Popular article

Your one stop place for everything related to finance and lending

Other

5 Unique Ideas to Set Up a Business in the Trading Sector

The trading sector is a dynamic and vital part of India's economy, significantly connecting producers with consumers. As part of the service sector, the country's largest industry, trading allows businesses to influence market trends and meet consumer demand innovatively. Whether you're looking to launch a new venture or diversify your existing business, exploring opportunities within the trading sector can be rewarding. In an industry where inventory management and responsiveness to changing demands are key to success, having the right resources and financing is crucial. You can easily establish or grow your business with access to business loans specifically designed for traders. Here are five lucrative ideas to help you succeed in the thriving trading industry: 1. Sustainable and Eco-Friendly Products: Trading for a Greener Future With increasing concerns over environmental degradation and climate change, there is a rising demand for sustainable and eco-friendly products. Consumers are now more inclined to purchase items that are environmentally friendly, such as reusable household products, biodegradable packaging, energy-efficient appliances, and sustainable fashion. This sector presents an exciting opportunity for businesses to enter the growing green market by trading in eco-conscious products. The options are diverse, from selling solar-powered gadgets to offering eco-friendly home decor or zero-waste products. Many people, especially younger generations, are willing to pay a premium for products that have a positive environmental impact. By sourcing and selling sustainable products, you can capitalize on a profitable market and contribute to a greener planet. The demand for these products is expected to keep rising, making this an ideal sector for entrepreneurs who want to make a difference while earning a profit. 2. Health and Wellness Products Trading: A Booming Industry The health and wellness industry has experienced significant growth in recent years, and this trend is expected to continue as more people become conscious of their physical and mental well-being. From nutritional supplements, fitness equipment, yoga accessories, and organic skincare products, there is a wide range of health-focused products that people are eager to buy. The Indian market for health and wellness products is booming, driven by factors such as increasing awareness about healthy lifestyles, a rising middle class, and a focus on preventive healthcare. Entrepreneurs can consider trading in fitness equipment, dietary supplements, essential oils, or even wellness gadgets like fitness trackers and smartwatches. With an increasing number of consumers focusing on staying fit and maintaining a balanced lifestyle, this sector has tremendous potential for growth. By sourcing high-quality products and offering them through online and offline channels, you can build a business that caters to the health-conscious community. 3. Auto Care: Capitalizing on the Rising Demand for Vehicles The automotive industry in India has witnessed substantial growth, with passenger vehicle sales crossing the 3 million mark in 2016-2017. The sector grew by 9.23% during this period, driven by a combination of factors such as higher disposable incomes, changing lifestyle choices, and the increasing demand for luxury vehicles. The potential for success is immense for those interested in starting a business in the auto care sector. The opportunities are endless, from selling spare parts to providing auto accessories and maintenance services. Currently, the auto care industry is valued at Rs. 20,000 crore and is expected to grow to Rs. 34,000 crore by 2020. This presents a fantastic chance for entrepreneurs to tap into the expanding market and offer products or services that cater to vehicle owners' needs. Trading in vehicle parts and accessories, such as tyres, battery chargers, or car cleaning products, can be lucrative. Additionally, offering services like car detailing, maintenance, and car modification can make your business a one-stop shop for automobile owners. 4. E-Commerce Trading: Expanding Online Retail Business In the digital age, e-commerce has become a major avenue for businesses to reach consumers. With increasing internet penetration, online shopping has gained immense popularity in India, especially in the wake of the COVID-19 pandemic. This presents an opportunity for businesses to establish an online presence and engage in e-commerce trading. Whether you're dealing in consumer electronics, clothing, beauty products, or groceries, e-commerce trading offers the chance to reach a wide customer base without the overheads associated with traditional brick-and-mortar stores. By setting up an online store, you can trade products directly to consumers, manage inventory effectively, and leverage digital marketing to drive traffic to your website. In the fast-evolving world of e-commerce, staying ahead of trends and continuously offering value to your customers is essential. Whether it's by providing seamless shopping experiences, offering personalized products, or focusing on customer service, a successful online trading business requires a solid strategy and access to the right resources. 5. Electronics and Gadgets Trading: A High-Demand Market The demand for consumer electronics and gadgets in India is rapidly growing, thanks to technological advancements and increasing disposable incomes. With the rise of smart homes, mobile devices, wearables, and entertainment gadgets, there are numerous opportunities for entrepreneurs to tap into the electronics and gadgets trading market. India’s tech-savvy population is eager to invest in the latest gadgets, ranging from smartphones and laptops to home automation systems and audio equipment. This market is driven by the urban population and younger consumers in smaller towns and cities who are adopting new technologies faster than ever. By sourcing high-quality, in-demand electronics and gadgets, you can meet the needs of a growing customer base. Additionally, offering after-sales services such as warranty extensions, installation support, or tech accessories can provide added value and boost customer loyalty. Conclusion: Unlock the Potential of the Trading Sector with the Right Support The trading sector presents a wealth of opportunities for aspiring entrepreneurs looking to capitalize on growing trends. Whether you're interested in organic foods, pet care, auto services, furniture, or e-commerce, there is no shortage of lucrative ideas to explore. Securing a business loan for traders allows you to access the necessary funds to start or grow your business. With flexible repayment options and affordable interest rates, these loans offer the financial support you need to succeed. Start planning your trading business today, and with the right strategy and financing, you can set yourself up for long-term success in this thriving industry.

