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Income tax return

Everything You Should Know About Income Tax Returns

If you are a taxpayer in India, you may have heard about Income Tax returns. If you are aware of Income Tax returns, that’s good, but if you don’t know what an income tax return is, you might be paying more in taxes than your actual taxes. So, what is an Income Tax Return? Income Tax Return or ITR is a form in which you submit all the information about your annual income from all the sources, tax deductions that you are eligible for, and taxes that you have paid on your income. Moreover, this information is processed by the Income Tax Department of India. And, if you are eligible for a tax refund under the mentioned sections of the Income Tax Act, the IT department will credit your account with the refundable amount. However, the ITR filing is not a very simple process. While filing your ITR, you must declare your income, your tax bracket, and the sections of the IT Act that you want to take advantage of. [B-01] Is it important for you to file Income Tax Returns in India? Yes, filing an income tax return in India is mandatory if your income falls in any of the taxable income brackets. However, if your income falls under the non-taxable income bracket, you can avoid filing ITR returns. But if you fail to file your ITR on time, it will lead to a late payment fee. In addition, there can be other disadvantages to not filing an ITR or failing to file an ITR on time. One of them is the difficulty in getting loans. You may have to face loan application rejection due to the late submission of ITR returns. And if you are a travel enthusiast and love travelling to different countries, then it’s better to file your ITR returns on time. The reason for this is that a late ITR filing makes it difficult to obtain travel visas. Who is required to file an ITR? The Income Tax Act of 1961 clearly defines who is required to file an Income Tax Return. According to the IT Act, if an individual between the ages of 18 and 59 earns 2.5 lakhs or more in a single fiscal year, the individual is required to file the ITR. But to clarify every section, like individuals, companies, NRIs, etc., you can refer to the points below. Individual Below the age of 60 with an annual income of ₹2.5 lakhs or more. Above the age of 60 and below the age of 80 with an annual income of ₹3 lakhs. Above 80 with an annual income of more than ₹5 lakhs. Owning any form of asset in a foreign country. Who wants to carry forward losses from the past eight years to counter the tax eligibility? Registered Company Which generates money whether the company is profitable or not. NRI Earning or accumulating money above 2.5 lakhs in a financial year. How to file an Income Tax Return by yourself? In India, filing ITR returns is considered a very difficult task, and most people approach others to file ITR returns on their behalf. But no more dependency on others for your ITR filing because we covered all the steps for you in the simplest way possible. First, you should know about the ITR forms and the documents important for the ITR returns filing process. There are seven types of ITR forms for various categories. Moreover, these documents are required to fill out the ITR form. PAN Card Form 16A from the employer if the company collects TDS. Form 16B from the buyer if you sold out a property. Form 16C from the tenant if the tenant collects TDS on the rent. Bank statement Salary slips Interest Certificates to avail of benefits Proof of investments for tax savings Form 26AS Procedure to file Income Tax Return After the recent amendment to the Income Tax filing policy, the ITR returns filing procedure has shifted online. It means that you can file your ITR from the official website of the Income Tax Department. To file your ITR, follow these steps: First, register yourself on the official website of the Income Tax Department. (https://eportal.incometax.gov.in/iec/foservices/#/pre-login/register) Sign in to the portal by entering your login credentials and the CAPTCHA code. (https://eportal.incometax.gov.in/iec/foservices/#/login ) After that, choose the financial year and ITR form according to your category, and you will be sent to the main page to fill out the ITR form. Before starting to fill out the forms, read the directions carefully so that you can avoid any kind of mistake. Now, start filling in the details that the form asks for. Also, opt for eligible sections of the IT Act to make your taxes as low as possible and get a refund. Now, preview your ITR form attentively and submit it. After submitting the form, you will have to verify your ITR returns. You can either use your Aadhar card or the OTP that will be sent to your registered mobile number. You will receive an email and an SMS on your registered email and mobile number after the successful ITR returns filing. How to check the status of my ITR online? You can check your income tax return status on the same Income Tax Department website. There are two methods to check the status of your ITR returns. By using your acknowledgement number, you can use the acknowledgement number generated after the successful ITR filing. The acknowledgement number is sent to your registered email. Click on ITR status after signing in to the website. Fill in your acknowledgement number and get the status of the ITR returns. Using your login credentials: you can also simply sign in to the Income Tax Department website. The status will be visible on the dashboard. [B-02] The bottom line If you are a taxpayer in India, filing an ITR is just as important as paying taxes. However, it is also good for you to file ITR returns on time. You can get a refund of the excess tax you paid for a financial year by using various sections of the IT Act. There are a lot of sections that provide benefits to the taxpayers of India. You can deduct the interest of your loans from your yearly income, you can deduct the principal amount of the insurance from your income, and many more. However, you should know the right way to use all these sections. Now that you know the procedure and benefits of filing an ITR, you can apply for a personal loan from our website by clicking here, or you can also contact us at 18002666444.
08-11-2023
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Home Loan

