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Personal Finance Calendar for Financial Year 2022

Financial Planning has become a major part of our life and it is almost necessary for long-term goal planning for the financial year 2022. However, managing finance also needs some research smart decision on the investor’s part. To ease your burden and help you make a better financial decision here is the calendar for the Financial year 2022.

Due to the second wave of the pandemic, we already lost 3 months of this financial year. But since the economy is now returning back to normalcy, we can hope to see some major financial trends this year.

June

The Central Board of Direct Taxes (CBDT) has extended the last date of filing Tax Deducted at Source (TDS) for the fourth quarter of FY 20-21. As per the official notice “The Statement of Deduction of Tax for the last quarter of the Financial Year 2020-21, required to be furnished on or before 31 st May 2021 under Rule 31A of the Rules, may be furnished on or before 30th June 2021”.

July

financial returns deadlines

While as per the initial instructions, the individual taxpayers were required to furnish their return of income for the Assessment Year 2021-22 by 31 July 2021. The last date for that has now been extended by the government. Thus, you can use this month to gauge your credit positions.

You can use this month to relax and can do some analysis on your past credit report. This way you can draw out a solid plan for yourself to build a better credit position.

credit score analysis

August

You have the whole month of august for you to plan for the upcoming tax deadlines in September. This is the month of Independence Day and many cultural programs are observed during the month. Enjoy the kite flying with your family on this Independence Day.

September

In September you can expect some serious work and should prepare yourself to face the challenges. The month is going to be enormous as there are deadlines for various tax filings. The last date of furnishing the 2nd advance tax FY21 is September 15. And hence you will need to pay all taxes before, in order to stick with the deadline.

Also, the deadline for the furnishing of the return of income for the Financial Year 2022 has been extended to September 30 from July 31, 2021. Even though the month of September is looking hectic already you can use the month of July and August to plan in advance.

October

Hey, the month of October is full of the festive season and all the sales and enthusiasm that comes with it. So, if you’ve been eyeing something that was a bit over your wallet, you can make those purchases now. You can make the most out of the festive discounts that will be up on offer in October. Save money buy smart during this discount season.

November

The winter has now begun in the country, the weather is beautiful for day-outs and a family picnic just sounds right. This Children’s Day, you could introduce your children to financial literacy by teaching them how to run a bank account.

The Audit assessors will have to file the income tax return before November 30. Earlier the date was October 31.

December

With the festive spirit of Christmas, the month of December in the calendar is here. The date for the 3rd advanced income tax installment to be furnished is December 15.

As you move to the new financial year 2022, take some time to look upon your finances for the year 2021. Try to come up with pointers for you to correct any financial behavior that you did not like. Do not forget to track your financial goals and position to see if you are moving in the desired direction.

January

As you move in the last leg of the calendar, keeping your tax investment proofs prepared is a good idea. These bills and coupons that you have collected during the year will help you to file for a tax refund.

Try to make 3 new year financial resolutions for the security of your future while keeping your long-term goals in mind. Also, try to come up with some short-term goals to ensure that you don’t stray from your financial goals.

February

Every year the new budget is released by the government in the month of February. This month is very important in terms of your financial plans for the new financial year. These policies will be affecting everything in the country including you. So a good analysis of the budget becomes crucial for you to figure out what will be affecting your finances and plan accordingly.

This Valentine’s Day, spend some quality time with your partner, and while a strict financial plan is good but a special day for your partner is not a bad idea. With all the loving memories move forward to execute your financial decisions collectively.

March

Spring is knocking on the door, it is time to say goodbye to your winter clothes and give a warm welcome to the upcoming warm weather. The march is here and the deadline for the 4th and final installment of advance taxes of the financial year 2022 is March 12. Pay the final installment of your advance tax and move forward with the tax planning for the next year.

For more such updates, keep watching this space!

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When and How to get a loan?

Loan

Short on cash? Whether it’s a trip you’ve been planning, a car you want, or just a sudden shortage of money there could be many reasons why a loan is your best option. In this article, we will discuss when the loan is right for you and how you can get financed.

Loan - What is it and How it works?

It is an agreement between the borrower and a lender, where the borrower borrows money from the lender. And the lender receives a legal document that ensures the repayment of the money borrowed. Both borrower and lender can be an organization or an individual.

