps with few conviction midcap ideas, which is up to 20%. It has an investment of 99.61% in domestic equity, of which 83.93% is large-cap, 11.59% is mid-cap, and 4.09% are small-cap stocks. It is appropriate for investors seeking large profits and wishing to invest money for at least three to four years. Additionally, these investors need to be ready for the possibility of suffering slight asset losses at the same time. Parag Parikh Long-Term Equity fund This is a diversified equity scheme which is free from self-imposed restrictions ndustry, market capitalization, geography, etc. It invests 65% in Indian equities, out of which 53% is giant-cap, 21.33% is large-cap, 21.67 is mid-cap, 3.98% small cap, and 0.01% tiny-cap. Investors with a long-term horizon (three to four years) and a penchant for huge returns should consider this option. These traders also need to be ready to take the chance of experiencing moderate losses on their investments. UTI Flexi Cap Fund UTI Flexi Cap Fund is a multi cap fund that invests across the market capitalisation spectrum. It is composed of high quality businesses that show strong growth for a long period of time, and are run by seasoned management. It has an equity of 85.6% in India, of which 45.23% are large-cap investments, 24.6% are mid-cap stocks, and 9.55% are small cap companies. Government securities make up 0.17% of the fund’s investment in debt. Those wishing to invest for at least three to four years and who want big returns should consider it. Additionally, these investors need to be ready for the possibility that they could simultaneously sustain slight losses on their holdings. Axis Midcap Fund This fund primarily invests in equities and equity-related products of mid-cap companies. This is done to increase the capital over the long term. In domestic equities this fund has an investment of 86.91%, out of which 19.82% is large-cap, mid-cap investment is 66.08%, and 1.06% is small-cap investment. Government securities make up 0.61% of the fund’s investment in debt. Kotak Emerging Equity Fund The fund invests in domestic equities to the tune of 91.97%, of which 6.15% are large-cap stocks, 52.62% are mid-cap stocks, and 21.8% are small-cap stocks. Investors wishing to invest for at least three to four years and seeking substantial returns might consider it. These traders also need to be ready to take the chance of experiencing moderate losses on their investments. Tips for Choosing The Best Mutual Fund to Invest in How much money do you hope to make? You should have a clear vision of your long-term financial objectives while considering a major investment. This will guide your choice between debt and equity financing to achieve your objectives. Depending on the various outcomes, you can use software like Google Sheets or Excel to find the optimal course of action, considering the risk tolerance, time horizon, liquidity needs,etc. Perspective on Future Investments: For what time frame do you see yourself keeping this investment? Short-term (less than five years) and long-term (five years or more) are the two main categories of best mutual fund investments (more than five years). If you are investing for the short-term, look for the stocks with a larger risk and higher potential returns. But, if you prefer playing safe and like consistent growth, go for the long-term.Always remember to invest in things that won’t ruin your life but will yield a tiny profit. Acceptance of Risk: You must be aware of the risk that you are willing to take while investing in mutual funds. This will help you realize the potential financial gain that the stock offers. Expense Ratio: The expenditure ratio covers the fund manager’s salary, advertising, and other fees. This amount should be below 1%, but if it’s higher and the fund has been earning good returns, it may be worth it to pay more for fees upfront rather than later when they would have eaten into your gains (or even worse-caused losses). [B-02] Conclusion Over the past decade, Indian investors have found great success with mutual funds. They are a cheap and easy method to spread your investments around and increase your wealth while keeping your exposure to risk minimal. If you start your search with the word “best,” you probably won’t get the best results. Always consider your investment goals, time horizon, and risk tolerance before settling on a certain plan. As a company, we at Piramal Finance are familiar with the fundamentals of mutual funds and can help those who are new to both mutual funds and investing get started. You can also get easy and customised mutual fund investment and personal loan solutions with us.