How much home loan can one’s take on a 50k salary

Wall-mounted dressing table Vintage wooden dressers Mirrored Cabinets Wooden table and For many people, a dream is to buy a brand-new house. But buying a house can be expensive, and people on fixed incomes may not always be able to do it. In this case, you may choose a home loan if you meet the requirements. Piramal Financing House will determine if you can get a property loan based on how close your monthly income is to Rs 50,000. Anyone who gets paid can be proud of buying a new house. It gives value but makes you feel like you’ve done something and belong. Even though getting a loan to buy a new house is easy, it’s important to know the eligibility requirements because the amount approved can change depending on the borrower’s qualifications. Most of the time, a salaried person can get a home loan based on age, number of years until retirement, employment status, and monthly income, among other things. Whether or not a borrower can get a mortgage depends on how much money they make every month. Anyone who wants to borrow more money can always ask for a joint application. [B-01] If you made Rs. 50,000 a month, how much of a loan could you get? If you make Rs. 50,000 a month in India, you may wonder how much of a loan you can get. It’s important to consider the type of loan and your credit score when getting approved for a loan in India. Generally speaking, banks will often look at your income and credit history to determine what kind of loan you can receive. Individuals with an income of Rs. 50,000 per month and good credit could likely get a relatively large amount as a loan in India. Banks are willing to offer high amounts because the borrower would be seen as low-risk and able to pay back the money quickly. Loans for homes can sometimes be as much as 60 times a salaried borrower’s net monthly income. If your monthly gross income is 50,000 and your net salary is 40,000 after tax and other deductions, you may qualify for a home loan of up to 24 lakh rupees (60 times Rs 40,000). Consider it in terms of EMIs you feel comfortable making payments on. It’s vital to keep this below 50% of your monthly profits. Therefore, someone generating roughly Rs 50,000 per year would be comfortable paying a monthly payment of Rs 25,000. However, this is the best possible scenario. Numerous additional factors, such as the applicant’s age, employment, income status, fixed commitments, credit score, and property details, play a significant role in determining whether or not they are approved for a home loan. “required mortgage application forms. Provide the following materials throughout the application process: Paystubs from the last six months are stored in the KYC database. Banking records Photos the size of a passport with a white background, supporting paperwork for your Form 16 value, and any other sources of income are required. Mortgage Application Requirements Additional family members’ monthly incomes may be added to your own to reach the maximum allowable monthly salary. Reducing your overall debt is the best way to improve your credit score. If the loan amount is sizable, consider extending the repayment period so that your payments are spread out over a longer period. Mentioning additional income streams in your application might increase your rating and loan eligibility. How do banks decide who gets a house loan and how much they may lend? The criteria for getting a home loan might change from one lending institution to another. The loan amount an applicant is eligible for may be computed using the online home loan eligibility calculator. A few numbers, such as monthly income and total debt, are all needed to start. When deciding whether or not to provide a loan, a lender will look at a borrower’s personal history, income, and credit, among other factors. Some of these variables are: Borrowers’ age is the primary consideration when determining their suitability for a home loan. The typical limit imposed by banks and other lending institutions is the time it takes to retire. Accordingly, it may be difficult for retirees or those near retirement to get a loan with a longer duration unless they can demonstrate a stable revenue stream. Lenders also look at borrowers’ credit scores to see how likely they are to make loan payments. Your CIBIL score is a three-digit number that summarizes your credit history. Since a poor credit score could result in higher interest rates or loan denial, it is suggested to investigate the minimum CIBIL score necessary for a home loan. For instance, loan applications from salaried workers are evaluated based on factors such as the applicant’s income, job history, and stability. Self-employed borrowers have the same opportunity to get a loan as their salaried counterparts, provided they can provide proof of a stable revenue stream. Mortgage companies consider numerous factors before approving a loan, including the age and location of your selected home. It’s the collateral for the loan you took out. The loan application will also be rejected if the tenure is longer than the years left on the property’s remaining term. Therefore, banks often conduct a technical and legal analysis of the property before loan approval. The loan-to-value (LTV) ratio in mortgage financing indicates how much a borrower’s debt exceeds the property’s value. It’s a tool used by financial institutions in risk analysis to lower the frequency and magnitude of defaults. What a bank or other lending organization is prepared to lend toward a home’s purchasing price. The ratio of Debt to Income Financial institutions and lenders see a borrower’s debt-to-income ratio as an indicator of that borrower’s debt-repayment capacity. It is a percentage dividing the net monthly debt payments by the net monthly income. [B-02] Conclusion Commonly, all mortgage providers have the same conditions for qualification. However, certain financial institutions may be subject to additional guidelines and regulations. A successful home loan disbursement relies on the applicant reading and understanding the applicable criteria and qualifying circumstances before applying. To know more, consult with an expert from Piramal Financing House.
08-11-2023
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Personal Loan