Types of Loan

Types of loans

These can be classified into two types based on the security provided:

Secured Loan

In a Secured Loan, the borrower pledges security for the money that they are borrowing. Here, the securities are the assets that can be sold if the borrower defaults on the repayment of the loan. In this type of loan Lender have security for their money.

Unsecured Loan

Unsecured ones are riskier than Secured loans as per the lender’s perspective. These loans do not require collateral, however, the eligibility criteria are more strict in Unsecured than Secured Loan.

Further loans can also be categorized on the basis of their purpose. To list a few we have,

  • Education
  • Home
  • Personal
  • Car or Vehicle
  • Business

Different types of loans have a set of similar eligibility parameters along with other specific parameters according to the loan type. Also, every lender defines their eligibility criteria differently.

Types of Lender:

There are many financers in the market that provides loans. These financers can be categorized into:

  • Banks
  • NBFCs
  • Private Financers (Individuals or corporations)

Different finance offers different loan products i.e. different interest rates, tenure, collateral, etc.

Lenders

What financers look for while evaluating your application?

Before issuing any loan, every financer performs some eligibility checks on the borrower’s profile. In most cases financers are looking for profiles that have:

The interest rate is often based on the below features of a borrower’s profile.

CIBIL

Documents required

Loan application

For Salaried Applicants:

  • Application form with photograph
  • Identity and address proof
  • Last 6 months’ bank account statement
  • Latest Salary Slip
  • Form 16

For Self-Employed Applicants:

  • Application form with photograph
  • Identity and address proof
  • Last 6 months’ bank account statement
  • Proof of business
  • Business profile
  • Income Tax returns (self and business) for the last three years
  • Profit/loss statements and balance sheets of the last three years

When should you apply?

Before you apply for a loan, you should be aware of your financial situation. It is you who must pay back the amount later. Proper planning for your personal finances is necessary to ensure good financial health.

How to apply?

To apply for the loan, you can either go to the bank and talk to the bank officials or steer past all that and apply online. We will discuss the procedure in the following steps:

  1. Choose the lender you’d wish to borrow from that supported your research and check for your eligibility.
  2. To apply, you should visit their bank branch or go through their official website.
  3. Read the form carefully before signing in anything.
  4. Submit or upload all the necessary documents mentioned in the application form.
  5. Wait for the bank’s response, it can take from few minutes to few days. The bank will process your application and respond accordingly in a stipulated time.

It is always advisable to read all the documents carefully and discuss every clause thoroughly until nothing remains vague. Never take a loan unless you absolutely need it. Defaulting on the EMIs can lead to an unpleasant situation that is not good for your financial and mental well-being.

For more such updates, keep watching this space!

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What if you miss an EMI?

So, you missed an EMI! For many of us, there are times when things don’t go well with the plan. While missing an EMI is quite common but nobody wants to end up as a defaulter.

Who is Defaulter?

Failing to pay multiple due EMIs (Equated monthly installments) in a timely manner and the inability to pay future EMIs during the grace period can incur the title of a Defaulter.

While some lenders offer flexible policy plans for this case most don’t and take action. So once your payment day passes you can expect to receive a call or mail from your lender as a reminder. If this is the first time you have missed an EMI you might be able to pay no fine. However, if a period of 120 days has passed since the default notice, the creditor will send a letter of demand claiming the full amount in payment.

Loan Default is categorized into two types:

Major Default

Non-payment of the loan EMI for more than 90 days is considered a major default. This can hamper your future ability to take loans and also affect your overall financial health.

Minor Default

Non-payment of a loan EMI for less than 90 days is referred to as Minor Default.

How the nature of your loan affects default?

Your loan can be classified into a secured loan, and an unsecured loan.

Secured Loan

In case of a secure loan like home loan, loan against property, and car loan. If there is a repeated case of default, the Legal rights of the property or the car is handed over to the lender. In case, where assets like gold, share, or other investments are pledged, the lender has the right to sell them off to recover their losses. However, before such actions, they will send you a final notice to pay the loan in a specified time.

Unsecured Loan

If you don’t pledge any asset or there is no guarantor involved then the loan is unsecured. Defaulting, in this case, can lead to the following possibilities:

  1. An increased interest rate: The lender has the right to add additional fines and charges on your due payment.
  2. Low CIBIL score: An EMI default can lower your CIBIL score and reduce your future ability to take a loan.
  3. Collection Agencies: Some lenders turn to collection agencies to recover their money. These agencies can contact you via call, email, or even home visits.
  4. A lawsuit: Some lenders who don’t recover their money may sue defaulting borrowers. This can make the borrower pay the outstanding amount along with the legal fees and charges.
money bank

What to do?

