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Calculate F&O Span Margin Online With This Margin Calculator

The margin needs for various options exchanges may not be known to today’s stock choice traders. Most of the options and futures exchange markets all across the world have used SPAN, the top margin system in the world. SPAN uses a tricky collection of algorithms to calculate margin based on a global evaluation of the risk of one day of a trader’s account. SPAN offers futures and commodities option strategists a huge perk: an extra margin for their money. And day trading is a very risky affair. Thus, margin calculators make it much easier for you to do trading. Margin calculators make it for you to compute your futures as well as options. [B-01] What Is F&O Span Margin? The SPAN margin is the initial margin needed for the exchanges in the F&O markets. It is computed using a portfolio-based method (a set of futures and options contracts). An app named SPAN is used to calculate the margin. It is a product that Chicago Mercantile Exchange has made. Your broker gets a margin when you buy or sell a futures contract. You must fund your trading account with margins before placing a deal. If you purchase or sell a futures contract, margins must be paid. Margins in futures trading aim to protect against the risk of loss causing price changes. You run a risk when you buy Nifty futures since there will be a loss if the Nifty falls. Because markets are quite tricky, margins are kept to cover this risk. Thus, futures margins work in two sorts of margins. You must pay the First Margin on the position, which includes SPAN and ELM margins when you take the position. What Is F&O Span Margin Calculator? An online margin calculation tool for futures and options is called the F&O Margin Calculator. Both stocks and indexes may be used with this tool. It analyses the margin needs for multi-leg F&O techniques in depth, Option Writing and Shorting, and futures trading. This tool breaks down the margins into the SPAN, premium, calendar spread, exposure, and other exposure margins. Nifty & indexes may both be computed using the span margin calculator. The SPAN Margin Calculator and F&O Margin Calculator can only be accessed online. SPAN margin calculator will give you real-time margin updates for your futures and options contracts as exchange (NSE) SPAN files are downloaded five times per day on a real-time basis. How To Calculate F&O Span Margin With Margin Calculator You can view the F&O Span Margin using any margin tool online from a reputed site. Using the F&O Span Margin calculator is pretty easy and simple. However, core knowledge about how it is calculated is vital. All you need to do is choose the exchange, section, ticker, amount, and if you wish to buy or sell. You will see the margin (capital) for starting the deal after filling out the data and clicking “add.” You can check out the process in the steps below: To calculate the F&O Span Margin, you first need to go to any of the F&O Span Margin calculators available online and open the same. After that, you must select the type of exchange you will be trading in. Then, you would need to select the type of stock it is out of futures and options. Select the symbol after this of the futures or options in which you will be trading. And finally, select the quantity that you would want to buy. Then two small options would be given for selling and buying. It depends upon if the futures or options you have chosen are being sold or bought by you. As the last step, you could see an option to add. That is where you need to click. Below the calculator, the computations would be visible. You could see the SPAN, exposure margin and total margin. How does the calculator for span margin operate? So, how does a tool for SPAN Margin work in general? SPAN aims to know the total risk in your portfolio having futures and options choices. One thing that you need to know is that three elements most directly affect the value of an option at a given moment in pricing models: Basic market value Variability of the stock, or its volatility Expiry date The value of the futures and options held by the portfolio would change due to these variables. To know the most loss a portfolio might sustain from one day to the next, SPAN creates scenarios of likely changes in underlying prices. The margin (capital) needed is then established at a level high enough to cover this one-day loss. And this is how span margins work. [B-02] Conclusion By the end of this article, you will know quite a bit about Span margins and how to calculate F&O Span Margin Online using a Margin tool. The process of computing is pretty simple. Based on the factors such as volatility and price changes, the SPAN Margin calculator helps to know about the span margin and the exposure margin needed by the exchanges. The main aim of span margin is to safeguard positions and portfolios from unexpected price changes. It is the ideal way to protect oneself from losses in the market, combined with exposure margin, which creates an additional layer of protection. Thus, you can be more on guard while trading with futures and options by using the F&O Span Margin Calculator.
08-11-2023
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Home Loan