The List Of Top Personal Loan Finance Companies In India

Financial institutions offer many different kinds of personal loans to meet different needs. Technology has made applying for a loan faster and better over time. People may now find it easy to get loans. The most common type of loan in India’s debt market is the personal loan. In India, this is true of more than 78% of credit requests. Several people who want to borrow money choose these loans because they don’t require collateral. A personal loan is money you borrow from a bank, an online lender or your credit union. After you get the money, you follow a plan to pay back the lender until the loan is paid in full. [B-01] Things to consider before choosing a Personal Loan Interest A lot of people are interested. It depends on the person’s profile, ranging from 10 to 22%. Loan Amount When it comes to personal loans, the amount of the loan can be pretty big. It depends on how much money the person makes and their credit history. Funds Disbursement The money is given all at once. The lender sends the money straight to the account of the borrower. Charges There are many different fees that banks charge, such as processing fees and late fees. Top Companies for Personal Loans AXIS Bank Axis Bank gives personal loans to salaried people, experts, and self-employed people. They have a very simple system for processing loans, and they can approve loans quickly and with little paperwork. Axis Bank’s loan is called “Personal Power,” It comes with an interest rate of 15% for salaried employees and 23% for self-employed people. UCO Bank The personal loan from UCO Bank could be paid back in 48 equal monthly payments, and it could be used to pay for things like travel, a wedding, or medical bills. They offer personal loans with a minimum term of 12 years and an interest rate of 13.5%. They also respond to consumer requests for personal loans in just 7 days. State Bank of India The State Bank of India gives out personal loans to help people pay for different personal costs. At a competitive interest rate, you can get a personal loan like this without paying any fees or penalties for paying it back early. SBI also gives out personal loans with easy terms for paying them back. ICICI Bank Personal loans from ICICI Bank are easy to get, have low-interest rates, and can be paid back over 12 to 60 months. They offered term and personal loans with maximum and minimum interest rates of 12% and 14%, respectively, for salaried employees and 22% and 24%, respectively, for self-employed employees. Punjab National Bank Punjab National Bank gives personal loans to people who work for the state or federal government, for the ITBP, CISF, CRPG, BSF, or who are permanent members of the armed forces. These workers can pay back their loans for the rest of their jobs or in 60 equal monthly payments, whichever comes first. Andhra Bank Andhra Bank, which has offices in Hyderabad, Telangana, and has since merged with Corporation Bank to become Union Bank of India, covers all personal expenses. The annual interest rate offered is between 15.75 and 16%. The amount of the loan is between 50,000 and 15,000,000. After 12 years, you can pay back the loan in full. Mahindra Finance Mahindra Finance is one of the best NBFCs but has the least competitive numbers in the market (Non-Banking Financial Companies). The interest rates on their loans could be as high as 26% per year. Up to INR 3 lakh can be borrowed, and the longest time that can be borrowed is also not very long. Canara Bank Canara Bank has a personal loan for teachers that is made just for them. The teacher’s loan is perfect for people who are just starting as teachers and are currently unemployed. At 12.40% p.a., the interest rate is pretty high. The most you can borrow is INR 3 lakh, or if that’s less, 10 months of gross income. For a personal loan, you can borrow up to INR 3 lakh or your gross salary for six months, whichever is less. The loan interest rate is between 11.30% and 12.30% per year. Piramal Finance Piramal Finance, which used to be called Dewan Housing Finance Corporation Ltd., is a wholly-owned subsidiary of Piramal Enterprises Limited, the main company of the Piramal Group. Piramal Finance is involved in several financial services businesses. It is only signed up as a housing finance company with National Housing Bank (NHB). It gives businesses opportunities for both small and large investments. The site offers housing finance and other ways to pay for real estate, including construction finance, senior secured debt, structured debt, and rental discounts for flexi-leases. Keep in Mind Points to be noted Before you apply for a personal loan, it’s best to check your credit report: It’s important to make and stick to a budget. You should only borrow money when needed; you shouldn’t borrow more than you need. Before applying for a personal loan, consider how much interest the company charges. Look into the fees the business charges for sending payments, as some of these fees are for early payments. Make sure you can repay a personal loan before asking for one. [B-02] Conclusion Even if you go through the whole list and pick the best loan provider, it won’t matter if your credit history or credit score is hurt. When you borrow money, you need to think about and evaluate every part of it. Along with their money, the people who lend you money also give you their trust, which is very fragile and fragile. So, if you want a good experience, you need to take responsibility for your loans and credits. If you want more information about a personal loan, you should go to Piramal Finance.
08-11-2023
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Personal Loan

How Should You Take a Personal Loan To Buy A Car?