08-11-2023

Business Loan

Step-by-step Process to Get MSME Loan for New Business?

The Government of India has launched many schemes in the form of loans and subsidies to help and promote entrepreneurs in their business ventures. One of them is the MSME business loan which targets to finance and foster medium, small, and micro businesses (MSME). Do you also want funds from the MSME loan for your startup? Well, this article will help you navigate through it in detail. In this article, we will discuss the MSME business loan why it was introduced, its benefits, and how to get a startup business loan for your new business. [B-01] What is the MSME loan scheme, and what is its primary objective? The MSME Ministry of India is an individual body that has executed and implemented the MSME business loan schemes for the betterment of emerging small businesses. This loan system’s prime objective is to provide unsecured loans to individual, small business units to help them meet their business-related expenses. Not only the government, but private financiers and private banks have also started giving MSME loans to individual, rising businesses. The main differences between government and private MSME loan schemes are the interest rate and the loan amount. This loan has self-tailoring features, which means you can get an MSME startup business loan as a short-term, medium-term, or long-term loan scheme. You can take it as a cash credit, letter of credit, working capital loan, etc. You can use this lump sum amount to buy raw materials, use them for transportation, or pay for any services. What are some of the exclusive benefits of the MSME loan scheme? Here are some of the exclusive benefits of getting an MSME loan: Low rate of interest: Banks charge a low rate of interest to small and micro businesses to ensure that the minimum amount is spent on repaying the loan and the maximum amount goes into funding the business venture. The rate of interest for MSME business loans in India is somewhere in the range of 10 to 25 percent per annum, with an exception of 1 to 1.5 percent by some lenders. Accessibility: MSME startup business loans in India are highly accessible and easy to apply for. The whole process is hassle-free with serious exemptions, which makes it an ideal loan system with the fewest cons. Collateral-free: Since it is an unsecured loan, there is no requirement for collateral, a security deposit, or a guarantor. If you don’t have any of those, you don’t need to worry about your loan getting sanctioned. This decreases the burden on small and microbusinesses and helps them pay better attention to their businesses. High flexibility: MSME business loans are a short-term affair, and you require them only to cover your short-term requirements. Since an MSME loan isn’t a long-term commitment, you can easily focus on developing your business. The long tenure of repayment: The tenure of repayment is not fixed for every bank, but it can often be started at 3 years and stretched up to 15 years, which seems like a reasonable amount of time. You can repay your loan within this loan period in the form of installments. High loan amount: If you get your MSME startup business loan sanctioned, your loan amount can go up to Rs. 50 lakhs, which you can use in your business venture. You can use it to buy new types of machinery, and raw materials, expand your manufacturing, hire more workers, and pay for other services. What is the eligibility for an MSME Business Loan? Here are some of the eligibility requirements to help you get an MSME business loan: Type of business: The type of business determines whether or not you are eligible for MSME loan schemes. The two types of businesses that are eligible for MSME loans are those in the manufacturing sector and those in the service sector. Business experience: In your current business, for which you are applying for a startup business loan, you must have a minimum of one to three years of business experience. This is due to the fact that you must demonstrate to the banks that you have extensive experience in the business venture in question. Business turnover: A business turnover of about 12 lakh rupees per year is the benchmark for an MSME business loan. However, it is again very subjective because different banks have different criteria. Credit score: It is a common analogy that a good credit score will increase your chances of settling on a better deal on any type of loan, which stands to be true. If your credit score is 750 or more, it is always a plus point for you and increases your chance of getting a bigger loan at a lower rate of interest. Clean loan history: If you have been paying your previous debts diligently and on time, then you are always a step ahead. Banks prefer candidates who have a good track record and pay their instalments on time. [B-02] Conclusion The interest rates from the top banks for MSME business loan range from 8.5% to 15% per annum. Some of the popular banks might go lower than that with an increased tenure of repayment. You should use calculators in this case, where you can spin different loan amounts and interest rates to see what suits you best. You should focus on improving your credit score, improving your business venture, and increasing your business experience to make a better pitch and get a decent loan. If you prefer well-researched and easy-to-understand articles and blogs on these topics, you can have a look at the official website of Piramal Finance. We have some amazing content on loans, investment, financial consulting, SIPs, etc.