Check Home Loan Eligibility Calculator Online

Everyone dreams about their own home, and why not? Having your own house provides a different level of comfort and security. In India, most people buy a house through home loans. They make a certain down payment and avail of a home loan to pay the remaining amount. A bank or other financial institution usually funds the remaining amount. When getting a home loan, most people are worried about the EMIs. Calculating the EMI is a bit tricky if we use the mathematical formula. But it can be made easy with an EMI calculator. Further, different banks have different eligibility criteria for granting home loans. What are these eligibility criteria? How can you calculate home loan eligibility? Let’s find out! [B-01] Eligibility Criteria for a Home Loan If you must meet the eligibility criteria to get a home loan. The following common eligibility criteria are similar across most banks: Age: Generally, the home loan applicant must be between 23 and 70 years of age. Further, there are different criteria for different categories of people. For instance, for salaried people, the minimum age might be 21 years. CIBIL Score: CIBIL score is a 3-digit number indicating the borrower’s credit history. A higher CIBIL score makes it easier to avail of loans. It ranges between 300 and 900. To avail of a home loan, a CIBIL score of at least 750 is required by most banks. Income: Whether the income earned by the borrower is enough varies from case to case. It depends upon the loan amount, interest, and tenure of the loan. Many banks set a minimum income limit, and borrowers who earn above that limit are eligible for home loans. Occupation: Whether the applicant is salaried or self-employed? Is the employment in a public or private company? How much experience does the applicant have? These are important eligibility criteria for banks. Property Value: Property value plays an important role in determining the loan amount that the borrower will get. Generally, banks have a maximum Loan-to-Value (LTV) ratio of 80%. In most banks, you will get a maximum loan of up to 80% of the property value. The loan amount further depends on the income level, CIBIL score, etc. What is Home Loan Eligibility Calculator? A home loan eligibility calculator is a simple tool that shows you the loan amount you can avail of. You just need to provide a few inputs to know the amount of loan you are eligible for. The following inputs are required for the loan eligibility calculator: Profession: What is the profession you are engaged in? Are you a salaried individual or self-employed? Gross monthly/annual income: You need to provide your income details. What is your monthly or annual income? Existing EMIs: Is there an existing loan or EMI that you are repaying? This is important because existing EMIs reduce your disposable income. Interest Rate: What is the interest rate you expect on your home loan? You just need to enter the probable interest rate that may be charged on your home loan. Loan Tenure: What is the tenure for which you want to avail of the home loan? The longer the tenure, the lower the EMI. The tenure will impact eligibility. If you select a shorter tenure, it will reduce the loan amount. This is because your EMI will increase because of your short tenure. Once you provide the inputs mentioned above, you will know the amount of loan that you can avail of. This will give you a clear idea of funding the purchase cost. It will show how much of your home purchase cost will be financed by the bank. You will also know the cost you need to finance. How to Improve Your Eligibility? To improve your eligibility for a home loan, you can consider the following: Apply for a joint home loan. A co-applicant is one of the most effective ways to improve home loan eligibility. Further, it also increases the loan amount you can get. Obtain a well-structured repayment plan. This will give you a quick idea of the loan amount, interest, and EMI you will pay. Try to maintain a regular income stream. Two or three streams of income are even better. Further, invest in multiple avenues. Make sure to provide information about extra sources of income when applying for the loan. Track the various components of your variable pay. Check your CIBIL score. Report any problems to the CIBIL bureau and get them rectified. If there are any short-term debts or obligations, pay them to reduce your liabilities. [B-02] Conclusion It is important to fulfil the home loan eligibility criteria to avail of a home loan. A higher home loan reduces your down payment burden. With active steps, you can improve your eligibility. Use the home loan eligibility calculator to know your eligibility. This will ensure that you do the needful to meet the eligibility criteria before applying for the loan and result in a higher loan amount. Good eligibility and a good CIBIL score help lower the interest rate for a home loan. It is time you build your dream home! For more information about home loans, visit Piramal Finance.
08-11-2023
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Cards

What is the Meaning of a Credit Card and What Are Its Benefits?