Taking a call on a big purchase is always tough. But you should not worry about the payment when you have many loan options. The best of all is a personal loan. Personal loans are versatile; they serve many purposes, including buying your dream car. Research shows that there has been an increase in the number of personal loan applications in India over the last few years. It is easy to see why borrowers prefer personal loans: they require no collateral and have lower interest rates. [B-01] A personal loan for a car is preferred over a car loan in India. A car loan typically only covers 80% of the total cost of the vehicle. A personal loan, on the other hand, covers the entire cost of the car. What Is a Personal Loan? A personal loan is a sum of money that you can borrow and spend on many things that are for your personal use. For instance, you may use it to pay off your debt or use the personal loan amount for a car. Features of a Personal Loan Unrestricted use of loan amount Minimal paperwork and formalities Quick loan approval Fast loan disbursal Flexible tenure for EMIs No need for collateral Types of Personal Loans Secured LoansA secured personal loan comes with collateral. e.g., an asset like a deposit account, home, or car. The collateral is used as security by the lenders. They have the right to keep the collateral as payment if you default on the loan. Unsecured LoansMost personal loans are unsecured. There is no need for any collateral to get such a loan. Because of the absence of collateral, banks view unsecured loans as risky. So, the interest rate on an unsecured personal loan is higher. Can I use a personal loan to buy a car? Generally, there is a misconception that you can only use a personal loan for certain expenses. Examples include home renovations, emergency expenses to repay debt, vacations, and so on. But in reality, you can use a personal loan for a car instead of taking out a car loan. Personal loans have a quick funding process and involve a simple application process. Personal Loans vs. Car Loans Personal loan for a car Car Loan Loan Type Unsecured Loan.There is no need for collateral. Secured Loan.The car is used as collateral security. Purpose Can be used for many purposes. Can only be used to buy a car. Credit Score The better your credit score, the more you can borrow. There is no need for a credit score. Interest Rates A higher credit score means a lower interest rate. It is determined by the amount of the car loan. Benefits of Getting a Personal Loan for a Car With a personal loan for a car, you have the option to borrow any amount you want. It is not restricted to the cost of the car. This helps you apply for part of the car’s value or the full amount, whichever is feasible for you. You can select a loan tenure of your choice. This means that you can repay your personal loan for a car according to the convenience of your budget. You can avail yourself of a personal loan with a low-interest rate by keeping your credit score high maintaining a strong repayment record. keeping no outstanding debt comparing the interest rates of different lenders You can have complete ownership of your car, unlike with a car loan. How to Take Out a Personal Loan for a Car You can take a personal loan for a car with these steps below: First, you have to compare the annual rates offered by different lenders. This includes the interest rate and all other fees. This helps you find the best annual percentage rate. Then, calculate your credit score to know how much you can borrow as a personal loan for a car. The higher your credit score, the more you can borrow. Next, check if the monthly repayment amount and the total amount you will end up paying the lender to fall within your budget. Finally, calculate the type of interest rate: fixed or variable. Now that you can plan your finances according to the loan, approach the best financial lender. Eligibility Details For salaried applicants For self-employed applicants Age Limit 18-60 years 21-65 years Minimum Income (which may vary across lenders) Rs 15,000 per month Rs 15 lacs per annum Work Experience/Business Continuity 1 year (at least 6 months with current employer) 2 years of business continuity Credit Score 750 or higher Documents for a Personal Loan for a Car PAN Card Identity Proof (any one of the following)PassportDriving LicenseAadhaar CardVoter’s Identity Card Address Proof (any one of the following)Registered Leave and Lease AgreementPassportDriving LicenseAadhaar Card/Aadhar AcknowledgementVoter’s Identity CardUtility bills like telephone bills, electricity bills, etc. (not more than 3 months old) Income Proof Last month’s salary slip Bank Statements from the Last Three Months Adding a Co-Applicant To qualify for a higher loan amount, you need to combine your income with that of a co-applicant. Only your spouse can become a co-applicant. You need to submit all the above documents for the co-applicant too. [B-02] Conclusion Buying a car is no longer a mere dream. With a personal loan, you can turn this dream into reality. But you should always analyse your finances before you get a personal loan for a car. Compare the annual rates, EMIs, and loan terms offered by various lenders. Also, keep your credit score high and have no history of default payments. If you are eligible for a personal loan, then what are you waiting for? Prepare your documents and submit them as soon as possible. Take advantage of your loan and enjoy car rides with your loved ones. To avail of a personal loan for a car quickly or for any queries related to it, talk to the financial experts at Primal Finance. While there, also check out their other products, services, and articles related to such topics.
08-11-2023
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Home Loan