08-11-2023

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Different Types of General Insurance in India

Things do not always go the way we expect them to. Theft and fire can take away all your belongings; to keep yourself protected, get general insurance. You can avail of various general insurance plans; select one based on your needs. Before buying a plan, it is important to learn about the different kinds of insurance. [B-01] General Insurance Policy General insurance does not cover life and health issues. It helps protect the economic value of tangible assets. The buyer gets money in exchange for losses due to a certain event. Types of general insurance include accident, motor, marine, and more. Why Do People Buy General Insurance Policy? You all probably have different goals for your lives. If you get better at your job and get a car, house, etc., you need to keep things safe. Financial Stability Owning a tangible asset is not sufficient; it is important to keep it safe. You can get rich by buying property, but what if it burns down, or theft occurs? General insurance helps keep such risks at bay. Lessen risks We all try to stay away from danger. Getting a general insurance policy is the best way to keep it at bay. Ensure to pay your insurance premiums on time. By Law In some cases, we need to have insurance as stated by law. The Motor Vehicle Act of 1988 says that every driver must have insurance. Different Types of General Insurance Health Insurance Health insurance is one of the most common types of insurance. You don’t have to worry about rising healthcare costs if you have health insurance. Health insurance pays for all medical care costs, such as doctor visits, hospital stays, and surgery. As long as the payments are up to date, you can use the coverage benefits. Motor Insurance We save up to purchase a car or bike to make life easier for us and our families. General insurance helps cover the costs related to accidents, theft, and damage. Motor insurance pays for damages and lessens your financial risk. The Motor Vehicles Act of 1988 says that all vehicles must have insurance that covers damage. Some motor insurance policies provide personal accident and co-passenger coverage. Home Insurance Home insurance protects your home and its contents. It allows you to cover the damages caused by natural disasters, fire, theft, loss of jewelry, etc. It covers both natural disasters and those made by humans. Travel Insurance It’s fun and exciting to travel, but sometimes weird things happen. Many of us love to travel to all sorts of faraway and often unknown places. If you are planning to travel within the country or on a foreign trip, do not forget to take out travel insurance. This pays for medical bills, trip changes, lost luggage, or a domestic or international flight accident. Getting good travel insurance is the best way to prepare for surprises on the road. Travel insurance plans are available for people of all ages. How to Claim General Insurance Policies? Health Insurance Claim There are two methods to make a health insurance claim. You can either pay without cash or get paid back. Cashless claims can only be made at hospitals in an insurance company’s network. Holders need to get permission before they start their medical treatment. Depending on the situation, you must notify your insurance company within 24 hours. They send all bills and paperwork to the insurance company. You can also file claims for hospitals that are not part of the network. You should inform their insurance company and send in all their medical bills. First, you have to pay the bill right away. Once your claim is accepted, you get your money back. Travel Insurance Claim Travel insurance claim forms must be sent to the insurance company within 24 hours of the event. You can call the toll-free number or send an email to do this. Fill out the claim form correctly and include the required documents. Motor Insurance Claim Call the provider’s toll-free number to claim the car insurance. For cashless maintenance, you must make an appointment with the surveyor and bring your car to an approved network garage to get the claim. If you choose the cash option, you must pay for repairs and send invoices and a claim form to the company to get paid. Tax Benefits in General Insurance General Insurance also helps you take advantage of the tax benefits. Section 80D of the Income Tax Act of 1961 allows tax deductions for health insurance premiums. You can avail of a tax deduction of Rs. 25,000 for the premium paid for health insurance. This also gives you the additional benefit of Rs. 25,000 for the tax deducted from the medical insurance policy of your parents. [B-02] Conclusion A general insurance policy protects you from all risks that don’t involve life insurance. There are many types of general insurance. Each type of coverage has its pros and cons. It’s important to know what each type of coverage offers and its limits and to ensure that your needs are met. It is important to choose the right insurance. Visit the Piramal Finance website to learn more about different types of general insurance and to look at their products and services, such as personal loans, credit scores, and credit cards.

08-11-2023

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Getting Two-Wheel Insurance Renewed Online Quickly