Credit cards are a way to pay for things before you actually pay for them. You can buy things without cash if you have a credit card issued by your bank. Also, users can pay up to a certain amount. The card issuer decides on the credit limit based on your credit history. A free credit card holder can borrow money from the card issuer up to the card’s credit limit. There are credit cards for businesses and credit cards for people. Most credit cards are made of plastic. [B-01] Difference Between Credit Cards and Other Cards The rules for paying with a regular credit card are simple. Charge cards have a stricter payment plan than debit cards. Most of the time, it must be paid every month or at the end of the billing cycle. Therefore, credit cards enable cardholders to add a specific balance. It lets you get all the benefits of debt for which you had to pay interest. You can’t use a charge card like a credit card. The idea behind credit cards is also that someone else pays for them. Before taking the card payment, the money is given to the vendor. When a free credit card is used, the best buyer waits to pay until later. Credit cards and debit cards are used for different things. Rather than paying by cash, a card is taken anywhere and used as a method of payment. Digital payments, such as debit cards and UPIs, are good ways to pay. You can use a free credit card in these ways. In the US in 2018, 1.12 billion credit cards were used, and 72% of people had at least one. Technical Specifications Any money that is taken with a credit card has to be given back. Before or after the date the bill is due. Also, any useful extra fees that were agreed upon ahead of time. Borrowers can get the money they need when they want it. A cash line of credit is a way to twist credit. With a cash advance, you can borrow this money. You can use it at any bank’s teller window, ATM, or check-cashing feature on a credit card. Cash advances differ from other ways to use credit because they come from a secondary line of credit. These loans have no grace period, and the interest rates are higher. The borrower is given the most money possible. The decision is based on how much the borrower is worth. Types of Credit Cards The most popular types of credit cards- Visa Mastercard Discover American Express. They are offered by financial institutions like banks and credit unions. Many credit cards have reward programmes that are set up so that people who are eligible can join. Offer free flights, free hotel stays store credits, and cash back on purchases. A credit card’s purpose is also to get rewards. Many big stores give out credit cards that have the store’s name on them in a big way. This is done to get their customers to like their brand more. Some stores give out credit cards that can only be used in those stores. Use can be a trade-off for the limited ability to spend. People with cards may get discounts, early access to sales, or other perks. Some stores sell credit cards that are co-branded with Visa or Mastercard. This means that customers can use these cards anywhere that accepts them. How Do I Get a Free Credit Card if I Don’t Have Any Credit? Establishing a positive credit history can feel like a catch-22 at times. Due to poor credit history, businesses and financial firms may not agree to give you a free credit card. One of the simplest methods to get started is to open a secured credit card. Adding yourself as an Authorized User to an existing meaningful credit card account may be beneficial. A family member may also hold this as one way to start building credit. Over time, including the cardholder’s credit history will raise your credit score. But make sure your prospective business associate has sound financial practices. Benefits of Credit Cards Credit cards have countless advantages, but here are just a few of the most noteworthy ones: Buy on credit The available credit is the main selling point of a credit card. With that amount, you can buy everything you want without worrying about the price. Even if you buy expensive things on credit, you won’t have to worry about busting your monthly budget. One of the best things about using a credit card is dividing the entire cost. Division can consist of your purchases being segregated into affordable monthly instalments. The amount you can pay them off in instalments over time. The effect of going shopping has been nothing short of revolutionary. The most accepted method of payment You can travel to any country with a card without worrying about bringing ample cash. Credit cards are the universal currency, allowing you to buy anything with one swipe, anywhere. Interest-free cash withdrawals A small number of credit cards increase interest on withdrawals that is made within the first 45 to 50 days of an emergency. It’s there for you in case of a financial crisis. [B-02] Conclusion The advantages of free credit cards were the subject of this research. The meaning of a credit card is to have the most convenient way to make payments. It has transformed the mode of digital payment. To get more information on credit cards and personal loans, visit Piramal Finance.
08-11-2023
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Cards

Important Features and Benefits of Super Card

Credit cards have made making payments more manageable. Along with convenience, you enjoy various benefits in categories like shopping, movies, entertainment, travel, restaurants, cashback, and more. Super Card is your answer if you want a card that complements your elevated spending habits and lifestyle. The benefits you enjoy on this card are superior to your regular credit or debit card. For example, you get anywhere from 2 to 20 times accelerated points and rewards on purchases. In addition, you can get a fuel surcharge and annual fee waivers depending on your spending. You can get complimentary access to airport lounges every quarter. Or you can redeem points to book flight tickets and hotel stays. Let us start with the article to learn more about the features and benefits of Super Card. [B-01] What is a Super Card? A Super Card is a credit card with additional features and benefits. In the case of an emergency, the card can also double up as a debit card. You can withdraw money using the card according to your credit limit. Several banks in India offer this card to customers. Different variants of the card are offered, which come with varying benefits and annual fees. For example, an entry-level card may have a yearly fee of INR 499. On the other hand, an elite-level card that can be used globally may have a yearly fee of INR 4,999. So, you should choose a card according to your spending habits. Eligibility Criteria for Application The eligibility criteria will differ depending on the card issuer. However, we will look at the basic requirements you may need to fulfil. You must be an Indian citizen You must be between the ages of 25 to 65 years You must have a regular source of income You must have a credit score of 750 or above You must have a good credit history with no default payments What are the Important Features and Benefits of a Super Card? Are you wondering if the Super Card is the right financial product for your spending habits? Are you unsure whether you should apply for one? Here are some features and benefits the card offers that can help you decide: · Welcome Rewards Most card issuers offer you a welcome gift once a card is issued. The welcome gift can be in the form of reward points. For example, some banks provide 2000 reward points worth INR 500 while other banks offer 20,000 reward points worth INR 2,000. The points may be used on partner channel products and services. You may also have to use the points within a specific period, for example, a month, or they may lapse. · Zero-interest Cash Withdrawals from ATM The transaction will attract high fees and service charges if you use a credit card to withdraw cash from an ATM. With a Super Card, you do not have to pay any interest for up to 50 days when withdrawing money from the ATM. · Emergency Loan Emergencies can show up anytime, disrupt your routine, and stress you out. But, with a Super Card, you are better equipped to handle emergencies. Your card comes with a pre-approved credit limit. In case of emergency medical expenses or house or car repairs, you can convert the available cash limit to a personal loan once a year. For up to 3 months, there will be zero processing fee and a minimum interest rate. You can do this conversion from the comfort of your home. Please contact the bank for accurate charges and interest rate structure. · Reward Points For every purchase, bill payment, and online spend that you make, you receive reward points. Some cards offer one reward point for every INR 100 spent, while others provide 2X the points. The point allocation may differ according to category. For example, online shopping can get you twice the reward points. In the case of elite cards, you may get up to 10X points on international spending. So, the more you spend, the more you are rewarded. · Airport Lounge Access Long flights, layovers, and the risk of delayed flights can make travelling a tiring experience. Airport lounges are places where you can sit, relax, and enjoy some good food and drinks while you wait for your next flight. With a Super Card, you can enjoy complimentary access to airport lounges. Some cards offer one lounge access every quarter at domestic airports. Other cards can get you up to 8 complimentary lounge access between domestic and international airports. · Milestone Bonuses Card issuers have set milestones for the spending amount. For example, if you spend INR 50,000 a year, you may get up to 3000 reward points. For big spenders, if you reach milestones of Rs 3 to 5 lakhs, you can get 20,000 to 40,000 reward points as benefits. These reward points can be worth INR 1,000 to INR 4,000. · Fuel Surcharge Waiver The waiver means you do not have to pay surcharge fees when using the card to pay for petrol or diesel. Depending on the card, the fuel surcharge waiver every month can range from INR 100 to INR 200. · Offers and Discounts Banks partner with retail giants, online brands, entertainment portals, travel booking websites, and more to bring exclusive offers and discounts. For example, you can get a free movie ticket monthly with online booking. Or you could enjoy a 10 to 20% discount when dining at partner restaurants. You can also get deals when redeeming points at partner outlets. · Annual Fee Waiver Banks charge an annual fee plus taxes as maintenance for these cards. But, your next year’s annual fee will be waived if you reach a particular spending milestone. For example, If you spend INR 50,000 a year, along with milestone bonuses, rewards points, and offers, your yearly fee for the next year will also be waived. [B-02] Conclusion If you want to own a card that complements your lifestyle, explore the different Super Cards available. These cards are designed to reward your spending habits. You can save with cashback and reward points while enjoying welcome and milestone bonuses, complimentary airport lounge access, fee waivers, and exclusive offers and discounts. You can visit Piramal Finance to get a free credit report and check if you are eligible for a supercharged credit card. You can also get in touch with their experts to know more about personal loan features and benefits.
08-11-2023
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Banking