Factors you need to know that affect your home loan eligibility

A home loan offers the longest payback period of any loan, with a repayment term of up to 30 years. This feature makes it easier for individuals with limited resources to achieve their dream of owning a home. However, lenders carefully assess your eligibility to minimize risks. Here's a simplified guide to the top factors affecting home loan eligibility: Age - Lenders evaluate your age to estimate how many working years you have left. Applying for a loan earlier in your career increases the likelihood of approval with better terms. However, stricter conditions like a higher down payment or adding a younger co-applicant may apply if you're nearing retirement. CIBIL Score - A strong credit score (700 or above) is key to getting your loan approved and securing favorable terms. Lenders use this score to gauge your creditworthiness and repayment capacity. If your score is low, focus on improving it before applying. Existing Debt - Your debt-to-income ratio should ideally not exceed 30% of your monthly income. If a large portion of your income already goes toward EMIs, it may affect your eligibility. Clearing existing debts or including a co-applicant with a strong financial profile can help. Employment Stability - A steady job, especially with a reputable organization, improves your chances of loan approval. Lenders prefer borrowers with a stable income source. Income Level - Minimum income requirements vary based on location, loan amount, and job type. Due to the cost of living, borrowers in metro cities may need to meet higher thresholds. Down Payment - Lenders typically expect at least 10% of the property's value as a down payment. For example, if a house is worth ₹50 lakh, you'll need to arrange ₹5 lakh. The larger your down payment, the better your chances of securing the loan. Family Dependents - Lenders may view your repayment capacity as limited if you're the sole earner in a family with many dependents, which could affect your home loan eligibility. Tips to Improve Your Home Loan Eligibility Apply with a co-applicant to increase the loan amount. Maintain a stable income and savings. Reduce existing debts and avoid multiple loan applications. Regularly monitor and improve your CIBIL score. Document additional sources of income. Conclusion The first step in securing a home loan is ensuring you meet the eligibility criteria. Platforms like Piramal Finance provide tools to help assess your eligibility and guide you through the process. Focusing on these factors can improve your chances of approval and move you closer to owning your dream home.
08-11-2023
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Tax Savings

Tax Benefits on Business Loan in India

A business loan is a form of debt financing. With business loans, you can buy assets, pay for expenses, fund new firm tasks, or repay existing debt. As with any other type of financing, business loans are also subject to taxation under the Income Tax Act. This means that you must know how income tax laws in India may affect your business loans. You can plan your finances keeping that in mind. The Indian government offers many tax benefits on business loans. If you have taken out a business loan and are paying off EMIs each month, you can claim these in your income tax return. This article will discuss the tax benefits on business loans in India. [B-01] What is a Business Loan? A business loan is a type of loan given to firms to help fund their tasks. Banks, NBFCs, NBFC-MFIs, and other financial firms may provide the loans. Firms take out loans to finance their tasks or fund growth plans. The process is quite simple. You approach a lender with your business plan. It should have details about your firm’s fiscal health and projected profit. The lender will then decide whether or not they want to lend you money. Types of Business Loans Available Many business loans can help you fund your firm growth, expansion, or cost of buying assets. There are two types of business loans: Term Loans A term loan is a long-term debt repaid over an agreed time. It is paid in instalments over four to five years. A lender can get a loan against real estate assets. It can be sold if the person defaults on payments. Working Capital Loans A working capital loan needs short-term financing for day-to-day tasks. Although some lenders offer longer repayment time, it is repaid within one year at most. How to Qualify for a Business Loan The Indian government has made it easier for firms to get loans by offering tax benefits on business loans. The purpose for which a business loan is sought is one of the most important factors in business loan eligibility. A business owner can take up a loan for two reasons: to start their own business or expand it. For this reason, you need to be sure that your application clearly states what you want to do with the loan sum. Small firms generally qualify for business loans at a lower rate than large corporations. However, they may have to provide collateral in the form of real estate or equipment. Lenders consider your credit score and financial history while evaluating loan applications. Most lenders require you to have at least three years of operating history before applying for a business loan. Lenders also want to make sure you can afford the monthly payments on the loan. This process is called underwriting and determines whether you qualify for a business loan. Lenders will also ask about your business plan. They may also request proof of you knowing how you will use the loan amount. You should also be able to provide documentation of your current business assets and liabilities. Tax Benefits on Business Loans A business loan has two components: the principal amount and interest. It includes low-interest rates and long repayment time, making it cheaper than other types of loans. Moreover, you can claim tax benefits on business loans. The interest component of a secured business loan is not tax-deductible unless used to purchase immovable assets like commercial property or land. Business owners can only claim tax benefits on business loans for the principal amount paid to the lender. Interest Paid on a Business Loan is Tax-Deductible The interest paid on a business loan is an expense of the business. It is not taxable to calculate income tax. First, the rate on the debt must be paid from the business’s income, not from any other source. Second, the debt must be incurred by the business. In addition, only the principal amount paid back will be eligible for the deduction. You can deduct the rate you pay on a business loan from your taxable income. It includes loans to buy or improve land, buildings, and machinery. The Principal Amount of the Business Loan is Not Tax-Deductible The principal amount is the total financing or loan amount sourced from the banks or NBFCs to finance business tasks. A business loan’s principal amount is not tax-deductible. Paying income tax on the principal or borrowed amount is not necessary. Additionally, you cannot deduct the amount from your income. Taxes are generally due on the net profits generated by entrepreneurs in a financial year. This is true for most types of business loans. The principal amount borrowed is not subject to tax. The net income earned by the business owner is exempted from tax. Tips to Get a Business Loan In case you are wondering how to get a business loan in India, here are some tips: Research the banks and NBFCs offering loans through their websites or by contacting them personally. Compare the interest rates and repayment tenure offered by each lender before making a choice. Check if you will get any freebies along with the loan amount, such as travel or accident insurance. Ask about these benefits before applying for a loan. Finally, remember to stay organised and track all your expenses. Keep good records so there will be clarity when tax time comes around. [B-02] Conclusion Business loans may be a game changer for you as an entrepreneur or seasoned business owner. The funds might be utilised to expand the business or to start a new firm. The tax benefit on business loans through interest payments and certain company costs such as salary or bonuses might affect your ability to get a rapid business loan. Before asking for any business loan, you should constantly assess your company’s needs in light of the current market. Business owners who take out company loans may benefit from tax breaks. This is especially since business loans are tax-deductible. To learn more about the tax benefits on business loans, do visit the website of Piramal Finance. They provide a variety of products and services and also have many informational blogs on various topics.
08-11-2023
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Tax Savings