08-11-2023

Personal Loan

What is Flexi Loan and What Are its Benefits?

What is a Flexi Loan? A Flexi loan is a type of personal loan. It credits money to your account instantly. You can use the loan amount as per your requirements. Unlike other loans, Flexi personal loans don’t charge interest on the amount sanctioned to you. Instead, interest is charged only on the money you spend. In other words, you will pay interest only for the amount used by you and not for the total amount credited. Flexi Loans allow you to use the funds and repay the interest whenever you wish. They are often referred to as Flexi personal loans. Flexi personal loans are similar to the overdraft facilities provided by banks and other financial institutions. [B-01] What is the Difference Between Personal Loans and Flexi Personal Loans? Here is how personal loans and Flexi loans differ: Personal Loans Let’s assume you have borrowed Rs. 1,00,000 as a personal loan from a bank or any other financial institution. You are charged an interest rate of 10% p.a. for this principal amount, and the total period of the loan is 1 year. The bank, in general, will charge you an interest rate of Rs 12,000 for the one-year tenure. Thus, you will be required to pay Rs. 1000 as interest per month. Flexi Personal Loans For example, if you borrowed Rs 1,00,000 as a flexible personal loan from a bank or an institution at an interest rate of 10% p.a., you are not required to pay an interest rate of Rs 12,000 as you did in a personal loan. Instead, you will be paying interest only on the amount that you withdrew or utilized. Assume that you have used only Rs. 50,000 out of the total Rs. 1,00,000 credited to your account as a Flexi loan. As a result, you will pay only Rs. 6,000 in interest over the course of a year, i.e., Rs. 500 per month. What are the Eligibility Criteria for Flexi Personal Loans? The eligibility criteria for Flexi personal loans depend upon various factors. These include the type of employment you have, your age, income, financial obligations, credit score, citizenship, any criminal records you may have, etc. You can opt for a Flexi loan if you are a salaried employee or a self-employed individual. But the above criterion is subject to change from bank to bank or from institution to institution. Another major factor that determines your eligibility for getting a Flexi loan is your total credit (CIBIL) score. In general, to avail of any type of loan from banks and other financial institutions, it is recommended to maintain a minimum credit score of 700. What are the Benefits of Flexi Personal Loans? Below is a list of the advantages of a Flexi loan: Unlimited Withdrawals: Once the loan amount is credited to you, no one can question you on the number of withdrawals. It is because there is no limit on the number of times a Flexi loan can be withdrawn. No Need For Multiple Applications: In Flexi personal loans, whenever you withdraw money, you will not be required to fill out any application. Hence, no lengthy paperwork or approval is required for using the loan amount credited by the lender. Lower EMI: With Flexi personal loans, you are not required to use the entire loan amount. As a result, the interest rate and EMIs will be lower, compared to other types of loans. Pre-payment Option: Whenever you have a cash inflow or a lump-sum amount, you can pre-pay towards the total value of the Flexi loan. Furthermore, you will not be charged or penalized for making partial prepayments on the borrowed loan. Bullet Repayment Option: Flexi personal loans not only allow you to make partial prepayments but also provide a bullet repayment option. Bullet repayment is when you can pay back the loan principal and interest rate all at once at the end of the loan’s maturity period, also called its “tenure.” Helps You in Unexpected Situations: Flexi personal loans are a great aid in your unforeseen or unexpected circumstances. The loan amount is credited to your account instantly. Thus, a Flexi loan helps meet both your planned and unplanned needs. Minimum Documentation: As compared to ordinary personal loans, a Flexi loan needs a few documents at the time of application. Usually, an application for a Flexi loan asks for your Aadhaar card, address proof, income tax returns, salary slips, etc. No Need for Collateral: To avail of Flexi personal loans, you do not need to pledge any collateral, assets, or other financial securities. Closing of Loan Before Tenure: If you repay the Flexi loan amount before the maturity date, your loan will be closed. The main advantage of closing the loan before the term is that the interest payments are reduced. However, some banks or institutions may impose charges for early loan repayment. Easy Cash Flow Management: As your monthly EMI is reduced, you will be better able to manage your cash flows. This helps reduce your cash outflows and expenditures. [B-02] Final Takeaway Flexi personal loans are flexible not only in their name but also in their usage. We hope this article has helped you understand Flexi loans and the importance of maintaining a high CIBIL score. You can easily apply for and get a flexible personal loan with Piramal Finance. We, at Piramal Finance, will guide you through each and every step. Our executives are available to answer any queries related to Flexi loans. You can visit Piramal Finance‘s website to learn more about loans and related topics.