How can I log in to my bank account to check my bank balance?

Before the digital age, checking bank balances was complex. You would have to stand in long lines outside the bank. Now the passbooks are just a useless formality. You can now do the following things using your mobile phone: Log in to your bank account and do cashless transfers in real time. Check the account balance without standing outside the bank. Easily review your past transactions, mini statements, etc. With advanced technology, banking is easier than ever. You just need to use your bank login details. [B-01] Why must we check our bank balance regularly? We must always keep track of our expenses. This is a healthy financial habit that helps you track your spending. It also helps you spot any fraudulent activity. You can easily spot banking errors or missing funds. You can spot unwanted subscriptions as well. What to remember before logging into your bank account Now we know that checking our balance regularly is a great habit. Let us see what we need to do before we check it online. You must note the following things are important to check your bank balance online: The bank must have your KYC details. This means your mobile number must be registered with the bank. You need a smartphone with an internet connection. Make sure your mobile number is active. Make sure it has the facility to send and receive an SMS or call. You have installed mobile banking and UPI apps. You have an active Net Banking account and login information. Here are the different ways to log in to your bank account to check your bank account balance: Bank account login via net banking: Net banking is an important facility that every bank provides. You can ask to activate it when you open your account. You can also activate it at any point after opening an account. The bank will give you your username and login password. Here’s how you can check your account balance using net banking: Open the bank’s net banking website. Log in to your bank account using your username and login password. You can choose which account you need to manage if you have multiple accounts at the same bank. You can easily check your bank balance, past transactions, account sheet, etc.You must make sure that you never share your login details with anyone. It must be highly safe in your custody. Bank account login via mobile apps: Mobile apps are an easier version of net banking. You don’t need a computer or laptop. You can use them with the same details as for net banking. These apps might also ask you to set up an mPIN. These mobile PINs make logging in easier. You don’t have to type in the username and login password every time. Just use the mPIN to login to your account on the app. Here’s how you can check your balance using mobile apps: Download the app. Log in using your details and generate the mPIN. After generating an mPIN, you don’t need login details next time. Choose the option for checking your account balance. You can also open your account statement. You can see all recent transactions using this feature. Make sure you always log out of the app after using it. The same goes for net banking. This prevents anyone else from using your account on your device. Checking account balance using a UPI app: UPI apps like Paytm, Google Pay, etc., have made cashless payments a trend. To use these apps, you must link your bank accounts. It is a simple process that requires your bank account details. The app then verifies your details with the bank. After verification, your account links up with the app’s interface. You can link multiple bank accounts in the same app. The app will also ask you to set up a 4- or 6-digit UPI PIN. You can only make transactions after putting in the UPI pin. You don’t need a bank login to check your balance with the UPI apps. Here’s how you can use a UPI app to check your bank balance: Open the UPI app. Choose the account that you want to manage. By clicking on the account, you can select to see its balance. The app will ask you to put in the UPI pin. Without doing it, you cannot check your account balance.Getting balance alerts via SMS is one of the easiest ways to check your account balance. You don’t have to do a bank login on a website or app. You also don’t require a smartphone or internet connection. Most banks provide this facility to their account holders. Once activated, you can request a quick balance update anytime. You need to send a text message to a number provided by the bank. Then you will receive the balance details by text message. Checking your balance using the bank’s toll-free number: Most banks provide a toll-free number service to check account balances. It is an IVR-based service. To check the balance, you need to call that number. This might be the same number from which you get text alerts. Setting up text alerts: Banks set up the text alert facility when you open an account. So, whenever you make a transaction, you will get an alert. This alert also includes your account balance. However, sometimes you might not get these alerts. So, it is best to check the balance manually at regular intervals. [B-02] Conclusion From this guide, you can see that checking account balances is super easy. You just need to log in on the internet banking website or the mobile app. You can also do it without logging in. You can also check your entire transaction history. It is a healthy financial habit to monitor your expenses regularly. But you must always remember to log out from the website or app after each use. If you need help with finances, you can always take the help of experts such as Piramal Finance to guide you through your personal finance journey.
08-11-2023
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Other