A two-wheeler insurance policy protects your vehicle from financial liability in the event of any unfortunate event. It protects you against different types of damage to your two-wheeler. Without 2-wheeler insurance, you could face a heavy fine, up to 3 months in prison, or both. Two-wheeler insurance also covers third-party damages. Third-party two-wheeler insurance is mandatory in India by law. You get a grace period ranging between 30 and 90 days after your insurance expires. During this time, you can renew your policy without losing benefits. But you will not receive any coverage during this grace period. Your two-wheeler insurance policy protects you from paying for third-party costs. It can include property damage, medical expenses, etc. Bike insurance is also necessary because it protects your vehicle financially. The costs of repair must be borne by you if your vehicle is damaged without bike insurance. A two-wheeler insurance policy is valid for a certain period. It should be renewed after it expires. How can you renew your two-wheeler insurance online? Find out here! [B-01] Steps to Renew Your Two-Wheeler Insurance Policy Online Here are the steps to follow in order to renew your two-wheeler insurance online: Step 1: Go to the website of your preferred insurer. Step 2: Fill in the necessary information. This includes the policy number and vehicle information. Step 3: Choose a bike insurance policy that meets your needs. Step 4: Make your payment by selecting your preferred online payment method. You will receive your renewed policy documents at your registered email address. When you receive the policy document, double-check the details. If there are discrepancies, contact the insurer for corrections. Many insurance apps provide services such as policy renewal. Download the app and sign in with your registered mobile number or email address. Check the “bike insurance” option and renew your 2-wheeler insurance policy. Provide your policy details and pay the premium. Benefits of Renewing Bike Insurance Online Following are the benefits of renewing your two-wheeler insurance online: Quick and simple policy renewal Renewing a 2-wheeler insurance policy is no longer a big task. You can complete this process smoothly at any insurance provider’s website. You can also use the mobile app from the comfort of your home. You must provide the necessary information and upload relevant documents. You will receive confirmation after paying the amount. Safety and security Your two-wheeler insurance information is entirely secure. Multiple safety measures are in place to protect your data and financial information. Customisation If you want to buy add-ons to your two-wheeler insurance online, you can do so easily. You can choose what works best for your needs. Changing insurers You may want to transfer your policy to another agency or provider. You may have an offer with better savings. Some policies provide wider coverage. In such a case, you can easily switch insurers online. You may do this at the time of renewal. Transparency You can access all the information when you buy bike insurance online. This transparency ensures peace of mind. You understand all the terms and conditions clearly. There is no undue influence when applying for insurance. This is a key factor in the popularity of this method. Pay no extra fees You will not be required to pay extra fees. There is no middleman or agent. There are no service fees as well. The payment is for the policy alone. Online help An online team is always available to assist. You don’t have to be concerned if you need help. You can get it anywhere, anytime. Useful Tips to Renew Your Expired Two-Wheeler Insurance Online Here are some useful tips for renewing your two-wheeler insurance online: 1. You can upgrade your third-party bike insurance to comprehensive bike insurance. This will provide better coverage for your vehicle. 2. Consider switching to a new insurer if you are not happy with the present one. 3. Notify the insurer if your bike has been modified. The premium may rise slightly. The insurance will still be adequate. Various Two-Wheeler Insurance Types A comprehensive bike insurance policy provides complete coverage. It takes care of third-party damages. It refunds the costs incurred due to damage to your bike. This policy covers accidents. Your bike is protected in case of fire damage or explosion. Both natural and man-made disasters are covered. You can rest assured even if the bike is stolen. Additional coverage You will need to pay an additional fee for this. It will help you get add-ons. This includes engine cover and roadside assistance. Insurers also offer zero depreciation. Check all the options before deciding. Liability-only policy To ride a bike, it is necessary to get third-party bike insurance in India. This insurance is also known as a ‘liability-only policy.’ This is because it covers injuries, temporary or permanent disability, and third-party death. The policy is triggered by a motorcycle-related accident. This two-wheeler insurance includes coverage for third-party property damage costs up to a lakh. It does not include harm to the insured person or their bike. Bike own-damage insurance As we have seen previously, a bike may be damaged because of an accident, fire, or disaster. It may even be stolen. This standalone, own-damage bike insurance policy pays for the damage. Policy owners can have third-party and own-damage coverage from the same insurer or different ones. The insured person can extend the scope of an own-damage insurance policy by acquiring add-on coverage. [B-02] Conclusion As you can see, it is really simple to renew your two-wheeler insurance online. That is also the reason why most people opt to buy and renew their insurance online. Did you get your two-wheeler covered by insurance? If not, then get your two-wheeler insurance now. For more information, visit Piramal Finance now. This is a one-stop platform for accurate information on financial and banking services. Make sure your financial knowledge is up to date on essential services and products, such as personal loans and insurance coverage, by reading the informative blogs on their website.

08-11-2023