If you have defaulted on a loan or are expecting to default for whatever reason. You need to calm down and plan your actions to come out of this situation. Following steps are advisable in such a situation:

  1. Figure out your expenditure and understand how you are unable to make the payment.
  2. Communicate with the lender: Explain the reason for your loan default and work out a solution that benefits both of you. Some lenders have a flexible policy and they may figure out a solution for you to maintain your EMIs.
  3. Refinancing: Many financial institutions offer refinancing for your ongoing loan. When a new financer pays your outstanding loan to your old lender and opens a new loan for you at a new interest rate and duration of the loan, this is called refinancing. It gives you the ability to lower your EMI amount. However, most financial institutions expect you to have a good CIBIL score for refinancing.

For more such updates, keep watching this space!

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New Income Tax Portal!

Isn’t it exciting! Income Tax has launched a new portal for e-filing. It is named ‘e-filing2.0’. What are the new changes? Will it be easier to use than the previous one. Let’s discuss and learn more about it.

Income Tax Portal is in its initial stage, So there may be some issues sometimes like delay in opening the website, slow in filling the detail. So if you are facing these issues and worried about how to file your returns, you can choose the offline option for now. Infosys has said and regretted these glitches. The new URL for the website is www.incometax.gov.in.

About Portal

Despite all these glitches, the new portal is very much sorted in comparison to the previous one. Representation of the portal is very effective. Additionally, there are many videos for awareness about different income tax topics and processes. You will find some sections like:

  • Dashboard
  • e-file
  • Authorized Partners
  • Services
  • Pending Actions
  • Grievances
  • Help

For News and updates, you have to scroll down and access the folder. All the resources are mentioned for ITR related problems.

How to Log In?

As for the user id, you can use the PAN card number or the Aadhar number which is linked. Thereafter, you will receive an access message. After that entering your password you will be completely logged in.

You will need to update your profile step by step. You will find a dashboard and a Modified “You ask and we Answer” section in it. By clicking on this section you can ask all the queries related to income tax file returns and other services provided. you will not need any professional guide for the problems, only by visiting and learning the portal you will be able to do all of it by yourself.

Modes

This is the main attraction of the portal in comparison to the previous portal. It is very much user-friendly now. You will need to select a mode of filing to proceed. There are two modes mentioned in the portal

  • Offline (using HTML utility)
  • Online (recommended)

You will then need to choose your type of income tax form according to your income. If you do not know which type of form you should fill then help is there to help you out. Some beneficial services will be available only when the profile update is done 100%. The new portal also includes all-new mobile app services for tax-related issues. File your returns now in a more easy manner!

For more updates like these, keep watching this space!

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The Country, El Salvador Legally Accepting Bitcoin as its Currency

Why is Nayib Bukele in the news?

The President of El Salvador country is Mr. Nayib Bukele. He said that Bitcoin will be considered as legal tender. He is sending the bill to the parliament to make it national currency. The Party named New Ideas Party enjoys a super majority in the legislature of El Salvador. Hence there is a strong likelihood that the bill will pass and bitcoin will be the national currency. It is a small country in Central America. The capital of El Salvador is San Salvador which is also the most populous city in it. The country shares a boundary with Guatemala in the southern and Honduras in the eastern.

Why is it needed? Let's have a look in detail

Bukele bitcoin

As the president will send the bill to parliament and if the bill approves then Salvador will become the first country with bitcoin as a national currency. It will be the first to adopt a virtual currency. There are three nations Panama, Ecuador, and El Salvador which have dollarized economy.

President says that for the short term it will create more employments and help provide financial inclusion to thousands of people who are outside the formal economy.

What does the tweet say?

President also tweeted about this big decision saying that Bitcoin has a market capitalization of $680 billion dollars. If we invest in it, it will further help the country’s GDP growth.

For more updates like this, keep watching this space!

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How to get Instant Personal Loan!

In our lives, we all have been in situations where we were in desperate need of money. In this article, we will explore what other options we have to ease our finances, how to get a Personal Loan instantly, and the role of CIBIL Score. Though they are many advertisements we see every day on both online and offline mediums. But availing of these Personal Loans without due knowledge may backfire.