08-11-2023

Other

Tips for Digital Business Owners to Become Successful

As a digital business owner, chances are that you have either experienced success or are on the way to achieving it. Becoming successful is never easy. With the right steps, however, you can slowly get there. Today, digital business owners have several options to expand their reach. One such option is digital marketing. The following article will look at how digital business owners can succeed. It will discuss how digital marketing, as an internal strategy, can help make business operations efficient. Tips for Digital Business Owners to Become Successful Here are some ways in which digital business owners can succeed: 1. Know Your Target Audience It is important to know who your target audience is. What are the demographics of your existing customers? What are their interests? Where do they spend their time? Despite an excellent marketing strategy, your efforts won’t be effective if they aren’t targeted at the right people. The easiest way to find out who your target audience is is through social media. It is important to understand which social platforms your customers use. 2. Create a Targeted Marketing Plan Creating an effective marketing plan is essential for any digital business. An effective marketing plan involves budgeting, identifying strategies and tactics to implement, and translating the results into KPIs. It is also important to note that marketing plans can be created for specific products and services or your overall business’s brand. 3. Know Your Competitors Just like you need to know who you are marketing to, you also need to know who is competing against you. The more information you have on your competitors, the better your marketing efforts will be. Identify the areas in which they are weaker than you, and try to capitalize on them. Make sure that if there is any competition for a potential client or customer, that person knows about it. Provide a detailed description of what their competitors are offering and why your offerings are better for customers and businesses alike. 4. Implement a Digital Marketing Campaign It is important to implement the strategies that you have laid out in your digital marketing plan. Marketers, who can consistently implement the guidelines they set forth, tend to have more success than those who are inconsistent. Common digital marketing strategies include social media campaigns, email marketing campaigns, PPC ads, blogging, content creation, and so on. 5. Utilize All Social Media Platforms Social media is an incredibly powerful tool for any digital business. It is quick, free, and provides immediate results. It is important that you utilize every social media platform that is relevant to your target audience. This means being active on each platform, having a unique strategy for each, and ensuring that you have addressed any customer concerns promptly. 6. Speak to Your Customers It is important to interact with your customers regularly. Try to get a sense of what drives them, what they like about your products and services, and what areas you can improve in. It is also helpful to reach out to those who have given negative feedback. This will help provide better customer service and, thus, a better experience for clients. 7. Create a Website It is important to have a website, especially if you plan on selling products or services online. Not having a website makes it hard for customers and clients to locate your online digital business. If you have a website, ensure that the content aligns with what you are selling. There are many free platforms that allow you to create a website. A simple search on Google will give you a list of free or low-cost websites you can use for your e-commerce business. Don’t forget to mention contact information, an address, images of your products or services, different methods of payment, and other similar things that customers will find helpful. 8. Improve your SEO While building your website, make sure to use SEO. SEO is the act of modifying the content that you post on your website, social media platforms, and emails to rank higher on search engines. Improving your SEO will make it easier for search engines to find you. This helps you get more traffic from people searching for what you sell or offer. To attract more visitors to your site, or in other words, boost your SEO, you need to improve the quality and quantity of the content on your site. Since the content is a key factor in SEO, make sure that it is relevant, accurate, and well-written. Also, make sure to submit regularly updated blog posts to increase organic traffic. To improve your SEO rankings, try using keywords with high volume searches. [B-02] Final Thoughts Digital marketing is a powerful way to grow your online digital business. It is a great way to reach out to customers and clients in ways that other marketing methods can’t. If you are a newly launched digital business and need help with finances, you can always consider taking the help of experts. You can also read similar blogs or articles on the Piramal Finance website. Here, you can learn about the different loan options available for digital business owners.