The Smartest Investment with the Highest Returns: Options for the Best Investment Plan in India 

Nothing can beat a smart investment strategy. And investing your hard-earned money to enjoy a higher return is pretty sensible indeed. However, you must make the best investments that ensure a stable return without much risk. Now, the question is where to invest. For starters, there are tons of investment options wherein you can apply and reap the benefits in the form of returns. But, deciding and picking one option is rather daunting. This is why we are here to help you! Let’s discuss some of the most lucrative options for the best investment plan. Keep scrolling to know the options. [B-01] Top Choices for the Best Investment Plans in India Long-term Plans Take a look at the long-term investment opportunities ranging between 7 to 10 years. Direct equity It is a no-brainer that more risk fetches you higher returns. A direct equity market is a risky option, but the extent of returns it can give is amazing. Investing in direct equities is one of the most popular investments people pursue. In this, the prices of some stocks may go up steadily and even fall at once. So, it is essential to think and invest in the shares of reputed organizations. Though, 100% accurate prediction is impossible. In that case, you must have the heart to bear losses if you want to enjoy the returns of equity investments. Gold Gold is the safest asset to invest in nowadays. It is a good option even during times of financial crisis. A common symbol of wealth, this yellow metal can give great returns to its investors. If you buy gold physically in its metal form, you need to bear the expenditure of making charges. So, you have the option to buy this asset through exchange-traded funds or mutual funds nowadays. Gold is an investment worth considering since it doesn’t allow inflation to affect it drastically. Small Saving Schemes Small saving schemes can take you a long way in terms of financial strength and stability. Public Provident Fund, Kisan Vikas Patra, and the Senior Citizens Savings Scheme are some of the best options for a safe yet smart investment. Though the returns may not be as high as options like equity, it bears zero risk. PPF and NPS (National Pension Scheme) are two plans that focus on aiding you financially post-retirement. Also, ULIPs are a mix of investment and life insurance. In this, you can also invest some part of your premium in assets. Medium-term Plans Below, we have listed the investment avenues to cater to your financial goals. They are about 3 to 5 years long. National Savings Certificates The post office National Savings Certificates (NSC) are safe investments focusing on financial goals of about 3-5 years. They work just like regular fixed deposits in banks. The key difference is that the amount is payable only at the end of the entire period, which is termed maturity. NSCs are promising investments since the Indian government backs them. The rate of interest you can expect is 6.8% per annum. So, if you are ready to block your funds for as long as 5 years, NSC is for you. Post Office Time Deposits Products offered by the post office are considered to be safe and trustworthy. This is because the Government of India supports them. These time deposits are just like bank fixed deposits. Many invest here because they usually offer better interest rates than banks. Furthermore, there is almost no risk involved in investing in post office time deposits. You can lock your money for short periods. Also, you can even let it grow over a longer time. Medium-Term Debt Funds There is a huge list of options when it comes to debt funds. Each type carries different leverages, like returns and the plan’s tenure. Therefore, you need to research and decide on the best investment plan in case of debt funds that matches your needs. We give you three categories between excessive and zero risk for a medium-term plan. They are the Short Duration Fund, Banking & PSU Fund, and the Corporate Bond Fund. Banking & PSU funds lend to public sector companies and banks. On the other hand, Corporate Bond Funds deal in shares of private companies. Short-term Plans The following choices serve the immediate financial needs you must fulfil within a year. Bank Fixed Deposits Fixed deposits are the most common and safest investments, period! In this, you deposit a certain sum of money and lock it into an FD account for a specified period. By the end of the tenure, you get to enjoy the principal amount and accumulated interest over the years. However, it has the disadvantage of blocking your funds for that lock-in time. You must bear a penalty if you need to withdraw your money before maturity. Also, the post-tax fixed deposit returns cannot beat inflation. Short-Term Debt Funds As we’ve mentioned earlier, debt funds are available in different types—each of the three caters to a certain need. Short-term debt funds are meant to support your immediate financial needs. In this case, the three options that suit well are Liquid Funds, Money Market Funds, and Ultra-Short Duration Funds. One advantage of these investments is the low risk they carry. Additionally, you don’t need to block your money for much longer, like in the case of fixed deposits. Money Market Funds focus on investing in highly-liquid instruments. Ultra-Short Funds allow you the option to invest for as less as 3 to 6 months. [B-02] To Wrap It Up If you were clueless about the best investment plan in India, we are sure you got that out of the way. Remember that the right investment can take you way ahead financially and allow you to reap its benefits to the fullest. Don’t forget to check out Piramal finance for more detailed and in-depth insights on every kind of financial service and product, from personal loans to investments in stocks.
08-11-2023
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Tax