Know the Tax Benefits of a Joint Home Loan

Having your own house is a dream for many. A home is a “once-in-a-lifetime” investment that gives you. Buying a house is no cakewalk (primarily due to fluctuating market prices). With so much competition between buyers, financing a home can be difficult. Many turn to loans to help them finance a new property. A housing loan is a viable option. However, sometimes even qualifying for housing loans can be difficult. In this case, you can apply with a partner for a joint home loan. Do you want to apply for a joint home loan but are confused? You will find the correct answer to this question in this article. This article discusses all you need to know about joint home loans, their benefits, and all the tax exemptions available to applicants. What is a joint home loan, and what is its significance? A joint home loan is a form of financial assistance you take from a lender with a co-borrower to build or buy your own house. The co-applicant can be an immediate family member or your spouse. If you don’t qualify for a home loan, you partner with another person, and both can repay the loan. You and your co-borrower share the responsibility of repaying the loan at a specific interest rate. The lender gives both of you a stipulated time limit within which you have to repay the debt in instalments. What are the benefits of applying for a joint home loan? There are several benefits to choosing a joint home loan. These benefits are as follows: A larger loan can be sanctioned. Lenders allow a larger loan amount as two borrowers bear the repayment responsibility. The loan amount can go as high as Rs. 10 crore or even more in some cases. However, this depends on your and your partner’s income, CIBIL score, creditworthiness, etc. The risk is reduced. As the housing loan is taken on a joint basis, the responsibility falls on the shoulders of both borrowers. So, the level of accountability is lower, and as a result, banks are less concerned. The tenure of repayment is longer. In India, most banks allow a tenure period of 30 years for joint home loans. If you have applied for a home loan alone, you will probably not get a longer tenure for repayment. The approval process is faster. The approval period varies from bank to bank, but most loans are approved within 3-5 days. Some also provide pre-approved joint home loans. You get appealing interest rates. In India, the interest rate for joint home loans starts at 8.25% per annum. Adding your spouse as a co-applicant will give you an additional discount on the interest rates. What are some of the tax benefits of applying for a joint home loan? If you and the co-applicant are contributing together to the repayment process, there are twin tax benefits that both of you will be enjoying. First, under Section 80(c) of the Income Tax Act, 1961, you and the co-borrower can claim a tax exemption of up to Rs. 1.5 lakhs per annum on the principal amount. Second, under Section 24(b) of the Income Tax Act, 1961, each co-borrower can claim a tax deduction on the interest of the loan, which is up to Rs 2 lakh. What are the conditions to claim tax benefits on a joint home loan? Here are certain conditions that you need to fulfil to claim tax benefits for a joint home loan: You should also be mentioned as the co-owner of that property. You may not be able to claim the tax benefits if you do not have the property registered in your name. Since it is a joint home loan, you can only claim the tax benefits if you own that property. You have to be a co-borrower on the joint home loan. According to the loan documents, you must also be an applicant for the loan in addition to being a co-owner of the property. Otherwise, you cannot claim benefits under these sections. Tax benefits can be claimed only if the construction of that property is complete. You cannot claim any tax benefits if the property is incomplete or under construction. Under-construction properties are strictly prohibited from receiving any tax benefits. What are the joint home loan tax benefits? For two different categories, there are many benefits: For the borrowers who own the property: If you and the co-borrower co-own the property, each of you can claim a tax deduction of up to Rs. 2 lakh on the loan amount. The total interest paid by both is divided between the applicants in proportion to their stake in the property. For the borrowers who rent a property: If you and your co-borrower jointly claim the house, you can ask for larger tax advantages against the interest you pay on the joint house loan as a family, provided that the interest is more than Rs 2 lakh per year. [B-02] Conclusion A joint home loan is a great way to get financial backup to build a house for your family. It can help you get a larger loan amount because the risk is divided. Furthermore, the tax benefit is often shared between you and your co-applicant. The tax benefits are divided according to the percentage of the property you hold. Ownership is the fundamental requirement to get any tax benefit, and the whole system is different if you have a rented property.
08-11-2023
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Business Loan