08-11-2023

Tax

What is Income Tax Payable And How to Calculate

The government is entitled to a cut of the total revenue of your company, called the income tax. Paying income tax is your company’s financial obligation. However, an accounting term often used is income tax payable. [B-01] What is the income tax payable? The income tax payable is the amount that your company needs to pay in income tax within the following year. Simply put, it is the tax your company has to pay within the next 12 months. Income tax payable grows in proportion to your company’s profit. You will not always have the same tax payable on the total income. The income tax payable on the total income is shown on the balance sheet as a liability. Liabilities can be decreased through tax credits provided by the relevant government agency. Most tax credits have a time limit on when they can be used on your taxes. It is necessary to track when your company becomes eligible for each. Formula to determine the income tax payable Your organization’s taxable income is not determined exclusively by its bookkeeping profit. The total profit reported on the books can differ from the taxable profit that must be applied to the income tax rate. This is because the government permits many modifications that affect the accounting profit. Income tax payable and income tax costs can fluctuate because it takes time for a company to record the earnings in the account. This often happens because some clients are given late payment due dates. Income tax payable is not included in the statement of operations. Instead, it is shown on the balance sheet. There is typically a disparity between income tax expenditure and income tax paid. The difference may be due to depreciation, tax deductions, and other accounting issues. Since the process is complicated, your business needs help calculating its taxable revenue. There is no set method for determining income tax payable. However, the calculation is done according to set standards. Tax costs can be estimated using the following formula: Taxable income x tax rate = income tax payable For example, if the total taxable income is INR 10,00,000 and the tax rate is 25%, your company has to pay INR 2,50,000. Deferred income tax liability vs. income tax payable Income tax payments and deferred income tax liabilities are financial obligations on a company’s balance sheet. It is a common misunderstanding that they are the same thing. These two things couldn’t be more different from an accounting perspective. Income tax payable represents tax that has not yet been paid. It is still not paid often because the filing dates are far. For example, your company expects to pay Rs. 2,50,000 in taxes for the upcoming tax period. Then, you can record an income tax payable of this amount on the balance sheet. This sum is due on the same day as the rest of the company’s tax obligations. On the other hand, a deferred income tax liability refers to an outstanding tax bill that has been postponed until a later tax filing season. Obligations result from discrepancies between tax accounting and generally accepted accounting procedures. Income tax expenses and income tax payable Income tax expense and income tax payable are not the same. Expenses have to be recorded when they are incurred. An income tax expense is an amount your firm estimates it will have to pay in taxes for the reporting period. Income tax expenses can be utilized to record income tax charges. A business that makes its tax payments monthly or quarterly should make corrections to its income statement. On the other hand, the balance sheet will show income tax payable on the total income as a liability. Types of Income Tax Payable Your corporation’s taxable income can be broken down into two categories. There are two types of income taxes that must be paid: Current income tax payable: The estimated tax payment for the current year. Deferred income tax payable: The taxable income in the current year that will not be paid until the following year. How do you calculate the income tax payable for your company? You can use the formula given above to calculate the income tax payable. However, it is not always clear whether the income is taxed. Companies use GAAP-calculated pre-tax net income as a starting point. You can account for changes between the net income and taxable income. You have to make adjustments if there is any discrepancy between accounting and tax regulations. The fines and other costs you deducted from your net income may not be tax deductible. Adding and subtracting these amounts is often done. Once you have completed these processes, you will have your initial taxable income, from which you may deduct any tax-related expenses (such as tax credits). Apply the government’s tax rate to determine your total income tax. This is the amount your company has to pay. On the balance sheet, record this amount as a liability. Deferred impacts of items like future year tax credits, revenue, costs, and net losses might be difficult to account for when calculating income tax payable on the total income. [B-02] Conclusion Your company’s expected income tax payable is a liability. It is your company’s responsibility to pay the income tax in full. The income tax payable by your business might be due in the current or next financial year. Income tax payable is an important obligation for any business. Businesses need to account for various state and local income tax rates. The process can be confusing. If you’re unsure where to start, look to a professional for help.