New Income Tax Rules for NRIs

Almost 30 million NRIs are living across the world in countries mainly Canada, Singapore, the UK, the USA, and more. There are certain new rules introduced for Income Tax for NRI as per the Finance Act 2020 and 2021. [B-01] What Is the Residential Status as a Part of Income Tax Rules for NRI The criteria of residential status concerning NRIs is determined under Section 6 of the Income Tax Act, 1961, Income tax rule. It includes an income threshold of Rs 1.5 million which is considered for determining whether an individual gets residential status in India or not. From When the New Income Tax Rules Are Effective The new income tax rules for NRI became effective from Financial Year 2020-21. The government has introduced new rules to simplify the tax reforms for NRIs in India. Rules Implemented NRIs are mainly Indian citizens residing abroad and persons of Indian origin who visit India for less than 182 days in the whole financial year. But as per new income tax rules, the government reduced the tenure from 182 days to 120 days for all those NRIs whose annual income exceeds Rs 15 Lakhs. At present, the government has asked NRIs to fill ITR 2 and ITR 3. But at a later stage, they are planning to introduce voluntary compliance for NRIs by making simple ITR forms for them. What Does FEMA Say? As per the definition laid down by FEMA (Foreign Exchange Management Act), an NRI is liable to pay tax in India if only they spend a minimum of 120 days in India. The taxation is determined, and the Income Tax Department calculates whether the NRI has stayed in India for a minimum of 365 days in the last 4 years from the present financial year. If they are meeting the above mentioned criterion, an NRI can hold the residential status and become liable to pay taxes. If you are a resident of India, then the global income is taxable in India as per new income tax rules. If you are a non-resident Indian, then only the income you are generating in India is taxable. Other Rules Introduced for NRI as per the Finance Act 2020 and Finance Act 2021 As per the Finance Act 2020 and Finance Act 2021, a few more rules were introduced for NRI. Here’s a list of them. Double Tax Avoidance Agreement The Double Tax Avoidance Agreement is also known as DTAA. It is a treaty between countries so that an NRI doesn’t have to pay double taxes on earned income. If you already pay taxes in India, then even if you are residing outside India, you don’t have to pay taxes in that country. There may be a difference in tax slabs, in that scenario, you are required to pay the difference as residual taxes in the country where you are living. For example, if you are required to pay 20% tax in the USA on an income of 16 lakhs. There may be a possibility that India is charging 15% on the same income. But this does not mean you are exempted from the 5% tax. You have to pay the difference as residual tax in the USA. In case, you are residing in the Gulf region, there are no taxation rules, in that scenario, even India cannot imply tax on your earnings. The Documents Required to Avail of Tax Benefits Under DTAA as Part of NRI Tax Have a look at the important documents required to avail of tax benefits under DTAA as a part of NRI Tax. Self-attested PAN card copy Self-declaration indemnity format Self-attested passport and visa copy Tax residency certificate Important Facts to Know An Individual cannot claim any benefit of relief under a double taxation avoidance agreement without submitting a tax residency certificate to the deductor. For obtaining a tax residency certificate, you are required to apply Section 90A and Section 90 of the Income Tax Act, 1961. Once the application is completed, you will get a tax deduction certificate which will be issued in form 10FB. NRI Income Tax Slab Rates The income tax slab rates of NRI TAX are diversified according to the earnings of the individual. The NRI Income Tax is the percentage of the annual earnings of an individual. Here is the Income Tax Slab of NRI Income Tax SlabTax RateUp to 2.5 LakhsNIL2.5 Lakhs-5 Lakhs5%5 Lakhs – 7.5 Lakhs10%7.5 Lakhs-10 Lakhs15%10 lakhs-12.5 Lakhs20%12.5 Lakhs-15 Lakhs25%15 Lakhs and above30% Tax Exemptions for Non-Resident Indians at the Time of NRI Tax Here’s a list of exemptions for non-resident Indians at the time of NRI tax: The salary getting from a job in India, fixed deposits, capital gains, and income earned from a savings bank account all are taxable in India. Any Income that is earned outside India is non-taxable. Any interest earned from the FCNR or NRE accounts is tax-free. Many NRIs are engaging in buying and selling immovable properties in India. Sometimes gifted to them by their parents or inherited themselves. In case an NRI is planning to sell the property, the buyer in that scenario will deduct 20% TDS. As a seller, if NRI wants the buyer to deduct TDS on the capital gain amount, he or she is required to apply for a lower tax deduction certificate from the Income Tax Department of India. An NRI can claim tax exemption under Section 80G of the Income Tax Act for making donations. One can claim tax exemptions under Section 80TTA for interest earned on a savings account is INR 10,000. Getting any long-term capital gains on the property being NRI for 36 months is usually taxable, but one can claim NRI tax exemption if one buys another property in India or purchases any bonds. Deductions that take place according to Section 80C of the Income tax act are tax exempted. Life insurance Premiums, payment of tuition fees, loans taken from India, investments made in ULIPs, or any deductions from house property income are part of Section 80C. [B-02] Bottom Line The Non-Resident Indians are also required to follow the tax norms defined under Income Tax Act 1961. The NRI tax covers every aspect of taxation rules be it property tax, wealth tax, or income tax.
08-11-2023
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Learn the basics of Margin Trading