How Banks and NBFCs are different from each other?

Banks are the organizations that offer saving accounts, current accounts, loans, and other financial products. In India Banks operate with the permission of the Reserve Bank of India. Banks can be classified into Government-owned, private banks, and cooperative banks.

NBFCs or Non-Banking Financial Companies

These are private financial institutions offering various financial Products. They are only limited to offer loans and fixed deposits. NBFCs operate in India as per the Indian Banking Laws. They offer loans at a higher interest rate than banks and usually have easier eligibility criteria.

Now, we know the difference between banks and NBFCs. There are many websites and apps working as third-party providers. These third-party providers take big loans from Banks and distribute that money into smaller loans or personal loans to be precise. They offer these small personal loans to consumers for a short period i.e. few months. However, the Interest rate is usually high on these platforms.

loan application

As consumers, we can seek loans from any of these providers. But before taking any loans, always do your own research about the Institution and the product. The few important factors are the reputation of the financer, interest rate, duration of the loan, etc.

Instant Personal Loan

Instant Loans are short-term, small loans that can be availed from the comfort of our home. There are banks, NBFCs, and other third-party platforms that are offering such loans. But not all platforms are alike.

Now that you have done the research and short-listed a few financers. We need the knowledge of the CIBIL score.

Personal Loan Thumbnail

What is CIBIL Score and How it affects your Personal Loan?

CIBIL Score (or Credit Score) is given by the TransUnion CIBIL. This score represents the credibility of the loan seeker. It is based on the past performance of an individual’s loan payments. Hence, the higher the CIBIL Score greater the odds of loan and the lower the interest rate.

CIBIL

It is advisable to maintain a good CIBIL Score. We must plan our finances accordingly to ensure a good CIBIL Score. Timely payment of EMI is one great habit to maintain a good CIBIL Score.

Loan Application

When we apply for a loan, Financial Institutions assess our loan application over certain parameters like employment status, salary, CIBIL Score, etc. One can check the CIBIL Score of anyone using the Pan Number of the subject.

All the institutions ask loan seekers for certain documents. These documents include PAN card, Aadhar Card, account information ( i.e. bank statement or passbook), etc. These documents are then verified and only after the verification, our loan is processed.

Who should you approach?

It is always advisable to only avail loans from credible government-approved institutions. There have been many reports of incidents where financers were accused of exploiting consumer’s rights. Nevertheless maintaining a good CIBIL Score will help in your future of the odds of getting any loans.

Below are few platforms that offer instant loans. But always do your own research before availing of any loan.

Government Banks

  • State Bank of India
  • Central Bank of India
  • Punjab National Bank
  • Bank of Baroda
  • Corporation Bank
  • Canara Bank

Private Banks

  • Kotak Bank
  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Yes Bank
  • RBL Bank

NBFC

  • Tata Capital
  • Mahindra Finance
  • HDB Finance Services
  • Aditya Birla Capital
  • Bajaj FinServ

Third-Party Platforms

  • Dhani
  • Home Credit
  • MoneyTap

Kindly read every loan-related documents carefully before signing. This is not a promotional article for any of the institutions mentioned above.

For more updates like these, keep watching this space!

Contact us to get more knowledge about everything related to Personal Loans and more. or you can directly apply on our website.

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G7 Nations announce minimum Corporate Tax – 15 percent.

In a historic deal on June 5, 2021. The G7 nations announce their agreement on a common global minimum corporate tax of at least 15 percent. This much-awaited proposal will help to limit the extent of global tax evasion. In recent years of globalism, this evasion has arisen as a major concern for countries around the globe.

This meeting held at Buckingham on June 5, 2021. The G7 Finance Ministers agreed on a common consensus for the adoption of a common global minimum corporate tax rate.

The proposal contains two major parts.

The main part of the proposal states that the countries around the world should tax the overseas profit of their home companies. It will be at least 15 percent.

The other part of the proposal allows the countries to take a share of the profit earned by the foreign companies. It includes companies having no physical presence but earning substantial profits — for instance through selling digital advertisements.

global tax corporate summit

How will it help?

This initiative will reduce the practice of using accounting schemes to shift profits. Countries like Ireland, Bahamas, the British Virgin Islands, and other Caribbean Islands are well known for their low corporate taxes. For example, Ireland has corporate tax as low as 12.5 percent. This is much lower than the proposed minimum global corporate tax rate.