08-11-2023

Other

What is a NOC Letter: All you need to know about the importance of a NOC letter

Nearly everyone must have taken out a loan in their lifetime, whether we are talking about a house, personal, or car loan. The lifecycle of a loan consists of three parts: loan approval, loan repayment, and getting a NOC letter. This third part is often neglected. However, it’s one of the most important parts of the loan cycle. So what is a loan NOC letter, and why is it so important? We will cover everything you need to understand about this important document in this blog. [B-01] What is a NOC letter? NOC stands for “No Objection Certificate.” This legal document implies that the borrower has repaid the entire loan and all dues have been cleared. This no-dues certificate is issued by the lender and proves that your loan cycle is truly over. The NOC letter is very important for your credit image and legal safety. A NOC includes important details like your name, loan details, and details of loan closure. Most banking companies and NBFCs issue NOC letters to your address after you repay the loan. However, you need to work through the process and prioritise getting a NOC letter if one hasn’t been issued. How to get a NOC letter? In today’s digitised world, you don’t need to worry much. Banking institutes and NBFCs usually use systems that automatically generate NOC letters on completion of the loan tenure. However, there are certain procedures you need to follow to get a loan NOC letter. Send a letter or email your lender. Ask them to send your original documents, invoice copies, and a NOC letter. The closure format varies from lender to lender. So check with your lender, banking institute, and financial institute before requesting a loan NOC letter. Prepare a formal letter draft, include your loan details, and attach proof of loan payment. This process takes a few days. Keep in touch with the lender and get it issued ASAP. Submit the NOC copy to the registrar of properties when you take a home loan on the registered property. This step is important to remove the lien from the property. If not, the lender will continue to have ownership rights even after repaying the loan. If you have taken out a car loan, you will receive RTO Form 35 and a NOC. Submit copies of these documents to your insurance company and regional transport office. A NOC letter is required for a home, personal, car, or business loan. It is also required in cases of availing loan against property and shares. Why is the NOC letter so important? The NOC letter regulates your credit score. Submit NOC letters to credit bureaus to get a healthy credit score. When you have repaid all the EMIs on time, your CIBIL score needs to reflect that. Getting a NOC letter will improve your credit score, and hence, you will be seen as a credible person. We all know the benefits of a healthy credit score. If the NOC letter for previous loans isn’t taken, it will affect your future loan availing capability. If your credit report doesn’t reflect loan closure, submit a copy of the NOC to the bureau and get the credit report updated. A NOC certificate ensures legal safety. Without a loan NOC letter, there is no proof that the loan has been repaid. A NOC certificate indicates that the loan was successfully closed. It is a legal document that ensures that particular debts have been paid in full. It’s your safety net to avoid any legal discrepancies in the future. A NOC certificate will make sure that no financial company sues you because they gave you bad information. A NOC certificate is proof of repayment. A NOC letter is useful not only for availing further loans but also for purposes like immigration and employment. This no-dues certificate is much needed in your personal and professional life. A loan NOC letter is legal proof. No one could falsely claim outstanding dues when you have a NOC letter. A NOC letter guarantees peace of mind. Imagine waking up one day and getting a notice for pending dues. A NOC letter saves you from the mental trauma and harassment that may arise if the lender decides to sue you. A NOC letter will ensure mental safety and security amidst stressful times. Advantages of having a NOC letter A NOC letter prevents discrepancies and misunderstandings that may arise regarding loan repayment. It safeguards you from false accusations of pending debts in the future. It avoids confusion between the lender and borrower in terms of pending dues. The transfer of ownership takes place with the help of a NOC letter. NOC letter increases your credibility in the market and your chances of availing of high-value loans without any hassles. [B-02] How to Recover a Missing NOC Letter The NOC letter is the most important document. You cannot lose it. However, if the NOC letter goes missing by any chance, immediately file an FIR. Get in touch with the lender and ask them to generate a duplicate NOC. You will have to submit a copy of the FIR and loan documents to get the process started. Getting a duplicate NOC might take a few weeks, so stay patient. Once you get a copy of the NOC, make sure it is well written and says “no objection.” Conclusively, the NOC letter is important in a world run by credit. Don’t procrastinate if you don’t have the NOC for previously paid loans. Get in touch with the lenders and accelerate the process. The process is quite simple and requires basic documents. If you have recently repaid a loan, check the progress of the NOC certificate. Get financially educated with Piramal Finance and avail easy personal loans without any hassles and with assured security at Piramal Finance.

08-11-2023

Tax

What is Tax Liability?

Tax liability refers to the total amount of tax that individuals and organizations owe to the federal, state, and local governments in a given time frame. These liabilities are considered short-term debts for businesses, usually settled within a year, and are reflected on a balance sheet. Individuals generally pay tax liabilities either out of pocket or through income tax withholding from their salaries. Every taxable event, such as earning income, making sales, or paying employees, creates a tax obligation. The total tax liability includes all these events. It is calculated based on income tax rates, types of taxes, and other factors. Your tax bill is essentially the sum of all your tax liabilities owed to the IRS or the income tax department, whether from earned income, investments, or other sources such as lottery winnings. Types of Tax Liabilities You might encounter several types of tax liabilities. Income tax liability (Federal, state, and local) Corporate tax liability Capital gains tax Payroll taxes Excise and franchise taxes Understanding these can help you reduce your taxable income and make informed decisions regarding your finances. Taxation of Capital Gains When you sell an asset for a profit, you incur a capital gains tax liability. This can be classified into: Short-term capital gains, taxed as regular income if the asset was held for less than a year. Investors pay preferential income tax rates on long-term capital gains if they hold the asset for more than a year. Planning your asset sales carefully can help you manage and possibly reduce your tax liability. Tax Liability for Corporations Under Indian corporate tax laws, companies are mandated to pay taxes on their total income. Even companies operating globally but registered in India are liable to pay taxes domestically. Sections 90 and 91 of the Income Tax Act offer provisions to prevent double taxation. Filing accurate audit reports and keeping your records updated is important. This helps ensure compliance and may lower the amount you owe through eligible tax credits. Tax Liability for Small Businesses Small businesses face multiple tax-based obligations from different types of taxes, including: Income tax liability on business earnings Payroll tax obligations Sales tax liabilities As a small business owner, your tax liability depends on different taxable events. These include income, sales, and payroll. It's important to know these triggers. Consult a tax professional to file accurately. They can help you find ways to lower your tax bill by claiming eligible deductions and tax credits. How to Reduce Your Tax Liability Reduce your taxable income by claiming all eligible deductions. Utilize tax credits to reduce the amount you owe directly. Stay informed about income tax rates and types of taxes applicable to your situation. Work with a tax professional who can advise you on strategies to reduce your tax liability legally. Conclusion Ignoring your tax liability can lead to severe consequences, including penalties and audits. Stay aware of your deferred tax liability and ensure that you correctly withhold and pay taxes on time. Keeping good records, making timely payments, and working with a tax professional can help you manage and lower your tax bill.