Have you ever thought of how exactly margin trading works and how you can use it to your benefit? With this article, we aim to answer all the questions about margin trading and define margin trading for you. Before we move to margin trading and all about it, let’s first understand what margin means and how is margin trading defined. A ‘margin’ is known as the equity amount of an investor. Buying with margin or to margin refers to using a sum that a person may buy from a broker to buy or invest. Through this method, an investor can buy and invest in more things than the initial sum in their account. A margin account is made for the broker, which lends the investor the money needed to buy more securities. Smart use of margin in buying can give you more financial stability and security. At the same time, the initial sum in your account acts the same way as collateral for a loan. The losses and profits that involve margins are often felt in excess. [B-01] What is margin, and what is the definition of Margin Trading? Margins are often used when buying securities that provide more financial benefits and profits than the interest that needs to be paid. Margin trading refers to buying stocks that one may not be able to afford. The broker then pays the margin to buy that particular stock or security. With regards to investors, Margin Trading helps them hold more stocks and places within the market. These may add to the places in the market, they owned before. In the matter of margin trading, investors are free to buy an investment or security by paying only a certain amount of the actual value, the rest of which is paid by the broker. Margin trading helps the investor earn a higher profit. Losses, if experienced by the investor, are also excessive due to margin trading. The margin is then returned with interest to the broker when the profits are earned. Margin trading also proves very helpful when an investor hopes that the investment’s earnings, i.e. the ROI, is more than the interest paid on the loan amount. Why Margin Trading is Good In simple words, if an investor has an initial margin need of 70% for their margin account and wishes to buy securities worth ₹10,00,000, then their margin would be ₹7,00,000 and the rest, i.e. 30% or ₹3,00,000 could be borrowed from the broker. Margin trading can prove profitable in the following ways: Flexible Trading: Flexibility in trading is possible when an investor can expand and look for more investment opportunities, even with a limited amount. This can, to a great extent help investors if they take up timely market opportunities and invest in them. Expand and diversify the portfolio: Margin trading helps an investor diversify their portfolio. This can be done when the investor holds a lesser stock position and can use the margin buy. Simplify the process: No extra fees or paperwork is needed to use margin trading. Tax deductions: Margin loans need a certain interest rate set by the broker and the investor. These interest rates may be deductible as taxes against the income from the investor’s net investment. Taking the help of a tax advisor can prove helpful in this case. Increase in current income: Cash inflow is more, in turn increasing the investor’s current income. Risks involved in Margin Trading Some risks that come with margin trading are: Bigger losses: Margin trading may have big losses as it involves investment by more than one person too. More charges: The investor may need to pay separate charges in the form of interest and account fees. Margin calls: Margin calls are made when a Margin account runs out of some account balance. This is common with trading accounts that incur heavy losses due to an investment. These also need more investments to ensure some account balance is always maintained. Liquidations: Suppose an investor fails to keep their end of the bargain and maintain the agreement. In that case, brokers are given the right to take any lawful actions like liquifying the investor’s assets to cover the sum of the margin first paid by the broker. Some practices to adapt during Margin Trading While there may be risks that come with Margin Trading, here are three things that can help one gain from Margin Trading: Be picky about investments: Investing wisely is an essential part of margin trading. One must be careful as losses and profits are affected by margin trading. Investing wisely refers to investing in opportunities that will provide a larger ROI than the investor’s interest amount on the loan. Margin calls must also be considered when investing in opportunities. Start small: When margin trading, an investor must be mindful not to borrow the full amount limit from the broker. The investor must try testing the investment with a small amount first, calculate their profits and then decide whether to continue the margin trade with the broker or not. Consider the period of the margin trade: Margins are like loans; an investor must pay interest on the amount borrowed from the broker. Margin trading for a shorter time to avoid paying high interest on it is viewed as a best practice for financial profitability. [B-02] Final Thoughts By now, you must have gained a better understanding of margin trading. When margin trading, it is best to plan and look for profitable investment opportunities. Market knowledge and expertise are also good add-ons. Financial experts at Piramal Finance are trained to provide guidance and help one make the best decisions to help achieve their financial goals. Make sure your financial knowledge is up to date on essential services and products, such as personal loans and stock trading, by reading the informative blogs on our website.
08-11-2023
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All you need to know about ATM pin generation