What does the proposal speak?

As per the proposal, Multinational Companies will pay taxes to the nations having their physical as well as an online presence.

Few countries have introduced a certain digital service tariff on such companies in their countries. However, this agreement expects countries to revoke their respective digital tariffs after the imposition of global corporate tax. USA, claims that these digital service tariffs are unfair. And singles out American Tech companies like Google, Amazon, and Facebook.

The tax agreement is expected to be proposed in the next session of the meeting of G20 countries. The new global corporate tax requires its implementation globally. Although, some developing countries have their concerns against this decision.

 

For more updates like these, keep watching this space!

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Home loan and EMI strategies!

Whenever we take a home loan, there come certain questions in our minds. You will find some of your answers in this article. For example: What should be the future strategy to pay my home loan? Should I pay the maximum amount of down payment? Should we pay off or continue?

Is it a good idea to get a home loan?

A home loan is an incredibly significant scheme. The government promotes that every citizen has their home in which home loan serves as the best helping tool. This facility is provided by Banks and NBFCs at a very nominal rate. Home loan in fact is the least expensive loan when we compare it to car loans, business loans, personal loans, and education loans.

Under section 80c and section 24 in the constitution, the government provides many kinds of rebates for home loans. So, a Home loan is a good idea provided we pay the EMIs regularly.

Should we pay off and foreclose?

You need to analyze if you have any big amount of expense in near future i.e education fee, wedding, etc. Suppose you have lump sum liquidity available. And in near future, you need your money for your education fee. So, in that case, you should not pay off your home loan. The important purpose should not suffer. Do not stick up your money in a home loan.

Income tax rebate fall

If you are paying much amount of money as your tax payment, then continuing a home loan is an incredibly wise idea. There are some sections in our constitution regarding income tax. According to those sections, you can get benefits up to 3.5 lakhs on single properties, and the profits included in the last budget give benefits of rupees 5 lakh on two properties. It means you can reduce your taxable income up to 5 lakh rupees. Continue the loan and do not pay it off if you pay lots of income tax.

Payment in parts

If you receive a big amount of liquidity, it is always a wise idea to divide it into payment and investment. With this strategy not only you make long-term returns but also you will use the benefits of section 80c. Use the part payment process in a disciplined manner.

Now we will discuss few points on how a new or an existing home loan borrower can reduce the EMI of their home loan.

Investment Loan

What should you do if

You are a new Home Loan borrower

Firstly, you should find a lender who can provide a home loan at a lower interest rate. It is an overly complicated job to find an appropriate lender.

Let us gather few ideas which can help you get a good deal on home loans.

  1. Try to opt for a longer repayment duration on your loan – However, in longer tenure borrowers end up paying more interest that is why you should opt for longer tenure only if you are not able to afford EMI. You may try to maximize your EMI payments but not more than what you are able to pay every month.
  2. Analyze the rates of Interest offline as well as throughout the internet – When you do your home loan research there may be good offers through your agents but there is also another way to check it online as well and have a summarized look at the rates of interest, fee and other charges of different lenders. Thorough research will ensure you the best deal for your home loan.
  3. Make a bigger down payment – As home loan lenders are allowed to finance up to 80-90% of the property’s value and those who are looking to avail a home loan have to contribute a minimum of 10-20% as a down payment. So, instead of arranging just the minimum down payment, it would be prudent to provide a higher contribution from your own pocket.

 

The higher you contribute as a down payment, the lower your LTV ratio will be.

LTV ratio- Loan to Value Ratio. It means the ratio of a loan to the value of the property purchased and the loan amount required would be. Consequently, it will increase your loan eligibility and enhances the chances of loan approval. Do not overstretch your finances in order to make a higher down payment.

home_loan

What should you do if

You are an existing Home Loan borrower

Few simple steps to follow in case of existing Home Loan borrowers are -
  1. Refinance the loan by changing your lender – If you think you have taken a loan at a high-interest rate you always have an option to refinance it. Banks offer interest rates based on the MCLR regime which changes from lender to lender.
  2. Negotiate the service terms with the existing lender – You need to maintain a good relationship with your existing lender, you can negotiate the service terms of the home loan. This way you may be able to procure lower interest rates on your loan amount.
  3. Make your home loan prepayment from time to time – It is important to repay your loan payment on time because it reflects in your credit history. it also reduces the loan liability.

For more such information, keep watching this space!