08-11-2023

Education

Things You Need to Know About PAN Card Fraud

The PAN card is unique to every person in India. Everyone can get this document, regardless of tax status. But in recent times, fraud using PAN cards has been on the rise. Several cases exist where individuals have lost a lot of money. These hackers misuse the details on the PAN card. This leads to financial loss. [B-01] How to Know if Someone Has Your PAN Card Details? If you think someone may have your PAN card details, here is how you can check. Have a look at your credit score. Here you will know all loans taken under your name. Below, we will list the steps you need to take to check your credit report online. This will let you know if there has been a PAN card scam. Step 1: Visit a reliable credit bureau. Step 2: Look for the ‘Check Cibil Score’ option. Step 3: You will have to enter some details. They will include your name, email ID, date of birth, mobile number, and PAN card. Once you enter the correct details, you will be able to check your CIBIL score. Also, you will be able to see if there is any fraud. How to Report a PAN Card Scam? If you find any changes in your credit score, it means someone used your details. You should report any PAN misuse as soon as possible. This section will discuss how you can report a pan can fraud. Step 1: Start by going to the official website of TIN NSDL. On the homepage, you will find the customer care section. Choose “Customer care”. Step 2: On clicking this option, you will get a drop-down menu. Step 3: Look for the “Complaints and Questions” option. Select that. Step 4: A complaint form will open. Make sure to enter all details correctly. Provide the correct data to ensure someone looks at your matter. Step 5: The final step is to enter a captcha code. Enter it and proceed by clicking “Submit”. Is There a Way to Avoid Pan Card Fraud? Yes, there are many ways you can avoid pan card scams. Below, we will list some methods to keep you safe from these scams. We hope this helps you stay safe from such frauds. Do not enter your PAN card details everywhere. First, you should verify the authenticity of the website. Many fake websites are online. These websites take information from the user and later misuse it. Don't give personal info on unknown websites, like credit card or loan comparison sites, not recognized by the government. Misusing and even selling your data is very easy. Only give PAN card copies to valid organizations and businesses. Know where and why you need to submit these. Do not give your full name or your date of birth on online websites. People generally use this information to track the PAN. Make sure you keep an eye on your credit score regularly. Do not save your PAN card details on your phone. You can compromise on confidential information if you lose your phone. What are the Types of PAN Card Fraud? Giving out your PAN card number is risky. People can misuse the information and take loans in your name. Here are some ways that these hackers can use your details. 1. Rental hotel rooms Scammers usually use fake or stolen PAN card details while renting hotel rooms. They may even do this when renting vehicles. If anything wrong happens in the hotel room, the police will first check the IDs. Thus, this is a case of stolen identity. 2. Buy jewellery If you buy gold for more than a certain amount, you must provide your PAN card information. Scammers can use stolen PAN cards for this purpose. In case of any PAN card misuse, the IT department may call you for interrogation. 3. Take loans or apply for credit cards If a scammer steals your PAN card details, they can use them to take out new loans. Also, they can use the information to apply for credit cards. This can lead to various financial frauds. And the blame will rest on you since it has your PAN card information. [B-02] The Bottom Line PAN card frauds are more common than you can imagine. There are many cases where people have reported misuse of PAN card details. These frauds will only keep rising. But the only way through this is to be safe. Go online and check if someone is misusing your information. Avoid giving your PAN card details to strangers or fake websites. Use this information only when it is essential.