A 4-digit ATM PIN is for purchases at an Automated Teller Machine (ATM). The bank gives the PIN and expects it to be changed and kept secret by ATM card users. You can change and create a new ATM card PIN as you wish. A PIN is a short form for a personal identification number, which is unique to each ATM card. This PIN code verifies that the cardholders are paying out the transactions and that they are genuine. You can divide ATM PIN generation into two categories: those using actual paper mailers and those using green PINs. Green PIN encompasses the creation of ATM PINs via SMS and net banking. [B-01] How to Generate an ATM Card PIN After the bank sends you the temporary PIN, you must go to an ATM to get a new ATM card PIN. Paper mail with temporary ATM PIN codes Banks send account holders or cardholders a sealed letter with the PIN. It might come with a welcome package that includes all bank paperwork, such as passbooks and account information. Banks may deliver the initial ATM card PIN separately in a paper pin mailer. Use the ATM card and enter the temporary PIN to log in. Banks will issue a one-time password (OTP) to the registered mobile number. You have to put in information like your bank account number or a mobile phone number that is registered with the bank. Once the request is verified, you may generate the 4-digit PIN. You can re-enter the updated ATM card PIN. Your ATM PIN generation is complete, and you may use it to execute ATM transactions. SMS delivery of a new ATM card PIN via Green PIN The other option is to use a green PIN to go paperless. Banks transmit an ATM PIN code via SMS. Banks are using green PINs to address environmental issues and improve security. It saves paper and time, and bank workers are not responsible for the physical care of the printed mailers. You may receive a new PIN text on your registered mobile number after a few hours of receiving the ATM. A green PIN might be a PIN or an OTP that expires in a few minutes. For PIN generation, follow the procedures below: Insert your card into the nearest ATM. Once you have selected the language, you may choose ‘Forgot/Create PIN. You can provide information such as your account and registered mobile phone number. You may also be asked to choose between “generate OTP” and “validate OTP” at some bank ATMs. An OTP is given to your registered phone number after you are verified. Enter the OTP, and you will be allowed to generate a new four-digit PIN. Set up a new PIN and confirm it before using it for future transactions. Using the Net Banking option Net banking allows you to generate your ATM PIN from the comfort of your own home. You do not need to visit a local ATM to finish the transaction. You must have online banking enabled on your bank account to generate ATM PINs using net banking. You can either sign in to the online banking site or the phone app, or proceed as follows: Enter your username and password to access your account. Then, under the “e-services” tab, pick “ATM card services.” Look for the phrase “ATM PIN generation.” You will have two options: a one-time passcode (OTP) or password. Choose one of these PIN generation options. The OTP choice will send a code-encoded message to your registered phone number. Enter the amount in the appropriate column. Choose the bank account to which your ATM is connected. Then click ‘Continue.’ Now choose the ATM card. Enter the first two numbers of the new PIN. The last two would be through SMS to your mobile number. Enter the two numbers you chose before and the two numbers you got through text on your registered number. To generate your ATM PIN, click “Submit.” The procedure for changing an ATM PIN using a personal PIN is nearly the same. However, new SBI cardholders may only generate a PIN using net banking after registering the card via the “ATM Card Services” link under the “e-services” option. An Introduction to Personal Identification Numbers Personal identification numbers are usable with debit cards connected to a person’s bank account to give additional protection. When a person receives a card, they must select a unique PIN that they must input every time they want to withdraw cash from an ATM and, in many cases, when they make a payment at other merchant businesses. PINs are similar to passwords in several other applications, including home safety and mobile phones. A PIN is any number used to check a person’s identification. Personal Identification Numbers and Card Security PINs are six digits long and are frequently sent to cardholders in addition to the associated card or input at a local office when creating an account in person. When selecting a PIN, it is best to choose one that is tough to guess yet simple for the account owner to remember. Simple PINs or numbers that are easy to predict are not tolerated. Account holders must use extreme caution when sharing or releasing information. Personal Identification Numbers and Electronic Transaction Processing Digital payments with vendors are slightly more complicated than ATM transactions. As a result, by demanding an extra layer of verification from the buyer, the use of a PIN can make transactions safer. PINs are usually needed as the final step in a payment, granting a retailer permission to accept a payment card. Once a card gets verified for processing, communication is sent to the retailer’s acquiring bank, which allows payment settlement. [B-02] Conclusion After receiving an ATM card and a PIN from the bank, you must establish a new PIN. It increases security because the PIN is only known to you. You must also update it over time for security reasons, so if someone mistakenly learns the PIN generation, they cannot misuse the ATM card. Read more related blogs on the Piramal Finance website to explore our financial products and services, especially if you need any help with personal loans, credit cards, or financial calculators.
08-11-2023
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