Pro Tips To Grow Your Small Business This Festival With The Best Business Loan

Growing a business is a responsibility that every entrepreneur holds and wishes to accomplish. Especially due to a lack of finance and cutthroat competition, it might get tough to stand in the battle sometimes. A business loan, however, can help you have the leverage and take your business venture to another level. Want to know how to grow your business in the festive season with the help of a business loan? Stick to this article to find out everything about business loans, the benefits of taking them, and the ways to grow your business and take it to another level. [B-01] What exactly is a business loan and why is it applied for? A business loan is a type of loan that you take from a lender to invest in your business and multiply your growth. The lender lets you borrow money to help you invest in buying raw materials, investing in equipment, spending money on advertising, etc. In return, the lender charges you a specific rate of interest on the principal amount and gives you a set period within which you have to clear the due. You can take that money and invest in it, growing your business, producing more goods and services for your businesses, and increasing your sales over time. It gives you a kick-start to your business and helps you overcome the cutthroat competition in the business world. What are the benefits of taking a business loan during the festival season? Since the festival is around the corner, you need to meet consumer demands effectively. And for that, you need to ensure that you produce more products, focus on providing quality services, and tackle the marketplace. Here are some benefits of getting an online business loan this festival: High loan amount: Banks offer you a high loan amount to help you invest more in your business venture. The loan amount can go up to as high as 50 lakhs. In some cases, if your credentials are strong and your business is profitable, then the loan amount can be stretched to even 1 crore. In addition, various government schemes also focus on providing you with high loan amounts and charging you minimal interest rates. No collateral: Since most business loans are unsecured, there is no need for collateral or any type of security deposit while applying for it. This is a benefit for you if you are a new entrepreneur and you lack collateral of any kind to make a start. Low rate of interest: The rate of interest on most business loans is quite low to make sure that your maximum money is invested in your business. You have to deposit a minimum amount of money as instalments and the rest you can use to grow your business. Mostly, the interest rate that most banks charge is between 15 per cent per annum to 20 per cent per annum. You can also look for government schemes that subsidise more so that you don’t have to pay high interest. Quick disbursal: The approval process is quite fast and you can get your money disbursed within a day Or sometimes, within two to three days. If your credentials are well and the bank has special offers for the festive season, then you can get approval in lesser time. How to scale up your small business with a business loan during the festive season? With increasing consumer demand, you have to make sure that you focus more on the quantity part along with maintaining the quality of your products. And to do all of that, it takes a good strategy and smart financing choices. Invest in equipment: Especially, to increase the production of products to meet customer demands, you need to buy more equipment. The new equipment will be more efficient than the previous ones and help you produce on a large scale. Invest in the workforce: The best way to intensify the whole process, you need to hire more workers. Hiring more workers will not only increase production but also fasten the process. You have to make your inventory full of your goods so that when the time of sale comes, all you have to do is focus on selling more products. Invest in manufacturing: Invest the money you take from the business loan in your manufacturing sector as well to produce more goods and keep it in surplus for your inventory. Make sure you have all the raw materials and other requirements to produce more goods in bulk. Invest in advertising and marketing: This is a very effective and huge step to increase your sales and take it to the roof. Advertising your product will let people know about your products and offers, and will bring more customers to you. This will amplify your sales and to even fasten the process, you need to market that effectively. Make sure that you don’t invest a lot of money in advertising, and focus more on product manufacturing. Website creation: If you have always wanted to have your business website, this is the right opportunity and the right time to do so. You can use a small part of this business loan to invest in creating a website for yourself. Make your website appealing, curate it, and add your social media handles to increase insights and traffic on your website. [B-02] Summing it up During the festive season, you have to make sure that your inventory is always in surplus and that you never run out of any raw materials. Use the business loan to curate your website as well so that you can connect with more customers who would like to purchase your goods. If you can manage home delivery services in your city, that would even help you increase your sales. If you liked this article, and you want to read more on this topic, you can visit Piramal Finance. It has ample content on personal finance, investment schemes, loan systems, stock market information, etc.
08-11-2023
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How To?

How to Transfer EPF Online Through EPFO Portal?