08-11-2023

Other

What is a Trading Account, Its Charges and Eligibility Criteria

Recently, many people have moved toward investing. People are opening Demat and trading accounts every day. You might have noticed that your neighbour has begun to talk about stocks with you regularly. Also, you may have decided to start dealing in stocks to make more money. However, before you take a plunge into the world of trading, you need to know about the ABCs of trading. A trading account is a fundamental aspect of share markets. Understanding them is crucial. So, read this article to learn all the vital information about trading accounts. [B-01] What is a trading account? Are you considering investing in the stock market? As an initial step in becoming a trader, you will need a Demat account. The next step is opening a trading account. A trading account allows you to buy and sell equity shares and bonds. Using a trading account, you can trade shares and securities in the stock market electronically. In what way does a trading account work? Your trading account links your Demat account and your bank account. It debits your shares from your Demat account and credits the money to your bank account. This mechanism for online trading accounts facilitates the sale of your shares. Alternatively, in the case of share purchases, shares are credited to your depository account and the money gets debited from your bank account. Features of a trading account Shares can be purchased and sold online or via smartphone. Expert recommendations facilitate access to the best-performing shares in different categories. If you open an online trading account, you will get free alerts about the market and news. Margin investing allows investors to gain exposure to a variety of stocks. You can trade stocks without any delays with real-time transactions. Unique features help you place orders after the market hour. Expert research advice is available from our team of analysts. Trading account benefits As an investor, you can set your trading limits on your trading account. A trading account lets you buy and sell stocks, gold ETFs, forex, and derivatives. It is easy to perform all sorts of transactions virtually. You do not need physical transactions to buy or sell securities. It builds a profitable relationship between profits and sales to an investor. It provides the perfect ratio between profits and purchased goods. Demat account vs. trading account Functional difference: You can use a Demat account to hold securities in an electronic format. A trading account’s purpose is to allow the trading of stocks on the stock market. It means buying and selling shares on the exchange. Nature: A Demat account works similarly to a savings account. In the same way that a savings account holds money, a Demat account allows investors to have financial instruments in a dematerialized or electronic format. They are debited or credited as necessary. Trading accounts, on the other hand, function more like bank accounts. It is essential to have both a depository account and a trading account. The main purpose of a Demat account is to keep your trading account safe so you can buy and sell shares at any time without risk. Time measurement Trading accounts differ from depository accounts. Depository accounts hold shares and are measured as stocks at the end of each financial year. On the other hand, an account for trading transactions is a flow statement. Choosing the best trading account in India Several service providers are available on the market. So choosing the right one can be confusing. Before selecting your broker, you should consider the following: Searching for a platform with reasonable service charges based on transaction frequency is essential. If you are an equity trader, you can select a provider that suits your needs. The best trading accounts have high-tech platforms that let you trade whenever and wherever you want. To ensure smooth trading, select a reliable and efficient service provider. Charges for Opening an Online Trading Account In India, several stockbrokers provide trading accounts to their clients. In most cases, the expenses associated with a trading account are nominal. You can break the typical fee structure into several categories, such as: A one-time account-opening fee is required. Fees for account processing Annual maintenance fee. A trading account can be opened in various ways, depending on your chosen plan and associated account opening charges. The average account opening fee ranges from INR 0 to INR 975.00, depending on your plan type. Eligibility Criteria to Open an Online Trading Account To open an online trading account, you need to meet specific eligibility criteria, which makes the process straightforward. Age You must be 18 years of age. There is still the possibility of having a trading account if you are under 18, but you can’t buy or sell directly with a stockbroker. Besides, you can only sell securities that the minor can possess, such as IPOs, inheritances, gifts, corporate actions, etc. PAN card You must have a valid PAN card to apply. Demat and bank account You must have a functional depository and bank account. The unavailability of a Demat account can be sorted out by submitting either one of these documents: a cancelled check, a bank passbook, or the most recent 6-month bank statement. KYC documents You need to complete KYC for a trading account. Submitting the below documents will help you complete your KYC process: Income proof: If you wish to trade futures and options, you will need income proof. Providing either of these documents can prove your income: the latest six-month bank statement, the most recent three-month salary slip, and the most recent ITR statement. Identity and address proof: You can present several types of documentary proof: a PAN card, an Aadhaar card, a driving license, a passport, and a voter ID card. Alternatively, you can submit your most recent utility bill or bank statement for proof of address. Also, you’ll need your passport photo and signature on white paper. [B-02] Conclusion If you still need to start trading, there is always time for you to start. Piramal Finance can be a one-stop solution for all your financial needs. It is always necessary to look for wealth-creation opportunities to create wealth. Thanks for reading the information we provided regarding trading accounts. We hope that it has helped you and cleared your doubts. Comment if you agree.

08-11-2023