The Indian government would pay the employer and employee contributions to employees’ EPF accounts. For an additional three months, from June to August 2020, the edge goes to businesses with fewer than 100 employees, 90% of whom make less than Rs 15000 a month in pay. Non-government organisations now only contribute 10% instead of 12% to the EPF. An individual can open a Public Provident Fund (PPF) or Employee Provident Fund (EPF) account. Both require the employer and employee to contribute a portion of their earnings. Because of their E-E-E (exempt-exempt-exempt) nature, Employee Provident Funds (EPF) are a great option for paid individuals. It was decided that making investments in EPF, earning interest through EPF, and withdrawing from EPF after five years were all privileges. This article describes the process of performing a PF transfer online. Keep reading to learn more about it. Required Form for PF Transfer Transferring PF monies across accounts necessitates the use of Form 13. To transfer their PF balance from their old account to the new one. When salaried individuals switch employers covered by the EPF Scheme, they must fill out this form. This is very vital. EPA Form 13 The EPF offers a transfer form called EPF Form 13 that can be received in person or online. Fill out the PF Form 13 and submit it to transfer the EPF account. Qualification for PF Transfer Employees are required to confirm that their registered mobile number and UAN are operational on the EPFO portal. When requesting a transfer The PF subscriber must sync any bank information that has been confirmed by the company, such as bank account information and an IFSC number. On the EPFO website, the employee must enter their Aadhaar data. The site should show the joining and departing dates of the PF participant. Additionally, the worker must give their reason for quitting. Please keep in mind that the EPFO portal only permits one PF transfer request to be submitted at a time. Now that customers are aware of how to move PF online, it’s time to identify the paperwork you’ll require to ensure that everything goes smoothly. Below is a list of the paperwork needed for the online PF move process. Alternatives for PF Transfer For PF transfer, there are primarily two approaches: PF Offline Transfer The employee must fill out the PF Form 13 with all pertinent information and submit it to the current employer to use the offline PF transfer option. Following that, the existing employer will send the application to the EPF office. The form will then be sent to the former employer by the EPF office for verification. After receiving confirmation and attestation from the prior employer, the EPF office will transfer the remaining funds from the old account to the new one. There is no need for copies of the applicant’s UAN or Aadhaar card. When a person has numerous staff IDs, the EPFO assigns each employee a UAN, which acts as a unique identification number. Online Transfer Claim Portal (OTCP) A method for transferring PF funds online. To use this helpful online portal, the PF member does not need to provide their UAN, Aadhaar, or other documentation. By attempting to submit a few financial details and employment information, you can transfer your PF. One Employee, One EPF Account: This regulation was put in place to prevent confusion brought on by having numerous PF subscriber data. All current PF accounts will be included in this endeavour, according to EPFO. The PF members’ ability to submit multiple PF transfer applications helps achieve this. Automatic EPF balance transfers are only possible when transferring a PF account from another account, and they require the subscriber’s UAN. The subscriber doesn’t have to exert much effort during this process. The PF will be allocated when their new employer enters their UAN into the system. Pension Plan for Employees The Compensation Act of 1952 specifies how an Employees Provident Fund (EPF) operates. Organisations with 20 or more employees must follow it. However, other organisations may voluntarily take part in this programme. This organization might join a government-approved project, or it might launch a retirement program to build trust. Each one of the known Provident Fund Schemes requires official approval from the Commissioner of Income Tax (CIT). Documentation Needed for an EPF Transfer Form 13 Revised, Universal Serial Number (UAN), Number of Establishment, Identity Verification (Aadhaar, PAN, or Driving License), Employer Information (must be Your Current Employer), Financial Institution Information, and PF Account Information (for both old and current accounts) How to Complete an Online EPF Transfer Form Step 1: Log in to the primary webpage of the EPFO portal using your credentials. Step 2: Once you’ve logged in, click the “Online Services” page. Then “Each Member – One EPF Account (Transfer Request)”. Step 3: Carefully go through all the data on the screen, then enter the details of the PF account to which the money will be transferred. step 4: To obtain the account details for the prior job, choose “Get Details” in. Step 5: Click on “Previous Employer,” then type the UAN and the final ID number. Step 6: Complete the online EPF Form 13 form. Step 7: To enable tracking of the application process, a tracking ID will be generated. Step 8: is to duplicate the form and sign it. After the date of procurement, the applicant has ten days to submit the aforementioned paperwork. Step 9: Both new and former employers must certify the data on the application. Step 10: Before the funds are moved to the new account, the information on the form must have the approval of both employers. [B-02] Conclusion It’s usual for workers to change jobs mid-career between PF-registered firms. But transferring PF rather than withdrawing it can help to protect it. Another key tax consideration is the fact that withdrawals from the PF done within five years of employment are taxed. Your UAN account is where all of the PF money from previous jobs is accumulated under several member IDs. The EPFO portal will save you the time it would take to look for your own money.
08-11-2023
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